Multinational income-producing real estate company
G City’s properties are generating again, but the stock will be judged on capital quality rather than on mall quality: the thesis now requires another two years of disposals, upstream cash, and credible deleveraging.
This is not a case of management buying while short sellers missed the memo. G City management is saying that both the stock and the bonds are cheap, but the market is still pricing the equity as the layer that carries most of the lingering balance-sheet skepticism.
The Citycon tender looks like a strong capital-allocation move for G City, but 86.4% control does not release value by itself. It only expands G City's ability to try to move value from a leveraged platform up to its own shareholders, provided asset disposals, refinancing, and d…
