Sela Real Estate Approves $27 Million Share Buyback Amid Stock Decline

Sela Real Estate, led by former Ministry of Finance Director-General Shmuel Slavin, has approved a plan to repurchase up to 100 million shekels (approximately $27 million) worth of its own shares. This decision comes as the company's stock has fallen approximately 30% since the beginning of the year, with its market value currently around 2 billion shekels ($540 million).

The company's board of directors deemed the buyback an "appropriate business and economic opportunity" given current market conditions and the stock price, signaling confidence in the company's operations and its potential to create value for shareholders.

Slavin stated that the buyback reflects the company's "confidence in the company's strength, strategy, and value creation potential," viewing it as a significant capital allocation tool alongside continued investment in growth engines. He also expressed optimism about the broader Israeli economy, citing favorable inflation, low unemployment, strong foreign exchange reserves, and projected significant growth in 2026.

Slavin further predicted that a continued trend of interest rate cuts would benefit the real estate market after a year and a half of slowdown, reducing financing costs for buyers and companies and potentially revitalizing market activity. He sees this as a positive signal for the Israeli economy.

Sela Real Estate reported distributable profits of approximately 1.1 billion shekels ($297 million) as of the second quarter. The board concluded that the buyback plan would not jeopardize the company's ability to meet its existing and future financial obligations, with sufficient internal funding and equity to cover both liabilities and the repurchase program.