Blue Square Real Estate presents a stable business model, combining extensive experience with strategic innovation, and demonstrates that financial resilience is a key factor for growth even in challenging times.
The entrepreneurial real estate market has enjoyed significant growth over an extended period. Changes in the interest rate environment indicated a certain cooling, but what tipped the scale for many developers was the war that broke out in October 2023, leading to reduced opportunities for financing and financial support. During this period of economic uncertainty, Blue Square Real Estate stands out, proving financial resilience even under challenging conditions, and successfully driving significant growth with the establishment of its new residential division.
From Co-Operative to IPO: Impressive Growth Data
Blue Square Real Estate is one of the leading companies in Israel, with decades of experience in the financial world. The company is part of an Israeli conglomerate that traces its origins back to the 1930s, having evolved from a cooperative into a leading business entity, now publicly traded. The group's arms include operations in retail, energy, and fuel, along with a significant presence in the real estate market. The changing landscape of the Israeli construction sector led the company to expand its activities in the residential field, establishing a dedicated division that promotes extensive activity in urban renewal, alongside commercial and income-producing properties.
The company continuously improves its properties, a fact that allows it to allocate resources to the development of assets within its strategic focus. Blue Square Real Estate works to identify the most attractive locations for its properties, with an emphasis on strategic positioning with convenient transportation access, and leading properties in the developing urban environment.
A significant proof of the company's financial strength is reflected in the latest financial reports, with Blue Square Real Estate finishing the second quarter of 2024 with revenues of NIS 469 million – a 70% increase compared to the same quarter last year. The NOI (Net Operating Income) also showed an 18% increase, while the FFO (Funds From Operations) stood at NIS 80 million, a 16% rise. Currently, the total value of the company's real estate assets stands at approximately NIS 8.3 billion, and the company's residential real estate income already shows a sharp 16% increase compared to the same quarter last year.
Long-Term Strategic Plan
In recent years, Blue Square Real Estate has been expanding its activities in the field of urban renewal, with various stages of projects for evacuation and construction that will reshape the urban landscape. The company has been selected as the developer for 20 different sites, with an expectation of creating approximately 7,000 residential units, and leads activities in major cities such as Tel Aviv, Haifa, and Jerusalem. In an era of high volatility, financial liquidity has become a critical strategic resource. Blue Square Real Estate presents a solid business model and a broad financial base. These data allow the company to offer its business partners attractive financing conditions and a solid foundation.
Full Professional Support
Blue Square Real Estate continues to expand and lead new projects with a strategic vision. The company focuses on enhancing and expanding its portfolio of income-generating assets, while identifying new opportunities. With access to diverse financing sources, Blue Square offers its professional foundation in leading projects across the country. Blue Square Real Estate's diverse asset portfolio, extensive experience, and rich professional support in planning and regulation position the company as a valuable partner, offering a combination of stability and financial strength, alongside business flexibility and a long-term perspective.
The residential real estate division of Blue Square Real Estate specializes in supporting development projects, including urban renewal, financial guidance, and providing financing starting from the land acquisition stage.
