Amot REIT Lowers 2026 Profit Forecast Amid Inflation Expectations
Translated & summarized from Ice by baba
Real estate firm Amot Investments reported stable third-quarter earnings but lowered its 2026 FFO forecast due to reduced inflation expectations. The company's NOI increased 1% to NIS 268 million, while net profit rose 8% to NIS 110 million. Amot announced new lease agreements expected to generate NIS 246 million annually and a NIS 133 million dividend. CEO Shimon Abudraham remains optimistic about demand for office spaces and ongoing development projects.
The story in 5 lines · by baba
- Amot Investments lowered its 2026 FFO forecast due to lower inflation expectations.
- Third-quarter net profit rose 8% to NIS 110 million, while NOI increased 1% to NIS 268 million.
- The company secured new leases expected to generate NIS 246 million in annual revenue.
- Amot announced a fourth-quarter dividend of approximately NIS 133 million.
- CEO Shimon Abudraham expressed optimism about office space demand and development projects.
Amot Investments, a real estate company, has reported stable top and bottom lines for the third quarter of the year compared to the previous year. However, the company has lowered its FFO (Funds From Operations) forecast for 2026 due to lower-than-expected annual inflation index projections. The NOI (Net Operating Income) for the third quarter rose by approximately 1% to NIS 268 million, while FFO stood at around NIS 207 million, similar to the prior year's quarter. Net profit for the quarter increased by about 8% to NIS 110 million.
The revised 2026 FFO forecast is now between NIS 780-790 million, slightly down from the previous forecast of NIS 790-800 million. This adjustment is attributed to an expected annual inflation rate of about 1.7%, compared to the original 2% estimate, which impacts current tax expenses. The company's total real estate portfolio is valued at approximately NIS 22.2 billion, with an occupancy rate of about 92.7%. Shareholder equity reached NIS 9.96 billion.
Amot has secured new lease agreements and is in advanced negotiations for spaces expected to generate NIS 246 million in annual revenue, with the company's share being NIS 126 million. The company also announced a fourth-quarter dividend of approximately NIS 133 million (NIS 0.27 per share). Looking ahead, Amot plans a minimum annual dividend of NIS 1.08 per share for 2026.
CEO Shimon Abudraham expressed optimism, highlighting strong demand for quality office spaces, particularly in Tel Aviv's business district, and the successful marketing of the ToHa2 tower. He noted significant deals with Salesforce and WeWork, adding to a large lease with Google. The ToHa2 tower is nearing completion and is expected to be occupied in early 2027, with further development planned in the ToHa complex. The company is also developing logistics and industrial properties and exploring opportunities in energy and server farms.