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NOI from comparable properties totaled ~NIS 299 million in 2025, similar to last year
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Excluding FX effects, NOI from comparable properties rose by ~3.5%
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FFO attributable to shareholders totaled ~NIS 120 million in 2025 — a slight decline vs. last year and at the mid-point of guidance
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Net income in 2025 totaled ~NIS 128 million vs. a loss last year. Profit was impacted by the compensation agreement signed in Canada
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Shareholders’ equity attributable to owners grew by ~15% in 2025 to ~NIS 1.6 billion
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The company announced a dividend distribution of NIS 20 million in respect of 2025 — the board decided on a 2026 dividend policy under which the company will distribute 50% of FFO
Roy Gadish, CEO of the company, said:
We are closing 2025 with net income of ~NIS 128 million and comprehensive income of ~NIS 85 million — a meaningful achievement given the strengthening of the shekel against our activity currencies throughout the year. During the period we continued to act decisively to strengthen the capital structure and improve leverage. These efforts were reflected in a reduction of leverage and significant growth in shareholders’ equity from ~NIS 1,395 million to ~NIS 1,607 million. On the operational front, we met our annual FFO targets. While NOI saw a slight decline vs. last year, mainly due to FX, activity in Israel, Poland and Belgium continued to deliver strong performance. Within this, our Polish activity benefits from positive trends in Warsaw, where demand for offices in central business areas remains stable. In Toronto, despite a ~11% decline in NOI (in local currency), we are now identifying clear signs of recovery. Starting from March 2026 we are seeing rising occupancy rates, and we expect this trend to continue throughout the year with gradual improvement in our Canadian assets. Tangible evidence of the quality of our Liberty Village land was received in January 2026 with the successful conclusion of negotiations on compensation for the ‘Fraser 7’ property expropriation of CAD 34.7 million, a figure that reflects the significant upside potential embedded in our assets. In parallel, the Brain Embassy model is proving itself as a strategic tool for preserving NOI and creating operational flexibility. 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.
Results highlights
- NOI in 2025 totaled ~NIS 299 million, similar to last year. NOI in Q4 totaled ~NIS 73.3 million vs. ~NIS 77.2 million in the corresponding quarter last year. The decline is mainly due to lower exchange rates. NOI from comparable properties (excluding FX) rose by ~3.5% in 2025 YoY.
- FFO in 2025 totaled ~NIS 120 million vs. ~NIS 122 million last year. The slight decline is mainly due to lower average exchange rates and an increase in financing expenses. FFO in Q4 totaled ~NIS 28.9 million vs. ~NIS 28.1 million in the corresponding quarter last year.
- Shareholders’ equity attributable to owners rose, totaling ~NIS 1,607 million as of December 31, 2025.
- Net income in 2025 totaled ~NIS 128.1 million vs. a loss of ~NIS 7.1 million last year. Net income in the quarter totaled ~NIS 89.7 million vs. ~NIS 8.5 million in the corresponding quarter last year. Profit was impacted by signing a final settlement agreement with the Canadian authorities providing additional compensation for the Fraser 7 property expropriation of CAD ~69.4 million, with the company’s share at 50%. The compensation consists of ~NIS 66.8 million of revenue (company share) and ~NIS 12.8 million of interest income (recorded under finance income).
- Comprehensive income in 2025 totaled ~NIS 84.5 million vs. a comprehensive loss of ~NIS 84.8 million last year. Comprehensive income in the quarter totaled ~NIS 70 million vs. a comprehensive loss of ~NIS 72.7 million in the corresponding quarter last year.
- Cash flow from operations in 2025 totaled ~NIS 137.3 million.
- Investment property — during the quarter, a fair-value loss of ~NIS 17.6 million was recorded on investment property, mainly due to write-down of part of the investments at 33 Efal Street in Petah Tikva. In 2025, a net fair-value gain of ~NIS 4.6 million was recorded.
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 properties are mainly concentrated in Tel Aviv, Toronto, Warsaw and Antwerp, primarily office space. As of December 31, 2025, 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 ~86%.
* This information is forward-looking, whose realization is not certain and may differ materially, inter alia, due to factors not under the company’s control.
