Big Shopping Centers (BIG) Q4 2024 earnings summary

Executive summary

• Achieved one of the best years in company history, with strong growth despite macroeconomic and geopolitical challenges in Israel, including the war and economic uncertainty.

• Opened 7 new projects in Israel within six months, exceeding expectations for occupancy and performance.

• European operations benefited from significant interest rate reductions, improving refinancing and lowering costs.

• Strategic focus on long-term asset holding, active management, and expansion in retail, office, and residential rental sectors.

Financial highlights

• NOI (Net Operating Income) for 2024 reached 1,728 million NIS, up from 1,396 million NIS in 2023; projected to rise to 2,098 million NIS in 2025.

• AFFO (Adjusted Funds From Operations) for 2024 was 920 million NIS, up from 770 million NIS in 2023; projected to reach 1,163 million NIS in 2025.

• Equity attributable to owners increased to 12,022 million NIS at end-2024, up from 10,952 million NIS in 2023.

• Fair value of investment property rose to 30,873 million NIS in 2024, with a forecast of 32,172 million NIS for 2025.

• Same-property NOI in Israel grew by 7.5% (excluding war impact); retail sales in Israel up 10.1% year-over-year.

Outlook and guidance

• Anticipates continued improvement in financial results as new centers reach full occupancy.

• Expects further benefit from declining interest rates in Europe, supporting refinancing and cost reduction.

• Ongoing development of large mixed-use projects in Israel and Eastern Europe, with significant projects in Glilot, Petah Tikva, and Ness Ziona.