Revenue 2025
794M ₪
+21.6% YoY
Net Income 2025
212M ₪
+35.9% Y/Y | +121% from 2023
Shareholders’ Equity 2025
1,349M ₪
2.35× versus 2019
German Real Estate
129 properties
63% of balance sheet | ~NIS 1.7B Lahav share
Dividend March 2026
70M ₪
Cumulative 2019-2025: NIS 629M
1 Company Profile
Lahav L.R. Real Estate is an Israeli public holding company traded on the Tel Aviv Stock Exchange since 1983. In recent years Lahav has transformed from a domestic Israeli holding into a company with a German-centred core — 63% of the balance sheet consists of income-producing real estate in Germany (129 commercial properties, company-share value ~NIS 1.7B). Ownership: businessman Avi Levy holds ~43.33%. The company operates five activity segments: German income-producing real estate (63% — 129 properties), Israeli income-producing real estate (13% — via 30.56% of Delek Properties), Green energy (9% — via 41.91% of Prime Energy), Waste (8% — via 65% of Lahav Infrastructure), and Delek Israel (7% — 39.6% joint control). Market capitalisation: ~NIS 3.05B. The model is that of a holding company — direct revenue from German real estate plus share of earnings from subsidiaries.
| Company | Holding | Status |
|---|
| German Real Estate (direct) | 100% | Private, 129 properties |
| Delek Properties | 30.56% | Public from 7/2025 |
| Prime Energy (green energy) | 41.91% | Joint control |
| Lahav Infrastructure (waste) | 65% | Private |
| Delek Israel | 39.6% | Joint control |
| Mifatz 1965 | 65% | Private, MOU with Mizrahi Invest |
Source: 2025 Annual Report, Q4/2025 capital-markets presentation
2 Key Financial Observations
This summary is not a recommendation. It is a factual list of key financial metrics.
Performance — 3 Years (₪M)
| Metric | 2023 | 2024 | 2025 |
|---|
| Revenue | 558 | 653 | 794 |
| Net Income (owners) | 96 | 156 | 212 |
| Comprehensive income (owners) | 146 | 103 | 194 |
| Shareholders’ Equity | 1,080 | 1,199 | 1,349 |
| Dividend paid | 98 | 148 | 148+70 (March 2026) |
Balance Sheet & Key Ratios
| Metric | 2025 Value |
|---|
| Total Assets | 2,552M ₪ |
| Current Assets | 386M ₪ |
| Non-current Assets | 2,167M ₪ |
| Current Liabilities | 219M ₪ |
| Non-current Liabilities | 933M ₪ |
| Equity attributable to owners | 1,349M ₪ |
| Equity / Balance Sheet ratio | 44.3% |
| German Real Estate value (Lahav share) | ~1.7B ₪ |
Missing data: Detailed NOI by segment, consolidated Debt/EBITDA, Cap Rate of the German portfolio (~5-6% estimated), NAV Per Share.
Revenue + Net Income (₪M)
Balance Sheet Breakdown by Segment
Shareholders' Equity Trend (₪M)
German Property Acquisitions
Equity / Balance Sheet ratio (%)
3 Industry & Competitive Context
An Israeli holding company with a German income-producing real-estate core. A rare combination — an Israeli company with meaningful European exposure. Mildly cyclical (commercial real estate is sensitive to European interest rates). Trends: declining European rates (supportive of asset values), shift toward green energy.
| Segment | Competitors |
|---|
| German Real Estate | Local German players + European REITs |
| Israeli Real Estate | Azorim, Amot, Big, Melisron (via Delek Properties) |
| Green Energy | Enlight, Energean, Doral |
| Waste | Veolia, Amnir, Tamir |
| Fuel | Paz, Sonol |
4 Risk Factors
| Risk | Context |
|---|
| Geopolitical exposure in Germany | 63% of the Balance Sheet. A decline in German real-estate values is a direct impact |
| NIS / EUR exchange rates | Revenue in EUR, Balance Sheet reported in Israel. Currency moves affect results |
| Controlling-shareholder dependency | Avi Levy 43.3% — strategic decisions depend on him |
| Holding-structure complexity | 5 segments, with some subsidiaries public — difficult for an investor to track |
| European interest rates | Rising rates reduce real-estate asset values |
| Transparency of private subsidiaries | Some subsidiaries are private — limited transparency |
| Leverage in some segments | The leverage of each subsidiary requires separate review |
5 Analytical Lens — The Questions We Ask
In professional company analysis, the question is not "is this good?" but rather "through which lenses must this company be examined so that we do not miss what matters most?" At Bakshi Finance, every analysis passes through six lenses.
This framework is intended to structure analysis, not to produce an investment conclusion.
Growth
Revenue grew 42% during 2023-2025, Net Income +121%. How much of that growth is organic (NOI growth) versus acquisitions (39 new properties in Germany in 2025)? How sustainable is it over the long run?
Profitability
Net Income jumped from 96 to 212 (x2.2). How much of the jump reflects asset revaluations versus genuine NOI? What is the company's FFO / AFFO?
Leverage
Equity / Balance Sheet ratio is 44.3% — a healthy figure. But what is the consolidated leverage (including debt at subsidiaries)? What is the exposure to rising European interest rates?
Competitive Position
Lahav is a holding company with a distinctive German portfolio. What is its advantage versus German REITs? What does the Israeli connection add?
Management Quality
Avi Levy has successfully led the transition from an Israeli company into a European holding. How personal-dependent is that? What is the succession plan?
Business Complexity / Risk
5 segments, 6 subsidiaries (some public, some private). How should one estimate SOTP? Where would a simplistic analysis go wrong?
6 Scenario Framework
Scenarios are descriptive, not predictive. They outline possible conditions, not expected outcomes.
These scenarios carry no probability assessment, no preferred direction, and no expectation regarding which, if any, will materialise.
Constructive Scenario — if the following conditions hold:
European interest rates continue to decline, Lahav continues to acquire German properties at the current pace (30-40 per year), subsidiaries deliver growth, and NOI grows 5-7% organically per year. Under these conditions, equity continues to grow at a double-digit pace, dividends rise, and NAV expands.
Base Scenario — if current trends continue:
European rates remain stable, acquisitions moderate to 15-20 properties per year, NOI grows 3-5%, and equity grows 8-10% annually. Dividends remain steady near NIS 70M.
Adverse Scenario — if the following risks materialise:
Rising European interest rates pressure German real-estate valuations (-10% to -20%), weakness in the German economy, or a material EUR/ILS decline. Under these conditions, equity erodes and dividends may be frozen.
Scenarios describe conditions, not forecasts. There is no preferred direction and no probability assessment expressed in this framework.
7 How to Think About This Company
Lahav is not a conventional Israeli holding company — it is one of the Israeli public companies with the highest exposure to German real estate. 63% of its balance sheet consists of commercial properties in Germany (129 properties), and this unique combination is what distinguishes Lahav from any other Israeli holding. The real question in analysing Lahav is not "does the model work" (it does — equity has grown 2.35× over seven years), but rather "how should one value a company whose results are distributed across five different segments, with 63% exposure to European rate and macro risk?"
The critical variables to monitor are three. First, the ECB policy rate and the German Bund yield. 63% of the balance sheet is sensitive to German interest-rate spreads. A 100bp rise in the 10-year Bund yield could reduce income-producing real-estate values by 8-12%. Second, the pace of German acquisitions. Adding 39 properties in a single year is an aggressive cadence. The questions are whether the pace is sustainable and what the ROIC is on capital deployed. Third, the transparency of private subsidiaries. Lahav Infrastructure (waste), Mifatz 1965 — private subsidiaries whose results are consolidated but not fully visible. Changes in their profitability may come as a surprise.
Where the analysis may go wrong. First error — treating the NIS 212M net income in 2025 as cash flow. A meaningful portion is asset revaluations (fair-value gains), not actual cash. FFO is the correct metric for valuation. Second error — assuming 42% revenue growth will continue. That pace came from aggressive acquisitions; when the cadence moderates, growth will settle at 5-8% annually. Third error — treating Lahav as purely "Israeli". Its success is materially dependent on the German economy and the European real-estate market.
What distinguishes professional analysis of Lahav from headlines. Headlines speak of "Avi Levy" or of "German real estate". Professional analysis addresses three things: (a) the gap between SOTP (sum-of-parts) and market capitalisation — and the reasons for that gap; (b) sensitivity to European interest rates and EUR/ILS fluctuations; (c) how the transparency of private subsidiaries affects the accuracy of any valuation. These are not what one buys or sells — they are what one asks before deciding.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
8 Sources & Data
| # | Source | Date | Type |
|---|
| 1 | Lahav L.R. — 2025 Annual Report | March 2026 | Official — TASE |
| 2 | Q4 2025 Capital-Markets Presentation | February 2026 | Official — company website |
| 3 | maya.tase.co.il — Lahav | April 2026 | Official — Stock Exchange |
| 4 | Delek Properties (TASE) — Reports | Quarterly | Official — Subsidiary |
| 5 | Prime Energy (TASE) — Reports | Quarterly | Official — Subsidiary |
Missing: Detailed NOI by segment, consolidated Debt/EBITDA, Cap Rate of the German portfolio (~5-6% estimated), NAV Per Share.
