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G City Europe Reports Impressive Q3 2024 Results with 15.1% NOI Growth and Strong Operational Performance

Strategic asset optimization and robust leasing activity drive strong results, with significant increases in rental income and occupancy rates, underlining the company’s strong market position in Central and Eastern Europe

G City Europe, a wholly-owned subsidiary of G City (TASE: GCT), has reported strong financial results for the third quarter of 2024, demonstrating impressive growth across all key performance indicators. The company’s operations in Central and Eastern Europe continue to show strong momentum, with Net Operating Income (NOI) from same-property portfolio surging by 15.1% compared to the same period last year, reaching €22.7 million.

The company’s leasing performance was particularly impressive during Q3 2024, with new lease agreements reflecting an average rental increase of 15.9% per square meter, significantly outperforming the previous quarter’s 9.7% increase. This substantial improvement in leasing spreads demonstrates both strong demand for G City Europe’s premium retail spaces and the company’s ability to optimize rental income in its core markets.

Occupancy rates continued their upward trajectory, reaching 96.2%, an improvement from 95.5% in the previous quarter. This high occupancy level, coupled with a 3.2% year-over-year increase in average rent per square meter, reflects the sustained appeal of G City Europe’s properties and validates the company’s asset management strategy.

Consumer engagement metrics remained positive, with footfall increasing by 1.0% compared to the same period last year, while tenant sales in same-property locations grew by 0.8%. These metrics indicate resilient consumer confidence and sustained retail activity across the company’s portfolio, despite broader market challenges.

A significant milestone in the third quarter was the successful completion of the Targowek shopping center sale in Warsaw, Poland, for €230.5 million. The transaction, which generated a net gain of €4.1 million, aligns with G City’s strategic focus on portfolio optimization and value creation. Additionally, the company recorded a positive revaluation of its income-generating asset portfolio, with a net gain of €7 million during the quarter, highlighting the underlying strength of its property valuations.

The company maintained its robust financial position with shareholders’ equity of approximately €1.42 billion. The EPRA Net Reinstatement Value (NRV) per share reached €3.76 as of September 30, 2024, representing a notable 6.5% increase from €3.53 at year-end 2023, demonstrating continued value creation for shareholders.

The strong performance in Q3 2024 builds on the company’s positive momentum from previous quarters and reinforces G City Europe’s position as a leading retail property operator in Central and Eastern Europe. This momentum was further demonstrated in early October when the company announced the signing of a significant long-term lease agreement with UNIQLO, converting the global fashion retailer’s pop-up location into a permanent 1,779-square-meter store at one of its prime Warsaw locations. With its strategic focus on premium retail assets in key urban locations, combined with proven operational excellence and ability to attract leading international brands, G City Europe remains well-positioned for continued growth and value creation in the evolving retail landscape.

Looking ahead, it seems the company is continuing to execute its strategic initiatives, focusing on portfolio optimization, operational efficiency, and sustainable growth. The strong Q3 results provide a solid foundation for future performance and underscore the company’s ability to deliver value in dynamic market conditions.

This article is for informational purposes only and is not intended to serve as financial, investment or any form of professional advice, recommendation or endorsement or as a replacement for personal advice by a licensed professional. Please review the full documentation detailing financial compensation disclosures and disclaimers the article is subject to.