Dimri H1 2025 presentation: Higher margins offset sales decline as project pipeline expands

Introduction & Market Context

Israeli real estate developer Dimri shared its H1 2025 financial results and business outlook on August 21, 2025, highlighting improved profitability despite a slowdown in sales volume. The company’s stock was trading down 1.38% following the presentation, with shares priced at 36,200 NIS.

Dimri, which is listed on the TA-35 index of the Tel Aviv Stock Exchange, maintains a strong financial position with an A1 credit rating (stable outlook) and approximately 3.2 billion NIS in equity. The company continues to advance its extensive project pipeline spanning residential development, urban renewal, and income-generating properties across Israel.

H1 2025 Financial Performance Highlights

Dimri reported a net profit of 295 million NIS for H1 2025, representing a 10.5% increase from the 267 million NIS earned in H1 2024. This improvement came despite slightly lower revenue, which decreased from 973 million NIS in H1 2024 to 969 million NIS in H1 2025.

The company’s profitability metrics showed notable improvement, with gross profit margin expanding to 46% in H1 2025 from 43% in the same period last year. Similarly, EBITDA margin increased to 41% from 37%, while net profit margin rose to 30% from 27%.

As shown in the following financial performance chart:

However, sales volume declined significantly year-over-year. In Q2 2025, Dimri sold 336 units (318 company share) generating 791 million NIS in revenue, compared to 494 units (470 company share) and 1.16 billion NIS in revenue during Q2 2024. This represents a 32% decrease in units sold and a 31.5% decline in revenue.

Project Pipeline and Development Strategy

Dimri’s extensive project pipeline comprises 39,176 housing units across various stages of development, providing substantial growth potential for the coming years. The pipeline includes 20,569 units in urban renewal projects, 3,907 units under construction and for marketing, 12,790 units in land reserves, and 1,910 units in advanced planning.

The company’s project pipeline breakdown is illustrated here:

Among the company’s notable projects is the Sde Dov development in Tel Aviv, which is currently in planning stages. This premium project will feature 458 residential units, 70 hotel rooms, and 1,500 square meters of commercial space, with estimated revenue of 2.74 billion NIS and a projected gross profit margin of 26%.

The following image shows the Sde Dov project in Tel Aviv:

Another significant development is the YAMA project in Marina Ashkelon, which is currently under construction. Of the 218 units in this project, 156 have already been sold. The development is expected to generate 513 million NIS in revenue with an impressive 56% profit margin.

The YAMA project in Marina Ashkelon is shown below:

Urban Renewal and Land Reserves

Urban renewal represents a major component of Dimri’s growth strategy, with 19,813 units planned for construction and 15,379 units for marketing. These projects are expected to generate 5.13 billion NIS in revenue with a gross profit of 1.62 billion NIS, representing a 32% profit margin.

The company’s urban renewal projects include the Damari project in Neve Or, Or Yehuda (846 units), the Harmony (JO:HARJ) project in Ashdod (563 units), and the Nordau project in Netanya (553 units).

The urban renewal overview is presented here:

Complementing its development pipeline, Dimri maintains substantial land reserves totaling 12,790 housing units with a book value of 1.997 billion NIS. These reserves are strategically located across Israel, including significant holdings in Hadera (4,909 units), Ashdod (885 units), and Bat Yam (224 units).

The company’s land reserves are illustrated below:

Income-Generating Properties

Beyond residential development, Dimri owns a portfolio of income-generating real estate valued at 1.704 billion NIS. These properties generate annual NOI (Net Operating Income) of approximately 70 million NIS and maintain a healthy 92% occupancy rate.

The income-generating portfolio includes the Damari center in Dimona, Damari in Kfar Saba, and Cinema City in Be’er Sheva, with the latter being the largest asset at 356 million NIS in value.

The income-generating real estate overview is shown here:

Forward-Looking Statements

For the remainder of 2025, Dimri highlighted several key initiatives, including:

• Receiving permits and beginning demolition for phase A of the Hsabion compound in Or Yehuda (326 units)
• Approving plans for the Hagefen complex in Jerusalem (383 units) and the Ahad Ha’am complex in Ashdod (532 units)
• Completing the sale of land in Hadera, with an estimated profit of 150 million NIS
• Inaugurating projects totaling 640 units across multiple cities

The company also projects receiving permits for approximately 9,345 units and securing building plan approvals for about 18,150 units between 2025 and 2027, supporting its long-term growth trajectory.

Dimri maintains a dividend policy of distributing up to 40% of net profit. In the first half of 2025, the company distributed 60 million NIS in dividends to shareholders.

Full presentation:

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