This is a structural review of a quarterly report filed today. It is not investment advice, a recommendation to act, or investment marketing. Every figure was taken from the structured filing submitted to MAYA (report 1765451, second quarter 2026, in shekels), and the ratios were computed directly from it.
The figures as filed
| Line | Amount | Of revenue |
|---|---|---|
| Revenue | 41.2 ILS million | 100.0% |
| Gross profit | 7.1 ILS million | 17.2% |
| Operating profit | 71.8 ILS million | 174.4% |
| Pre-tax | 63.8 ILS million | 155.0% |
| Net profit | 46.4 ILS million | 112.6% |
A number that rent cannot explain
Revenue of ILS 41.2 million and operating profit of ILS 71.8 million. The ratio is 174.4% - operating profit is larger than everything that came into the company during the quarter.
That is impossible in a business selling a product or a service, so it points to one thing: most of the operating profit here is not from activity but from revaluation.
The path looks like this: gross profit - what remains of rent after the operating costs of the properties - stands at just ILS 7.1 million. Between that line and the operating line, ILS 64.7 million was added. In an income-producing real estate company that is almost always an increase in the value of investment property, recorded in the income statement under the international reporting standard.
Why this matters for reading
A revaluation is not cash. It is a fresh valuation of an asset that was not sold, so it moves accounting profit without moving cash flow. The same asset can be recorded as rising in one quarter and falling in the next, with nothing in the rental activity having changed.
The practical implication: in a report like this the operating profit line does not measure the business. What measures the business is gross profit - ILS 7.1 million - and the rental run-rate is visible only there. The rest of the difference is a measurement of the market, not of the company.
The balance sheet, which is the asset itself
The total balance sheet stands at ILS 4,111.0 million against equity of ILS 1,164.4 million - a ratio of 3.53 to one. And quarterly revenue represents only 1.0% of the total balance sheet.
That last ratio is the shape of income-producing real estate in full: assets are very large relative to turnover, because turnover is rent and the asset is the building. Which means a small percentage change in asset values produces a very large movement in the profit line - exactly what happened here.
What this report does not say
The structured filing submitted to MAYA does not include the comparable quarter a year earlier, so everything written here is a cross-section of a single quarter - not a trend. From these figures alone it is impossible to say whether an improvement or an erosion continues, and no run-rate can be derived from them. Those answers live only in the full report and its notes.
And a note that applies to every review here: the structure described is neither "good" nor "bad." It is a shape, and a shape behaves differently in every industry. The review describes what is happening - it does not evaluate and does not recommend.
