G City Europe Reports Strong 2024 Results with Double-Digit Growth in Operational Metrics

Strategic Focus on Poland and Strong Financial Performance Drive Continued Success for G City Europe in 2024 Earnings

G City Europe, a wholly owned subsidiary of G City (TASE: GCT), has announced its financial results for 2024, showcasing significant operational growth and strategic geographic refocusing. The company, which became private two and a half years ago, has successfully completed its strategy of concentrating operations in Poland while exiting the Czech Republic and Turkey.

Impressive Operational Performance

Throughout 2024, G City Europe recorded strong growth across all key operational metrics. Same-property Net Operating Income (NOI) surged by 16.3% compared to the previous year, with Q4 alone registering a 15% increase. Lease renewals were signed at an average rental increase of 7.1%, with Q4 seeing an exceptional 21.1% rise in average rent per square meter.

Occupancy rates in commercial properties remained high, reaching 96.8% by year-end. Meanwhile, the average rental income per square meter rose by 3% year-over-year.

Consumer activity also showed positive trends, with visitor foot traffic at same properties increasing by 3% in 2024. Tenant sales at same properties grew by 6.6% for the year, with a 5.3% rise in Q4 alone. The sales efficiency ratio improved to 12.6%, reflecting enhanced asset performance.

Substantial Portfolio Revaluation

The company reported a major positive revaluation of its asset portfolio in 2024, totaling €122.6 million. In Q4, net positive revaluations reached €69.2 million. These results highlight the strength of G City Europe’s assets and the impact of its strategic optimizations.

G City Europe’s EPRA Net Reinstatement Value (EPRA NRV) stood at €3.42 per share, following a dividend distribution of €0.30 per share in January 2025.

Completion of Business and Geographic Refocusing

Since becoming a private company in 2022, G City has led a comprehensive restructuring of its European subsidiary, which included a management overhaul, significant cost reductions, workforce streamlining, and a strategic focus on Poland, particularly Warsaw.

As part of this strategy, G City Europe completed the sale of its last Czech asset in 2024. In February 2025, the company finalized the €232.1 million sale of the Atrium Flora shopping center in Prague. In January 2025, it completed the divestment of its sole Turkish asset for €53 million.

In line with its financial policies, the company fully repaid its 2025 bond maturities in January 2025, totaling €85 million. Additionally, in February 2025, the board approved a €100 million bond repurchase program for the company’s 2027 bonds.

Robust Financial Performance

G City Europe’s 2024 financial results reflect the successful execution of its strategic initiatives. EBITDA increased by 8.7% year-over-year, while Adjusted EBITDA rose by 4.8% compared to 2023.

Net income from continuing operations reached €170.5 million, marking a significant jump from €82.9 million in 2023.

By the end of 2024, the company’s net Loan-to-Value (LTV) ratio stood at 34.6%, an improvement of 11.6 percentage points from the end of 2023. This reduction underscores G City Europe’s commitment to deleveraging and strengthening its financial stability.

Looking ahead, G City (the parent company) is expected to report its Q3 2024 financial report on Wednesday, November 20, 2024, pending board approval. This report will provide further insights into the company’s ongoing performance and financial health as it continues its growth trajectory across Europe and in its other geographies.

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