CITYCON OYJ Interim Report 30 October 2025 at 20:15 hrs
Strong operational performance in Q1-Q3/2025
- Like-for-like net rental income increased by 5.7% and 6.8% in Q3/2025.
- Retail average rent per sq.m. increased by 3.9% with comparable FX to EUR 27.5 per sq.m (vs. Q3/2024).
- Retail economic occupancy rate 95.2% (vs. 95.1% in Q3/2024).
- Like-for-like footfall increased 1.5%.
- Like-for-like tenant sales increased 1.4%.
- Fair value net gain of investment properties in Q1-Q3/2025 was EUR 42.8 million.
- In Q3/2025 fair value net gain of investment properties was EUR 8.6 million.
Proactive debt management
Q1-Q2/2025
- In Q1-Q2/2025 Citycon completed in total over EUR 730 million debt repayments.
- LTV (IFRS) decreased -90 basis points during Q1-Q2/2025 to 46.4% (Q4/2024: 47.3%).
Q3/2025
- 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.
- In August Citycon tendered around EUR 35 million of its hybrid bonds (EUR 34 million of the 2024 notes and EUR 1 million of the 2019 notes).
- LTV (IFRS) increased 50 basis points during Q3/2025 to 46.9% (Q2/2025: 46.4%).
Post Q3/2025
- In October Citycon extended its committed Revolving credit facility until October 2029 (with an additional one-year extension option) from current April 2027 and increased the amount to EUR 250 million from EUR 200 million. The facility is undrawn by end of Q3/2025.
KEY FIGURES
Citycon Group 7) | Q3/ 2025 | Q3/ 2024 | % | FX Adjusted Q3/2024 | FX Adjusted % 1) | ||
Net rental income | MEUR | 52.2 | 54.7 | -4.4 % | 55.0 | -5.0 % | |
Like-for-like net rental income development | % | 6.8 % | 3.9 % | - | - | - | |
Direct operating profit 2) | MEUR | 45.8 | 49.1 | -6.8 % | 49.4 | -7.3 % | |
IFRS Earnings per share (basic) 3) | EUR | 0.06 | -0.07 | - | -0.07 | - | |
Fair value of investment properties | MEUR | 3,746.3 | 3,699.6 | 1.3 % | - | - | |
Loan to Value (LTV) 2) | % | 46.9 | 47.5 | -1.3 % | - | - | |
EPRA based key figures 2) | Q3/ 2025 | Q3/ 2024 | % | FX Adjusted Q3/2024 | FX Adjusted % 1) | ||
EPRA Earnings 4) | MEUR | 23.1 | 24.0 | -3.9% | 24.3 | -4.9 % | |
EPRA Earnings excl. hybrid bond interests 5) | MEUR | 31.7 | 32.7 | -3.2% | 33.0 | -4.0 % | |
EPRA Earnings per share (basic) 4) | EUR | 0.13 | 0.13 | -3.6% | 0.13 | -4.7 % | |
EPRA Earnings per share excl. hybrid bond interests (basic) 5) | EUR | 0.17 | 0.18 | -2.9% | 0.18 | -3.7 % | |
EPRA NRV per share 6) | EUR | 8.33 | 8.92 | -6.6% | - | - | |
Citycon Group 7) | Q1-Q3/ 2025 | Q1-Q3/ 2024 | % | FX Adjusted Q1-Q3/ 2024 | FX Adjusted % 1) | Q1-Q4/ 2024 | |
Net rental income | MEUR | 155.7 | 160.4 | -2.9 % | 160.8 | -3.2 % | 214.7 |
Like-for-like net rental income development | % | 5.7 % | 5.2 % | - | - | - | 4.6 % |
Direct operating profit 2) | MEUR | 136.2 | 137.7 | -1.1 % | 138.1 | -1.4 % | 183.6 |
IFRS Earnings per share (basic) 3) | EUR | 0.24 | 0.37 | -35.5 % | 0.37 | -36.4 % | -0.40 |
Fair value of investment properties | MEUR | 3,746.3 | 3,699.6 | 1.3 % | - | - | 3,627.8 |
Loan to Value (LTV) 2) | % | 46.9 | 47.5 | -1.3 % | - | - | 47.3 |
EPRA based key figures 2) | Q1-Q3/ 2025 | Q1-Q3/ 2024 | % | FX Adjusted Q1-Q3/ 2024 | FX Adjusted % 1) | Q1-Q4/ 2024 | |
EPRA Earnings 4) | MEUR | 59.9 | 71.7 | -16.4% | 72.0 | -16.8 % | 91.9 |
EPRA Earnings excl. hybrid bond interests 5) | MEUR | 86.0 | 93.7 | -8.2% | 94.0 | -8.5 % | 122.6 |
EPRA Earnings per share (basic) 4) | EUR | 0.33 | 0.39 | -17.4% | 0.40 | -17.8 % | 0.50 |
EPRA Earnings per share excl. hybrid bond interests (basic) 5) | EUR | 0.47 | 0.52 | -9.3% | 0.52 | -9.6 % | 0.67 |
EPRA NRV per share 6) | EUR | 8.33 | 8.92 | -6.6% | - | - | 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 0.05. |
7) The numbers include the impact of divestments executed during 2024. |
CEO ESHEL PESTI:
We delivered solid performance during the first nine months of 2025, like-for-like net rental income growth was 5.7% compared to same period last year in comparable FX. This growth was supported by higher retail economic occupancy rate and rental uplifts. Footfall and tenant sales also showed positive momentum, rising by 1.5% and 1.4% respectively during Q1-Q3/2025 compared to last year. Net rental income margin was solid at 94.0% in Q1-Q3/2025. Further, we had a significant, 22% reduction in administrative expenses in Q1-Q3/2025 compared to last year.
The positive trend accelerated in the third quarter of the year, where like-for-like net rental income grew by 6.8% compared to the same period previous year in comparable FX. The strong result was driven by improving retail economic occupancy rate which grew by 20 basis points quarter-on-quarter to 95.2% in Q3/2025, while footfall and tenant sales increased by 2.8% and 1.6% respectively in Q3/2025 compared to previous year.
These results demonstrate the continued attractiveness of our assets and the effectiveness of our operational strategy which was reflected in fair value gains of our portfolio. In Q3/2025 we recognized fair value gains of EUR 8.6 million and during the first nine months fair value gains reached EUR 42.8 million. We also continued our proactive debt management in Q3/2025 as we completed a hybrid bond tender for around EUR 35 million. All in all, we have prepaid debt for over EUR 750 million during Q1-Q3/2025.
Our year 2025 outlook is tightened to:
- EPRA Earnings per share EUR 0.41-0.46
- EPRA Earnings per share excluding hybrid bond interests EUR 0.60-0.65
I have the privilege of having spent my first months as the CEO of Citycon. I have started by getting to know our people and our assets and I am pleased to say that we have both great people and high-quality assets. One of our first steps has been to shift focus more to country level. We are also continuing to implement measures to improve efficiency with emphasis on revenue growth and gaining better control over costs. Based on this our operational assumptions for year 2026 are built around two main components:
- Like-for-like net rental income growth including specialty leasing above the consumer price index
- G&A optimisation and operational cost reduction
On the financing side our focus continues to be on further strengthening and de-risking our balance sheet. Post Q3/2025 in October 2025 Citycon successfully completed a refinancing and extension of the committed Revolving credit facility. The new sustainability-linked facility matures in October 2029 with a potential one-year extension to October 2030. Further, the facility was increased from EUR 200 million to EUR 250 million.
OUTLOOK (specified 30 October 2025)
Current outlook | Previous outlook | ||
EPRA Earnings per share (basic) | EUR | 0.41-0.46 | 0.41-0.50 |
EPRA Earnings per share excluding hybrid bond interests (basic) | EUR | 0.60-0.65 | 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 live audiocast will be held on Friday, 31 October 2025 at 10:00 a.m. EET. The audiocast can be participated by calling in and following live on the following website:https://citycon.events.inderes.com/q3-2025.
As Citycon's CEO has just recently joined the company the management team will exceptionally not take live questions in the audiocast. However, we will continue our tradition of hosting a Q&A session during the full-year 2025 results audiocast, where the management team will be available to answer questions live. Potential questions for the management team can be sent by email to ir@citycon.com after the audiocast.
The audiocast will be recorded and it will be available afterwards on Citycon's website.
HILIK ATTIAS APPOINTED AS CITYCON'S NEW CFO
The Board of Directors of Citycon Oyj has appointed Hilik Attias as Citycon's new CFO and member of the Corporate Management Committee commencing on 1 November 2025. Mr Attias will be based at Citycon's headquarters in Iso Omena, Espoo, Finland.
Mr Attias is an experienced executive with over 15 years of expertise in various roles within finance and a proven track record in securing funding for publicly listed real estate. Prior to joining Citycon he has served as the Vice President, Finance at G City Ltd.
The acting CFO Eero Sihvonen will step down from his role and leave the Corporate Management Committee on 31 October 2025. Mr Sihvonen will return to his role as a member the Board and will continue as an advisor to the management of the company until March 2026.
Eshel Pesti, CEO, Citycon: "I warmly welcome Hilik to Citycon. His background contains the two key elements of great value for us: experience in the listed real estate industry and financing. Hilik enters the big shoes of Eero, however I am confident that Hilik will succeed in his role as Citycon's CFO. I also want to thank Eero for his total of 17 years in Citycon, his fingerprint is everywhere in the company. During the past year he has especially worked on securing our financing and strengthening Citycon's balance sheet. His experience as the CFO of Citycon was valuable support for the company during this transition period."
Hilik Attias, incoming CFO, Citycon:?"I am excited to start in my new role at Citycon, the leading owner and developer of urban hubs in the Nordics. I look forward to contributing to the company's future. Together with the professional team at Citycon we will continue the work to strengthen the company's balance sheet."
CITYCON OYJ
For further information, please contact:
Eero Sihvonen
CFO
Tel. +358 50 557 9137
eero.sihvonen@citycon.com
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