Building residential projects in israel.
Rotshtein reports a strong 2025 net profit, but the underlying business looks weaker: the development core softened, operating cash flow turned negative, and the gap was closed by the loss of control over Anshei Ha'ir, the Nahalat Ashar realization, fair value gains, and funding.
Rotshtein ended 2025 without immediate covenant stress, but with a clear all-in cash flexibility problem: operating activities used ILS 161.2 million, working capital eroded, and a larger share of value shifted into other receivables rather than into cash.
Anshei Ha'ir’s move from full consolidation to equity-method accounting inflated 2025 earnings, broke comparability with 2024, and reduced direct visibility into the debt, inventory, and pipeline sitting inside one of Rotshtein’s main urban-renewal platforms.
Tnuvot already carries real value for Rotshtein, but as of year-end 2025 most of that value rests on appraisal support, exclusivity fees, and an exit mechanism rather than on proven NOI from an operating logistics asset.
