Only two stocks — why a whole page?

Because these two are the entirety of Israel's listed REIT sector — only two classic REITs were ever established. The page's value is exactly that completeness: one country's listed rent channel, read end to end, with all evidence in exchange filings. Expecting diversification from it is the misreading: the title says duopoly, and the risk list says correlation near 1.

With a 90% mandatory distribution, why do the yields differ (4.46% vs 7.51%)?

The distribution discipline governs the numerator's floor; yield also divides by price. Sela's floor (NIS 146M) is divided by a share price war-discounted to 0.66× NAV, while REIT 1's discount is much shallower (about 16%). The same regime, different prices — the three-point gap is the market's price difference on the two companies' assets and liquidity, not on their distribution discipline.

Is the discount enough compensation for the war risk?

That is the question this site does not answer for the reader. What it supplies is the checkable kit: the statutory floor and the 19/17-year records, the discounts' depth (16%/34%), the asset-side leverage (Sela unencumbered) and the year's price falls (−25%/−36%). Whether that compensates depends on your own pricing of the situation — this site's job is to make every number you price with filing-grade.

Opportunity rank #89 (cash-flow board) · Israel

Israel's REIT duopoly: the strongest distribution discipline (90% by law), wrapped in two war-discounted small caps

Our take: Do, with conditions

4.46–7.51% Israel REIT duopoly distribution yields (MAGNA filing basis) · Verified range · Data as of: 2026-11-06

Composite-board score: 5.3 · Where it is strong: Net cash flow, Hands-off degree · methodology

Data updated: 2026-11-08

Israel has exactly two classic REITs, so this 'basket' is a collective noun for a duopoly: REIT 1 (est. 2006) and Sela Capital (est. 2008). The regime is their shared selling point: a transparency model under the Income Tax Ordinance — the fund is not taxed on distributed income, the statutory distribution floor is 90% of taxable income, and distributions keep their character at the shareholder (rent as rent, gains as gains), with no return-of-capital component. The records check out: REIT 1 has paid for 19 uninterrupted years, with TTM DPS of NIS 0.88 (the board's floor for 2026 profits is about NIS 178M, about NIS 0.88 per share) — 4.46% at the NIS 19.75 price, at about a 16% discount to its NIS 23.52 book value per share. Sela: 17 uninterrupted years, annualised DPS of NIS 0.57 (quarterly 0.1425; a 2026 floor of NIS 146M; all real estate unencumbered) — 7.51% at NIS 7.588, at about a 34% discount to NAV per share of NIS 11.45. Sela's 7.51% must be printed with its cause: the share fell 36% in 2026 (REIT 1 is down 25% over 52 weeks) — war and geopolitics are this sector's first pricing variable, and part of today's yields is a price-collapse mirror. Both are small (market caps of about NIS 4.0B and NIS 1.9B), held mostly by domestic insurers and pension funds; foreign retail is a marginal buyer and thin books are the norm. Tax: withholding per the TASE dividend forms is 25% for individuals and 23% for companies; the Singapore treaty rate was not verified by this site — in-hand scenarios at 25% come to about 3.3% and 5.6%. Verdict: do, on conditions — the discipline and the discounts are real; size the position as a geopolitics position under thin-book discipline.

In short: four lines first

What it costs to get in

Listed shares, from any amount (TASE access; small/mid-cap thin-book discipline)

Roughly what it earns

4.46–7.51%（Israel REIT duopoly distribution yields (MAGNA filing basis)）

How much work for you

Very hands-off (listed route)

The biggest catch

The numbers that matter

Israel REIT duopoly distribution yields (MAGNA filing basis)

4.46–7.51%

Verified range As of: 2026-11-06 Source: Sela Capital Q3 2026 dividend filing (MAGNA/TASE, Ref. 2026-01-074648): NIS 0.1425 per share, with the form showing withholding of 25% for individuals / 23% for companies

Why we think it makes money

The distributions' credibility has a double backing: the 90% statutory floor governs the future and the 19/17-year uninterrupted records govern the past — on this site's evidence scale, that is harder than any management guidance.

Sela's unencumbered balance sheet is in its filing (all real estate unencumbered): the asset side of its 34% discount carries no leverage landmine — what separates it from generic collapse-yield specimens (contrast Korea's refinancing wall).

The duopoly's transparency: the sector is two names with all data on MAGNA — a reader can read an entire country's listed REIT sector in an hour, a completeness unique among this site's country pages.

How to actually get in

Listed route: buy RIT1 and SLARL through an international broker with TASE access; both are small/mid caps (about NIS 4.0B / 1.9B market caps) — stage entries and exits, use limits. Withholding is applied at source per the TASE forms (25% for individuals).

What it costs, what it earns

Entry amount: Listed shares, from any amount (TASE access; small/mid-cap thin-book discipline)
How much work for you: Very hands-off (listed route)

Costs & taxes, item by item:

NIS exposure and geopolitical volatility: war headlines can reprice this sector in a day — the position's first constraint is geopolitics, not property parameters.
Thin-book spreads: neither name trades deep; budget entry and exit costs under small-cap discipline.

Basis: this site uses full-cost net returns only — income minus vacancy, management, maintenance, taxes and insurance, then financing interest, with entry costs in the denominator. See the methodology。

Identity & tax

Status (residency / citizenship)

无购房/投资居留通道

This asset does not count toward the channel No status channel

Threshold: —

以色列没有购房或投资居留计划：身份走《回归法》（犹太裔回归）与常规工作/家庭通道，与买 REIT、买房完全无关。本条目纯按现金流评估。

Source: 以色列移民法框架

Tax (investor level)

透明体模型：REIT 对已分派收入不纳税，分派在股东层保留原所得性质计税（租金按租金、增值按增值）；法定分派下限为应税收入的 90%。

预扣按 TASE 股息表格原文：个人 25%、公司 23%（Sela Capital 2026-08-10 备案 §7c）。租赁住房型 REIT 收入对个人有 20% 的定额税率（Amdt 222）。
星以协定对新加坡居民持有人的适用税率本站本轮未核实到条约原文——到手按 25% 情景印，不印协定数字（与南非/菲律宾页同一纪律）。

Double-tax treaties: 协定减免待逐案确认；情景数已按无减免计。

Source: 所得税条例 §§64A2–64A11；MAGNA 备案

This section is general information only — not immigration or tax advice. Program rules change frequently; before acting, rely on the official texts and a licensed adviser.

Risks: what could go wrong

Geopolitics is the first variable: the two stocks' 2026 falls (−25%/−36%) are the proof — if the situation worsens, distribution discipline cannot save the price; if it calms, yields will 'worsen' as prices repair the discount. Have a plan for both directions. If these happen, our take changes: Reviewed quarterly against the situation and both names' price/NAV discounts.

A duopoly has no internal diversification: the same macro, the same currency, the same regulator — the two stocks' correlation is close to 1, and the basket provides no smoothing. If these happen, our take changes: None (structural property).

The non-resident tax loop is open: withholding has filing-grade text, but treaty application is unverified — the gap between the scenario in-hand figures and actual receipts can run to several points (depending on the treaty and filing path). If these happen, our take changes: If the Singapore–Israel treaty's rate for REIT distributions is verified to the treaty text, this page's in-hand figures are finalised.

What we have not verified yet

The following key figures have not yet been verified; the reason is noted for each item.

The 3.3%/5.6% in-hand figures are this site's scenarios at the 25% withholding rate: the Singapore–Israel treaty rate for a Singapore-resident holder was not verified to the treaty text; actual receipts follow broker withholding and tax advice.
Sela's NAV per share (NIS 11.45) is derived from filed equity over the share count and cross-checked against third-party data: the company's interim report governs when citing.

FAQ

Only two stocks — why a whole page?: Because these two are the entirety of Israel's listed REIT sector — only two classic REITs were ever established. The page's value is exactly that completeness: one country's listed rent channel, read end to end, with all evidence in exchange filings. Expecting diversification from it is the misreading: the title says duopoly, and the risk list says correlation near 1.
With a 90% mandatory distribution, why do the yields differ (4.46% vs 7.51%)?: The distribution discipline governs the numerator's floor; yield also divides by price. Sela's floor (NIS 146M) is divided by a share price war-discounted to 0.66× NAV, while REIT 1's discount is much shallower (about 16%). The same regime, different prices — the three-point gap is the market's price difference on the two companies' assets and liquidity, not on their distribution discipline.
Is the discount enough compensation for the war risk?: That is the question this site does not answer for the reader. What it supplies is the checkable kit: the statutory floor and the 19/17-year records, the discounts' depth (16%/34%), the asset-side leverage (Sela unencumbered) and the year's price falls (−25%/−36%). Whether that compensates depends on your own pricing of the situation — this site's job is to make every number you price with filing-grade.

Related opportunities

Get the free one-page brief

Get the one-page brief / subscribe for updates

Leave a contact and this page will immediately show a time-limited download link for the brief (valid 24 hours). This site only sends information — it will never pitch you a specific project or pass your contact to any project party.

Data dates are marked per metric; page updated 2026-11-08. This site publishes information and is not investment advice; the corrections channel is in the Disclaimer。