2023-08-20 07:58:00
Chai Galis, the CEO of Big Shopping Centers, has released the financial reports for the second quarter and first half of 2023. The company experienced a revenue growth of approximately 26.3% in the second quarter, reaching around NIS 461.1 million compared to NIS 365.1 million in the same quarter last year. This increase can be attributed to the rise in Epi Property’s income and the expansion of operations through property acquisitions in Montenegro and Poland. Despite selling most of its activity in the US, the company saw a real and inflationary increase in income from investment and management fees.
Additionally, the report shows an increase of approximately NIS 93.9 million in the value of real estate for investment and real estate under construction during the second quarter compared to NIS 395.3 million in the corresponding quarter of the previous year. The total value of real estate for investment and investment in development is approximately NIS 25.3 billion.
However, the net profit for the second quarter of 2023 was approximately NIS 184.6 million, a decrease from NIS 425.3 million in the same quarter last year. While there was an increase in operational parameters and a positive contribution from exchange rate differences, the previous year had a more significant increase in the value of investment real estate.
For the first half of 2023, there was an increase of approximately NIS 76.5 million in the value of real estate for investment and real estate under construction compared to NIS 501.8 million in the same period last year. The net profit for the first half of 2023 was approximately NIS 314.4 million, a decrease from NIS 561.8 million in the corresponding period last year. The decrease in profit, despite improvements in NOI, FFO, and positive exchange rate differences, can be attributed to the greater increase in the value of real estate for investment in the previous year.
The property occupancy rates are approximately 100% in Israel, 96.4% in Serbia and the Balkan countries, and 96.14% in the US. Furthermore, redemptions in Big Centers in Israel increased by approximately 6.4% in the first half of 2023 compared to the same period last year. In Serbia, redemptions in Big Centers increased by about 10%, and in Romania, redemptions of Efi properties increased by approximately 19% compared to the corresponding period last year.
Assaf Nagar, the deputy CEO of Big, expressed positivity despite the challenges posed by the current period. He mentioned that the second quarter and first half of 2023 showcased growth and improvement in operational parameters, including tenant redemptions, revenues, NOI, and FFO. He also emphasized the company’s progress in executing and marketing construction projects, which will contribute significantly to future income and cash flow.
Overall, Chai Galis’s Big Shopping Centers has demonstrated solid growth and expansion despite market challenges. The company continues to focus on increasing its income and profitability through strategic acquisitions and the execution of ongoing projects.
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