Real estate giant Gav-Yam reports 4.8% increase in rental rates
Gav-Yam released its Q2 2026 financial results, reporting an NOI of 208 million shekels and a 97% occupancy rate. CEO Natalie Mishan-Zakai highlighted the company's resilience in a challenging market and its progress toward three-year growth targets.
The Net Operating Income (NOI) of Gav-Yam increased by approximately 12% compared to the same quarter last year, while FFO rose by 9%. The occupancy rate remained high at 97%, with rental agreements on existing properties showing a 4.8% increase during the period, according to the company's latest financial report.
In the second quarter, NOI totaled approximately 208 million shekels, bringing the first-half total to 410 million shekels—a 12% increase year-over-year. NOI from identical properties grew by 6.4% during the first half of the year.
FFO attributable to shareholders reached 118 million shekels in the second quarter and 232 million shekels for the first half, marking a 9% increase compared to the same periods last year.
Revenues from the fair value adjustment of investment properties totaled 388 million shekels in the first half, driven by CPI increases, higher rental rates, and revaluations of properties under construction. EBITDA for the first half of 2026 stood at 382 million shekels, up 12.7% from 339 million shekels in the previous year. Net profit attributable to shareholders for the first half reached 395 million shekels.
During the first half of the year, the company raised approximately 3.1 billion shekels in debt, with a weighted average duration of 4.1 years and an average interest rate of about 2.4%.
The company signed 28 rental agreements for existing properties in the second quarter with an average real increase of 4.8%. In the first half, 84 agreements were signed with an average increase of 4.2%. Gav-Yam holds 1.3 million square meters of income-generating real estate in prime locations across the country.
Six projects are currently under development, totaling 260,000 square meters with an investment of 3.6 billion shekels, expected to generate 280 million shekels in annual revenue. In the ToHa2 project, 75% of the space is leased or in advanced negotiations.
Gav-Yam CEO Natalie Mishan-Zakai stated:
"Gav-Yam continues to deliver strong results in a challenging business environment. We are meeting the growth targets set at the beginning of 2026 and expect to fulfill our three-year forecast of a 50% increase in NOI and FFO attributable to shareholders."
High demand from AI-focused tech companies for office and lab space has prompted the company to plan seven additional projects totaling 296,000 square meters. This includes a new project on plot 103 in the Terra complex in Tel Aviv, which will further strengthen Gav-Yam's presence in the city's sought-after CBD.
