Billion-dollar company BIG: Why profits are falling despite a record

The investment activity has an impact far beyond the real estate sector. According to a study by the economic research institute Economica, every billion invested by BIG secures around 9,300 jobs and generates domestic added value of 886 million euros. Around 341 million euros flow to the federal, state and local governments in the form of taxes and duties. More than 95 percent of the orders go to regional companies; in the construction industry alone there are over 2,000 companies every year.

Challenging market environment

The group also developed solidly operationally. Sales revenue rose to 1.616 billion euros, earnings before interest, taxes, depreciation and amortization EBITDA reached 884 million euros. BIG was therefore able to maintain the high level of the previous year despite a challenging market environment.

However, political intervention left a clear mark: the legally decided suspension of value protection for rental agreements with federal tenants from 2026 is putting a considerable strain on the balance sheet. The annual loss of rent is estimated at around 50 million euros. In combination with valuation uncertainties, this led to a negative valuation effect of 1.163 billion euros in 2025.

Profit fell significantly

As a result, EBIT and profit for the period fell significantly. EBIT fell to 973 million euros after 1.295 billion euros in the previous year, and profits fell from 884 million euros to 640 million euros. Nevertheless, the intrinsic value of the portfolio remained high: the property value rose to 18.9 billion euros and the equity ratio was stable at 56.5 percent.

At the end of the year, the real estate portfolio comprised 2,028 properties with around 7.8 million square meters of rentable space. The occupancy rate once again reached a record high of 99.4 percent. Rental income rose to 1.186 billion euros, driven by project completions, new rentals and indexations in 2025.

Dividend of 266 million euros to the Republic

Regardless of the decline in earnings, BIG will pay a dividend of 266 million euros to the Republic for 2025. Of this, 160 million euros go to the contribution to the Cheaper Electricity Act.

Strategically, the group is increasingly focusing on climate protection and safeguarding its inventory. By 2040, around 2 billion euros should flow into the decarbonization of the portfolio. Large renovation projects such as the Josefstadt prison or the Vienna Criminal Court mark this course. At the same time, BIG is pushing ahead with the transformation of former hospital locations into educational properties.

Around 3,000 apartments under construction

In 2025, BIG invested more than 370 million euros in school and university construction alone. Large projects such as the MedUni Campus Mariannengasse, the Graz Center of Physics or the House of Physics in Innsbruck underline the claim to provide structural support for top international research.

The subsidiary ARE Austrian Real Estate made a significant contribution to residential construction. Around 3,000 apartments were under construction in 2025 and 1,330 were completed. Large-scale projects like the “Village im Third” in Vienna combine housing, social infrastructure and renewable energy to create a new urban district.

The bottom line is that the consolidated balance sheet shows: Despite regulatory burdens, BIG remains financially robust – and a central pillar of public investment and location policy.