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Azrieli Group
(TASE:AZRG)
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Rating:62Neutral
Price Target:
41,298.00
▲(4.58% Upside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by solid underlying financial performance but moderated by leverage and volatile cash flow. Technical signals are currently bearish, weighing on the overall rating. Valuation is only moderately attractive (P/E ~23.6, ~1.75% yield), while the earnings call was operationally constructive—especially on the data center growth pipeline—yet offset by FX/fair-value headwinds and higher debt.
Positive Factors
Data Center Growth Pipeline
Data centers provide a scalable growth platform alongside the property portfolio. Long-term contracts, a large powered land bank and projects scheduled through 2029 can add recurring NOI and diversify the group beyond traditional offices and malls.
Negative Factors
Meaningful and Rising Leverage
Higher leverage increases exposure to refinancing costs, interest expense and weaker property conditions. Although debt has long duration, the enlarged borrowing base can constrain financial flexibility if development spending or operating cash flow disappoints.
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Positive Factors
Negative Factors
Data Center Growth Pipeline
Data centers provide a scalable growth platform alongside the property portfolio. Long-term contracts, a large powered land bank and projects scheduled through 2029 can add recurring NOI and diversify the group beyond traditional offices and malls.
Read all positive factors
Azrieli Group (AZRG) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪48.51B
Dividend Yield1.76%
Average Volume (3M)92.36K
Price to Earnings (P/E)24.0
Beta (1Y)1.55
Revenue Growth17.31%
EPS Growth10.26%
CountryIL
Employees449
SectorGeneral
Sector StrengthN/A
IndustryReal Estate - Services
Share Statistics
EPS (TTM)16.26
Shares Outstanding124,516,840
10 Day Avg. Volume86,660
30 Day Avg. Volume92,356
Financial Highlights & Ratios
PEG Ratio0.83
Price to Book (P/B)1.73
Price to Sales (P/S)10.95
P/FCF Ratio33.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)15.03
Revenue Forecast (FY)₪3.11B
Azrieli Group Business Overview & Revenue Model
Company Description
Azrieli Group Ltd., a subsidiary of Nadav Investments Inc., is an Israeli real estate firm established in Tel Aviv in 1983. The company's operations are divided into four primary segments: the management of retail centers and malls in Israel, the ...
How the Company Makes Money
Azrieli Group makes money mainly by owning and operating income-producing real estate and collecting recurring rent and related income from tenants, supplemented by development activity and other property-related revenues.
Key revenue streams:
1)...
Azrieli Group Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 25, 2026
Earnings Call Sentiment Neutral
Operational momentum across core businesses (retail, offices, senior housing and especially data centers) was clear: same-property NOI growth, strong mall performance, active leasing in offices, rapid data center construction and a contracted data center NOI pipeline exceeding ILS 1 billion. The company is investing heavily (ILS >1.7 billion YTD) and maintaining conservative financial management with long-duration bond issuance. However, sizable non-cash and market-driven headwinds — notably large FX/translation losses, negative fair value adjustments in the period, a marked drop in net income versus prior year, and increased gross debt — materially weakened reported profitability and produced a substantial comprehensive loss. Operational results are broadly positive, but accounting and market impacts temper the near-term reported earnings picture.Positive Updates
Same-Property and Total NOI Growth (Excluding FX)
NOI totaled ILS 651 million (up ILS 3 million YoY). Excluding foreign exchange impacts, NOI increased by ~ILS 23 million (~4%). Same-property NOI (Q2) totaled ILS 649 million vs ILS 648 million a year ago; excluding FX, same-property NOI rose ~3%.
Negative Updates
Significant Foreign Exchange and Translation Losses
Comprehensive income was a loss of ILS 548 million this quarter vs. a profit of ILS 258 million a year ago. Translation losses were ~ILS 680 million driven by shekel movement (~7.4% vs NOK and ~6.6% vs EUR). FX reduced reported data center revenue and lowered reported NOI (data centers decreased by ~ILS 12 million YoY; FX impact ~ILS 60 million).
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Q2-2026 Updates
Positive
Negative
Same-Property and Total NOI Growth (Excluding FX)
NOI totaled ILS 651 million (up ILS 3 million YoY). Excluding foreign exchange impacts, NOI increased by ~ILS 23 million (~4%). Same-property NOI (Q2) totaled ILS 649 million vs ILS 648 million a year ago; excluding FX, same-property NOI rose ~3%.
Read all positive updates
Company Guidance
Management guided that Q2 2026 showed continued, measurable momentum across the portfolio and laid out timing and numeric expectations for key growth engines: reported NOI was ILS 651m (up ILS 3m YoY; +ILS 23m or ~4% ex‑FX), same‑property NOI ILS 649m (vs ILS 648m; +3% ex‑FX), retail/malls NOI +9% with tenant sales +8%, offices NOI +4% excluding a onetime ILS 90m Meta termination, FFO ex‑senior housing ILS 411m (‑1% YoY) and FFO incl. senior housing ILS 426m (≈ ILS 430m ex‑FX, +1%); management reiterated that data centers are a major growth engine with contracted/potential annual NOI now exceeding ILS 1 billion (≈ EUR 315–350m), a powered land bank of ~1 GW, new Romford agreement (13.6 MW, 8‑yr) to add ~GBP 25m (~ILS 101m) of annual NOI from Q1‑2027, an Enebakk deal (5 MW, 15‑yr) to add ~ILS 24m annually, Undheim advancing (80 MW) and Mainz ramping in 2027, and a target to materially deliver contracted capacity (including the 275 MW Green Mountain pipeline) over 2027–mid‑2028 with KMW phases into 2029; YTD investments exceed ILS 1.7bn (ILS 645m in income‑producing properties under construction, ILS 969m in data centers), investment property + IPC ≈ ILS 53bn, gross financial debt ≈ ILS 30.4bn (net debt ≈ ILS 24.1bn, 37% of assets), Series K bond issuance ~ILS 2bn (15‑yr avg), average effective interest ~3% (avg group debt ~2.2%), and management emphasized continued conservative financial discipline.Azrieli Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.10B | 3.99B | 3.28B | 4.29B | 2.69B | 2.21B |
| Gross Profit | 3.01B | 2.57B | 2.30B | 3.38B | 1.89B | 1.54B |
| EBITDA | 3.81B | 3.64B | 2.93B | 3.79B | 3.16B | 4.13B |
| Net Income | 1.97B | 1.89B | 1.48B | 2.23B | 1.80B | 2.89B |
Balance Sheet | ||||||
| Total Assets | 65.43B | 63.57B | 57.93B | 54.07B | 48.47B | 42.37B |
| Cash, Cash Equivalents and Short-Term Investments | 4.00B | 3.97B | 4.63B | 4.92B | 3.41B | 2.89B |
| Total Debt | 28.58B | 29.15B | 25.89B | 22.75B | 19.33B | 15.27B |
| Total Liabilities | 39.07B | 38.26B | 34.10B | 30.50B | 26.37B | 21.60B |
| Stockholders Equity | 26.34B | 25.30B | 23.81B | 23.54B | 22.07B | 20.74B |
Cash Flow | ||||||
| Free Cash Flow | 1.07B | 1.32B | 1.58B | 1.17B | 1.69B | 1.32B |
| Operating Cash Flow | 1.23B | 1.44B | 1.82B | 1.37B | 1.75B | 1.36B |
| Investing Cash Flow | -2.75B | -3.03B | -3.14B | -1.47B | -2.82B | -2.99B |
| Financing Cash Flow | 272.00M | 751.00M | 1.07B | 1.68B | 1.57B | 1.89B |
Azrieli Group Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ₪9.33B | 11.39 | ― | 6.98% | 2.72% | -26.48% | |
64 Neutral | ₪7.80B | 7.67 | ― | ― | 3.34% | 44.21% | |
64 Neutral | ₪16.97B | 10.67 | ― | 2.57% | 8.94% | -5.15% | |
62 Neutral | ₪48.51B | 23.96 | 6.64% | 1.69% | 17.31% | 10.26% | |
60 Neutral | ₪18.75B | 10.78 | ― | 1.85% | 10.67% | 8.20% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
43 Neutral | ₪6.85B | 574.38 | ― | 2.96% | 22.63% | -185.87% |
* General Sector Average
IL:AZRG
Azrieli Group
38,890.00
7,824.12
25.19%
IL:ALHE
Alony Hetz
3,133.00
-317.18
-9.19%
IL:MLSR
Melisron
40,300.00
2,599.43
6.89%
IL:AFPR
Afi Properties
18,500.00
-2,410.00
-11.53%
IL:AMOT
Amot
1,955.00
-291.19
-12.96%
IL:BIG
Big
68,360.00
2,786.76
4.25%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.