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.

• Rental and management income increased 19.3% in 2024 to NIS 2,308 million, driven by new projects, acquisitions, and CPI indexation.

• Net profit for 2024 was NIS 1,459 million, up from NIS 861 million in 2023, with a 24% rise in effective NOI and 18% growth in AFFO (excluding AFI).

• Maintained high occupancy rates: 100% in Israel, 98% in Europe, and 98% in the US, with a diversified tenant base.

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

Financial highlights

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

• AFFO for 2024 was NIS 920 million, up from NIS 770 million in 2023; projected to reach NIS 1,163 million in 2025.

• Equity attributable to owners increased to NIS 12,022 million at end-2024.

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

• LTV (effective, including AFI): 43.85%; LTV (excluding AFI): 59.66%.

Outlook and guidance

• Anticipates continued improvement in financial results as new centers reach full occupancy and expects to resume dividend payments in 2025, targeting at least 30% of AFFO (excluding AFI).

• 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.