Big Company, which is engaged in initiating the operation and rental of shopping centers, reports a successful third quarter. During the year 2021
Revenues in the third quarter grew by 87.7% to NIS 360.1 million, compared with NIS 191.9 million in the corresponding quarter last year. Most of the increase is due to the consolidation of the results of EPI Assets, the decrease in the effects of the corona and the continued expansion of activity.
The NOI in the quarter increased by 81% to NIS 253.4 million, compared with NIS 140 million in the corresponding quarter last year for the same reasons mentioned above that led to an increase in revenues.
The real FFO in the quarter climbed by 83.7% to NIS 162.2 million, compared with NIS 88.3 million.
The company ended the third quarter of 2021 with an increase of 167.9% in net profit to NIS 251.2 million, compared with a net profit of NIS 93.8 million in the corresponding quarter last year. It should be noted that during the quarter there was an increase of NIS 234 million in the value of investment real estate and construction real estate, compared with a decrease of NIS 34.5 million in the corresponding quarter last year. Most of the increase is due to the revaluation of properties in Israel and Serbia and the first consolidation of the results of Efi Properties.
The occupancy rate in Israel is approximately 100%, in Serbia about 97% and in the United States about 93%.
Revenues at Big Centers in Israel – In the first nine months of 2021, the company’s revenue increased by 14.6% compared to the same period last year, and by 3.6% compared to the same period in 2019, despite the fact that the company’s shopping centers were closed for 50 days during the period in 2021
The sections for investment real estate and investment real estate in development (the effective share of the company) increased to NIS 17.2 billion. The company has a wide geographical distribution, with about 50% of the assets in Israel, about 17% in Romania, about 13% in Serbia, about 12% in the United States and the rest in the Czech Republic and Poland. To about 24% of the total value of the assets.
The equity attributed to the company’s shareholders stands at NIS 6.39 billion, compared with NIS 3.99 billion at the end of 2020. Most of the increase is due to the issuance of share capital and options as part of an exchange offer for shares.
Epi Properties in the amount of NIS 1.7 billion, an issue to an institutional entity in the amount of NIS 300 million and another issue in the framework of the acquisition of the partner’s share in Serbia in the amount of NIS 96 million. In addition, the exercise of warrants (Series 5) contributed to an increase in capital of approximately NIS 133 million, and the balance of the increase originated in net profit during the period. On the other hand, there was a decrease following the erosion of the exchange rate and an additional NIS 100 million following the distribution of dividends distributed in September.
The company maintains high liquidity and financial flexibility: as of the end of the third quarter of 2021, the company has cash balances and deposits amounting to NIS 781 million and signed and available credit facilities amounting to NIS 913 million. In addition, as of the date of publication of the report, the Company has unencumbered assets amounting to approximately NIS 1.7 billion, of which approximately 1.175 billion are income-producing assets and holdings in tradable shares of Epic Assets that are not encumbered with a total value of approximately NIS 3.1 billion (approximately 51.3%). The credit lines and available assets do not include balances of epic assets.
The Company’s Board of Directors has decided to distribute an additional dividend in the amount of approximately NIS 100 million (approximately NIS 4.73 per share) to be paid on 12.12.2021
Assaf Nagar, Deputy CEO of Big: “Today we present record results in all parameters. The fact that despite a 50-day closure in the first nine months of the year, redemption from identical assets, compared to 2019 pre-Corona, increased by 3.6% and accordingly NOI same properties in Israel increased by 4.5% reflects the strength of the Big brand and the attractiveness of the company centers. In light of the strong results, the company’s board of directors decided to distribute a dividend of NIS 100 million, after we distributed a dividend of NIS 100 million about two months ago.
In the US we are continuing to sell the company’s assets, in accordance with the board’s decision, and we recently updated on the sale of a number of additional properties in California, Utah, Oregon and Wisconsin for a total of more than 14 books. $ 456 million, representing about half the value of the company’s share of U.S. assets.