Druze riots in the Golan thwarted a wind farm project and pushed Alony Hetz into a loss

Druze riots on the Golan Heights thwarted the construction of a wind turbine project by Alony Hetz's subsidiary, Energix, and recently resulted in an impairment of 185 million shekels. Following the riots at the wind turbine project site, which also led to the injury of police officers, Energix was forced to reduce the project's probability to less than 50% and send the turbines it had ordered and planned to install at the site to be built in Lithuania.

The aforementioned riots occurred at the company's Aran project for the construction of a 104-megawatt wind farm during last May (the second quarter). Previously, during the first quarter, Energix reported in its financial statements that the complex had been declared a closed military zone during Operation "Lion's Roar". Later, in May, the company resumed construction work on the project in coordination with the Israel Police and accompanied by private security firms.

"During the execution of the construction work, there were disturbances and violent resistance, in violation of the law, by a group of violent rioters from the Druze community on the Golan Heights, which included, among other things, attacks and threats that injured some of those present at the site, including police officers who required medical treatment. Damage was also caused to property, including the arson of work tools and contractors' vehicles at the site. In light of these events, construction work was stopped."

It is evident that the heavy economic loss caused to Energix also led the parent company — the holding company Alony Hetz (49.4%), whose two largest shareholders are Aaron Frenkel (17%) and CEO Nathan Hetz (12%) — to recognize it and record a loss attributable to shareholders in the second quarter of 178 million shekels, compared to a net profit of 134 million shekels in the same quarter last year.

In the first half of 2026, Alony Hetz recorded a loss of 102 million shekels, compared to a net profit of 201 million shekels in the same period last year. The company will distribute a dividend of 52 million shekels to shareholders.

Impairment of land in England

Alony Hetz has holdings in the fields of income-producing real estate (control of Amot, the Carr company in the USA, and Brockton Everlast in England) and, as mentioned, in the field of renewable energy (Energix).

Alony Hetz's total revenue through its holdings in the second quarter from rent and investment property management amounted to 486 million shekels, an increase of 39% compared to the same period last year. The company recorded fair value adjustments of 9.7 million shekels, a decrease of 97% compared to the same quarter.

In the second quarter, Alony Hetz recorded an impairment of 188 million shekels due to a reduction in the value of land for development in England held by Brockton Everlast. The reduction in value was due to the rise in yields on long-term UK government bonds as well as a write-off regarding the project on the Golan Heights, which was stopped against the backdrop of the Druze riots.

Progress in the ToHa2 tower

Company CEO Nathan Hetz stated that in Israel, there is progress in the ToHa2 tower that the company is building in Tel Aviv. According to him, the tower is expected to open at the beginning of 2027 as planned: "As of today, contracts have been signed, and advanced negotiations are underway towards signing for about 75% of the areas for marketing."

Hetz also added that "Brockton (in England) is advancing in the initiation of projects with the continued construction of the Dovetail building in London, and continues to promote a plan to increase building rights for development projects it owns, with an emphasis on the science park in Cambridge."

However, he noted that the quarter's results were negatively affected by the impairment in Brockton, which was caused by the UK government bond yield prices and the reduction in the Aran project on the Golan.

Alony Hetz's stock has lost about 24% since the beginning of the year and has recorded a return of 10% over the last three years. The company's market value stands at 6.7 billion shekels, while the position that Aaron Frenkel has built gradually is currently worth 1.1 billion shekels, and Nathan Hetz's holdings are worth 820 million shekels.