AFI Home 2025: When rental housing really changes the portfolio
AFI Properties can already headline about 4,400 rental units in operation and construction and ILS 3.188 billion of rental-housing asset value on the company's share, but AFI Home still generated only ILS 167.3 million of European rental income in 2025. The scale-up is real, yet the true economic crossover still depends on lease-up, stabilization, and the Prague deliveries that sit beyond 2026.
What This Follow-up Is Isolating
The main article already framed 2026 at AFI Properties as a year of lease-up, refinancing, and turning value creation into actual rent and cash. This follow-up isolates AFI Home because the headline number, about 4,400 rental units in operation and construction, makes it easy to jump to the conclusion that the group has already become a balanced office-and-rental platform. That is too fast.
The scale is real. Rental housing already accounts for ILS 3.188 billion, or 18.2% of the company's share of income-producing property value, and the company itself now presents roughly 4,400 units in operation and construction, excluding Skyline in Belgrade. But the current earnings weight is still milder: AFI Home's European portfolio generated ILS 167.3 million of revenue in 2025, while the group's income-producing assets generated ILS 1.115 billion overall. Rental housing is now large enough to matter to the portfolio story. It is not yet large enough to dominate the earnings story.
That gap is the entire point. Units are counted quickly, fair value is booked before full stabilization, but recurring income only arrives after delivery, occupancy, and seasoning. At AFI Properties that gap is especially visible because the 2025 jump came from projects that only entered operation during the year, while the larger next leg still sits in Prague in 2027 to 2029.
The Scale Is Already Material, But The Economic Weight Is Still Mid-Tier
At this point AFI Home is no longer a side note. The European rental-housing portfolio carried ILS 2.439 billion of book value at the end of 2025, and the detailed property table lists 3,277 operating units in Europe at 89% average occupancy. That is already a meaningful platform. The problem is that units are not equivalent to income. The same number of apartments can sit either in a stabilized Prague asset or in a newly delivered Polish or Romanian project that is still climbing toward normal occupancy.
The internal dispersion tells the story better than any headline. Four more seasoned Prague assets, Kolbenova D+E, Kolbenova F+G, Karlin, and Trebesin, together hold 873 units, run at 97% to 99% occupancy, and generated roughly ILS 38.1 million of 2025 revenue. By contrast, the two projects completed in 2025, Metro Zachod in Warsaw and North C in Bucharest, added 597 units but contributed only ILS 5.8 million of revenue during the year, with both ending December at 88% occupancy.
This is exactly what a first-read can miss. AFI Home is already large in unit count, but part of that scale has not yet passed through a full year of rent. The 2025 deliveries moved the unit counter quickly, yet they did not create a comparable jump in reported income.
| Layer | Units | 2025 income | Occupancy / status | What it means |
|---|---|---|---|---|
| Seasoned Prague cluster | 873 | ILS 38.1 million | 97% to 99% | This is already a stabilized rental platform |
| 2025 deliveries, Metro Zachod and North C | 597 | ILS 5.8 million | 88% at year-end | A lot of units, very little current-year earnings contribution |
| Skyline in Belgrade | 147 | ILS 7.7 million | 49% | This should not be read as recurring rent inventory because the apartments are being shifted toward sale |
Skyline matters because it reveals another layer of caution. On the one hand, it still appears in the operating table with 147 units. On the other hand, starting in 2026 the company decided to sell the apartments gradually in the open market, which is why management also excludes the project from both the 4,400-unit headline and the future AFFO bridge. In other words, not every nominal rental unit is treated by the company itself as part of the same recurring base.
Why 2025 Added Units Much Faster Than It Added Income
The annual report says explicitly that during 2025 the company completed roughly 597 rental units in Poland and Romania, and the presentation spells out the two projects behind that number: 517 units at Metro Zachod and 80 units in the first phase of North C. That growth is real. But the income contribution stayed modest because neither project enjoyed a full operating year.
North C ended 2025 with 80 units, 88% occupancy, and only ILS 1.234 million of revenue. Metro Zachod ended the year with 517 units, 88% occupancy, and ILS 4.559 million of revenue. Even if occupancy moved closer to 90% to 95% around the reporting date, the message stays the same: there is a transition period between delivery and real economic weight. Anyone counting units without asking how quickly those units stabilize is getting ahead of the economics.
That is also why AFI Home still looks smaller on income than on scale. The disclosed ILS 167.3 million of annual European rental income is already meaningful, but it still represents only about 15% of actual income across the whole income-producing portfolio and about 20% of the European income-producing portfolio on its own. That is enough to say rental housing is changing the character of the asset base. It is not enough to say rental housing is already driving group results.
What Can Actually Change The Portfolio In 2026 To 2029
This is where the gap between the headline and the economics really matters. Out of the 974 units the company shows under construction, only one AFI Home project is scheduled to complete in 2026: AFI Home North A in Bucharest, with 164 units and expected full-occupancy rent of ILS 8.6 million. The bigger swing sits later. Nova Elektra in Prague, with 291 units and ILS 18.9 million of full-occupancy rent, is only due in the second quarter of 2027. Korytech in Prague, with 519 units and ILS 27.3 million of full-occupancy rent, is split between 2028 and 2029.
So the future contribution is visible, but it is not concentrated in 2026. The three AFI Home projects under construction together imply ILS 54.8 million of full-occupancy rent. That is a meaningful uplift against AFI Home's current revenue base, yet ILS 46.2 million of that amount sits in Prague projects that arrive after 2026. The real crossover therefore depends less on the 164-unit handover in Bucharest and more on whether Prague shows up on time and at the scale the company is pointing to.
There is another useful angle here. Across all projects under construction, offices and rental housing together, the company shows ILS 264 million of full-occupancy rent potential. The specifically identified AFI Home projects contribute ILS 54.8 million of that number, or roughly one fifth. Rental housing is now clearly part of the core development pipeline, but it is still not the dominant leg of that pipeline.
Why The Transaction Cycle Still Does Not Make 2026 “The AFI Home Year”
The 2025 to early-2026 transaction cycle reinforces the same conclusion. The Port7 acquisition in Prague adds three fully let A-class office buildings with roughly 36 thousand sqm of office and retail area, plus adjacent land designated for a 152-unit rental project and a wellness complex. That is a good portfolio move, but it does not mean the next capital allocation step is primarily a rental-housing purchase. The immediate recurring yield in the deal is office and retail. The residential leg still sits at the land-and-permit stage.
At the same time, after the balance-sheet date the company sold Broadway Palace in Prague for about EUR 6.1 million, and during 2025 it also sold Concord in Bnei Brak for ILS 246 million. In other words, AFI Properties is clearly rotating the portfolio, but it is still rotating a broad income-property platform, not turning overnight into a pure AFI Home story.
The right reading is therefore more disciplined. AFI Home already gives AFI Properties better diversification, a more credible next wave of development, and a longer runway beyond the current office cycle. But as of year-end 2025 and looking into 2026, the immediate center of gravity is still set by offices, malls, occupancy, and refinancing, not by a sudden step-change in rental housing.
Focused Conclusion
AFI Home is already changing AFI Properties, but it is doing so in two different stages. The first stage, which has already happened, changed the value map: more units, deeper exposure in Poland and Prague, and 18.2% of the company's share of income-producing property value. The second stage, which is not complete yet, has to change the income base and the way readers model 2026 to 2029.
That leads to a fairly sharp conclusion. Rental housing is already too large to ignore, but still too small to set the group's economics on its own. For AFI Home to really change the portfolio, four things need to happen together: the 2025 deliveries need to stabilize, North A needs to move into full operation, Prague has to move from plans to delivered rent in 2027 to 2029, and Port7 has to evolve from adjacent residential optionality into a real housing project.
Until then, the correct way to read AFI Home is not as a replacement for offices, but as AFI Properties' next growth floor. That is already enough to matter for the thesis. It is still not enough to rewrite the whole group around rental housing.
Disclosure: Deep TASE analyses are general informational, research, and commentary content only. They do not constitute investment advice, investment marketing, a recommendation, or an offer to buy, sell, or hold any security, and are not tailored to any reader's personal circumstances.
The author, site owner, or related parties may hold, buy, sell, or otherwise trade securities or financial instruments related to the companies discussed, before or after publication, without prior notice and without any obligation to update the analysis. Publication of an analysis should not be read as a statement that any position does or does not exist.
The analysis may contain errors, omissions, or information that changes after publication. Readers should review official filings and primary sources before making decisions.