Chai Gallis CEO of Big (PR)
Big Shopping Centers published its financial statements for the first quarter of 2022. The following are the main results in an effective consolidation (including Epi Properties) as published in the company’s presentation and in the board of directors’ report: Revenues in the first quarter increased by 30.9% to NIS 352.6 million, compared to 269.3 NIS 1 million in the corresponding quarter last year. Most of the increase in the period is attributed to the Corona effect that led to a decrease in the Group’s revenues in the corresponding quarter last year, as well as to the continued expansion of operations (opening of Big Yehud and acquisition of properties in Serbia) and an increase in the subsidiary, Efi Properties.
God-WE In the quarter, it increased by 18.9% to NIS 255.7 million, compared with NIS 215.1 million in the corresponding quarter last year, for the same reasons mentioned above that led to an increase in revenues. FFO Reality in the quarter climbed by 57% to NIS 156 million, compared with NIS 99.4 million in the corresponding quarter in 2021.
The company ended the first quarter of 2021 with a sharp jump in net profit to NIS 136.5 million, compared with a net profit of NIS 34.6 million in the corresponding quarter last year. During the quarter, there was an increase of approximately NIS 106 million in the value of investment real estate and construction real estate, compared with a decrease of approximately NIS 29.1 million in the corresponding quarter last year. Most of the increase is due to the rise in inflation and the continued improvement of income-producing assets and assets under construction. The occupancy rate in Israel is approximately 100%, in Serbia about 97.8% and in the United States about 96.2%.
Revenues at the Big Centers in Israel – In the first quarter of 2022, the company’s revenue increased by 15.1% compared to the corresponding quarter in 2021, which includes a closing period following the corona, and an increase of 10.3% compared to the first quarter in 2019 before the corona period. The total balance sheet rose to NIS 22.3 billion.
The investment real estate and investment real estate items in the development (the effective share of the company) amounted to NIS 17.9 billion. The company has a wide geographical distribution, with about 54% of the assets in Israel, about 17% in Romania, about 13% in Serbia, about 8% in the United States and the rest in the Czech Republic and Poland. To about 25% of the total value of the assets.
The equity attributed to the company’s shareholders stands at NIS 6.77 billion, compared with NIS 6.64 billion at the end of 2021. Most of the increase comes from net profit during the period.
The company maintains high liquidity and financial flexibility: as of the end of the first quarter of 2022, the company has cash balances and deposits amounting to NIS 1.24 billion and signed and available credit facilities amounting to NIS 600 million.
In addition, as of the date of the report, the Company has unencumbered assets amounting to approximately NIS 1.8 billion, of which approximately 1.3 billion are income-producing assets. In addition, after the balance sheet date, the company released two additional assets from Liens, Big Beer Sheva and Big Carmiel, with a total value of NIS 1.57 billion, so that as of the date of publication of the report, the value of the assets available from Liens is NIS 3.37 billion.
In addition, the Company holds holdings in tradable shares of Epi Properties (30.1% of the capital) that are not encumbered with a total value of NIS 2.18 billion (as of March 31, 2022). The cash balances, credit lines and available assets do not include balances of Epi Properties. “Realization of operations in the United States in accordance with the strategic decision made by the company in the matter: up to the date of publication of the report, the company has entered into contracts and / or completed the sale of 22 properties in the amount of $ 619 million (the company’s share).” B. The Company intends to direct the financial sources arising from the realization of its operations in the United States, inter alia, to expand its operations in the other geographic markets in which the Company currently operates.
Assaf Nagar, Deputy CEO of Big: “We conclude the first quarter of 2022 with the continued trend of strengthening the open centers sector across the malls as the company centers enjoy a 10% increase in revenue compared to the same quarter in 2019 before the corona period.
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In Israel, the company is working to promote the assets under construction that are expected to contribute to further growth inWEWhen during the period two land claims were approved that the company owns in Petah Tikva and Ness Ziona in the amount of hundreds of thousands of meters with mixed uses of commerce, employment, housing, sheltered housing and hotels.
In the Balkans we recently announced the completion of the acquisition of the largest and most significant mall in Montenegro, and we continue to operate through a subsidiary BIG CEE For further expansion in Serbia in particular and the Balkans in general, where we identify significant business potential.
In the US we continue to implement the asset realization strategy and so far we have sold about 67% of the activity, at a total value higher than the book value.
At the financial level, since the beginning of the year, we have raised NIS 1 billion in bonds, extended a NIS 600 million line of credit on preferential terms until June 2024, and even released the two largest assets of the company in BS and Karmiel. “The volume of available properties, the low leverage and the low rent burden on the tenants in the Big Centers, place the company in an excellent position at the opening of a period of uncertainty in the markets.”
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Big Shopping Centers, managed by Chai Gallis, was established by Mr. Yehuda Naftali and mainly operates commercial centers in Israel, the United States and Serbia. The group’s shopping centers are divided into two main groups: , Which are usually located near major arteries and allow easy access and free parking for the benefit of visitors.The second group includes malls and shopping centers of the type Life Style Which combine entertainment and shopping with an emphasis on customer experience. With the acquisition of control of Effie Properties, the company significantly expanded its activities in the field of offices.
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