Efi Nechasim Reports 15% Net Profit Rise Despite Slow Apartment Sales
Translated & summarized from Globes by baba
Efi Nechasim reported a 15% increase in net profit for the third quarter of 2026, reaching NIS 512 million, despite selling only four apartments at its Tel Aviv Landmark project during the quarter. The company's net operating income and AFFO also saw significant year-over-year growth. While Tower B of the Landmark project nears completion with most office space leased, apartment sales have been slow, with only 15 units sold year-to-date. The company's overall financial performance was boosted by European projects and existing property improvements.
The story in 6 lines · by baba
- Efi Nechasim's Q3 2026 net profit rose 15% to NIS 512 million.
- Only 4 apartments were sold at the Tel Aviv Landmark project in Q3 2026.
- The company's NOI increased 8% to NIS 293.1 million in Q3 2026.
- AFFO grew 19% to NIS 142.3 million in Q3 2026.
- Landmark Tower B is nearing completion with 116 residential units planned.
- Meta and Wiz are key tenants in the Landmark project's Tower A and B respectively.
Real estate company Efi Nechasim, controlled by Big (79.1%), concluded the third quarter of 2026 with a net profit of NIS 512 million, a 15% increase from NIS 444 million in the same period last year. For the first nine months of the year, net profit reached NIS 816 million, up 33% from NIS 614 million in the comparable period of 2025.
Net operating income (NOI) for the third quarter rose 8% to NIS 293.1 million, compared to NIS 271.4 million in the prior year's third quarter. Over the first nine months, NOI increased 5% to NIS 824 million from NIS 785 million. Efi Nechasim attributed the growth primarily to improved results from existing properties and new income-generating projects in Europe, partially offset by property sales and a 10% depreciation of the Euro against the Shekel.
Adjusted funds from operations (AFFO) in the third quarter grew 19% year-over-year to NIS 142.3 million. For the first nine months, AFFO climbed 9% to NIS 392 million, up from NIS 359.8 million in the same period last year.
Efi Nechasim, which operates extensively in European countries like Romania, Poland, Serbia, and the Czech Republic in commercial, office, and rental housing sectors, also holds a 50% stake in the Landmark project in Tel Aviv, partnered with Melisron. Tower A of the project is complete and fully occupied, housing commercial, office, and public spaces, including Meta (Facebook) as a tenant. Tower B, currently 58% complete, will feature retail, 27 office floors nearly fully leased (including Wiz renting 13 floors), and residential units from the 31st floor upwards. The residential section plans 116 units, with occupancy expected in Q3 2027.
Despite construction progress and nearing occupancy, apartment sales at the Landmark project have been moderate. From the start of the year through September, only 15 apartments were sold: 6 in Q1, 5 in Q2, and 4 in Q3. Three additional apartments were sold by the end of October. Recent sales reported include a 53 sqm two-room apartment on the 33rd floor for NIS 3.85 million and a similar unit on the 34th floor for NIS 3.6 million.
Efi Nechasim recorded a fair value increase of approximately NIS 35 million for its share in Landmark Phase A and a positive revaluation of about NIS 53 million for its share in Phase B during the first nine months, totaling an NIS 88 million increase in its share's fair value in the project.