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 Q2/2024 | FX Adjusted % 1) | |||
Net rental income | MEUR | 53.3 | 54.7 | -2.5 % | 55.1 | -3.2 % | |
Like-for-like net rental income development | % | 6.8 % | 5.6 % | - | - | - | |
Direct operating profit 2) | MEUR | 47.7 | 49.0 | -2.6 % | 49.3 | -3.3 % | |
IFRS Earnings per share (basic) 3) | EUR | 0.21 | 0.11 | 87.9 % | 0.11 | 87.4 % | |
Fair value of investment properties | MEUR | 3,766.0 | 3,867.5 | -2.6 % | - | - | |
Loan to Value (LTV) 2) | % | 46.4 | 47.6 | -2.5 % | - | - | |
EPRA based key figures 2) | |||||||
EPRA Earnings 4) | MEUR | 17.5 | 25.3 | -30.9 % | 25.6 | -31.7 % | |
EPRA Earnings excl. hybrid bond interests 5) | MEUR | 26.3 | 32.1 | -18.2 % | 32.4 | -18.9 % | |
EPRA Earnings per share (basic) 4) | EUR | 0.095 | 0.137 | -31.0 % | 0.139 | -31.8 % | |
EPRA Earnings per share excl. hybrid bond interests (basic) 5) | EUR | 0.143 | 0.175 | -18.3 % | 0.176 | -19.1 % | |
EPRA NRV per share 6) | EUR | 8.29 | 9.21 | -9.9 % | - | - | |
Q1-Q2/2025 | Q1-Q2/2024 | % | FX Adjusted Q1-Q2/2024 | FX Adjusted % 1) | Q1-Q4/2024 | ||
Net rental income | MEUR | 103.4 | 105.7 | -2.2 % | 105.8 | -2.3 % | 214.7 |
Like-for-like net rental income development | % | 5.2 % | 5.9 % | - | - | - | 4.6 % |
Direct operating profit 2) | MEUR | 90.4 | 88.6 | 2.0 % | 88.7 | 1.9 % | 183.6 |
IFRS Earnings per share (basic) 3) | EUR | 0.18 | 0.44 | -58.6 % | 0.44 | -59.2 % | -0.40 |
Fair value of investment properties | MEUR | 3,766.0 | 3,867.5 | -2.6 % | - | - | 3,627.8 |
Loan to Value (LTV) 2) | % | 46.4 | 47.6 | -2.5 % | - | - | 47.3 |
EPRA based key figures 2) | |||||||
EPRA Earnings 4) | MEUR | 36.9 | 47.7 | -22.7 % | 47.7 | -22.8 % | 91.9 |
EPRA Earnings excl. hybrid bond interests 5) | MEUR | 54.3 | 60.9 | -10.8 % | 61.0 | -10.9 % | 122.6 |
EPRA Earnings per share (basic) 4) | EUR | 0.200 | 0.264 | -24.3 % | 0.264 | -24.3 % | 0.504 |
EPRA Earnings per share excl. hybrid bond interests (basic) 5) | EUR | 0.295 | 0.338 | -12.7 % | 0.338 | -12.7 % | 0.673 |
EPRA NRV per share 6) | EUR | 8.29 | 9.21 | -9.9 % | - | - | 7.87 |
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
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
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
