Azorim Reports 15 Contract Cancellations Amid Falling Apartment Sales in First Half 2026

Azorim Group released its financial results for the second quarter and first half of 2026, reporting a slowdown in apartment sales. During the first half of 2026, the company sold 90 housing units totaling approximately 318 million shekels, down from 134 units in the same period last year. The decline was partly attributed to the security situation, which limited sales office activity during Operation "Roaring Lion" and caused buyer uncertainty during the ceasefire period.

Following the balance sheet date and before the report's publication, Azorim sold an additional 42 units worth about 129 million shekels. However, the company also recorded 15 contract cancellations totaling around 48 million shekels, with seven cancellations linked to the "Frankfurt Boulevard" project due to a contractual option related to building permit delays. After accounting for cancellations, net sales for the half-year stood at 75 units valued at 270 million shekels.

CEO Adi Dana described the cancellation rate as negligible, representing less than 0.8% of total deliveries, and characterized it as a routine standard deviation in early-stage deals. He emphasized that rigorous financing underwriting processes reduce cancellations despite challenging macroeconomic and sector uncertainties.

Despite fewer sales, the average selling price rose to about 4.25 million shekels from 3.47 million shekels the previous year, attributed to the mix and location of available inventory. Azorim's revenues from apartment sales, land, and construction services totaled roughly 735 million shekels in the first half, down from 913 million shekels a year earlier, mainly due to slower project progress and early-stage developments.

Gross profit margin improved to 27.3% from 23.3%, driven by inventory mix, with total gross profit reaching approximately 222 million shekels. The company ended the period with a net profit of about 74.3 million shekels, down from 88.1 million shekels, impacted by increased net financing expenses of around 101 million shekels. Azorim currently manages a portfolio of 29 major projects at various stages, including urban renewal and rental housing in Israel and the U.S.