BIG Shopping Centers Boost Quarterly Profits with Galilot Expansion and European Growth

In the second quarter of 2025, BIG Shopping Centers experienced its first full quarter benefiting from the Galilot mall, inaugurated in February 2024, spanning 44,000 square meters. This new asset significantly contributed to 53 million shekels in revenue from newly established properties, alongside openings in Or Akiva, Gedera, Karmi Gat, and an expansion in Ashdod. By the same quarter in 2025, these properties were fully integrated as "identical" assets, reducing new asset revenue additions to 7 million shekels, while identical assets generated an additional 30 million shekels.

The net operating income (NOI) from BIG's Israeli properties reached 186 million shekels, marking a 25% increase compared to the same quarter the previous year. Concurrently, BIG's European growth engine advanced, with NOI from shopping centers in Serbia, Poland, and Montenegro hitting 24.2 million euros (81 million shekels) in Q2, a 15% rise year-over-year and a new quarterly record. This growth was supported by an 11% increase in half-year turnover.

Overall, BIG's NOI excluding its 79.9% stake in Afikim Properties totaled 276 million shekels, up 12% year-over-year, while funds from operations (FFO) from its real estate activities rose 16% to 167 million shekels. Including Afikim, NOI reached 492 million shekels, stable year-over-year, and FFO increased 3% to 267 million shekels. Projected annual NOI including Afikim is 2.1 billion shekels, 9% above 2025, with FFO expected at 1.1 billion shekels, a 13% increase.

The company faced headwinds from a stronger shekel against the euro, which reduced European revenues by 52 million shekels and pushed financing expenses up 19% to 338 million shekels. However, positive asset revaluations led to a 47% jump in net quarterly profit attributable to shareholders, reaching 366 million shekels. BIG is currently valued at 16.5 billion shekels, with its stock down 16% since the start of the year.