The Israel Real Estate Monitor is the first quarterly read on Israel's listed investment property sector. It follows six of the largest real estate companies and REITs on the Tel Aviv Stock Exchange – together holding some ₪85bn of investment property at year end valuation – and each quarter sets the yield the equity market implies for that property against the valuation cap rate from the Israel Real Estate Index (IREI™) and the 10 year government bond, reporting the sector's premium or discount to net asset value, its NOI and FFO growth, and its leverage.
The headline implied yield is trailing four quarter net operating income over implied real estate value – equity market capitalisation plus net financial debt. Where that yield sits below the valuation cap rate the shares trade at a premium to net asset value; where above, at a discount. The Monitor is compiled and published each quarter by Ron Cohen VAS. For full results, methodology and sources, contact [email protected].
As at 30 June 2026 the six companies imply a yield of 5.16% on trailing four quarter NOI, in line with 5.17% at the end of March: their aggregate market value was little changed over the quarter, at some ₪53bn, while income continued to build. The 10 year government bond, by contrast, fell from 4.07% to 3.65% following the ceasefire, taking the spread from 110 to 151 basis points. The implied yield still sits well below the 6.09% valuation cap rate from the IREI™ at year end 2025, so the shares continue to trade at a premium to net asset value, still the reverse of the discount seen across most global markets. Aggregate NOI rose 6.0% on the same quarter a year earlier, and ISA standard FFO rose 13.0%, reaching ₪2.90bn over the trailing four quarters.
Universe. Six of the largest real estate companies and REITs on the Tel Aviv Stock Exchange – Melisron, Amot, Gav-Yam, Mivne, Reit 1 and Sella. Azrieli and Big are excluded because their data centre and overseas activities distort the simple measure; together the six are a large share of the TA Investment Properties in Israel index.
Market implied yield. Aggregate trailing four quarter NOI ÷ aggregate implied real estate value, where implied value = equity market capitalisation (quarter end TASE close × shares) + net financial debt (interest bearing debt less cash and near cash; deferred tax and lease liabilities excluded).
Valuation cap rate. Aggregate NOI ÷ the year end gross asset value of the same companies, from the Israel Real Estate Index (IREI™). This is an annual reading – the appraised value embeds the year end NOI – and it is held constant for the quarters in between, until the next IREI update.
Trailing convention. From Q1 2026 the implied yield and the FFO aggregates use trailing four quarters: the four quarters to the period end, rolled per company on a consistent reporting basis. Market capitalisations, net financial debt and the bond yield are taken at the period end date.
Other metrics. NOI and FFO growth compare the quarter with the same quarter a year earlier (at the FY 2025 launch, full year versus full year; the FY2024 FFO comparatives were restated under the ISA's 2025 position paper, which flatters that full year growth figure – quarterly comparisons from Q1 2026 are on a consistent basis). Leverage is aggregate net financial debt over market assets (equity market capitalisation plus net debt). Spread is the implied yield less the Israeli 10 year government bond – the yield to maturity at the period end close of the TASE 10 year shekel benchmark (the launch bond figure was restated to this series).
Source: company quarterly financial statements (NOI, FFO, net debt); TASE end of day market data (market capitalisations and the 10 year government bond – yield to maturity of the TASE 10 year shekel benchmark at the period end close; the launch figure was restated accordingly); Israel Real Estate Index (IREI™), Ron Cohen VAS.
Disclaimer. The Israel Real Estate Monitor tracks the listed investment property sector on the Tel Aviv Stock Exchange, drawing on the constituent companies’ published financial statements and on TASE end of day market data. While every attempt has been made to ensure that the information in the Monitor has been obtained from reliable sources, Ron Cohen VAS is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in the Monitor is provided “as is”, with no guarantee of completeness, accuracy or timeliness, and without representation or warranty of any kind, express or implied. The implied yield and the other measures shown are market derived indicators: they are not valuations of any company, property or portfolio, and they do not constitute a valuation or appraisal by Ron Cohen VAS. References to listed companies are drawn solely from their public disclosures and imply no endorsement by them. In no event will Ron Cohen VAS or its related affiliates or owners be liable for any decision made or action taken in reliance on the information in the Monitor, or for any consequential, special or similar damages. Nothing in the Monitor should be considered investment advice or a recommendation to make (or refrain from making) any kind of investment decision, and it may not be relied on as such. © Ron Cohen VAS 2026.
