2024-03-21 09:26:04
The tough situation of the real estate industry is reflected in various data that have been published in the last few months and show a decrease in apartment prices in cities across the country, along with a decrease in the volume of transactions. The sale of apartments in Tel Aviv decreased according to data that we published last month, precisely in contrast to a positive trend in other cities.
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The results of the construction company Acro a company whose almost all projects are located in the municipal territory of Tel Aviv, on the one hand teach about the crisis, but on the other hand also about the management’s persistent effort to maintain prices.
Acro under the management of Ziv Yacovi and headed by Tzachi Arbov, which specializes in luxury projects, recorded a sharp decrease of about 70% in the number of apartments it sold in 2023, but the average price of an apartment it sold during that period increased by 37% compared to 2022 and was NIS 7.4 million.
It should be emphasized that the average apartment sold by the company in 2023 and its price is not similar to the average apartment sold in 2022. The company operates in a variety of projects throughout Tel Aviv, some of them in the southern neighborhoods, such as the Elifelt project near Jaffa, alongside projects on Jerusalem Boulevard in Jaffa and other popular neighborhoods.
An average apartment was sold for NIS 6.7 million at the end of 2023
In the summary of the past year it appears that a significant part of the apartments she sold (18 apartments) were in the prestigious Wysotsky project in north Tel Aviv. This is a project whose marketing began back in 2019, and its construction is expected to be completed in the second quarter of this year. A change in the mix of apartments sold by the company in 2023 compared to the previous year may explain the jump in the average price of an apartment.
The company managed to maintain a trend of an increase in the average price of an apartment sold, even in the last quarter during which the severe war in Gaza broke out. Akro sold only 15 apartments in the last three months of 2023, a third of the number of apartments it sold in the last quarter of 2022. And yet here too, the average apartment was sold for NIS 6.7 million, a 24% increase compared to the price of an average apartment sold a year earlier.
In the line of revenues from the sale of apartments, Akro concluded the past year with revenues of approximately NIS 820 million, a similar volume compared to the previous year. But in 2022, a positive revaluation was made to the value of the company’s investment real estate to the extent of NIS 292 million, which was recorded as income. Therefore, in the summary of 2023, Akro’s total revenue decreased by 26% to NIS 898 million compared to the previous year. In the bottom line, mainly due to the change in revaluation assets, the net profit attributed to the shareholders decreased by approximately 80% and amounted to approximately NIS 48 million.
Ziv Yacovi, CEO of Akro Group, said upon the publication of the results that “starting in December, there is a noticeable recovery in demand, which results, among other things, from the change in the interest rate trend and the expectation that it will continue to decline, along with the economy’s adaptation to the fighting situation.” , including projects in Jerusalem and other demand areas outside of Tel Aviv, when already during the year 2024 the stock in marketing will increase to approximately 2,518 housing units. We enjoy financial strength and a high level of flexibility, which will allow the implementation of the projects and the expansion of the stock of apartments in our possession.”
The cost of the terms of employment of CEO Yacovi amounted to 4.8 million shekels in 2023, and it consisted of a salary of 2.6 million shekels, a bonus of 1.9 million shekels and a share-based payment of 307 thousand shekels. The salary of the chairman Tzachi Arbov, one of the shareholders The main ones in Akro, amounted to NIS 4.5 million and was divided between a salary of NIS 2.5 million with the balance being a bonus.
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