Alony Hetz Properties and Investments published its second quarter report on 17 August. This piece is about one line that recurs through the report, and that is probably the most important thing in it.
Errors or inaccuracies are possible. Spotted something that looks wrong? Write to me and I will correct it.
What the Company Holds
Alony Hetz, of Ramat Gan, is an income-producing property holding company. It does not operate assets itself; it holds companies that do:
| Israel | 51.17% of Amot Investments - a listed company in its own right |
| United States | Carr, including Midtown Center in Washington DC |
| United Kingdom | The Brockton fund |
And during the reporting period it increased its holding in Amot - buying shares on the exchange for about NIS 111 million.
And that structure is exactly what produces the phenomenon in this piece.
The Quarter
| NIS millions | The quarter |
|---|---|
| Revenue | 785.6 |
| Pre-tax loss | -34.4 |
| Income taxes | 73.4 |
| Net loss | -107.8 |
| Attributable to the company's shareholders | -178.8 |
| Attributable to non-controlling interests | +70.9 |
| Basic loss per share | NIS -0.79 |
| Total assets | 47,010 |
| Equity | 12,265 |
The Line to Stop On
The loss attributable to shareholders is larger than the total loss.
That looks like an error, and it is not one. A net loss of NIS 107.8 million splits as follows: a loss of NIS 178.8 million to Alony Hetz shareholders, and a profit of NIS 70.9 million to minority shareholders in the subsidiaries.
The arithmetic closes: 178.8 less 70.9 is 107.9, and the difference from the reported figure is rounding.
And how that happens in practice.
Amot is a separate listed company, and Alony Hetz holds 51.17% of it. Because that is control, Alony Hetz consolidates all of Amot's results into its own accounts - 100% of the revenue and 100% of the profit - and then strips out the minority's share, about 49%, into a separate line.
And Amot reported a strong quarter. A net profit of NIS 328.8 million, as we wrote on 11 August.
So the Israeli part of the group worked well - and almost half of it belongs to someone else. What is left for Alony Hetz shareholders is its share of Amot, net of everything else the company holds.
And What "Everything Else" Is
Per the directors' report, the loss in the quarter and in the year-earlier period arises, among other things, from fair value adjustments on investments measured at fair value through profit and loss - the Brockton fund among them - and from the results of Carr's associated companies.
That is: the assets in Israel produced profit, and the assets abroad took away from it.
The Tax, and That Is a Line of Its Own
NIS 73.4 million of tax charge - on a pre-tax loss of NIS 34.4 million.
That is what turns a NIS 34 million loss into a NIS 108 million one.
And why tax is paid on a loss.
An accounting loss is not a tax loss. A group made up of many companies pays tax in each of them separately: a company that made a profit pays, even if the company beside it lost money.
And here a detail the company states explicitly joins in: in the year-earlier period it created no deferred tax assets, given no expectation of using them in the near term.
That means a loss arising in a particular entity was not booked as a future tax asset - because the company does not expect taxable profit in that entity against which it could be offset. Such a loss stays a full loss, with no offsetting relief.
And This Is Not a One-Quarter Phenomenon
The figures the company presents for longer periods show the structure is consistent:
| NIS thousands | Consolidated net | To shareholders | To minority |
|---|---|---|---|
| Q2 2026 | -107,825 | -178,774 | +70,949 |
| Q2 2025 | +291,630 | +134,332 | +157,298 |
| H1 2026 | +90,803 | -102,238 | +193,041 |
| H1 2025 | +456,586 | +201,306 | +255,280 |
| Full year 2025 | +545,152 | +7,439 | +537,713 |
And two rows in that table deserve a second reading.
The first half of 2026: the group booked a consolidated profit of NIS 90.8 million, and in that same half Alony Hetz shareholders booked a loss of NIS 102.2 million.
And the whole of 2025: out of a consolidated profit of NIS 545.2 million, only NIS 7.4 million reached the company's shareholders. NIS 537.7 million, or 98.6%, went to the minority.
The Balance Sheet
NIS 47.0 billion against equity of NIS 12.27 billion - a ratio of about 3.8 to one.
And here too it matters what is being counted: the consolidated balance sheet includes all of Amot's assets, including the part that is not Alony Hetz's.
הזווית שלי
דעה אישית של אילן אברמוב - לא ייעוץ ולא המלצה
This report is a reminder that at a holding company, the consolidated bottom line is not the shareholder's bottom line.
Anyone reading "a net loss of NIS 107.8 million" is getting a number that is not theirs. Their number is NIS 178.8 million, and the gap between the two - NIS 70.9 million - is the profit of their partners in the subsidiaries.
And what makes this substantive rather than technical is the multi-period table. In the whole of 2025 the group earned NIS 545 million, and NIS 7.4 million reached Alony Hetz shareholders. That is not a quarter's noise - it is a structure.
So the figure I read at a company like this is not the consolidated profit but the ratio between the two lines. A group that consolidates a profitable listed company it holds barely over half of will always look larger than what reaches its own shareholder.
And what I will check in the coming quarters is not whether the company returns to profit, but where that profit comes from. If consolidated profit keeps leaning on Amot while the assets abroad detract, the gap between the two lines will persist even when the sign flips.
And the NIS 111 million of Amot shares bought in the quarter is interesting in exactly that context - it enlarges the part that does reach shareholders, of the asset that does work.
(An important note: this is my personal opinion only, and nothing here is a recommendation to take any action.)
