Azrieli Group (AZRG) Q3 2025 earnings summary

Executive summary

• Q3 2025 NOI reached a record NIS 657 million, up 12% year over year; attributable net profit was NIS 395 million versus NIS 383 million in Q3 2024.

• Management-method FFO attributed to real estate was NIS 424 million, down 7%; FFO excluding senior housing was NIS 395 million, down 3%.

• Portfolio investments totaled NIS 650 million in Q3 and NIS 2.5 billion in 9M 2025, including data center investments.

• The ZMH Hammerman acquisition closed during Q3, expanding residential development for sale; integration was underway.

Financial highlights

• Revenue from rent, maintenance, management fees and sales was NIS 973 million versus NIS 839 million in Q3 2024.

• Same-property NOI rose 2% year over year to NIS 588 million; data centers contributed NIS 55 million of the total NOI increase.

• Fair-value gains on investment real estate were NIS 360 million versus NIS 318 million; comprehensive profit was NIS 361 million versus NIS 523 million, impacted by currency fluctuations.

• Net profit for 9M 2025 was NIS 1,173 million versus NIS 1,003 million in the same period last year.

Outlook and guidance

• Annualized NOI after full lease-up of short-term development projects and stated adjustments is NIS 3,103 million versus annualized Q3 NOI of NIS 2,628 million; estimates assume full occupancy and September 2025 rents and are not forecasts.

• Management-method FFO after completion of short-term development projects and adjustments is NIS 1,989 million versus annualized Q3 2025 FFO of NIS 1,696 million; calculations assume full occupancy and a 23% tax rate.

• Short- and medium-term projects total 362,930 m², with estimated construction costs of NIS 7,525–7,925 million, excluding capitalization and tenant fit-out; completion dates span 2025–2030.

• SolarEdge lease amendments are expected to generate annual NOI of NIS 56 million; projected annual project NOI is NIS 80 million assuming full leasing.

• German data center agreements cover 36 MW, with an option for another 18 MW; estimated annual NOI at 36 MW is €51 million, including a €25.5 million share.