Adgar 360: How much of the company's value is really carried by the anchor asset
The main article framed Israel as Adgar's cash-flow anchor. This follow-up shows how concentrated that anchor really is: Adgar 360 accounts for 77% of Israeli NOI, backs ILS 728 million of undrawn credit lines, and remains highly sensitive to a small move in cap rates.
The Asset Carrying Israel
The main article made a straightforward point: Adgar's balance sheet is calmer, but real value unlocking still runs through Canada. This follow-up isolates a more immediate layer, how much of the "safe" Israeli leg actually sits on one asset, Adgar 360. That matters because the complex does not just generate most of Israeli NOI. It also supports a large share of the company's liquidity flexibility and a meaningful part of the accounting value investors lean on.
This is the core point. Israel does look like Adgar's stable leg: signed occupancy there stood at 97% at the end of 2025, and Israeli NOI rose to ILS 120.8 million. But 77% of that NOI comes from Adgar 360. In cash terms, that means roughly ILS 93 million a year. Anyone reading the Israeli story as a diversified property bucket is missing how concentrated the anchor really is.
The same concentration shows up in value. Adgar 360 was appraised at ILS 1.50499 billion at year-end 2025, while the Israeli real-estate layer on the balance sheet stood at ILS 2.111 billion. That is an analytical inference rather than a printed ratio, but the math is simple: one complex carries roughly 71% of Adgar's Israeli real-estate value. So when Israel is described as the company's stable anchor, the more accurate wording is this: a stable Israeli leg that is heavily concentrated in one Tel Aviv complex.
That also explains why Adgar 360 is a true anchor asset rather than a branding label. Israeli NOI growth in 2025 was attributed partly to higher income from Adgar 360 and from the company's building in Rosh HaAyin. In other words, even the improvement in Israel did not come from broad-based diversification. It still leaned mainly on the continued strength of the lead property.
It Is Also a Financing Engine
The second point is less intuitive, but just as important. Adgar 360 does not sit outside the capital structure as a "clean" asset that should be viewed only through NOI and appraisal value. The report describes first-ranking fixed charges without amount limit on the company's rights in the property, as well as first-ranking charges and assignments tied to the parking-right agreements. In plain terms, the asset's value is already embedded inside the financing system.
That comes through most clearly in the credit facilities. At the end of 2025, the company had approved undrawn credit lines secured on its rights in Adgar 360 totaling ILS 728 million from two Israeli banks.
| Facility | Amount | Main terms | Expiry |
|---|---|---|---|
| Facility 1 | ILS 578 million | Short-term loan up to 1 year at prime + 0.4%, or long-term loan up to 6 years at CPI-linked government bond yield + up to 2.46%, with annual amortization of at least 5% | July 31, 2026 |
| Facility 2 | ILS 150 million | CPI-linked government bond yield + up to 2.5% | December 13, 2026 |
That gives Adgar real flexibility, but not free flexibility. On one hand, the company can point to the complex as an accessible liquidity reservoir in a stress case. On the other hand, those lines are not permanent capital. Both come up for review during 2026. Adgar 360 therefore plays two roles at once: it is the core Israeli asset, and it is also the collateral pool helping the company manage the next two years with relative calm.
The balance-sheet context explains why this matters. The Israeli layer as a whole ended the year with ILS 380 million of gross secured debt and an 18% LTV. That is a comfortable leverage level. But precisely because Israeli leverage looks calm, it is easy to miss how much of that calm rests on one asset the banks already view as a financing base. That is not an immediate weakness. It is a concentration point that needs to be read correctly.
The Value Is Stable, Not Reopening Higher
Anyone looking to Adgar 360 for a fresh re-rating engine in 2025 did not really get one. The appraisal moved from ILS 1.5033 billion on June 30, 2025 to ILS 1.50499 billion on December 31, 2025. That means the second half of the year added only about ILS 1.7 million of value. The asset delivered stability, not a new leg up in valuation.
That does not make the appraisal weak. If anything, its income stack is fairly clear. Roughly ILS 595.7 million of value was attributed to government offices and the German embassy at a 5.5% cap rate, about ILS 635.69 million to leased office space in phases B and C including coworking at 6.25%, and another ILS 164.8 million to parking NOI. But there is also a more subtle point here: the appraisal includes ILS 53.99 million of additional income from management and data center activities, and from electricity and communications accumulation. So not every shekel in the ILS 1.505 billion headline comes from plain office rent.
The analytical implication cuts both ways. On one side, this is an asset with several income layers inside the same complex. On the other, anyone reading Adgar 360 as a pure office-rent appraisal is simplifying the picture too much. Part of the value rests on more operational income streams, which means stability depends not only on occupancy and rent, but also on the ability to preserve those ancillary revenues.
That is exactly why the sensitivity table matters more than the headline number. According to the appraisal, a 0.5-point increase in cap rates takes the value down to about ILS 1.3875 billion, while a 0.5-point decrease lifts it to ILS 1.64392 billion. That is a range of roughly ILS 117 million to ILS 139 million around the base point. Relative to the company's year-end equity of ILS 1.607 billion, that is roughly 7% to 9%. So this is not only a stabilizing asset. It is also a meaningful concentration point in Adgar's accounting value.
So How Much Does Adgar 360 Really Carry
The short answer is, more than is comfortable to admit. Adgar 360 does not carry the entire company, because Poland, Canada and Belgium still matter to the full thesis. But it does carry a very large part of the safety layer investors rely on when they say Israel balances the story. The complex provides most of Israeli NOI, represents roughly 71% of Israeli real-estate value, and backs ILS 728 million of undrawn bank lines. That is no longer just "a strong asset." It is an asset carrying income, liquidity and valuation at the same time.
That is also the strongest counter-thesis on the Israeli leg. One can argue that the concentration is actually a strength: one high-quality, well-occupied, financeable asset is preferable to wider exposure across weaker assets. There is truth in that. But it does not resolve the central issue. A single asset like this has to remain, at the same time, an asset that still carries a strong appraisal, collateral banks are willing to lend against, and a property still producing stable NOI. If one of those three roles weakens, the Israeli safety layer suddenly looks less thick.
That is why 2026 will be a real test for Adgar 360, not through one dramatic headline, but through three quieter checkpoints: whether NOI remains stable, whether the credit facilities are rolled or renewed on reasonable terms, and whether the appraisal holds even without another step-up in value. If the answer to all three is yes, the complex will keep carrying a large share of the value investors assign to Adgar. If not, the Israeli layer will turn out to have been safe, but far more concentrated than it looked.
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