NOI 2025 — traditional
392M ₪
Logistics 239 + Retail 153
Data Centres — annualised run-rate
NIS 38M
2027 target: NIS 500M
Occupancy — traditional RE
99%
Same-Property NOI +2.6%
Niboi Deal
$880M
80MW | NIS 300M annual revenue
DC capacity in development
314 MW
7 facilities
Controlling shareholder
Tzahi Nachmias
37.99% | CEO + Chair
1 Company Profile
Mega Or Holdings (MGOR) is an Israeli income-producing real-estate company founded in 2002 and a constituent of the TA-125 index. In recent years Mega Or has transformed from a classical logistics and retail real-estate company into a hybrid firm with a large bet on data centres — a segment established in 2023 via its subsidiary Mega D.C. and expected to reach an annualised NOI run-rate of NIS 500M by Q4 2027 (versus an annualised NIS 38M in 2025). Controlling shareholder: Tzahi Nachmias (37.99%, also CEO and Chair). Diversified activities: Logistics & Industrial (34 centres, 618K sqm, 2025 NOI: NIS 239M), Retail (26 centres, 225K sqm, NOI ~NIS 153M), Data Centres (7 facilities, 314 MW in development), Wind energy in Romania (204 MW), and listed-equity holdings (BIG 4.9%, Discount 29.9%). Headquarters in Shilat. 99% occupancy in the traditional portfolio. Flagship transaction: the Niboi deal (March 2026) — 80 MW, $880M, ~NIS 300M expected annual revenue. Also in discussions with NVIDIA.
| Segment | Scale | NOI 2025 |
|---|
| Logistics & Industrial | 34 centres, 618K sqm | NIS 239M |
| Retail | 26 centres, 225K sqm | ~NIS 153M |
| Data Centres | 7 facilities, 314 MW | NIS 10M (NIS 38M annualised) |
| Energy (Romania) | 2 wind farms, 204 MW | — |
| Listed-holdings revaluation | BIG + Discount | NIS 210M (volatile) |
Source: 2025 Annual Report
2 Key Financial Observations
This summary is not a recommendation. It is a factual list of key financial metrics.
Data-Centres NOI Forecast (per company guidance)
| Period | Expected annual NOI |
|---|
| 2025 actual | NIS 10M |
| 2025 annualised | NIS 38M |
| Q4 2027 (annualised run-rate) | NIS 500M |
| 2028 annualised | NIS 1.05 billion |
Key Transactions 2025-2026
| Transaction | Scale | Status |
|---|
| Niboi (DC customer) | 80 MW, $880M | Signed March 2026 |
| Niboi annual revenue | ~NIS 300M | From 2026 |
| NVIDIA | — | In discussion |
| Same-Property NOI | +2.6% Y/Y | Stable |
| Traditional occupancy | 99% | Stable |
Missing data: detailed FFO/AFFO for recent years, consolidated LTV, financing plan for data-centre CAPEX.
NOI by Segment 2025 (NIS M)
Data-Centres NOI Forecast (NIS M)
Occupancy — traditional RE
DC capacity in development (MW)
Total NOI — projected trajectory
3 Industry & Competitive Context
Income-producing real estate + data-centre infrastructure. Traditional real estate is defensive; data centres offer structural growth driven by AI/GPU demand. Trends: global AI and GPU demand → DC requirements; scarcity of logistics land in Israel; elevated interest rates; Israeli electricity-grid constraints = the key bottleneck for data centres.
| Competitor | Key difference |
|---|
| BIG Shopping Centres | Primarily retail — Mega Or is stronger in logistics |
| Azrieli | Much larger — offices + retail + residential |
| Amot | Logistics + offices — no data-centre exposure |
| Melisron | Retail — no data-centre exposure |
| Airbit | Data centres — a direct competitor |
| AWS / Google / Microsoft | Global hyperscalers building their own DCs |
4 Risk Factors
| Risk | Context |
|---|
| DC plan execution | NOI jumping from NIS 38M to NIS 500M within two years — aggressive. Delay would impair the growth trajectory. |
| Israeli electricity-grid limits | Grid infrastructure is constrained — the primary bottleneck for DC deployment. |
| Key-customer concentration (Niboi) | Signed deal — but high dependence on a single customer. |
| Controlling-shareholder dependence | Tzahi Nachmias serves as CEO, Chair and 37.99% owner — absolute personal dependence. |
| Hyperscaler entry | AWS, Google and Microsoft may build their own Israeli DCs and bypass domestic operators. |
| Elevated interest rates | Affect real-estate valuations and the cost of financing CAPEX. |
| Romania energy exposure | Dependence on European regulation. |
| Volatility of listed-equity holdings | BIG + Discount — quarterly valuation volatility. |
5 Analytical Lens — The Questions We Ask
In professional company analysis, the question is not "is this good?" but rather "through which lenses must this company be examined so that we do not miss what matters most?" At Bakshi Finance, every analysis passes through six lenses.
This framework is intended to structure analysis, not to produce an investment conclusion.
Growth
Data-centre plans are expected to scale 13× (NIS 38M → NIS 500M). How much of the forecast is sustainable? What is the ROI on capital deployed in DCs?
Profitability
Traditional NOI is stable at 99% occupancy. What is FFO/AFFO relative to reported net income? How do fair-value revaluations distort the picture?
Leverage
Material CAPEX for data centres. What is the expected LTV once projects are completed? What does the debt-maturity schedule look like?
Competitive Position
Mega Or is the first-mover among Israeli issuers in data centres. How durable is that lead against global hyperscalers?
Management Quality
Nachmias is leading the company into a new strategic direction. How strategically sound is the decision? What is the execution track record versus guidance?
Business Complexity / Risk
Five segments — real estate + data centres + energy + listed-equity holdings + Romania. How should an investor build a sum-of-the-parts valuation?
6 Scenario Framework
Scenarios are descriptive, not predictive. They outline possible conditions, not expected outcomes.
These scenarios carry no probability assessment, no preferred direction, and no expectation regarding which, if any, will materialise.
Constructive Scenario — if the following conditions hold:
The Niboi deal executes on schedule, discussions with NVIDIA conclude positively, electricity-connection approvals are granted on cadence, and data-centre NOI reaches NIS 500M+ by Q4 2027. Equity grows materially and ROE rises.
Base Scenario — if current trends continue:
Partial execution of the DC forecast (NIS 300M rather than 500M), with core operations continuing to perform steadily. Total NOI grows to NIS 650-750M by 2028.
Adverse Scenario — if the following risks materialise:
Delays in power-infrastructure approvals slow DC deployment, AI demand softens, or the Niboi contract is terminated. Data-centre NOI remains low (NIS 50-100M), and the valuation of the growth plan is pushed back.
Scenarios describe conditions, not forecasts. There is no preferred direction and no probability assessment expressed in this framework.
7 How to Think About This Company
Mega Or is not a conventional real-estate company — it is a rare Israeli attempt to build data-centre infrastructure at global scale. This move is a bet of hundreds of millions of shekels on the hottest technology market — data centres for AI workloads. The real question in analysing Mega Or is not "does the classical real estate carry its own weight" (it does — 99% occupancy and stable NOI), but rather "what is the value of the growth option in DCs, and how much of the NIS 500M NOI forecast for 2027 is already reflected in the current share price?"
The critical variables are three. First, the pace of electricity-connection approvals. Each new DC facility requires high-capacity grid approval — a 12-24 month process in Israel. Delay means months of revenue slippage. Second, utilisation of existing DC capacity. Of 314 MW installed, only part is utilised — Niboi accounts for 80 MW. The question is how customers are found for the remaining capacity. Third, the leverage level after project completion. Building data centres is capital-intensive — LTV may rise materially.
Where the analysis may go wrong. First error — assuming management’s forecast (NIS 500M NOI by 2027) will materialise exactly as presented. The jump from NIS 38M to NIS 500M in two years is exceptional. Execution is more likely to take longer or be less complete. Second error — valuing the traditional segment (NIS 392M NOI) separately from the data centres. The market prices them together. Third error — ignoring the dependence on Nachmias. A reduction in his operational capacity would pose absolute risk to the strategy.
What distinguishes professional analysis of Mega Or. Professional analysis addresses three things: (a) how much of the current price reflects DCs versus the traditional real-estate portfolio; (b) the NPV sensitivity of the DC programme to WACC and to the pace of electricity-connection approvals; (c) the scenario in which only 50% of the DC forecast is achieved. These are not what one buys — they are what one asks before deciding.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
8 Sources & Data
| # | Source | Date | Type |
|---|
| 1 | Mega Or — 2025 Annual Report | March 2026 | Official — TASE |
| 2 | Q4 2025 results presentation | February 2026 | Official |
| 3 | maya.tase.co.il | April 2026 | Official — Stock Exchange |
| 4 | Calcalist / Bizportal — Niboi coverage | March 2026 | Secondary |
Missing: detailed FFO/AFFO for recent years, consolidated LTV, financing plan for data-centre CAPEX.
