Stock down 50%: Electra Real Estate sells property at a $1 million loss

Electra Real Estate is continuing its divestment of assets in the United States. The company has signed a deal to sell all rights to a residential complex comprising 306 housing units in San Antonio, Texas, for approximately $36.9 million. The property, held through the second fund for investments in US residential complexes, was acquired in March 2019 for approximately $35.5 million. The equity originally invested in the project stood at approximately $15.3 million, effectively confirming a loss.

While the sale price is slightly higher than the purchase price, the long holding period has resulted in significant capital erosion. The company stated that the free cash flow from the asset's realization will amount to approximately $6.9 million. When adding current distributions of approximately $9.3 million accumulated over the years, the total cash flow generated for investors reaches approximately $16.2 million. These figures reflect an annual yield (IRR) at the property level of only 1.4% and an equity multiple of 1.06 — a particularly lukewarm result for an investment period exceeding seven years.

Electra Real Estate, managed by Amir Yaniv, expects to record a loss of approximately $1 million in its financial reports for the third quarter of 2026 as a result of the transaction's completion.

Electra Real Estate is controlled by Elco (the Zalkind brothers) and specializes in US residential complexes. Just a few weeks ago, the company completed a fundraising round of approximately 150 million shekels, shortly after canceling a public offering of shares and options.

Electra Real Estate's stock has fallen by over 27% this month. Since the beginning of the year, its value has dropped by more than 50%, with the share price currently standing at 23.21 shekels.