Migdalor Raises Hundreds of Millions Amidst Overwhelming Investor Demand
Translated & summarized from Ice by baba
Migdalor, an Israeli retirement home operator, successfully raised NIS 285 million in a bond offering, attracting demand over three times the planned amount. The company reported strong financial results for the first half of 2026, with revenues and profits increasing. Migdalor is also expanding with a new NIS 700 million project in Givat Shmuel and aims to become the leading retirement living provider in Israel.
The story in 5 lines · by baba
- Migdalor raised NIS 285 million in a bond offering with demand exceeding NIS 612 million.
- The company's first-half 2026 revenues grew 9% to NIS 146 million, with net profit at NIS 48 million.
- A new NIS 700 million retirement home project in Givat Shmuel is planned with up to 350 units.
- Migdalor operates 1,900 units and has 1,000 more in development, aiming for 3,000 units.
- The company's market value is approximately NIS 2 billion on the Tel Aviv Stock Exchange.
Migdalor, a leading Israeli retirement home operator, has successfully completed the institutional phase of its Series H bond offering, raising approximately NIS 285 million. The company experienced demand exceeding NIS 612 million, more than triple the initially planned NIS 200 million, prompting the increase in the fundraising amount. The bonds, rated A2 with a stable outlook by Midroog, are unlinked to the consumer price index and have a long maturity of about 7.3 years, with final repayment due in December 2037. The offering was led by Orion Underwriting, with Baruch-Leumi Underwriters, Menora Underwriting, and Apex Underwriting also involved.
This successful bond issuance follows a period of strong financial performance for Migdalor. In the first half of 2026, the company reported a 9% increase in revenue to approximately NIS 146 million, with gross profit also rising 9% to NIS 67 million, and net profit reaching NIS 48 million. The company's equity stands at NIS 2.15 billion, or NIS 3 billion including deferred taxes. Occupancy rates across its eight active retirement homes averaged 92%, with a new facility in Rehovot, opened in early 2025, already at 70% occupancy and expected to generate an additional NIS 200 million.
Further expansion is planned, including a new retirement home in Givat Shmuel, near Petah Tikva, secured through a municipal tender in July. This project is slated to include up to 350 units, a nursing department, and commercial spaces, with an estimated investment of NIS 700 million. Construction is expected to begin within two years, with occupancy anticipated in about five years.
Migdalor, with over 40 years in the retirement living sector, currently operates 1,900 units across eight facilities and has an additional 1,000 units in various stages of development. The company, valued at approximately NIS 2 billion on the Tel Aviv Stock Exchange, is exploring further project acquisitions and developments. Chairman Motty Kirschenbaum expressed gratitude to institutional investors for their trust, stating the funds will support the company's growth plan, which aims to increase its portfolio to 12 facilities and nearly 3,000 units, solidifying its leading position in the industry.