Ramot Ba'ir: Sales Quality in Halutz Stage C and Mofet, and How Much of the Backlog Really Turns Into Cash
The main article argued that collections are the real 2026 test. This follow-up shows why the numbers in Halutz Stage C and Mofet look stronger than their cash hardness: Halutz Stage C sales were concentrated in one block deal and commercial concessions, while Mofet's first 12 agreements are still below the deposit threshold that would make them financing-grade contracts.
The main article argued that 2026 at Ramot Ba'ir will be judged less by whether backlog exists and more by whether that backlog becomes cash. This follow-up isolates only the sales layer. The issue is not how many apartments the company sold, but how hard those sales really were in Halutz Ramat Hasharon Stage C and in Mofet, and what that means for collections.
The answer is fairly sharp. The sales are real, but sales quality is softer than the headline. In Halutz Stage C, the company has already almost finished the revenue-recognition chapter, so the 2026 test is no longer how much profit remains to be booked, but how much of the NIS 263.3 million it expects to collect actually arrives on time. In Mofet, the picture is the reverse: the future-profit table looks attractive, but the first 12 agreements still do not create the kind of contract layer the company itself is willing to call a "binding sale agreement."
Three findings hold the thesis together:
- First: the recovery in Halutz Stage C sales was highly concentrated. Out of 38 apartments sold in 2025, 32 were sold in the third quarter, and the company itself links that rebound to one 30-unit deal.
- Second: in Halutz Stage C the accounting number is almost closed, but the cash is not. Through year-end 2025, NIS 372.1 million of revenue had already been recognized, only NIS 16.4 million remained to be recognized, yet NIS 263.3 million of customer payments are still expected in 2026.
- Third: Mofet has 12 agreements with expected consideration of NIS 54.6 million excluding VAT, but the down payment paid on those agreements is below the 65.5% threshold, so the company explicitly says they do not qualify as "binding sale agreements."
Halutz Stage C: The Number Looks Good, But It Rests On One Block Deal And Soft Terms
At the headline level, 2025 looks solid: by year-end, 114 of the 123 apartments allocated to the company had been sold, and one more agreement was signed by the report publication date. But the sales pattern inside the year tells a less clean story. Two apartments were sold in the first quarter, four in the second, 32 in the third, and no additional units were added in the fourth quarter. That is not a broad and steady demand curve. It is a spike built almost entirely on one transaction.
The company is quite explicit about it. In the business discussion it writes that the recovery in the sales pace in the third quarter was driven mainly by an agreement to sell 30 apartments in the project. That matters because in the profitability table for the same project it explains that the decline in gross profit in 2025 came mainly from a discount granted to a buyer that purchased a block of 30 apartments, together with higher construction-input inflation. In other words, what brought the sales pace back also brought it back at an economic cost.
That chart is the heart of the issue. When 32 out of 38 annual sales arrive in one quarter and momentum then fades again, the annual sales figure cannot be read as if it reflected broad, even, frictionless demand.
The friction does not stop with the discount on the block sale. The company discloses three additional layers of commercial relief:
| Indicator | Reported scope | Why it matters |
|---|---|---|
| Contractor loans | 6 buyers, about 5% of buyers | The company subsidizes the buyer's financing cost |
| Construction-input indexation waivers | About 90 buyers, about 79% of buyers, across contracts of about NIS 295 million excluding VAT | Part of the developer's natural protection against construction-cost inflation is given up |
| 15% to 25% paid at signing and the balance close to delivery | 79 units, about 70% of units sold | Most of the cash is pushed out to the delivery stage |
| Cancellations | One apartment only | There is no evidence of sales collapse by year-end, but the real test is deferred to handover |
The important nuance is that the company is not showing an inflated sales figure in the accounting sense. It explicitly says that in the Stage C marketing table, the data on binding sale agreements is presented net of the financing component and developer benefits, which were recorded as a reduction in advances and in revenue. So the problem is not aggressive accounting. The problem is different: even after that accounting cleanup, a large part of the consideration is still deferred to delivery and collection.
From Backlog To Collections: In Stage C, Profit Is Mostly Booked, Cash Is Not
This is the key difference between Stage C and a more standard development project. In Stage C there is barely any large future profit still waiting to show up in the accounts. What remains is a collection story.
By the end of 2025, NIS 372.1 million of revenue had already been recognized from signed contracts. Only NIS 16.4 million of additional revenue remained to be recognized in 2026. But at the same time, the company still expects to receive NIS 263.3 million of advances and payments in 2026 from those signed contracts. On the year-end balance sheet, NIS 247.3 million of apartment-sale receivables are already sitting there, and the company says about NIS 247 million is expected to be settled in the first and second quarters of 2026 with completion and handover.
What that chart shows is that Halutz Stage C is no longer a new earnings engine. It is a collections engine. The company received Form 4 in January 2026 and in that immediate report stated that it had sold 114 units out of 123. So the question for the next reports is not whether the project can add much more revenue. It almost cannot. The question is whether the payment structures, the indexation waivers, and the contractor loans end in smooth handovers and full payment.
That is also where the meaning of "backlog" needs to be handled carefully. In Stage C, backlog is not the same thing as cash already in the company's hand. Out of NIS 388.5 million of total revenue from signed contracts, NIS 125.2 million had already been received through year-end 2025, and the rest still has to turn into cash. Anyone reading the 90% sell-through rate as if it already solved the liquidity question is getting there too early.
Mofet: The Profit Backlog Looks Large, The Cash Backlog Does Not
If Stage C is now mostly a collections story, Mofet is the mirror image. On a 100% project basis, the company presents expected revenue of NIS 685.4 million, expected gross profit of NIS 175.8 million, and a 26% gross margin. Those numbers carry a large part of Ramot Ba'ir's future upside.
But those numbers are still far from hard contracts. By the report publication date, 12 apartment-sale agreements had been signed, covering about 1,398 equivalent square meters and expected consideration of about NIS 54.6 million excluding VAT. The project's completion rate stands at only 5%, and the company says the down payment paid on those agreements is below the 65.5% threshold. In its own wording, the agreements therefore do not constitute "binding sale agreements."
That gap does not mean Mofet is weak. It means the project is still at a much earlier stage than the profitability table can suggest. The sales terms reinforce that reading. The company says that all eight of the first buyers in Mofet received easier payment terms, and that the first payment was made either in a single payment or in several payments. So here too, the first sales arrived with a layer of commercial flexibility.
That is why Mofet is currently a profit backlog, not a cash backlog. It can still be a meaningful future value layer, but it cannot yet be read as a replacement for Stage C in collections or as a financing anchor that already closes the 2026 gap.
| Layer | Halutz Stage C | Mofet | What it means |
|---|---|---|---|
| Commercial position | 114 units sold at year-end 2025, 115 by report publication | 12 agreements | Stage C is near handover, Mofet is still in the opening stage |
| Sales quality | Block sale, indexation waivers, contractor loans, 15% to 25% at signing | Down payment below 65.5% and easier terms for the first buyers | Both projects involve economic or financing concessions, only at different intensity |
| Accounting position | NIS 372.1 million already recognized, NIS 16.4 million left to recognize | No revenue recognized yet | Stage C is almost behind the company from an accounting perspective, Mofet is still entirely future |
| Cash test | NIS 263.3 million still expected in 2026 | The 12 agreements are still not hard enough to count as binding sale agreements | Stage C has to collect, Mofet first has to harden |
Bottom Line
The right way to read Ramot Ba'ir after 2025 is not through the number of apartments sold, but through different layers of quality. Stage C is mostly sold, but a meaningful part of those sales rested on a block deal and commercial concessions, so the real 2026 test is collection. Mofet shows attractive future profitability, but its contract layer is still too soft to serve as a financing anchor. And anything outside those two layers is even further away from cash.
So Ramot Ba'ir's backlog is not fictitious, but it is not uniform in quality either. Not every sold apartment is worth the same cash, and not every projected profit is worth the same cash hardness. In the coming reports the market should spend less time on the sales line and more time on the collections line: whether Stage C truly closes in cash, and whether Mofet can move from soft sales into sales that also bring a financing layer with them.
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