The acrobatics of Amram Avraham: 31 million shekels of equity received a valuation of 370 million shekels

The valuation conducted by BDO boosted the quarterly results of the construction company Amram. The real estate company, which is traded at a value of almost 3 billion shekels on the Tel Aviv Stock Exchange, reported its results for the second quarter of the year and presented a threefold jump in profit to 165 million shekels compared to 53 million shekels in the corresponding quarter. The company's revenues from the sale of apartments, land, and construction work totaled 742 million shekels, an increase of 7% compared to 694 million shekels in the corresponding quarter last year.

The improvement in the bottom line stemmed from a profit of almost 150 million shekels from the realization of control in a consolidated company — Amram et Nidam Urban Renewal. Amram et Nidam is an urban renewal company in which Amram Avraham held a controlling interest. On June 30, the shareholders' agreement was changed, and Amram Avraham waived exclusive control over Amram et Nidam and moved to joint control in equal parts with Eli Nidam — who is the controlling shareholder of the non-bank credit company Shoham Business. The waiver was made due to the desire to issue bonds for the urban renewal company, and led to the consolidation of the results of Amram et Nidam into the financial statements of Amram Avraham, and the presentation of the holding in it according to the equity method.

Following the move, Amram Avraham ordered a valuation for 50% of the shares of Amram et Nidam from the valuation company BDO, which gave them a value of 327 million shekels, which yielded an accounting profit of 149 million shekels, since a previous valuation of the subsidiary stood at only a few million. The equity of Amram et Nidam stood at 31 million shekels and it lost 3.2 million shekels in the first half of 2026. That is, the valuation relied mainly on the future potential of the backlog of urban renewal projects held by the company and not on its current results. Out of dozens of projects, 30 projects that had already passed the required threshold of tenant signatures were included in the model.

Amram Avraham is one of the largest entrepreneurial real estate companies in Israel, controlled by brothers Alon and Yoram Amram (33% each). In May 2024, the company completed a share issuance after raising 313 million shekels at a value of almost 1.6 billion shekels. Since the beginning of the year, the company's stock has fallen by 9.6% against the backdrop of a relative stagnation in the local real estate sector. In view of the high profitability presented by Amram Avraham, the company's stock jumped by 8% to a value of more than 3 billion shekels. The company is held by institutional investors such as Migdal (10.7%) and Phoenix (8%).

The accounting in Amram's report did indeed make the quarterly report particularly profitable, but these do not hide the difficulty in selling apartments. In the second quarter of 2026, Amram Avraham sold 199 housing units compared to 486 units in the corresponding quarter in 2025, a decrease of 59%. Within this, sales under the "Buyer's Price" program fell to 79 units compared to 409 units last year, a sharp decline that stems, according to the company, "mainly from the timing of projects being released for marketing." In the free market, the company sold 120 apartments compared to 73 apartments in the corresponding quarter, a jump of 64%. Compared to the first quarter of 2026, in which 105 apartments were sold in the free market, this is also an increase of 14%. In total, in January-June, Amram Avraham sold 225 apartments compared to 259 apartments in the corresponding period, a decrease of 13%.

According to Gilad Mano, manager of the Macro Value hedge fund, "The creative accounting of real estate companies in the last reporting season reached a new peak with the 'profit from loss of control' of Amram Avraham. The valuation that the company attached to its reports to turn a company with 31 million in equity into an asset worth 370 million shekels, which was apparently carried out by a third party, was based on 'company management estimates', based on estimates that do not match the current real estate market environment that suffers from a challenging interest rate environment and difficulty in sales. It is indeed legitimate to revalue at fair value in such a structural change, but when most of the value relies on projects in the planning stages, it is appropriate to be extra conservative, since in the real estate sector and especially in the field of urban renewal, in most projects companies do not meet the schedules due to bureaucratic obstacles and not the profitability rates they aspire to."

According to Noam Greif, CEO of Amram Avraham, the BDO valuation for the Amram Nidam company was determined "in a very conservative manner, while taking into account the interest rate environment and the stagnation in apartment prices." According to him, these are not speculative value expectations, but a backlog of more than 85 active urban renewal projects including about 27,000 units in the pipeline. In addition, he noted as evidence of the reliability of the data the audit by external bodies such as the firm Deloitte and the Securities Authority ahead of the bond prospectus.