- Net income for the quarter totaled ~NIS 35 million, positively impacted by finance income from the company’s hedging policy
- NOI from comparable properties declined in the quarter by ~4.8% to ~NIS 71.3 million, mainly due to strengthening of the shekel vs. the euro and Canadian dollar
- Excluding FX effects, NOI declined only ~1.1%
- FFO attributable to shareholders totaled ~NIS 28 million in the quarter, a ~10% decline driven mainly by lower exchange rates
- Shareholders’ equity attributable to owners remained stable since year-end 2025 at ~NIS 1.6 billion
- EPRA NAV as of March 31, 2026 stands at ~NIS 1.9 billion (NIS 10 per share)
- The company announced a dividend distribution of NIS 14 million for Q1, within the 2026 dividend policy of distributing 50% of FFO
- NOI and FFO guidance remain unchanged
Adgar Investments and Development Ltd. today published its Q1 2026 financial results. Net income for the quarter totaled ~NIS 35 million compared with a loss of ~NIS 3 million in the corresponding quarter last year, positively impacted by finance income of ~NIS 17.4 million recorded under the company’s hedging policy. NOI from comparable properties, excluding FX effects, declined only ~1.1% YoY, with most of the decline in reported NOI driven by the strengthening of the shekel vs. the euro and Canadian dollar. The company also announced a dividend distribution of NIS 14 million for the quarter, within its 2026 dividend policy to distribute 50% of FFO. The 2026 NOI and FFO guidance remains unchanged.
We are closing a quarter in which operating results were impacted by the strengthening of the shekel vs. the euro and Canadian dollar. Despite this, we are maintaining our annual guidance and continuing to act vigorously to increase occupancy rates across territories. We believe these efforts will be reflected later in the year. The Brain Embassy brand continues to grow consistently while maintaining high occupancy rates. In parallel with operating activity, we continue the process of extracting additional rights in our property portfolio, and view this as a meaningful engine for value creation — similar to the moves that generated value in previous quarters. We will continue to act to unlock long-term value for shareholders, through judicious management of the property base and advancing the extensive building rights pipeline we hold.
Roy GadishCEO of AdgarNOI & FFO guidance for 2026
| 2026 Guidance* | 2025 Actual | |
|---|---|---|
| NOI guidance | 290-300 | 299 |
| Real FFO attributable to shareholders | 110-120 | 120 |
Figures in NIS millions. * Forward-looking information whose realization is not certain and may differ materially due, inter alia, to factors not under the company’s control.
Highlights of Q1 2026
- NOI: Totaled ~NIS 71.3 million in the quarter vs. ~NIS 74.9 million in the corresponding quarter last year. The decline is mainly due to lower exchange rates. NOI from comparable properties, excluding FX effects, declined ~1.1% YoY.
- FFO: Totaled ~NIS 27.9 million in the quarter vs. ~NIS 31 million in the corresponding quarter last year. The decline is mainly due to lower average exchange rates.
- Shareholders’ equity: Equity attributable to owners remained stable since year-end 2025, totaling ~NIS 1.6 billion as of March 31, 2026.
- Net income: Totaled ~NIS 35 million in the quarter vs. a loss of ~NIS 3 million last year. The profit was positively impacted by finance income of ~NIS 17.4 million recorded under the company’s hedging policy.
- Cash flow from operations: Totaled ~NIS 39 million in the quarter.
- Investment property: During the quarter, a fair-value gain of ~NIS 2 million was recorded on investment property, driven by rent increases at two Polish assets.
About the company
Adgar Investments and Development Ltd. is a public company engaged in leasing, managing and maintaining income-producing properties located in major metropolitan cities around the world, as well as in initiating and developing real estate for leasing. The company’s assets are mainly concentrated in Tel Aviv, Toronto, Warsaw and Antwerp, primarily office space. As of March 31, 2026, the company owns and manages 38 income-producing properties comprising a leasable area of ~541 thousand sqm, of which ~410 thousand sqm are owned. About 41 thousand sqm are operated under the Brain Embassy brand. As of the report date, the company’s properties are leased at an average occupancy rate of ~85%.
About Zur Shamir
Zur Shamir is a leading holding company investing in insurance, finance, income-producing real estate and global financial services. The company holds, through Direct Insurance — Financial Investments (88%), ~41% of IDI Insurance, the pioneer of direct insurance in Israel, operating for over 30 years and the largest in its field. In addition, it holds ~44% of Direct Finance, the leading company in auto loans and a growing mortgage lender; ~54% of Adgar, operating in income-producing real estate with assets totaling over NIS 5 billion. Direct Insurance also holds ~98% of Neema, which engages, inter alia, in global financial services including via a money-transfer application.
