Electra Real Estate Plummets 75% in Four Months to 1.06 Billion NIS
Electra Real Estate shares plummeted, losing 75% of value in four months to 1.06 billion NIS. Institutional investors like Menora face heavy paper losses amid rising US bond yields and modest fund returns.
Electra Real Estate has lost approximately 75% of its market value in just four months since last May, plunging to a valuation of 1.06 billion NIS—its lowest level in five years. Today, the company's stock plummeted by 15.9%, completing a drop of over 30% since the beginning of September. Controlled by Elco (49%) through brothers Mikey and Danny Zalkind, the real estate firm operates four investment funds in the United States, raising capital primarily from Israeli institutional entities to acquire, upgrade, and rent properties.
Institutional Losses and Market Pressures
At the end of the first half of the year, the company managed about 37,000 housing units with a total value of 9.7 billion dollars. The sharp stock drop is causing paper losses for all institutional entities holding stakes in the firm. Migdal holds 9.5% of Electra Real Estate, Menora holds 8.5%, Clal holds 7.1%, Harel holds 6.3%, Phoenix holds 6%, and Analyst holds 4.5%. Menora is among the hardest hit, having invested 120 million NIS in a stock and options issuance last July at 35 NIS per share. With the stock falling to 15.5 NIS, Menora faces an unrealized loss of about 55%, roughly 65 million NIS in just two months.
"The sharp declines are attributed, among other things, to the relatively low yields achieved by the company's funds, which lead to lower performance fees, and a decreased probability of raising new funds."
Rising Yields and Financial Results
Simultaneously, the yield on 10-year US Treasury bonds climbed above 5%, a development that weighs heavily on leveraged real estate activity and explains part of Electra Real Estate's struggles. Managed by Amir Yaniv, the firm has recently faced criticism from institutional bodies over the lukewarm returns generated by some of its investments. Financial results further reflect these difficulties, as Electra Real Estate posted a loss of 23 million dollars in the first half of 2026, following a 48 million dollar loss for the entirety of 2025.
