With impressive Q3 results from G City Europe and Citycon, strategic asset optimization, and high-profile leasing deals, G City seems to be continuing to drive growth and value across Europe, with more insights likely to be seen in the parent company’s upcoming Q3 financial report which is expected November 20, 2024.
G City has been making notable strides across Europe, with its subsidiaries G City Europe and Citycon achieving substantial growth in key urban centers throughout Central and Northern Europe. Through strategic investments, asset optimization, and securing high-profile tenants, the company and its subsidiaries have demonstrated strong momentum.
G City Europe, a wholly owned subsidiary of G City (TASE: GCT), delivered impressive Q3 2024 financial results, highlighting its strength in Central and Eastern Europe. The company reported a 15.1% increase in same-property Net Operating Income (NOI), reaching €22.7 million. Leasing performance exceeded expectations, with an average 15.9% increase in rental income per square meter, while occupancy rates rose to 96.2%. Consumer engagement metrics remained strong, with a 1.0% increase in foot traffic and 0.8% growth in tenant sales. These indicators underscore the continued appeal of G City Europe’s properties and validate its successful asset management strategy.
Another key achievement for G City Europe was the sale of the Targowek shopping center in Warsaw, Poland, for €230.5 million, generating a net gain of €4.1 million. This transaction is part of the broader G City strategy of portfolio optimization, enabling G City Europe to focus on high-value, core assets. As part of its overall efforts, G City has supported its subsidiaries in asset divestitures, resulting in a stronger balance sheet. Over the past two years, G City has sold over 4 billion shekels worth of non-core assets, progressively reducing its debt ratio and enhancing its focus on high-growth regions.
Citycon, G City’s Northern European subsidiary, has also shown substantial growth and strategic success. In Q3, Citycon achieved a 13% increase in NOI, maintaining high occupancy levels at 95.1%. Citycon’s strategic asset sales, including a property in Oslo for €112 million and a planned residential project sale in Stockholm, exemplify G City’s focus on core urban locations and reduced leverage. These sales contribute to G City’s overall strategy of divesting €950 million in non-core assets by the end of 2025, with a priority on premium urban centers.
A major highlight reflecting G City Europe’s appeal to global brands is its recent long-term lease agreement with UNIQLO. This deal converts UNIQLO’s temporary pop-up store at Warsaw’s Wars Sawa Junior Center into a permanent high-street location spanning 1,779 square meters. This milestone not only underscores UNIQLO’s confidence in Poland’s retail landscape but also G City Europe’s position as a premier destination for top-tier brands. Eshel Pesti, CEO of G City Europe, commented on the significance of the agreement, highlighting the center’s value as an urban lifestyle destination for international retailers and consumers alike.
These accomplishments across G City Europe and Citycon reflect the broader momentum of G City as it continues to enhance its European portfolio through strategic asset management, optimized operations, and partnerships with leading global brands. With its subsidiaries driving growth in Central and Northern Europe, G City is well-positioned to capitalize on the evolving retail landscape, delivering ongoing value and operational excellence across its diverse urban holdings.
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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