Rami Levy Real Estate profit falls 53%, company targets doubling NOI within 4 years

Rami Levy Real Estate, operating in the income-producing and residential sectors, released its financial results for the second quarter of 2026. The report highlights another quarter of double-digit growth in operational parameters, including NOI and FFO, alongside increased gross profit from apartment sales and higher profits from current operations, excluding negative securities portfolio revaluation.

The company announced it is actively implementing a significant development plan for its income-producing assets, which is expected to double its NOI within just 4 years.

Key Financial Results for Q2 2026

NOI attributable to owners (including associated companies) rose by approximately 21% to 28 million shekels, compared to 23 million shekels in the same quarter last year. This growth was driven by the first occupancy of assets in Ofakim and Pardes Hanna, revenue growth, and real rent increases. The company reaffirms its 2026 NOI forecast of approximately 114 million shekels.

FFO (management approach) rose by 38% to 15.3 million shekels, up from 11.1 million shekels in the corresponding quarter last year. Operating profit increased by 18% to 41.2 million shekels.

Net profit attributable to shareholders was approximately 23 million shekels, compared to 49 million shekels in the same quarter last year. The decline in net profit is primarily attributed to the fair value changes in the securities portfolio—specifically, a 5 million shekel decrease this quarter compared to a 33 million shekel gain in the same period last year, largely due to revaluation of the investment in Discount Investment Corporation (DIC).

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Development and Business Strategy

The company is currently executing 4 residential projects totaling 670 units (company share: 483 units), with an expected gross profit of 586 million shekels (company share) by 2030. In urban renewal, the company has several projects in various planning stages totaling approximately 3,600 units.

In the income-producing sector, 7 projects (62,000 sqm) are under construction, expected to yield an additional 53 million shekels in annual NOI by 2028. An additional 14 projects (98,000 sqm) are in planning, expected to contribute 61 million shekels in annual NOI by 2030.

Recent Developments

In August 2026, the company signed an agreement to acquire 80% control of 'Reshit Bniya', a contracting firm, to strengthen execution capabilities. Simultaneously, the board approved a 5-year lease for a 16,000 sqm logistics center in Beit Shemesh (Har-Tuv) at an annual rent of 9 million shekels. The board also announced a 15 million shekel dividend distribution.

Moti Hazan, CEO of Rami Levy Real Estate, stated: "We are in the midst of significant development momentum. The acquisition of 'Reshit Bniya' is a strategic move to strengthen our execution capabilities. We continue to actively examine business opportunities to expand our asset portfolio and create long-term value for shareholders."