The complex in Glilot and growth in Europe contributed to the improvement in Big's results
The second quarter of 2025 marked the first full quarter in which Big Shopping Centers benefited from the Glilot complex. Net operating income (NOI) from Israeli assets jumped by 25%.
The second quarter of 2025 was the first full quarter in which Big Shopping Centers benefited from the yield of the shopping center it inaugurated in February of last year in Glilot, covering an area of 44,000 square meters. Revenues generated from this site accounted for a significant portion of the 53 million shekels in revenue that Big recorded from new assets, including centers in Or Akiva, Gedera, and Karmei Gat, as well as the completed expansion of its shopping center in Ashdod.
A year later, Big Fashion Glilot and the four other assets were classified as 'same-store' assets, meaning they yielded full returns in the corresponding quarter of the previous year. Consequently, revenue growth from new assets dropped to 7 million shekels, while same-store assets recorded an addition of 30 million shekels. Quarterly NOI from income-producing assets in Israel reached 186 million shekels, a 25% increase compared to the same quarter last year.
Simultaneously, Big continues to benefit from its European growth engine. NOI from its shopping centers in Serbia, Poland, and Montenegro reached 24.2 million euros (81 million shekels as of the end of June), a 15% improvement over the corresponding quarter in 2025 and a new quarterly record.
Total NOI for Big, excluding the performance of AFI Properties (in which it holds a 79.9% stake), reached 276 million shekels, up 12% year-over-year. FFO from real estate activity, also excluding AFI Properties, rose by 16% to 167 million shekels. Including AFI Properties, total NOI reached 492 million shekels, while FFO rose by 3% to 267 million shekels.
The projected annual NOI rate, including AFI Properties, is 2.1 billion shekels (9% higher than in 2025), with FFO expected to reach 1.1 billion shekels (13% higher than in 2025). The strengthening of the shekel against the euro offset 52 million shekels in European revenues and contributed to a rise in financing expenses to 338 million shekels, a 19% increase compared to the second quarter of last year. Following positive asset revaluations, quarterly net profit attributable to shareholders jumped by 47% to 366 million shekels. Big is currently traded at a market value of 16.5 billion shekels, with its stock down 16% year-to-date.
