Mega Or Reports 25% NOI and FFO Growth as Tel Aviv Stock Exchange Opens Week

Mega Or reported a 25% increase in Net Operating Income (NOI) for the second quarter, reaching 117 million shekels compared to the same period last year. This growth was driven mainly by the occupancy of new properties, including a data center in Modiin, a Jumbo store in Beersheba, and a management center built for the security company Controp. The rise in NOI also led to a 25% increase in Funds From Operations (FFO), which measures operational cash profit excluding revaluations and one-time expenses, reaching 85 million shekels. Mega Or’s signed contracts for its data center assets now generate an annual NOI of 740 million shekels.

In other corporate news, Nofar Energy, controlled by Ofer Yanai, is in advanced negotiations to acquire the energy company Highlight for a valuation between 100 and 150 million shekels. The companies have signed a memorandum of understanding with an exclusivity period, though the deal may be completed by another party if current talks do not result in a binding agreement.

Rustic Bakery, owner of the Pillsbury brand and importer of Nature Valley and Hagen Dazs, released its first quarterly report since its June IPO. Controlled by Dan Nagel (32.59%), the company posted increased sales, improved profitability, and a 31.6% jump in net profit to 23.5 million shekels in Q2.

The Tel Aviv Stock Exchange opened the new trading week amid ongoing earnings season, following a positive Friday on Wall Street led by technology stocks. The Dow Jones rose 0.3%, the S&P 500 gained 0.6%, and the Nasdaq increased 1.3%. U.S. 10-year bond yields remained steady at 4.66%, while Israeli 10-year yields stood at 3.81%. Brent crude oil prices rose 1%, and WTI increased 0.8%. Notably, arbitrage gaps opened with Tower Semiconductor and NICE showing positive premiums of 5% and 4.3%, respectively.

This week will see the start of bank earnings reports, with Bank Hapoalim releasing Q2 results tomorrow and Bank Leumi on Wednesday. Other companies reporting include Abarates, Sela Capital, Next Vision, and Danya Cebus. Israeli inflation data for July will be published on Friday after the Tel Aviv market closes, with market reactions expected on Monday. Immediate responses are anticipated in the foreign exchange market.