Gav-Yam Reports 12% Revenue Growth and Boosts ToHa2 Tower Valuation

Gav-Yam, a leading Israeli commercial real estate company managed by CEO Natali Mashaan-Zakai, reported a 12% increase in revenues for the first half of 2026, driven by higher rental income and management fees. The company’s revenues reached approximately 241 million shekels in the second quarter, up 11.5% from the same period last year, and totaled around 476 million shekels for the first half. This growth was attributed to the completion and leasing of new properties, rent increases above inflation, and expanded management fees.

The company also posted a 12% rise in net operating income (NOI), which reached about 208 million shekels in Q2 and 410 million shekels in the first half. NOI from existing properties grew by 6%. However, net profit declined slightly by 1% in Q2 to 239 million shekels and by 4% for the half-year to 395 million shekels, mainly due to higher financing costs from increased debt and interest rates. Despite this, Gav-Yam recorded significant revaluation gains, particularly from its flagship ToHa2 tower project, which is nearing completion and expected to be finished by the end of 2026.

Gav-Yam holds a 50% stake in ToHa2, a 200,000-square-meter office tower. The company’s new valuation places its share at about 1.9 billion shekels, generating a revaluation gain of roughly 190 million shekels based on an expected annual NOI of 150 million shekels once fully leased. Approximately 75% of the tower’s space is already leased or under advanced negotiations.

CEO Natali Mashaan-Zakai described the results as strong despite a challenging business environment and confirmed that the company is on track to meet its 2026 growth targets and three-year forecasts of a 50% increase in NOI and FFO attributable to shareholders. She highlighted growing demand for office and lab spaces from technology companies, especially those in AI, driving Gav-Yam’s plans to develop seven additional projects totaling about 296,000 square meters to fuel future growth.