Real estate giant Amot updates forecast: What is happening in the office market
Amot Investments has updated its annual forecast, maintaining levels comparable to 2025, and reports a recovery in the office market. CEO Shimon Abudraham highlighted rising demand, particularly in Tel Aviv's central business district.
Amot Investments is one of the largest income-producing real estate companies in Israel. Despite the pressure of high interest rates, the second-quarter report for 2026 shows growth in both top and bottom lines. NOI (Net Operating Income) for the second quarter rose by approximately 3% compared to the same period last year, reaching 270 million shekels (up from 263 million). FFO (Funds From Operations), according to management's approach, increased by 4% to 212 million shekels, while net profit grew by 10% to 329 million shekels.
The company has updated its 2026 forecasts, assuming an annual CPI increase of about 2%. NOI is now expected to range between 1.070 and 1.080 billion shekels (compared to 1.06 billion last year), with FFO projected between 790 and 800 million shekels (compared to 802 million last year).
The increase in NOI is primarily attributed to higher revenues from existing properties. The total value of Amot's investment real estate stands at 22.1 billion shekels, with an occupancy rate of 91.9% (or 93.1% excluding assets completed in 2025). The company holds cash balances of approximately 750 million shekels.
The report signals a revival in the office sector: the company has signed contracts and is negotiating agreements for spaces expected to generate an additional 235 million shekels in annual revenue (Amot's share: 120 million shekels).
Three projects are currently under construction, totaling 167,000 square meters in company share: ToHa2, the Lehi complex in Bnei Brak, and the K complex in Jerusalem. The total expected investment is 3.2 billion shekels, with 1.9 billion already invested. An additional six projects are in the initiation phase (440,000 square meters, 1.1 billion shekels invested).
In June 2026, the company raised 707 million shekels through the expansion of bond series (Tet and Yod) with an effective interest rate of approximately 2.8% and a duration of 7 years. Amot intends to distribute a minimum annual dividend of 108 agorot per share in 2026, paid in quarterly installments of 27 agorot.
CEO Shimon Abudraham stated: "We are concluding the quarter with growth in operational parameters. With the completion of our projects, we expect annual NOI to rise to 1.4 billion shekels. In the office sector, we continue to see increased demand, particularly in the Tel Aviv CBD. The ToHa2 tower is set to open in early 2027, with 75% of the marketing area already under contract or in advanced negotiations."
Abudraham added that the logistics sector remains a stable pillar of the company's activity, and Amot continues to optimize its portfolio by divesting non-core assets and repurposing land for energy and data center use.
