Israel Canada reports: What weighed on the bottom line and how many apartments were sold in Sde Dov?
The hotel arm led Israel Canada to a half-year loss of 36 million shekels, despite a shift to profit in the second quarter. In the Rainbow project in Sde Dov, only 7 apartments were sold in the half-year, with a decrease in price per meter and a lowering of the profit forecast. The company presented the financing plan for the Acro deal and estimated that the exposure from the favorable payment terms for buyers is not material.
Israel Canada published its financial results for the second quarter of 2026 and the first half of the year. In the Rainbow project in the Sde Dov quarter (Tel Aviv), the company sold 3 apartments in the second quarter and a total of 7 apartments in the first half of 2026. For comparison, 59 apartments were sold in 2025 and 99 in 2024. A total of 275 apartments out of 459 have been sold in the project.
The average price per sq. m for the 3 apartments sold in the second quarter was 80.5 thousand shekels, a decrease from the previous quarter's average of 83.2 thousand shekels. In 2025, the average price was 85.6 thousand shekels, and in 2024, it was 83.2 thousand. After the reporting period, the company sold 5 additional apartments at an average price of 82.2 thousand shekels per meter. Israel Canada has revised its expected profit rate for the project downward to 19% (compared to 23% in 2024 and 20% in 2025).
In the Midtown Jerusalem project, the company sold 12 apartments in the second quarter and 29 in the first half (compared to 48 in 2025 and 88 in 2024). So far, 284 apartments out of 695 have been sold. The average price per sq. m in the second quarter was 72 thousand shekels (69.8 thousand in the first quarter). For comparison, the average price in 2025 was 78.2 thousand shekels, and in 2024, it was 71.8 thousand. The expected profit rate for the project has been updated to 21%.
Across all projects, Israel Canada sold 142 apartments in the first half of 2026 for a total of about 771 million shekels. In the second quarter, 56 apartments were sold for 322.3 million shekels (compared to 86 apartments for 448.8 million in the first quarter).
Regarding transactions with favorable payment terms, a financing component of 146 million shekels was calculated, with 6 million recognized in the first half of 2026. The company estimates that risks from payment terms are not material, though it notes that it is impossible to fully assess them at this stage. During the reporting period, four sales agreements totaling 15 million shekels were canceled.
Hotel business and net loss
Israel Canada ended the first half of 2026 with a net loss of about 36 million shekels, mainly due to hotel activity amid the security situation and industry seasonality. Operating and management costs for hotels jumped to 243.6 million shekels (compared to 168.4 million in the corresponding period). With the outbreak of Operation "Lion's Roar," the company faced booking cancellations and decreased occupancy, leading to efficiency measures.
In the second quarter alone, the company moved to a net profit of 22 million shekels. Excluding the hotel segment, the net profit would have been 42 million shekels. As of the report date, hotels have returned to full operation, and a recovery in occupancy is expected in the third quarter.
The merger with Acro
Israel Canada addressed the financing of the cash component for the Acro deal (announced in February 2026, with the merged company valued at 10 billion shekels). The deal consists of 60% shares and 40% cash. Financing plans include own funds, bank financing, asset realization, and debt raising. The companies have unused credit lines of 470 million shekels, and an additional cash flow of 600 million shekels is expected in 2027-2028 through asset realization and bringing in project partners.
