Azrieli Group (TASE: AZRG), headed by Danna Azrieli, recorded a 10% rise in NOI (net operating income) to NIS 2.5 billion last year, while data centers accounted for a significant slice of its business. NOI from the company’s data centers, which are mainly located overseas, reached NIS 449 million last year, representing a 95% rise within a year and nearly one fifth of the total. Correspondingly, at NIS 11.3 billion, data centers represent 18% of the value of Azrieli Group’s assets.
Same property NOI showed a slight decline between 2024 and 2205, to NIS 2.2 billion. This was partly due to a decision by the company in the fourth quarter of 2025 to write down NIS 70 million in management fees due from previous years. The company said that the arrears arose from allowances made to tenants in the past for security, economic and social challenges that the country and the economy faced.
Net profit for 2025 was NIS 1.9 billion, 27% higher than in 2024. The rise stemmed from growth in rental revenue and a 23% gain from revaluation of assets.
On the release of the results, Danna Azrieli commented on one of the matters that is worrying the income-producing real estate market, namely demand for office space. “In offices, we are experiencing lively demand in the Tel Aviv area. The new leases on all the space that was vacated in the Sarona Tower, at higher prices and on improved terms, are concrete testimony to the quality of our assets,” she said.
Regarding data centers, in February Azrieli Group announced the expansion of an agreement to provide services in Germany, the Frankfurt area. Similarly, in December it announced a substantial deal in Norway for the provision of data center services amounting to 80 megawatts, that will generate NOI of €117 million. The company has completed the leasing of a large area in the Sarona Tower, 31,000 square meters.
Azrieli Group’s share price has risen by 77% in the past year, giving it a market cap of NIS 58 billion before the opening of trading this morning, 50% higher than the combined market caps of its two main rivals in malls in Israel, Melisron and Big. Investors were apparently disappointed by the financials released today, however, as the share price is currently down 7.76% in today’s session.
Published by Globes, Israel business news – en.globes.co.il – on March 19, 2026.
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