Big Shopping Centers (BIG) Q1 2025 earnings summary

Executive summary

• Effective-basis NOI reached ₪458 million, up 19.6% year over year; effective-basis AFFO was ₪236 million, up 13%.

• AFFO was also reported at ₪234 million, up 15.8% year over year.

• Retail occupancy was near 100% in Israel, 99% in Europe; office occupancy was 90%.

• Portfolio comprised 77 properties excluding AFI Properties, with 1,255,000 sqm of rentable area.

• Two Polish shopping centers were acquired and a third was under contract; the portfolio expanded to 10 income-producing centers and 3 under development.

Financial highlights

• Rental and management income rose 22% to ₪633 million, mainly reflecting new projects and acquisitions.

• Operating expenses increased 26% to ₪165 million, mainly due to new projects and wage increases.

• Net profit attributable to shareholders was ₪423 million, versus ₪135 million in Q1 2024; basic earnings per share were ₪17.15.

• Net cash from operating activities rose to ₪213 million from ₪153 million year over year.

• EBITDA was ₪400 million in Israel, ₪14 million in Europe and ₪194 million at AFI Properties.

Outlook and guidance

• Dividend distribution was expected to resume in 2025 after a three-year pause, under a policy to distribute at least 30% of AFFO excluding AFI Properties’ contribution.

• Managed area was projected to reach 3.093 million sqm in 2025, compared with 2.969 million sqm shown for Q1 2025.

• Management expected continued operating cash flow to support ongoing activities and obligations.