Economy08:05 · 27m ago

Melisron Reports 11% Rise in Mall Revenues Despite Net Profit Drop in Q2 2026

Globes

Translated & summarized from Globes by baba

Key points

01Melisron's mall revenues rose 11% in Q2 2026 amid relative security calm after earlier declines.
02Net operating income increased 5% to 412 million shekels, but net profit fell 33% to 289 million shekels.
03The company owns 18 malls with 99% occupancy and six office parks with 96% occupancy across Israel.
04Melisron abandoned its Golden Mall acquisition due to antitrust authority opposition, citing no financial impact.
05Aviv Melisron sold 166 apartments in 2026, including 56 in the 51 PARK Herzliya project featuring Gwyneth Paltrow in marketing.
06Projected annual NOI is about 1.82 billion shekels, supported by full occupancy of Landmark Tower B in Tel Aviv.

In this story

People

Ofir Sarid, Liora Ofer, Gwyneth Paltrow

OrganizationsMelisron, Aviv Melisron, Israeli Antitrust Authority, Migdal Insurance

PlacesIsrael, Tel Aviv, Rishon Lezion, Herzliya

The story · English

Melisron, Israel's leading mall operator controlled by Liora Ofer and managed by Ofir Sarid, reported its financial results for the second quarter and first half of 2026 amid the ongoing effects of the "Roar of the Lion" conflict. In Q2, as security conditions stabilized, mall revenues increased by approximately 11% compared to the same quarter last year. This followed a 5% revenue decline in Q1 due to mall closures for five days during the conflict. Net operating income (NOI) rose 5% year-over-year to 412 million shekels, but net profit fell by about 33% to 289 million shekels, down from 437 million shekels in Q2 2025. The profit decline was mainly due to a lower net real estate revaluation gain and tax expenses compared to the previous year.

Melisron owns 18 malls across Israel totaling around 542,000 square meters with approximately 2,400 tenants and a 99% occupancy rate. The company also manages six high-tech and office parks covering about 484,000 square meters, housing roughly 370 companies with 96% occupancy. The book value of malls stands at about 19.5 billion shekels, and office assets at 9.8 billion shekels. The company projects an annual NOI of roughly 1.82 billion shekels over the next 12 months, supported by full occupancy of the Landmark Tower B in Tel Aviv.

Recently, Melisron withdrew from acquiring a 51% stake in the Golden Mall in Rishon Lezion after the Israeli Antitrust Authority opposed the deal. The company argued the acquisition posed no competitive harm but chose not to pursue further legal appeals due to prolonged proceedings. The withdrawal reportedly has no significant financial impact.

In residential development, Melisron's subsidiary Aviv Melisron sold 166 apartments since early 2026, including 132 in Q2, generating about 774 million shekels. A highlight is the 51 PARK project in Herzliya, featuring two 51-story towers with 646 units. The company invested over one million dollars in a marketing campaign starring actress and entrepreneur Gwyneth Paltrow. Since marketing began in May, 56 apartments have been sold there.

Melisron continues to navigate challenges from regional security tensions and market conditions while expanding its real estate portfolio and residential projects.

Read the original at Globes