Alony Hetz Reports Quarterly Loss Amid UK Asset Write-Downs and Energean Wind Project Devaluation
Translated & summarized from Calcalist by baba
Alony Hetz reported a 179 million shekel quarterly loss due to UK asset write-downs and a 185 million shekel devaluation of Energean's Golan Heights wind project halted by local opposition. Despite operational improvements in US and UK real estate subsidiaries, the company faces ongoing challenges amid market uncertainties. Investor Aaron Frenkel became the largest shareholder with 16.7%.
The story in 6 lines · by baba
- Alony Hetz posted a 179 million shekel quarterly loss, down from a 134 million shekel profit last year.
- UK asset revaluations and a 185 million shekel write-down on Energean's Golan wind project drove the loss.
- US subsidiaries CARR and AH Boston suffered negative revaluations due to the office market crisis.
- Vacancy rates in Washington DC Trophy office properties remain high at 11.9% despite slight improvement.
- CARR plans to expand rental housing units to over 1,000 by next quarter from 850 currently.
- Investor Aaron Frenkel increased his stake to 16.7%, becoming the largest shareholder.
Alony Hetz, an Israeli holding company led by CEO and founder Natan Hetz, reported a quarterly loss of 179 million shekels attributed to shareholders, a sharp decline from a 134 million shekel profit in the same quarter last year. The loss was primarily driven by significant negative revaluations of its UK subsidiary's assets and a write-down of 185 million shekels on Energean's Golan Heights wind turbine project due to halted development caused by local Druze opposition and government inaction.
The company controls Israeli real estate firm Amot and renewable energy company Energean, as well as three subsidiaries operating in the US and UK real estate markets: CARR (office and rental housing near Washington DC), AH Boston (office and lab properties in Boston), and Brockton Everlast (BE), which leases office and lab spaces in London, Cambridge, and Oxford. While the US subsidiaries faced ongoing negative asset revaluations due to the office market crisis, the impact was less severe in the UK until the second quarter of 2026, when a 0.25% increase in capitalization rates, linked to rising UK government bond yields, led to a 66 million pound reduction in BE's land value in Cambridge, equating to a 223 million shekel loss for Alony Hetz.
Despite these setbacks, Alony Hetz noted operational improvements, including better rental prices and occupancy rates in Washington DC office properties, where CARR owns eight high-end Trophy and Class A assets. Vacancy rates in these properties decreased slightly but remain high at 11.9%, indicating a prolonged recovery in the US office market. The company also highlighted growing demand for rental spaces from AI companies in London and Manhattan, countering concerns that AI might reduce office space needs.
CARR is focusing on expanding its rental housing portfolio, aiming to increase its inventory to over 1,000 units by next quarter, up from 850 currently. Alony Hetz's market value stands at 6.8 billion shekels after a 22% stock decline this year, contrasting with a 10% rise in the TA-125 index and a 12% drop in the TA Real Estate index. Investor Aaron Frenkel recently increased his stake to 16.7%, becoming the largest shareholder, while Natan Hetz holds 12.1%.
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