After a loss of millions of shekels: Azorim Living reports 148% jump in net profit
Azorim Living, which moved from a heavy loss of millions of shekels to a net profit of tens of millions, reveals its second-quarter 2026 data and reports an occupancy rate of nearly 100% across its properties.
Azorim Living reported today, Tuesday, its financial results for the second quarter and the first half of 2026. According to the data, revenues totaled 17.7 million NIS in the second quarter, an increase of 4.7% compared to 16.9 million NIS in the same quarter last year.
The profit from renting and operating properties (NOI) rose to 16.1 million NIS, an increase of 4.6% compared to 15.4 million NIS in the same quarter last year. A value increase of 15.7 million NIS was recorded in the fair value of investment real estate and properties under construction. Operating profit rose to 29 million NIS in the second quarter, an increase of 7.4% compared to 27 million NIS in the same quarter last year.
Net profit grew to 14.1 million NIS, an increase of 148% compared to 5.7 million NIS in the same quarter last year. The FFO for the second quarter of 2026 reflects an annual rate of 30 million NIS and is expected to grow to 36 million NIS upon the occupancy of the property in Park HaYam, Bat Yam, expected later in 2026. As of June 30, 2026, the company holds 920 income-generating housing units at an average occupancy rate of 99.7%.
Equity attributable to shareholders totaled 1,094 million NIS, and the company maintains liquidity balances of 80 million NIS. Net financing expenses decreased to 15 million NIS, compared to 21.3 million NIS in the same quarter last year, mainly due to the capitalization of financing for projects that began construction in 2025. Leverage remains stable at approximately 66.7% net financial debt to CAP.
Revenues for the first half of 2026 grew by 5.7% to 35.2 million NIS, compared to 33.3 million NIS in the same period last year. The NOI rose to 31.7 million NIS, while FFO according to the management approach totaled 14.3 million NIS, compared to 3 million NIS in the same period. Net profit for the half-year reached 24.2 million NIS, compared to a loss of 12.8 million NIS in the first half of 2025.
Eran Anavim, CEO of Azorim Living, stated:
"The results in the first half of 2026 reflect a significant change in the quality and pace of the company's activity. The growth in income-generating properties and the progress of projects under execution have led to an improvement in net profit and FFO. The portfolio we have built continues to mature and generates an increasing contribution to the company's results."
He added that the rental housing market in Israel is undergoing a conceptual shift, returning to being an attractive investment product for institutional entities. High demand for rental apartments against decreasing supply is driving a continuous increase in rental prices, while the trend of falling interest rates strengthens the sector's appeal as a source of long-term yield and cash flow.
