Reit Azorim Liv (AZRT) AI Stock Analysis

Reit Azorim Liv

(TASE:AZRT)

Select Model

Rating:53Neutral

Price Target:ILA 454.00▲(1.59% Upside)

Action:upgraded

Date:08/20/26

The score is held back primarily by financial quality concerns: despite strong revenue growth and a swing back to profit, earnings are driven by property revaluation gains while operating and free cash flow have turned negative, and leverage of roughly two times equity leaves limited cushion for debt service if conditions tighten. Return on equity of about 3% is thin relative to the risk taken. Offsetting this, the technical picture is the clearest positive — the shares trade above all major moving averages with a positive MACD, signalling an established uptrend, though the elevated stochastic reading points to possible near-term consolidation. Valuation is a mild drag, with a P/E of 25.3 that looks demanding given the low quality of reported earnings and the absence of a dividend. Restoring positive operating cash flow and reducing leverage would be the key catalysts for a higher score.

Positive Factors

Recurring REIT Revenue ModelThe REIT model is anchored in income-producing real estate and recurring rental revenue, giving the company a business framework tied to ongoing property operations rather than solely to asset sales. That recurring base can support revenue continuity over the next several quarters.

Negative Factors

Elevated LeverageDebt at roughly twice equity leaves less financial flexibility than a lightly leveraged property owner and increases sensitivity to financing costs or weaker asset values. This can constrain investment, refinancing choices, and the company’s ability to absorb operating pressure over coming quarters.

Reit Azorim Liv (AZRT) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 454.40M
Dividend Yield: ―
Average Volume (3M): 107.36K
Price to Earnings (P/E): 14.0
Beta (1Y): 1.12
Revenue Growth: 11.57%
EPS Growth: ―
Country: Israel
Employees: 569
Sector: General
Sector Strength: 55
Industry: REIT - Diversified

Reit Azorim Liv Business Overview & Revenue Model

Company Description

Reit Azorim - H.F Living Ltd leases and invests in housing rental properties. The company was incorporated in 2019 and is headquartered in Tel Aviv-Yafo, Israel.

How the Company Makes Money

AZRT’s earnings model as a REIT is primarily based on generating cash flow from real estate it owns and operates. Key revenue streams typically include: (1) Rental income: recurring lease payments from tenants occupying the REIT’s properties under lo...

Reit Azorim Liv Financial Statement Overview

Summary

Revenue has grown more than fivefold since 2021 to roughly 79 million TTM, with near-90% gross margins and a return to profitability (about 35 million TTM net income) after three loss-making years — a genuine top-line and earnings turnaround (Income Statement: 62). However, the balance sheet is heavily levered, with 2.30 billion of debt against 1.09 billion of equity (roughly 2.1x debt-to-equity) and growth funded by borrowing rather than earnings (Balance Sheet: 45). The most significant weakness is cash generation: operating and free cash flow turned negative (about -32 million in 2025 and -19 million TTM), confirming that reported profits are driven by non-cash property revaluation gains rather than cash rent collection (Cash Flow: 25). Return on equity remains thin at roughly 3%, leaving little cushion against elevated rates or property markdowns.

Income Statement

62Positive

Balance Sheet

45Neutral

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	78.86M	71.80M	60.64M	58.10M	48.62M	15.39M
Gross Profit	71.73M	64.98M	55.76M	52.81M	43.68M	13.82M
EBITDA	84.14M	65.00M	27.99M	-15.82M	24.84M	259.18M
Net Income	34.67M	-4.40M	-37.66M	-75.16M	-19.77M	250.83M
Balance Sheet
Total Assets	3.45B	3.21B	3.46B	3.24B	3.28B	1.92B
Cash, Cash Equivalents and Short-Term Investments	85.18M	91.38M	232.25M	159.59M	257.55M	91.42M
Total Debt	2.30B	2.10B	2.32B	2.16B	2.18B	905.59M
Total Liabilities	2.36B	2.14B	2.39B	2.20B	2.23B	951.29M
Stockholders Equity	1.09B	1.07B	1.07B	1.04B	1.05B	967.06M
Cash Flow
Free Cash Flow	-19.01M	-32.05M	32.52M	22.00M	20.27M	9.55M
Operating Cash Flow	-19.01M	-32.05M	32.52M	22.00M	20.27M	9.55M
Investing Cash Flow	-3.25M	128.76M	-62.54M	-68.68M	-1.15B	-560.74M
Financing Cash Flow	-198.51M	-273.53M	102.68M	-51.28M	1.29B	359.63M

Reit Azorim Liv Technical Analysis

Technical Analysis SentimentNegative

Last Price446.90

Price Trends

50DMA543.79Negative

100DMA570.96Negative

200DMA573.34Negative

Market Momentum

MACD-27.66Negative

RSI31.13Neutral

STOCH21.97Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:AZRT, the sentiment is Negative. The current price of 446.90 is below the 20-day moving average (MA) of 463.88, below the 50-day MA of 543.79, and below the 200-day MA of 573.34, indicating a bearish trend. The MACD of -27.66 indicates Negative momentum. The RSI at 31.13 is Neutral, neither overbought nor oversold. The STOCH value of 21.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:AZRT.

Reit Azorim Liv Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:AZRT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IL:KSTN	72Outperform	ILS 3.69B	4.04	―	2.75%	-24.85%	114.61%
IL:MNRT	68Neutral	ILS 1.47B	7.13	―	7.50%	12.90%	15.19%
IL:RIT1	63Neutral	ILS 3.98B	9.31	11.88%	4.43%	6.36%	-16.47%
IL:ADGR	60Neutral	ILS 670.13M	3.62	―	6.79%	-5.34%	361.40%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IL:AZRT	53Neutral	ILS 452.89M	13.96	―	―	11.57%	―

* General Sector Average

Performance Comparison

IL:AZRT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:AZRT	REIT AZORIM - H.F LIVING Ltd.	446.90	-159.30	-26.28%
IL:RIT1	REIT 1	1965.00	-629.52	-24.26%
IL:ADGR	Adgar Investment & Development Ltd.	354.70	-126.39	-26.27%
IL:MNRT	Menivim - The New REIT Ltd.	174.20	-61.16	-25.98%
IL:HGGE	HAGAG EUROPE DEVELOPMENT Z.F. LTD	1417.00	522.80	58.47%
IL:KSTN	KEYSTONE REIT LTD	1712.00	765.64	80.90%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 20, 2026

Reit Azorim Liv AI Stock Analysis