- Net income for the quarter totaled ~NIS 35 million, up ~36% YoY, positively impacted by finance income from the company’s hedging policy
- NOI from comparable properties declined in the quarter to ~NIS 67.4 million from ~NIS 76.2 million last year, mainly due to strengthening of the shekel vs. the euro and Canadian dollar
- Excluding FX effects, NOI declined only ~1.6%
- FFO attributable to shareholders totaled ~NIS 22.8 million in the quarter, a ~24.7% decline driven mainly by lower exchange rates
- Shareholders’ equity attributable to owners totaled ~NIS 1.55 billion at the end of the quarter
- EPRA NAV as of June 30, 2026 stands at ~NIS 1.84 billion (NIS 9.7 per share)
- The company announced a dividend distribution of NIS 11.5 million for Q2, within the 2026 dividend policy of distributing 50% of FFO
- The company updated its 2026 guidance and expects NOI of NIS 275-285 million and real FFO attributable to shareholders of NIS 100-110 million
Adgar Investments and Development Ltd. today published its Q2 2026 financial results. Net income for the quarter totaled ~NIS 35 million, up ~36% vs. the corresponding quarter last year, positively impacted by finance income recorded under the company’s hedging policy. NOI from comparable properties, excluding FX effects, declined only ~1.6% YoY, with most of the decline in reported NOI driven by the strengthening of the shekel vs. the euro and the Canadian dollar. The company also announced a dividend distribution of NIS 11.5 million for the quarter, within its 2026 dividend policy to distribute 50% of FFO. In light of the strengthening of the shekel against its operating currencies, the company updated its 2026 NOI and FFO guidance and expects NOI of NIS 275-285 million and real FFO attributable to shareholders of NIS 100-110 million.
Thanks to the company’s currency hedging policy we managed to keep leverage at the same level as at the end of the previous quarter, despite a significant weakening of the euro and the Canadian dollar during the quarter. We continue to work on improving occupancy rates and upgrading the assets in Poland, against the backdrop of positive trends in the local market. The Polish economy continues to show resilience, reflected among other things in a very low unemployment rate and rising wages, alongside brisk demand for retail space. These trends support the company’s activity and strengthen our ability to keep improving asset performance and increase their contribution to the company’s results. Alongside this, we are advancing the planning of several projects adjacent to the company’s existing assets, including the construction of residential rental buildings in Poland, in two phases, totaling ~18 thousand sqm.
In parallel, the company’s Brain Embassy brand continues to grow. We operate in Israel, Poland and Belgium, we continue to expand the activity and improve its performance, and early next year we will open a first branch in Toronto of ~2,500 sqm. In Canada we identify an improving demand trend, among other things against the backdrop of the return to office work. At the same time, the company continues to work on leasing space in its properties and is in advanced negotiations with potential tenants. We are advancing the construction of a residential rental tower in Mississauga totaling ~50 thousand sqm (together with a local partner), as a first stage in building a residential complex that will include additional towers.
In Israel, we continue to advance the Petah Tikva project, which includes a data center with approval for a 16 MW power connection, alongside offices, retail and residential. In parallel, we are working to obtain a permit for phase A and to extract additional rights at the asset. This quarter’s results were affected by the strengthening of the shekel against the company’s operating currencies, and in light of this we updated the company’s guidance for 2026. The moves we are advancing across all of our markets reflect the continued execution of the company’s strategy, focusing on upgrading the assets, strengthening the activity and realizing their existing potential, with the aim of continuing to create value for shareholders over time.
Roy GadishCEO of AdgarNOI & FFO guidance for 2026
| 2026 Guidance* | 2025 Actual | |
|---|---|---|
| NOI guidance | 275-285 | 299 |
| Real FFO attributable to shareholders | 100-110 | 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 Q2 2026
- NOI from comparable properties: Totaled ~NIS 67.4 million in the quarter vs. ~NIS 76.2 million in the corresponding quarter last year. The decline is mainly due to the strengthening of the shekel vs. the euro and the Canadian dollar. Excluding FX effects, NOI from comparable properties declined only ~1.6% YoY.
- FFO attributable to shareholders: Totaled ~NIS 22.8 million in the quarter, a decline of ~24.7% vs. the corresponding quarter last year, driven mainly by lower exchange rates.
- Net income: Totaled ~NIS 35 million in the quarter, up ~36% YoY. The profit was positively impacted by finance income recorded under the company’s hedging policy.
- Shareholders’ equity: Equity attributable to owners totaled ~NIS 1.55 billion as of June 30, 2026, and EPRA NAV totaled ~NIS 1.84 billion (NIS 9.7 per share).
- Leverage ratio: Remained at the same level as at the end of the previous quarter, despite a significant weakening of the euro and the Canadian dollar during the quarter, as a result of the company’s currency hedging policy.
- Dividend: The company announced a dividend distribution of NIS 11.5 million for Q2, within the 2026 dividend policy of distributing 50% of FFO.
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 June 30, 2026, the company owns and manages 38 income-producing properties comprising a leasable area of ~541 thousand sqm, of which ~409 thousand sqm are owned. About 42 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.
