Melisron reports growth: Nvidia deal and multi-billion forecasts
Melisron released its Q2 2026 financial results, showing an 11% increase in tenant revenues and a major contract with Nvidia. The company's representative annual NOI is projected to reach 1.82 billion shekels.
Melisron, managed by Ofir Sarid, reported its financial results for the second quarter of 2026 today. The report reflects an approximately 11% increase in tenant revenues across its malls, alongside a continued growth trend in NOI (Net Operating Income) and FFO (Funds From Operations). This performance was driven by improvements in the tenant mix and aesthetics at the Ofer HaKrayot and Ofer Rehovot malls, the completion of the third floor at Ofer Ramat Aviv, sustained rental growth, and progress in marketing new projects.
Key Financial Results for Q2 2026
NOI attributable to owners in Q2 2026 rose by approximately 5% to 412 million shekels, compared to 394 million shekels in the same quarter last year. This increase was fueled by renovation works at Ofer HaKrayot and Ofer Rehovot, the expansion of Ofer Ramat Aviv, and a 7% real increase in mall rents during the first half of the year.
The company estimates that the representative annual NOI pace in 12 months will reach approximately 1.82 billion shekels, supported by full occupancy of Tower B in the Landmark Tel Aviv project. FFO for the second quarter of 2026 rose by 4% to 317 million shekels, with an estimated annual FFO pace of 1.42 billion shekels in the coming year.
Net profit attributable to shareholders was 289 million shekels, compared to 437 million shekels in the corresponding quarter last year. The decrease is primarily due to a lower revaluation of investment property (142 million shekels compared to 288 million in the previous year).
First Half of 2026 Performance
NOI for the first half of 2026 rose by 3% to 814 million shekels. The impact of the "Lion's Roar" war is estimated at 10 million shekels; excluding this, the growth would have been 4% (824 million shekels). FFO for the half-year rose by 2% to 615 million shekels (or 4% excluding the war's impact, reaching 624 million shekels).
Shareholders' equity at the end of Q2 2026 increased to 13.6 billion shekels. The board of directors has approved an additional dividend distribution of 90 million shekels.
Management Commentary
CEO Ofir Sarid stated: "The second quarter of 2026 was marked by lively activity in our malls. We completed the marketing of office spaces in Tower B of the Landmark project and signed an agreement with Nvidia to lease the entire new office building at Ofer Yokneam. In the residential sector, Aviv Melisron continues to show significant progress, with 165 apartments already sold in the 51 Park project in Herzliya."
Chairman of the Board Liora Ofer added: "The first-half results reflect the resilience of our business model and the quality of our assets. We continue to invest in expanding our malls and advancing quality office projects, establishing Aviv Melisron as a significant growth engine for the entire group."
