Azrieli Group Stock Earnings Reports

Azrieli Group delivered a solid Q1 2026 despite a challenging operating environment driven by the war with Iran and shekel strengthening. Group NOI was ILS 638m (down ~1% YoY), with malls most affected (ancillary revenues and tenant sales impacted by the war) though occupancy remained very high at 98%. Excluding the war impact, mall NOI would have edged up. Office NOI was stable; senior housing occupancy is near 100% with NOI growth but FFO was affected by fewer apartments available for sale. The data center platform is the main growth engine: signed contracts imply potential annual NOI of ~ILS 1 billion, a powered land bank of ~1 GW, and continued investments in Europe (e.g., Undheim, Hamar, Romford discussions). The group invested >ILS 600m in Israel during the quarter and ILS 122m in data centers. FFO excluding senior housing fell ~9% YoY, driven by lower mall NOI, higher financing expenses and growth investments. In March the company completed an equity raise of ~ILS 1.4bn, strengthening the balance sheet. Gross financial debt ~ILS 28.6bn, net financial debt ~ILS 22.75bn (~35% LTV), average effective interest rate 2.9% and average debt duration ~6 years. Management reiterated focus on execution, financial discipline and long-term value creation, while noting short-term risks from the regional conflict and FX movements.