Euphoria | Israel today

The corona is raging, the economy is crashing, but construction company reports indicate: Sales offices are working at a pace

• Sales are growing, optimism is rising

  Photography: 

  freepik

Produced by the Department of Special Supplements

When talking about euphoria in sales offices despite the corona, many raise an eyebrow.

But the companies' reports in the capital market reveal that there is a justifiable reason for this - a dramatic increase in sales and profits, especially in the days of Corona.

A brief overview shows the market situation, which certainly proves stability.

"If the high sales that were in November are a sign of what is expected to be in 2021, it seems that the sales rate is going to be very high and even cause prices to rise in areas of demand," says Dorit Sadan, VP of Marketing for Housing and Construction.

According to Adv. Roni Tennenbaum, Gindi Holdings' VP of Marketing, the past year has actually encouraged many to buy apartments.

"People are being pushed to make changes to their homes and the purchase of apartments is rising. Prices remain stable and are even rising in some cities," she said.

YH Damari reports a significant jump in the sale of apartments in the third quarter of 2020 compared to the corresponding quarter last year, and an increase in revenues.

In the third quarter, the company sold 214 apartments and plots in Israel, more than double the number of apartments it sold in the corresponding quarter last year.

In the first nine months of 2020, the company sold 499 apartments and plots, compared to 286 apartments in the corresponding period last year - an increase of 74.5%.

The total number of units includes 60 plots sold for a total consideration of approximately NIS 28.5 million.

Damari's net profit in the third quarter rose by 34.3% to NIS 32.7 million.

Revenues in the third quarter increased by 23.5% to NIS 269.6 million.

Azorim also maintains a stable net profit compared to the same period last year.

In the first nine months of 2020, the company's net profit from operating activities amounted to NIS 77 million (excluding the one-time effect of the Harit Fund issue), compared with NIS 79 million in the first nine months of 2019, a decrease of only 2.5%.

 Despite the closure imposed during September, Azorim showed a significant 25% increase in the number of residential housing units it sold in this quarter, compared to the second quarter of 2020. The company sold 263 housing units in the third quarter, compared to 210 housing units sold in the second quarter of this year and 153 Apartments sold in the first quarter.

During the first nine months of 2020, the company sold 625 housing units.

The main projects in which sales were recorded during this period: Central Park in Be'er Sheva (56 housing units), Tzameret Nahariya in the new Ariel Sharon neighborhood (40 housing units), Azorim Shoham (79 housing units), the Narkisim neighborhood in Rishon Lezion (193 housing units) D), plots for the construction of detached houses in Tel Mond (124 plots) and more.

The increase in sales was also reflected in the first months of the last quarter of the year: as of October 1, the company signed contracts for the sale of 187 residential housing units worth NIS 496 million (including VAT). Of all the apartments sold during this period, 105 At a value of NIS 319 million (including VAT), they are in the EXCHANGE project at the Elite junction in Ramat Gan, which will be marketed starting in October.

Praszkowski reports an increase in the company's revenues in the first nine months of 2020, which amounted to NIS 857 million, compared with revenues of NIS 773 million last year.

The net profit in the first nine months of 2020 amounted to NIS 143 million, compared with NIS 116 million in the corresponding period last year.

The third quarter of 2020 ends with the Prashkovsky Company with equity of NIS 919 million.

In addition to the high profits in the reporting period, the company completed a private placement of 1,100,000 shares and 1,100,000 warrants in the third quarter, which brought the company about NIS 66 million in August 2020. The warrants are valid until December 1, 2020 at a price of NIS 73 per share. The company will receive an additional NIS 80 million in shares.

Praszkowski reported to the stock exchange that it sold 107 apartments in November 2020 worth NIS 198 million.

97 of the apartments were sold in Neve Doron in Ramla, 3 apartments in Galil Yam were worth NIS 14 million and 7 apartments in Neve Sha'anan in Haifa were worth NIS 12.25 million.

For comparison, the company sold 38 apartments in November 2019 and 36 apartments in November 2018.

Haim Karadi, CEO of Praszkowski, explains that the onslaught of apartment buyers after the first closure also occurs after the second closure, which we experienced in October. "We see the public coming to the sales offices and interested, despite the economic uncertainty in the market."

Chairman of the Company's Board of Directors, Yossi Praszkowski: "The company continues to show improvement in performance in all parameters and strengthens its position as one of the leading real estate companies in the residential industry, along with the development of a lucrative arm in Israel through its subsidiary Praszkowski."

He noted that he expects an increase in the company's revenues from income-producing properties, which are currently in various stages of construction or planning, and include, among other things, projects of hundreds of apartments for long-term rent.

In the third quarter report, the Meshulam Levinstein Group shows a dramatic increase in revenues from the sale of apartments compared to last year. In 2020, it sold NIS 105 million, while in 2019 it sold only NIS 64.9 million. Profit in the third quarter of this year doubled compared to the third quarter of 2019 - NIS 16.2 million compared to NIS 8.1 million last year.

According to Maalot, "Most of the company's projects are located in areas of demand in cities such as Yavne, Netanya, Ramat Hasharon, Rishon Lezion, Tel Aviv and Givatayim. In the second quarter of 2020, there was a slowdown in sales, in our estimation mainly due to traffic restrictions and congestion. However, in July-August there was a recovery in the sale of apartments and even an increase. "

The high school builders report an increase in the sale of apartments, including in the price per occupant program.

After the reporting period (fourth quarter), the company sold 35 additional apartments. During the quarter, land for a hotel in Netanya was also sold for NIS 49 million.

The Hanan Moore Group reports an increase in revenue during the third quarter - NIS 55.9 million, compared with NIS 26 million in the corresponding quarter last year

After the balance sheet, binding sales contracts were signed and about 40 units were sold during the third quarter of 2020. After the balance sheet date, the marketing of a free market unit in Or Yam in Or Akiva also began, and the company is preparing for massive sales of price per occupant units in December 2020.

In the first nine months of the year, Hanan Moore sold 128 units and land and 17 commercial units worth NIS 199 million. In the third quarter, the company returned to a profit of NIS 2.7 million, compared with a loss of NIS 2.2 million.

In the Modi'in Moreshet, Rishon LeZion daffodils and Ariel G. projects, there are binding sales contracts at a rate of 81% and revenues for them NIS 586 million, as of September 30, 20. Receiving building permits in these projects allows the company to begin recognizing revenue and profit at an increasing rate.

Cardan Real Estate concludes the third quarter of 2020 with an increase in sales, double-digit growth in revenues and an increase in profits. Despite the corona crisis, the company sold more housing units compared to the previous quarter and the corresponding quarter last year. During the quarter, the company sold 32 housing units. ), Compared with the sale of 17 housing units in the previous quarter and 29 housing units in the corresponding quarter last year.

In the first nine months of the year, the company sold 68 housing units (part of the company), compared to 51 housing units in the corresponding period last year.

Revenues in the quarter grew by 25% to NIS 119 million, and in the first nine months of 2020 grew by 23% to NIS 348 million - thanks to an increase in the sale of apartments and the rate of progress in projects.

Produced by the Department of Special Supplements