Bezeq's Solelim Project Boosts Mivne's Real Estate Income and Cash Flow
Mivne Real Estate reported a significant performance jump in the second quarter of 2026, driven primarily by the occupancy of its flagship Solelim project in Tel Aviv. After seven quarters of moderate growth capped at 5% in net operating income (NOI) from its Israeli operations, the company’s NOI rose 10% year-over-year to 239 million shekels. Adjusted funds from operations (AFFO), a key profitability metric that excludes one-time items, increased by 15% to 178 million shekels, aided by lower operating expenses.
Mivne’s core business remains in Israel, where it owns 556 income-generating properties. The local NOI reached 229 million shekels, representing 96% of the total NOI and an 11% increase. The Solelim project, comprising 68,000 square meters of office space and 360 residential units (75% owned by Mivne in partnership with Tadmor), saw office leasing rise to 73% by June 2026, up 3% since the end of 2025. The company began occupancy and delivered most leased spaces, adding 14 million shekels to quarterly NOI, with expectations for further growth in coming quarters.
Additional NOI gains of 15 million shekels came from leasing vacant spaces in other properties and rent increases on renewed contracts. Mivne also has 546 residential units under development but faces a slowdown in sales, having sold only two apartments in Solelim during the quarter compared to ten in the same period last year, with 109 units still available.
The occupancy at Solelim raised the NOI contribution from office assets to 34% in Q2 2026, up from 30% in Q1, with a target of 45% by 2028 as part of CEO Uzi Levy’s 2024 strategic plan. Industrial and logistics properties remain the largest NOI source, accounting for 40% or 92 million shekels, compared to 77 million from offices.
Mivne is advancing two other projects: a Herzliya development with 24,000 square meters of offices and 103 apartments expected to complete in 2028, projecting annual NOI of 35-39 million shekels; and a data center in Petah Tikva (25% owned by Mivne), with excavation underway and completion expected by the end of 2027. The data center is forecasted to generate 27-30 million shekels in annual NOI. Bank Hapoalim and Discount Bank recently provided 700 million shekels in financing for this project.
The company raised its full-year AFFO forecast to 660-680 million shekels from 650-670 million, while maintaining its NOI guidance at 930-950 million shekels. By the end of 2028, Mivne expects an additional 186 million shekels in NOI from projects under development and unoccupied assets, including 79 million shekels in 2026.
Mivne is the sixth-largest income-producing real estate company on the Tel Aviv Stock Exchange, valued at 8.8 billion shekels, down 21% from a peak of 11.85 billion shekels in January 2026. Major shareholder David Forer increased his stake to 23.8% by purchasing shares worth 216 million shekels in June and early July. The company’s recent growth contrasts with peers like Azrieli and Mega Or, which benefited from the data center boom, and others like Melisron and Big, known for extensive retail operations.
