Ram On Mevanim: How Much of the Property Value Is Actually Accessible to Shareholders
Ram On Mevanim is appraised at ILS 76.485 million before estimated betterment levy and permit fees, but after those deductions and Ram On's 78.8% stake, the theoretical value falls to about ILS 53.9 million. Even that number is driven mostly by what may happen after June 2035, not by cash that is already within shareholders' reach.
What This Follow-up Is Isolating
The main article already showed that Ram On Mevanim is barely visible on the balance sheet: a carrying amount of ILS 5.29 million against a much higher property value. This follow-up isolates the narrower and more important question: how much of that gap can realistically reach Ram On shareholders, rather than remain a property-level or subsidiary-level number on paper.
The short answer is that the headline figure, ILS 76.485 million, is not an accessible-value number. The appraiser explicitly states that the expected betterment levy and permit fees to the Israel Land Authority tied to Plan G 27960 were not deducted from the property value, and later presents an estimated ILS 8.1 million for those two items combined. After that deduction, the value at the asset level falls to ILS 68.385 million. Once Ram On's 78.8% stake in Ram On Mevanim is applied, Ram On's theoretical share falls to about ILS 53.9 million.
But even ILS 53.9 million is not cash waiting to be distributed. Most of the gross appraised value does not come from the existing lease period. It comes from what the appraisal assumes will happen after June 2035, plus additional rights under Plan G 27960. At the same time, the appraisal also assumes that the factory buildings cannot be demolished before 2042 because of the rooftop photovoltaic lease. So there is value here, but it does not sit in the same place as liquidity.
That is the point a superficial read can miss. In a holding company, especially when the asset sits inside a subsidiary and is leased to a single tenant, the right question is not just what the property is worth. The right question is which part of that value is already turning into cash flow, which part still requires levy and permit payments, and which part depends on a monetization event that is still years away.
What Is Left After You Strip the Headline Down
| Layer | Amount | What it means in practice |
|---|---|---|
| Carrying amount at year-end 2025 | ILS 5.290 million | The number that actually appears on the balance sheet under the cost model |
| Gross appraised value | ILS 76.485 million | The headline appraisal number used for IFRS disclosure |
| Betterment levy and permit fees, estimate | ILS 8.100 million | ILS 5.0 million of expected betterment levy and ILS 3.1 million of expected permit fees |
| Value after those deductions | ILS 68.385 million | The appraiser's net value after deducting those estimates |
| Ram On's share, 78.8% | ILS 53.887 million | Ram On's theoretical share before any additional listed-company friction |
This bridge clears up three common reading errors.
The first is to treat ILS 76.485 million as if that were the number available to shareholders. It is not. It is a gross property-level figure before the betterment levy and permit-fee estimates that the appraiser himself presents.
The second is to stop at ILS 68.385 million as if that were Ram On's number. That is also wrong. Ram On owns 78.8% of Ram On Mevanim, so even after those deductions not all of the property value belongs to it.
The third, and deeper, error is to treat even ILS 53.9 million as if it were already available cash. In practice that is still an attributed property value inside a subsidiary, not a balance that already sits at the listed-company level.
What The ILS 76.5 Million Is Actually Made Of
The important insight in the appraisal is not only the size of the number, but its composition. The appraiser breaks the gross value into three parts:
| Component | Amount | What it represents |
|---|---|---|
| First period, through the current lease | ILS 25.3 million | Present value of the current lease cash flow through June 30 2035 |
| Second period, after the lease | ILS 41.2 million | Discounted perpetuity value assuming market rent once the asset is vacant and available |
| Added rights from Plan G 27960 | ILS 9.985 million | The value of the incremental planning rights in the plan |
This is where the real cut in the thesis appears. Only ILS 25.3 million, about one third of the gross value, is anchored in the current lease through June 2035. Everything else, roughly ILS 51.2 million, comes from the post-2035 period and from planning rights. In other words, about 66.9% of the gross valuation is not anchored in the current lease period. It is value tied to a later phase, a planning layer, or both.
That does not mean the appraisal is aggressive. It does mean that the ILS 76.5 million headline already mixes current value, planning value, and deferred value. Anyone trying to answer how much is actually accessible to shareholders has to separate those layers.
Why Even ILS 53.9 Million Is Not Cash Waiting To Be Distributed
There is one fact here that reduces the concern and another set of facts that brings the issue back to the ground.
The reducing factor: the property itself is relatively clean from an asset-level financing perspective. Ram On Mevanim did not take specific financing against the property, and as of the report date there are no material liens or legal restrictions over it. That matters, because the gap between value and accessibility is not being driven by a heavy property mortgage.
The constraining factors: the monetization path is still long. Polyram leases the asset through June 30 2035 after extending the option for another ten years. In addition, the appraiser says the photovoltaic-facility lease runs through 2042, and therefore assumes that the factory buildings cannot be demolished before then. So even if the new plan adds value, turning that value into a physical redevelopment or a deeper planning move is not an immediate option.
| Time point | What is known | What it means for accessibility |
|---|---|---|
| 2025 actual results | ILS 3.614 million of rental income and ILS 3.371 million of NOI | This is the part already turning into operating cash at the asset level |
| June 30 2035 | Expiry of the extended Polyram lease | Only from that point does the appraisal switch to market rent for a vacant asset |
| 2042 | Expiry of the photovoltaic lease | Until then the appraisal assumes the factory buildings cannot be demolished |
The company adds another important hint when it says it is examining alternatives to realize the investment in Ram On Mevanim. That is the right language, but it is still not an executed realization route. Until there is an actual monetization event, shareholders mainly benefit from rent and from future optionality, not from an immediate conversion of the full appraised value into cash.
What Is Actually Accessible Today
The right way to read the asset in the near term is not through ILS 76.5 million, and not even primarily through ILS 68.4 million. It starts with the cash flow the property is already producing.
In 2025 the asset generated ILS 3.614 million of rental income and ILS 3.371 million of NOI, fully occupied by a single tenant. The signed-lease table also shows expected fixed rental income of ILS 35.454 million over the remaining lease term. On Ram On's 78.8% share, that is about ILS 27.9 million of gross contracted rent over the remaining term, before listed-company overhead and before any monetization event.
That is the core distinction between accessible value and more remote value. Rent is the layer that can already move up the chain through cash flow and dividends. The post-2035 valuation layer, and the added rights under Plan G 27960, are a different layer: real, but dependent on time, on monetization mechanics, and on expenses that do not disappear along the way.
Conclusion
The precise way to read Ram On Mevanim is not through one number, but through three layers. The first is the carrying amount, ILS 5.29 million, which hides the asset. The second is the gross appraisal, ILS 76.485 million, which shows how large the economic gap really is. The third, and the one that matters for shareholders, is the layer you can even begin to discuss as accessible value: about ILS 68.4 million after the estimated betterment levy and permit fees, and about ILS 53.9 million on Ram On's 78.8% share.
But even that last figure is not cash sitting in the box. Most of it rests on what may happen after 2035 and on planning rights, while the part that is already accessible today comes mainly through rent and NOI. So the right conclusion is not that Ram On owns a property worth ILS 76.5 million. The right conclusion is that Ram On owns a property with substantial hidden value, but with a monetization path that is much slower than the headline number implies.
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