Big Shopping Centers (BIG) Q2 2026 earnings summary

Executive summary

• Focus on long-term property holdings with strategic emphasis on residential for rent (mainly outside Israel), offices in key cities, and commercial projects including shopping centers and mixed-use developments.

• The group owns, manages, and develops income-producing real estate in Israel and Europe, with 78 assets (excluding a major subsidiary) as of June 30, 2026.

• Geographic diversification with 52% of real estate value in Israel, 18% in Serbia & Montenegro, and significant presence in Poland, Romania, USA, and Czech Republic.

• Occupancy in retail properties in Israel is near 100%, and in Europe (including subsidiaries) at 99%.

• Despite the impact of military operations and a reduced stake in a key subsidiary, NOI and FFO increased.

Financial highlights

• Shareholders' equity grew from NIS 2,494 million in 2015 to NIS 13,391 million by June 2026.

• Investment property fair value increased from NIS 8,887 million in 2018 to NIS 29,166 million by June 2026, with projections reaching NIS 38,608 million by 2030.

• NOI for the first half of 2026 reached NIS 956 million, up 6.5% year-over-year excluding AFI Properties holding rate changes; AFFO for the same period was NIS 532 million, a 6.8% increase year-over-year.

• Rental and management fee income for H1 2026 grew 4.6% to NIS 1,367 million; net profit for H1 2026 was NIS 549 million.

• Dividend of NIS 225 million paid in June 2026.

Outlook and guidance

• Projected continued growth in NOI, AFFO, and investment property value through 2030, assuming 0% inflation and full occupancy.

• Management expects continued strong cash flow from operations and maintains confidence in meeting short-term obligations.

• Multiple development projects underway in Israel and Europe, with expected launches between 2028 and 2030 and yield rates ranging from 8.2% to 9.1%.

• Geographic diversification and financial strength are seen as mitigating factors against regional instability.