G City Europe, the fully owned European arm of leading commercial real estate developer G City (TASE: GCT), has concluded 2024 on a high note, reporting double-digit growth in key operational metrics while successfully executing its long-term strategic vision. The company has now fully transitioned to a Poland-focused portfolio, exiting its holdings in the Czech Republic and Turkey, and strengthening its position in the high-demand Warsaw market.
Record-Setting Growth in Operational Metrics
G City Europe reported a 16.3% year-over-year increase in same-property Net Operating Income (NOI), with Q4 alone seeing a 15% uptick. Lease renewals reflected strong demand, with rents rising by an average of 7.1% over the year and an impressive 21.1% in Q4. The company’s occupancy rate climbed to 96.8% by the end of 2024, reflecting robust tenant retention and leasing activity.
The retail sector remained particularly strong, with a 3% rise in foot traffic at same properties and a 6.6% increase in tenant sales. The company also noted an improvement in efficiency, as the sales turnover ratio reached 12.6%. These indicators suggest that despite macroeconomic challenges, consumer activity remained stable, benefiting both tenants and property owners.
G City Europe’s ability to maintain such high occupancy rates while increasing rental yields highlights the resilience of its property portfolio and asset management strategy. By focusing on quality urban assets, the company has ensured steady cash flow and a positive leasing environment.
Strategic Portfolio Enhancements and Market Consolidation
A major highlight of 2024 was G City Europe’s successful execution of its geographic refocusing strategy. The company completed the sale of its last asset in the Czech Republic, finalizing a €232.1 million transaction for the Atrium Flora shopping center in Prague. Additionally, in January 2025, G City Europe exited Turkey with a €53 million asset sale. These transactions mark the completion of a multi-year effort to streamline operations and concentrate investments in high-performing markets.
The company’s decision to focus on Poland, particularly Warsaw, aligns with its broader strategy of maximizing value in high-growth, high-demand urban centers. Warsaw has continued to establish itself as one of Europe’s most attractive real estate markets, with increasing foreign investment and strong economic fundamentals driving rental growth and tenant demand.
As part of its capital optimization efforts, the company repaid its 2025 bond obligations in full, totaling €85 million, and in February 2025, its board approved a €100 million repurchase program for its 2027 bonds. These moves highlight G City Europe’s commitment to reducing leverage and enhancing financial flexibility, ensuring long-term stability amid changing market conditions.
Strong Financial Position and Positive Asset Revaluation
Reflecting confidence in the company’s portfolio, G City Europe recorded a significant positive asset revaluation of €122.6 million in 2024, including €69.2 million in Q4 alone. The EPRA Net Reinstatement Value (EPRA NRV) stood at €3.42 per share, and a dividend of €0.30 per share was distributed in January 2025.
The company’s EBITDA grew by 8.7% year-over-year, with adjusted EBITDA rising 4.8% compared to 2023. Net income from continuing operations nearly doubled, reaching €170.5 million, up from €82.9 million the previous year.
By year-end, the net Loan-to-Value (LTV) ratio had dropped to 34.6%, marking an 11.6 percentage point improvement over 2023 and further solidifying the company’s financial resilience. The drop in leverage not only strengthens the balance sheet but also allows the company greater flexibility to pursue future growth opportunities and capital investments in its core markets.
A Positive Outlook for 2025 and Beyond
Looking ahead, G City Europe is well-positioned for continued growth. With its Warsaw-focused portfolio delivering strong results and its financial position improving, the company is expected to maintain its upward trajectory.
The company’s strategy of divesting non-core assets while strengthening core holdings in prime urban locations has already shown clear benefits. As demand for high-quality commercial and mixed-use properties continues to grow in Poland, G City Europe’s ability to attract top-tier tenants and generate consistent rental growth places it in a strong competitive position.
Additionally, the company remains proactive in managing its capital structure. With a reduced debt burden and improved liquidity, G City Europe is prepared to navigate economic uncertainties while continuing to optimize its asset base. The combination of operational excellence, financial prudence, and strategic market positioning suggests that 2025 could bring further gains for G City Europe and its parent company.
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