After shares plunged by nearly 10%: Sonol Real Estate increases profits
After recording a drop of nearly 10% in its value over the last three months, the Israeli company published its financial results and presented an impressive increase in equity, which reached hundreds of millions of shekels.
Sonol Real Estate, which operates in the income-producing real estate sector in Israel, published its financial results for the first half of 2026. The results indicate growth in NOI as a result of an increase in rent and the index, a double-digit increase in AFFO influenced by the decrease in interest expenses, and an increase in profits. Let us recall that Sonol Real Estate shares fell by 9.08% in the past month and plunged by 9.84% in the last three months.
According to the data, the NOI in the second quarter of 2026 grew by about 6% to 14.1 million NIS, compared to 13.3 million NIS in the corresponding quarter last year, mainly as a result of an increase in rent and the rise of the index. Operating profit in the second quarter of 2026 rose to 12.6 million NIS, compared to 12.3 million NIS in the corresponding quarter last year. The increase in operating profit was influenced by the aforementioned growth in revenues, which was partially offset by the increase in general and administrative expenses.
AFFO in the second quarter of 2026 rose by about 18% to 9.9 million NIS, compared to 8.4 million NIS in the corresponding quarter last year. The increase in AFFO stemmed from the growth in NOI and a decrease in net interest expenses following debt refinancing and the company's share issuance last year. Net profit in the second quarter of 2026 amounted to 7.7 million NIS compared to 7.9 million NIS in the corresponding quarter last year, as a result of an increase in financing expenses due to index linkage differences on bonds.
NOI in the first half of 2026 grew by about 5% to 28 million NIS, compared to 26.5 million NIS in the corresponding period last year, as a result of the increase in rent and the rise of the index. Operating profit in the first half of 2026 rose slightly to 25.1 million NIS, compared to 24.5 million NIS in the corresponding period last year. The increase in operating profit was influenced by the growth in revenues, which was partially offset by the increase in operating expenses. Net profit in the first half of 2026 rose by about 10% to a total of 17.1 million NIS compared to 15.5 million NIS in the corresponding period last year.
The report also shows that AFFO in the first half of 2026 rose by about 20% to 19.6 million NIS, compared to 16.4 million NIS in the corresponding period last year. The increase stemmed from the growth in NOI and a decrease in net interest expenses.
The company's equity rose to 850 million NIS, compared to 684 million NIS at the end of the corresponding quarter last year. The increase in equity stemmed mainly from the initial public offering (IPO) in October last year. The equity-to-balance ratio stands at about 77%.
The company has cash, cash equivalents, and financial assets in a total amount of 116 million NIS, mainly from the proceeds of the share and bond issuance carried out by the company in the second half of 2025, minus the early repayment of owner loans. The company has a net financial debt of 99 million NIS. The net financial debt to net CAP ratio stands at about 11%.
