Azrieli Group (AZRG) Q3 2025 earnings summary

Executive summary

• Achieved 12% year-over-year growth in NOI to ₪657 million in Q3 2025, driven by data center and mall segments, and 2% growth in same-property NOI to ₪588 million.

• FFO excluding senior housing declined 3% to ₪395 million, while FFO including senior housing dropped 7% to ₪424 million, mainly due to higher financing costs and near-full occupancy.

• Net profit for Q3 2025 was ₪657 million, up 12% year-over-year, with comprehensive profit impacted by currency fluctuations.

• Significant investments of ₪2.5 billion in the first nine months of 2025 across Israel and Europe, with a dividend of ₪800 million distributed.

• Completed acquisition of 66.7% of Tzemach Hammerman, expanding into residential development for sale.

Financial highlights

• NOI for Q3 2025 reached ₪657 million, a 12% increase year-over-year; same-property NOI was ₪588 million, up 2%.

• Net profit for Q3 2025 was ₪657 million, and for the first nine months, net profit was ₪1,173 million.

• FFO excluding senior housing: ₪395 million (down 3%); FFO including senior housing: ₪424 million (down 7%).

• Gross rental income, management fees, and sales: ₪973 million in Q3 2025.

• EPRA NRV per share increased to ₪251 as of September 30, 2025.

Outlook and guidance

• Significant growth expected in global data centers, with contracted NOI tripling since 2021 and new projects in Germany and the UK.

• Projected NOI after full occupancy of new developments could reach ₪3.1 billion annually.

• Anticipates FFO growth in senior housing with the opening of the Rishon LeZion project in December 2025.

• Continued expansion in residential, office, and retail projects, with major developments in Tel Aviv, Jerusalem, and Holon.

• Macroeconomic forecasts expect GDP growth of 2.5% in 2025 and 4.7% in 2026, with moderating inflation and lower interest rates.