The developing logistics activity of the settlement training in Poland is responsible for a sharp jump in the net profit recorded by the company in the second quarter. An increase in the amount of leased areas, the weakening of the zloty currency compared to the euro and an increase in rent, led the company under the control of Ofer Nimrodi and his management to register that it will revalue assets in the amount of NIS 400 million in the second quarter, which boosted the company’s net profit.
In addition, the settlement settlement sold a plot of land in Herzliya Pituach, on which a hotel will be built in the future, in a transaction completed in March, which contributed to the company an income of NIS 141 million, of which it recognized a profit of NIS 108 million. These two factors, together with an increase in rental prices, led to a sharp increase of 197% in the company’s revenues in the second quarter to NIS 260 million, and a 153% jump in revenues in the first half to a total of NIS 412 million.
In the bottom line, the settlement training recorded a 300% jump in net profit in the second quarter, which amounted to NIS 175 million, while the net profit in the first half rose by 365% and amounted to NIS 208 million, including revaluation gains of approximately NIS 460 million – NIS 391 million NIS of which is in Poland and the balance in respect of its assets in Israel (mainly due to an increase in the index rate). The settlement’s training stock climbed 48% in the past year, to a price that represents the company’s market value of NIS 2.2 billion.
In addition to the profits from the sale and the sale of the land, the settlement was affected by the increase in rent, also in the company’s properties in Israel, which include, among other things, the Seven Stars Mall in Herzliya and office buildings, and also in the yielding properties in Poland, where it is mainly the 20 logistics parks held by the MLP company under its control , and cover 880 thousand square meters.
The net rent (NOI) that the company collects from the tenants amounted to NIS 57 million in the quarter, an increase of 14%. In the first half, the NOI amounted to NIS 114 million, a 25% increase compared to the corresponding half last year. The company anticipates a significant growth in its annual NOI in the coming years, to the extent of 355 million shekels, after the completion of the construction of a 60-story residential and office tower that the company initiates and promotes on the lot on which “Beit Kalka” currently stands on the Menachem Begin axis in Tel Aviv. Without the construction of the tower, the company expects an annual NOI of NIS 279 million.
The company also reports on progress in leasing the spaces of the new office tower it is building in Bnei Brak (BBC complex) called “Seven Stars”. The tower includes 52 thousand square meters intended for rent by the company, and its construction is expected to be completed by the end of the year. Over a third of the tower (34%) has already been rented for periods between 5 and 7 years (before exercising options).
In addition, the company is also building a tower called Pro Medical Tower not far from the office tower in Bnei Brak, where a geriatric center and a medical rehabilitation center will be built that will cover 57,000 square meters. to add 3 more floors.