Real Estate Firm Bast Reports Profit Surge Amid Governance Scandal

Real estate group Bast has released its financial reports for the second quarter and first half of the year, revealing a significant increase in net profit. The company reported a net profit of NIS 34.8 million for the second quarter, a 177% jump compared to the same period last year. First-half profits rose to NIS 47 million from NIS 27.3 million in the previous half. This profit growth is attributed to an eightfold increase in financing income, reaching NIS 22.7 million in the current quarter, and a positive revaluation due to the cancellation of a compensation commitment to The Phoenix Group related to a failed IPO. The company also saw a 33% increase in revenues, totaling approximately NIS 603 million, driven by expanded construction activity. Bast sold 98 housing units worth NIS 259 million in the first half, with an average unit price of NIS 2.6 million. These sales included various incentives such as exemptions from price indexation and favorable payment terms. The company is currently facing scrutiny over alleged irregularities involving over NIS 2 million in funds taken by its owners for private work on their properties. Bast stated that the owners have returned the full amount, but an audit also found NIS 100,000 improperly paid to a third party. In an effort to restore investor confidence following the scandal, which caused the stock to drop nearly 20%, Bast has appointed three new board members: Dafna Landau, former head of real estate at Bank Leumi; Tal Eldaruti, former chief state appraiser; and Natalie Kaplan Vazana, who managed an investment consulting firm.