Alony Hetz in the first quarter: Energix lifts NAV, cash still has to reach the parent
Alony Hetz opened 2026 with a sharp rise in adjusted NAV, mainly because of Energix's market value. But the dividend forecast still separates NIS 507 million of cash from NIS 115 million that remains in CARR, keeping the parent-company test focused on cash access rather than asset value alone.
Alony Hetz opened 2026 with a number that can change its value screen: adjusted NAV rose to NIS 10.15 billion, or NIS 45 per share, almost twice the accounting NAV derived from the end-March financial statements. But the source of the jump matters more than the jump itself. Almost all of the uplift comes from marking Energix to market, while the 2026 dividend forecast still separates NIS 507 million of cash from NIS 115 million that remains in CARR through DRIP. The quarter therefore does not close the gap left after 2025. It gives that gap a sharper number: asset value is rising faster than cash reaching the parent. The operating picture is not weak, Amot remains the dividend anchor, Brockton is improving operationally, and CARR is bringing in partners that reduce part of its capital requirement. Still, Midroog's stable rating comes with an expectation of higher debt and weaker coverage ratios, and Energix is expected to record an impairment of up to NIS 200 million in Q2 on ARAN. 2026 therefore looks like a proof year: will the new NAV become flexibility and cash at the parent, or remain mainly value that still needs time, financing and execution?
A Holding Company Where Value Must Reach the Top
Alony Hetz is a holding company with income-producing real estate in Israel, the U.S. and the U.K., alongside a material renewable-energy holding. This is not a property company measured only by NOI or FFO. It is an asset company in which shareholders depend on three layers: the value of the holdings, solo parent debt, and the pace of dividends or realizations moving upward.
The business map explains why the quarter matters. Amot is the Israeli anchor and the main cash-dividend source. Energix has become the largest value engine after its share-price surge. CARR provides U.S. office and rental-housing exposure, after control moved to the group in 2025. Brockton owns assets and development projects in the U.K., led by Dovetail, which still needs capital, financing and leasing before becoming a full income-producing asset.
In the previous annual analysis, the conclusion was that value was rising faster than cash accessible to the parent. The first quarter does not change that. It shows that the gap can widen even when the value screen looks stronger.
NAV Rose Mainly Through Energix
The quarter's most impressive number is not the NIS 77 million net profit attributable to shareholders. It is the gap between accounting NAV and adjusted NAV. At the end of March, accounting NAV was NIS 5.65 billion, about NIS 25 per share. By May 19, after adjusting traded holdings to market value and updating exchange rates, adjusted NAV rose to NIS 10.15 billion, or NIS 45 per share.
The breakdown changes the meaning. Energix is carried in expanded solo books at about NIS 1.24 billion, but its market value in the adjusted calculation is about NIS 6.04 billion. In other words, an adjustment of about NIS 4.8 billion explains almost the entire NAV increase. Amot adds only NIS 68 million, while Brockton and CARR together reduce the adjustment by about NIS 345 million.
That is why a NAV headline alone can mislead. The improvement does not come from fast debt repayment or from a parallel rise across all holdings. It comes mainly from one very strong listed holding, which improves the leverage and value picture but does not yet send cash to the parent at the same pace. Midroog confirms the same picture from the outside: adjusted LTV based on market value declined to about 35.6%, mainly because of the sharp rise in Energix's value, but its base case still assumes higher debt over the coming year to fund investments in private holdings.
The Holdings Keep the Cash Test Open
The operating performance is not uniform. Amot remained broadly stable, with NOI of NIS 269 million versus NIS 264 million in the comparable quarter and 3% same-property NOI growth. But management-approach FFO fell to NIS 188 million from NIS 202 million. It is still a strong anchor, but not an acceleration engine.
CARR shows why control is not enough without a recurring earnings base. NOI fell to USD 30.6 million from USD 36.8 million, and management-approach FFO fell to USD 12.5 million from USD 18.0 million. The new transactions improve the capital structure: a U.S. institutional investor entered 3033 Wilson for 75% ownership, paid CARR about USD 31 million and provided an USD 89 million construction loan facility at a 6.25% annual interest rate. CARR also acquired 25% of 1401 New York Ave. in Washington, in a total USD 85 million transaction for an asset that had USD 9.5 million of annualized NOI at acquisition. These are positive moves, but they do not replace the need to see FFO rise.
Brockton showed operating improvement, with GBP 9.9 million of NOI and GBP 4.5 million of management-approach FFO, but Dovetail still requires capital and execution: total cost of GBP 699 million, GBP 186 million already invested, GBP 513 million of remaining costs and GBP 93 million of remaining equity investment. A non-binding memorandum to refinance a GBP 50 million loan from September 2026 to September 2029 improves the timetable, but it does not fully fund the project.
On the energy side, Energix continues to grow: NIS 271 million of revenue, NIS 191 million of EBITDA and NIS 57.6 million of net profit excluding the ARAN impairment. But this growth also requires financing and guarantees. In the U.S., an agreement with Morgan Stanley was signed for tax-equity investment of up to USD 195 million in the E5 project. In Poland, new legislation requires a cash deposit of about PLN 71 million and performance guarantees of about PLN 26 million for the pipeline awaiting grid connection. In Lithuania, projects of up to 626MW and about 340MWh of storage were acquired. ARAN adds the negative side: an expected impairment of up to NIS 200 million in Q2, with Alony Hetz's share at about NIS 99 million.
The Dividend Forecast Still Does Not Close the Gap
The all-in cash picture matters more than quarterly profit. At the consolidated level, operating cash flow was only NIS 5 million, versus NIS 64 million in the comparable quarter. Investing activity used NIS 703 million, mainly in real estate and power-generation systems, while financing activity used NIS 812 million, mainly debt repayments and dividends to minorities. Consolidated cash fell from NIS 2.09 billion at the beginning of the year to NIS 733 million at the end of March.
At the parent level, expanded solo cash and cash equivalents were NIS 18 million at the end of March, versus NIS 375 million at the end of 2025. This is not an immediate liquidity problem: the company had NIS 669 million of unused credit facilities at end-March, NIS 700 million at report publication, and in April completed an expansion of Series 17 bonds for gross proceeds of NIS 356 million at an effective interest rate of 5.37%. All expanded solo assets are unpledged, and their adjusted value near report publication was NIS 15.4 billion.
But the gap between liquidity and cash creation remains wide. The 2026 dividend forecast is NIS 622 million, but only NIS 507 million is defined as cash dividends: NIS 323 million from Amot, NIS 114 million from Energix, NIS 40 million from BE and NIS 30 million from AH Boston. Another NIS 115 million is attributed to CARR's DRIP, meaning value that remains in CARR instead of reaching the parent in cash.
Midroog keeps the rating at Aa3.il with a stable outlook, but also sets a clear price for the coming years: interest coverage is expected to decline to a range of 2.5 to 3.0, and net debt to FFO is expected to rise to 15 to 16 years versus a three-year average of 12 years. This is not a near-term stress signal. It is a reminder that higher value helps the balance sheet, but the investments still need funding.
Conclusion: A Proof Year, Not a Harvest Year
The first quarter strengthened Alony Hetz's value side, but did not close the cash test. Energix lifts adjusted NAV, Amot continues to provide the dividend anchor, and Brockton posted a better operating quarter. Against that, CARR has not yet returned to a rising FFO base, Dovetail still needs capital and execution, and the total 2026 dividend forecast includes a DRIP layer that is not parent cash.
The rest of the year will be decided by four signals: higher cash dividends, lower CARR DRIP or clear improvement in its FFO, progress on Dovetail financing and leasing, and proof that Energix converts connections, tax-equity structures and new projects into EBITDA and cash reaching the group. The strongest skeptical argument is that the market is right to remain cautious: a large portion of value sits in a volatile listed holding, development projects and foreign companies that still require investment. What would change the short- to medium-term interpretation is not another NAV table, but more real cash and less need to add debt to finance the same value.
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