Y.H. Dimri Construction & Development (DIMRI) Q2 2024 earnings summary

Executive summary

• 35 years of activity combining real-estate development and self-performed construction, with projects across Israel and a pipeline of 35,655 residential units at varying stages, including partners’ interests.

• Strategy includes expanding urban renewal, investment real estate and development of existing overseas land.

• A1.il credit rating with a stable outlook; residential and investment real estate portfolios continue to expand.

• Investments include a post-period ₪1.1bn Tel Aviv land acquisition for 458 residential units and commercial space, and a €24m (₪98m) Romania acquisition for up to 2,000 units.

• Dividend distributions in 2024 included ₪70m paid in April and ₪88m approved for September.

Financial highlights

• H1 2024 revenue was ₪1,355m, up from ₪865m in H1 2023; net income was ₪267m, up from ₪123m.

• H1 2024 gross profit was ₪500m, with a 37% gross margin; EBITDA was ₪358m, compared with ₪207m in H1 2023.

• Cash and equivalents at June 30, 2024 were ₪158m.

• Residential sales totaled ₪1,229m across 546 units, compared with ₪723m and 335 units in H1 2023.

• Fair value gains on investment property totaled ₪47m in H1 2024, driven by revaluations in Hadera and other locations.

Outlook and guidance

• Expected permit issuance for 9,513 units during 2024–2026 across projects in multiple Israeli cities.

• Management expects continued sales momentum, with 187 units sold for ₪415m post-period.

• No material liquidity issues anticipated despite negative operating cash flow, supported by cash and available credit lines.

• Projected project revenues, costs and gross profits depend on forecasts and work plans and may differ materially from actual results.