Tadmor Reports Sharp Profit Drop and Falling Apartment Prices After IPO

Tadmor, a major Israeli real estate developer, reported a significant decline in net profits in the second quarter following its recent initial public offering (IPO) on the Tel Aviv Stock Exchange. Despite a 4% increase in revenues to approximately 754 million shekels in Q2 and a 4.5% rise to 1.5 billion shekels in the first half of the year, net profit plunged over 90% to about 5 million shekels compared to 68 million shekels in the same quarter last year. The half-year net profit also fell by around 20% to 70.3 million shekels.

This sharp profit decline was primarily due to unusual IPO-related expenses totaling 75 million shekels, including 56 million shekels in employee bonuses and 8 million shekels in grants to controlling shareholders. Excluding these one-time costs, Tadmor posted an adjusted net profit of roughly 144 million shekels in Q2, a 36% increase year-over-year, while the adjusted half-year profit decreased slightly by 5% to 73 million shekels.

During the first half of the year, Tadmor sold 294 housing units worth about 433 million shekels, nearly doubling the volume from 159 units sold for 239 million shekels in the prior year period. However, the average price per unit dropped by approximately 900,000 shekels to 3.1 million shekels. Since its June IPO, which valued the company at about 7.8 billion shekels, Tadmor’s stock has declined roughly 11%, bringing its market capitalization down to around 7 billion shekels.

CEO Uri Levin emphasized the company’s strong business model and growth potential despite market challenges, highlighting Tadmor’s integrated operations across development, construction, and asset management. The company is controlled by Gil Geva, Mark Weissman, and Aryeh Bechar, who collectively hold 59% of the shares.

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