G City Ltd. (GCTY) — Bakshi Finance

Market Cap

₪10.5B

Price NIS 11.65

Revenue 2025

₪2.56B

-3.2% Y/Y (disposals)

Occupancy

96%

Same-store NOI +5.8%

NAV Discount

54%

NAV ₪25.5 vs ₪11.65

LTV

~71%

High — norm 40-50%

P/FFO

5.8x

Inexpensive vs sector

1 Company Profile

G City (GCTY) is an Israeli-European shopping-centre real-estate company, traded on the Tel Aviv Stock Exchange. The company owns and operates shopping centres in Israel, Germany, the Czech Republic, Slovenia and Eastern Europe. G City is a commercial-real-estate company with high occupancy (96%) but elevated leverage (LTV 71%). 2025 revenue: NIS 2.56B (-3.2% — asset disposals). NAV discount: 54% — share price NIS 11.65 versus NAV of NIS 25.5. P/FFO 5.8× — inexpensive relative to the sector. Key observation: the combination of high occupancy + deep NAV discount + elevated leverage warrants sustainability analysis.

Activity	Feature
Israel	Shopping centres
Germany	Large shopping centres
Czech Republic / Slovenia	Eastern European shopping centres
Asset disposals	2025 — asset sales to reduce debt

Source: Annual 2025

2 Key Financial Observations

This summary is not a recommendation. It is a factual list of key financial metrics.

2025 Performance

Metric	Value
Revenue	₪2.56B
Market Cap	₪10.5B
NAV	~₪23B
Occupancy	96%
Same-store NOI	+5.8%

Additional Metrics

Metric	Value
P/FFO	5.8x
NAV Discount	54%
LTV	~71%
Dividend	Variable

Missing data: NOI breakdown by geography, debt breakdown by maturity, full deleveraging plan.

Financial Metrics

Activity Breakdown

Leverage & Occupancy (LTV / Occupancy)

Revenue Trend 2023–2025

Valuation Metrics (P/FFO & NAV Discount)

LTV Trend — Leverage Over Time

3 Industry & Competitive Context

Commercial real estate / shopping centres. Competition from e-commerce, tourism and retail chains. Occupancy is stable but under long-term pressure.

Competitor	Ticker	Difference
Melisron	MLIS	High-quality Israeli income-producing real estate
Azrieli	AZRG	Shopping centres + offices
Unibail	URW	European competitor
Klepierre	LI	European competitor

4 Risk Factors

Risk	Context
High LTV (71%)	Highly sensitive to rising interest rates
NAV Discount	If the market does not believe the stated NAV
e-commerce	Structural threat to shopping centres
FX exposure	Euro, Czech koruna

5 Analytical Lens — The Questions We Ask

In professional company analysis, the question is not "is this good?" but rather "through which lenses must this company be examined so that we do not miss what matters most?" At Bakshi Finance, every analysis passes through six lenses.

This framework is intended to structure analysis, not to produce an investment conclusion.

Growth

Revenue down 3.2% — asset disposals or secular decline?

Profitability

Same-store NOI +5.8% — healthy.

Leverage

LTV of 71% — critical. Is it sustainable?

Competitive Position

Against e-commerce — how is relevance preserved?

Management Quality

The deleveraging plan — at what pace?

Business Complexity

International footprint — how should an SOTP be built?

6 Scenario Framework

Scenarios are descriptive, not predictive. They outline possible conditions, not expected outcomes.
These scenarios carry no probability assessment, no preferred direction, and no expectation regarding which, if any, will materialise.

Constructive Scenario — if the following conditions hold:

Asset disposals succeed, LTV falls below 60%, multiples normalise, and the NAV discount partially closes.

Base Scenario — if current trends continue:

NOI remains stable, LTV declines gradually, and the NAV discount remains wide.

Adverse Scenario — if the following risks materialise:

Rates rise, occupancy declines, high LTV pressures the structure — equity issuance may be required.

Scenarios describe conditions, not forecasts. There is no preferred direction and no probability assessment expressed in this framework.

7 How to Think About This Company

G City is a real-estate company with a leverage problem and a very large NAV discount. The real question in analysing GCTY is not "are the assets worth their NAV (NIS 23B)," but rather "can the company reduce LTV from 71% into the ~50% range over 2-3 years without diluting shareholders?" That is the only question that matters.

The critical variables: (a) the pace of asset disposals; (b) the LTV trajectory; (c) Same-Store NOI growth — is 5.8% being sustained?

Where the analysis may go wrong: First error — viewing the 54% NAV discount as an "opening" without understanding why it exists. Second error — underestimating interest-rate sensitivity. Third error — confusing asset-disposal proceeds with operational revenue decline.

Professional analysis addresses three things: (a) LTV by geography; (b) the pace of asset disposals versus financing costs; (c) NAV sensitivity to occupancy and cap rates.

The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.

8 Sources & Data

#	Source	Date	Type
1	G City — 2025 Annual Report	March 2026	Official — TASE
2	maya.tase.co.il	April 2026	Official — Stock Exchange

Missing: NOI breakdown by geography, debt breakdown by maturity, full deleveraging plan.

G City Ltd.

2025 Performance

Additional Metrics

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