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“The company under the management of Nataly Mishan-Zakai is publishing its results for Q2 and H1, which show that the net rental fees for same properties (NOI SP) grew by 4% in Q2 and also in H1 compared to the corresponding periods. They amounted to ILS 173 million and ILS 345 million, thanks to an increase of the Consumer Price Index alongside a real increase in rental fees, according to management.”
The office rental giant Gav-Yam successfully raised real rental fees that it charges to tenants, in contracts that it signed with the office tenants. The company, under the management of Nataly Mishan-Zakai, is publishing the results for Q2 and H1, which show that the net rental fees for same properties (NOI SP) grew by 4% in Q2 and also in H1 compared to the corresponding periods. They amounted to ILS 173 million and ILS 345 million, thanks to an increase in the Consumer Price Index alongside a real increase in rental fees, according to management.
The total NOI, which includes newly added properties, amounted to ILS 186 million in Q2, an increase of 9% compared to the corresponding quarter, and to ILS 365 million in H1, an increase of 7% compared to the corresponding period. The increase derives from revenues from leasing buildings, according to management.
Gav-Yam has income-generating properties with a total area of 1.2 million sqm. The occupancy rate of its properties is 96%. It is promoting the construction of a further 300 thousand sqm in 8 sites across the country, with a total investment of ILS 3.8 billion. Until Q4 of 2027, the new projects will generate rental fees of ILS 301 million. About half of them (47%) have already been marketed to tenants. From the beginning of the year Gav-Yam’s shares have gone up by some 36% to a price giving it a market cap of around ILS 8.4 billion.
The net profit increased by 24%
In Q2 Gav-Yam executed 30 new lease contracts with an aboveground area of 31 thousand sqm that will generate ILS 22 million per year. Those agreements were executed with an average real decrease in rental fees of 2.2%. However, when neutralizing the lease of the logistics center in Haifa, generating rental fees that are significantly lower compared to offices, the average rental fees increased by 3.2%.
In H1, 85 lease contracts were executed with an aboveground area of 72 thousand sqm, which will generate ILS 57 million per year. This is a real increase of 3.1% in rental fees, and when neutralizing the Haifa logistics center transaction, presents an average real increase of 5.5% in the rental contracts.
In H1, Gav-Yam’s net profit (attributed to the shareholders) amounted to ILS 412 million, an increase of 24% in one year, mainly effected by a positive revaluation of the real estate properties. However, in Q2 the net profit decreased by 8% to ILS 242 million compared to the corresponding period last year, primarily due to revaluation of investment properties. It increased in value by ILS 280 million, an amount that is 24% lower compared to what was recorded last year.
The company, whose products are sold mainly to the defense industry, leased the new office spaces in Jerusalem at an annual cost of around ILS 7 million; the Givat Ram Campus project is a joint project of Gav-Yam, The Hebrew University and the Jerusalem Development Authority; tenants are expected to occupy the project’s first stage in late 2024
The income-generating properties giant recorded revenues of ILS 684 million from the increase in value of its properties • CEO Avi Jacobovitz: “We are experiencing strong and stable demand for the establishment and expanding development centers; international technology companies are here to stay and they are leading the market trend”
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