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 strong data center and mall segment performance.

• FFO excluding senior housing decreased 3% year-over-year to ₪395 million due to higher financing and data center-related expenses.

• FFO including senior housing declined 7% to ₪424 million, mainly from reduced apartment inventory and near-full occupancy in senior homes.

• Completed acquisition of 66.67%–67% of Tzemach Hammerman, expanding into residential development for sale.

• Distributed a dividend of ₪800 million in May 2025.

Financial highlights

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

• Net profit for Q3 2025 was ₪657 million, up 12% year-over-year.

• FFO (excluding senior housing) was ₪395 million, down 3% year-over-year; total FFO was ₪424 million, down 7%.

• Gross financial debt: ₪29.2 billion; net financial debt: ₪23.6 billion (37% of total assets).

• Total assets: ₪63.2 billion; equity ratio: 39%.

Outlook and guidance

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

• Expects continued strong demand in office leasing, especially in Tel Aviv, and ongoing growth in data center operations.

• Confident in future opportunities in the data center segment, with new projects under development in Germany and other regions.

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

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