CITYCON OYJ Half-Year Financial Report 6 August 2025 at 19:30 hrs
Operational performance in Q1-Q2/2025
- Like-for-like net rental income with comparable FX increased by 5.2%.
- Average rent per sq.m. increased by 3.0% with comparable FX to EUR
25.8 per sq.m (vs. Q2/2024).
- Retail occupancy 95.0% vs. 95.2% in Q2/2024.
- Like-for-like footfall increased 0.9%.
- Like-for-like tenant sales increased 1.2%.
- Fair value net gain of investment properties in Q1-Q2/2025 was
positive EUR 34.3 million.
· In Q2/2025 fair value net gain of investment properties was EUR 33.5
million.
· All assets in Finland, Norway and Sweden were externally appraised during
Q2/2025.
Proactive debt management
Q1/2025
- In February Citycon prepaid EUR 150 million of its outstanding Term
Loan maturing in April 2027.
- In March Citycon executed EUR 100 million tender of its bond maturing
in September 2026 (remaining amount after the bond tender was approximately EUR
250 million).
- Citycon completed in total over EUR 250 million debt repayments
during Q1/2025.
- LTV (IFRS) decreased -40 basis points during Q1/2025 to 46.9%
(Q4/2024: 47.3%).
Q2/2025
- In April Citycon placed a 6.25-year EUR 450 million green bond with
an orderbook more than six times oversubscribed with funds being used to repay
debt.
- In April Citycon executed an additional EUR 100 million tender of its
bond maturing in September 2026 (remaining amount after the bond tender is
approximately EUR 150 million).
- In April Citycon prepaid the remaining EUR 100 million of its
outstanding Term Loan maturing in April 2027.
- In May 2025 Citycon prepaid its EUR 186 million secured loan maturing
in May 2029.
- In June Citycon executed a EUR 100 million tender of its bond
maturing in January 2027 (remaining amount after the bond tender is
approximately EUR 142 million).
- Citycon completed in total over EUR 480 million debt repayments
during Q2/2025.
- LTV (IFRS) decreased -50 basis points during Q2/2025 to 46.4%
(Q1/2025: 46.9%).
Completed actions post Q2/2025
- Citycon completed the share buy-back programme and the repurchase of
the company's own shares, the share repurchases started on 23 June 2025 and
ended on 11 July 2025. Citycon repurchased a total of 694,801 own
shares corresponding to approximately EUR 2.6 million. The repurchased shares
were cancelled after the reporting period on 14 July 2025. After the
cancellation, the total number of shares in Citycon is 183,569,011.
KEY FIGURES
Q2/2025 Q2/2024 % FX Adjusted FX
Q2/2024 Adjusted
% 1)
Net rental MEUR 53.3 54.7 -2.5 55.1 -3.2 %
income %
Like-for % 6.8 % 5.6 % - - -
-like
net rental
income
development
Direct MEUR 47.7 49.0 -2.6 49.3 -3.3 %
operating %
profit 2)
IFRS EUR 0.21 0.11 87.9 0.11 87.4 %
Earnings %
per share
(basic)
3)
Fair value MEUR 3,766.0 3,867.5 -2.6 - -
of %
investment
properties
Loan to % 46.4 47.6 -2.5 - -
Value %
(LTV) 2)
EPRA based
key
figures 2)
EPRA MEUR 17.5 25.3 -30.9 25.6 -31.7 %
Earnings
4) %
EPRA MEUR 26.3 32.1 -18.2 32.4 -18.9 %
Earnings
excl. %
hybrid
bond
interests
5)
EPRA EUR 0.095 0.137 -31.0 0.139 -31.8 %
Earnings
per share %
(basic)
4)
EPRA EUR 0.143 0.175 -18.3 0.176 -19.1 %
Earnings
per share %
excl.
hybrid bond
interests
(basic)
5)
EPRA NRV EUR 8.29 9.21 -9.9 - -
per %
share 6)
Q1 Q1 % FX Adjusted FX Q1
-Q2/2025 -Q2/2024 Q1-Q2/2024 Adjusted -Q4/2024
% 1)
Net rental MEUR 103.4 105.7 -2.2 105.8 -2.3 % 214.7
income %
Like-for % 5.2 % 5.9 % - - - 4.6 %
-like
net rental
income
development
Direct MEUR 90.4 88.6 2.0 88.7 1.9 % 183.6
operating %
profit 2)
IFRS EUR 0.18 0.44 -58.6 0.44 -59.2 % -0.40
Earnings
per share %
(basic)
3)
Fair value MEUR 3,766.0 3,867.5 -2.6 - - 3,627.8
of %
investment
properties
Loan to % 46.4 47.6 -2.5 - - 47.3
Value %
(LTV) 2)
EPRA based
key
figures 2)
EPRA MEUR 36.9 47.7 -22.7 47.7 -22.8 % 91.9
Earnings
4) %
EPRA MEUR 54.3 60.9 -10.8 61.0 -10.9 % 122.6
Earnings
excl. %
hybrid
bond
interests
5)
EPRA EUR 0.200 0.264 -24.3 0.264 -24.3 % 0.504
Earnings
per share %
(basic)
4)
EPRA EUR 0.295 0.338 -12.7 0.338 -12.7 % 0.673
Earnings
per share %
excl.
hybrid bond
interests
(basic)
5)
EPRA NRV EUR 8.29 9.21 -9.9 - - 7.87
per %
share 6)
1) Change from previous year (comparable exchange rates). Change-% is calculated
from exact figures.
2) Citycon presents alternative performance measures according to the European
Securities and Markets Authority (ESMA) guidelines. Citycon follows updated EPRA
Best Practices Recommendations (BPR) in its reporting starting from the
beginning of 2025. More information is presented in section EPRA performance
measures.
3) The key figure includes hybrid bond interests, amortized fees and
gains/losses and expenses on hybrid bond repayments.
4) From the beginning of 2025 the key figure includes hybrid bond interests and
excludes reorganisation and one-time costs. The information for the comparison
periods has been restated to correspond to the new reporting recommendations.
5) A new key figure introduced at the beginning of 2025. The key figure excludes
hybrid bond interests and reorganisation and one-time costs.
6) The development of currency rates improved EPRA NRV/share by EUR 0.03.
CEO OLEG ZASLAVSKY:
The first half of 2025 marked for Citycon another period of continued
operational improvement and disciplined execution. Like-for-like net rental
income increased by 5.2% with comparable exchange rates, supported by average
rent growth of 3.0%. We also saw like-for-like footfall rise by 0.9% and tenant
sales by 1.2% and 1.9% FX-adjusted growth in direct operating profit.
Our portfolio delivered a EUR 34.3 million net fair value gain in the first half
of the year, with approximately 92% of assets externally valued - demonstrating
both the transparency of our process and renewed confidence in Nordic real
estate markets. These valuation gains reflect the robust cash flows of our
necessity-based urban hubs and are a clear indicator of stabilizing market
conditions across our core geographies.
In parallel, we remained focused on proactive capital management. In Q2 alone,
we repaid over EUR 480 million of debt using proceeds from our oversubscribed
EUR 450 million green bond. Altogether, we have repaid around EUR 750 million of
debt during the first half of 2025, further strengthening our balance sheet and
positioning Citycon for long-term value creation.
OUTLOOK (unchanged)
+---------------------------------------------------------------+---+---------+
| | | |
+---------------------------------------------------------------+---+---------+
|EPRA Earnings per share (basic) |EUR|0.41-0.50|
+---------------------------------------------------------------+---+---------+
|EPRA Earnings per share excluding hybrid bond interests (basic)|EUR|0.60-0.69|
+---------------------------------------------------------------+---+---------+
The outlook assumes that there are no major changes in macroeconomic factors and
no major disruptions from the war in Ukraine. These estimates are based on the
existing property portfolio as well as on the prevailing level of inflation, the
EUR-SEK and EUR-NOK exchange rates, and current interest rates.
EPRA Earnings per share (basic) and EPRA Earnings per share excluding hybrid
bond interests (basic) for 2025 are based on updated EPRA Best Practices
Recommendations (BPR) Guidelines published on the 1st of October 2024 and are
not fully comparable with previously reported EPRA EPS key figures.
AUDIOCAST
Citycon's investor, analyst and press conference call and live audiocast will be
held on Thursday, 7 August 2025 at 10:00 a.m. EEST. The audiocast can be
participated by calling in and following live on the following website:
https://citycon.events.inderes.com/q2
-2025 (https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fcitycon.
events.inderes.com%2Fq2
-2025&data=05%7C02%7Canni.torkko%40citycon.com%7C0dc40556482b4e5e7e7708dda27b9a86
%7Cb8ce972b3da445f6994995d1668226c6%7C0%7C0%7C638845374049523701%7CUnknown%7CTWFp
bGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpb
CIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=cZE2t6hxFdU5SsLtBwWazDBjNjUvsLK3YvS9glPVGL
0%3D&reserved=0)
Questions for the management can be presented either by phone or by sending an
email in advance to ir@citycon.com. To ask questions by phone, join the
teleconference by registering on the following link:
https://events.inderes.com/citycon/q2-2025/dial
-in (https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fevents.ind
eres.com%2Fcitycon%2Fq2-2025%2Fdial
-in&data=05%7C02%7Canni.torkko%40citycon.com%7C0dc40556482b4e5e7e7708dda27b9a86%7
Cb8ce972b3da445f6994995d1668226c6%7C0%7C0%7C638845374049545398%7CUnknown%7CTWFpbG
Zsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCI
sIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=B4o5izsa%2BMTHDXBh%2FgRxXY1%2FYTgSExW2KCGOeJ
Si1uI%3D&reserved=0)
After the registration you will be provided with phone numbers and a conference
ID to access the conference. To ask a question, press *5 on your telephone
keypad to enter the queue.
The audiocast will be recorded and it will be available afterwards on Citycon's
website.
CITYCON OYJ
For further information, please contact:
Eero Sihvonen
Chief Financial Officer
Contact requests through:
Anni Torkko
Investor Relations Manager
Tel. +358 45 358 0570
anni.torkko@citycon.com
Citycon is a leading owner, manager and developer of mixed-use real estate
featuring modern, necessity-based retail with residential, office and municipal
service spaces that enhance the communities in which they operate. Citycon is
committed to sustainable property management in the Nordic region with assets
that total approximately EUR 3.8 billion. Our centres are located in urban hubs
in the heart of vibrant communities with direct connections to public transport
and anchored by grocery, healthcare and other services that cater to the
everyday needs of customers.
Citycon's shares are listed on Nasdaq Helsinki Ltd.
www.citycon.com