CITYCON OYJ Q1/2024
Citycon I Q1/2024 | 1 |
New leadership team
HENRICA GINSTRÖM
CHIEF EXECUTIVE
OFFICER
SAKARI JÄRVELÄ CHIEF FINANCIAL OFFICER
HELEN METSVAHT CHIEF OPERATING OFFICER
JUSSI VYYRYLÄINEN | ERIK LENNHAMMAR | |
SR. VICE PRESIDENT, | CHIEF DEVELOPMENT | |
LEASING | OFFICER | |
Citycon I Q1/2024 | 2 |
We stay committed to our necessity-based strategy
Dense and growing locations | Convenient, everyday use | Top credit tenants with low OCRs |
throughout cycles | ||
Densely populated urban locations in the largest and fast-growing cities in the Nordics
All Citycon's centers connected to public transportation
Grocery anchored centers with a large share of necessity and municipal tenants
45%
Citycon tenants are necessity based
Citycon I Q1/2024 | 3 |
High share of groceries and low share of fashion de-risks the business
Average rent | Average lease term | % of GRI | |
Groceries | 25.5 EUR/sqm | >5 years | 19.3% |
Services and | 24.1 EUR/sqm | ~4 years | 15.2% |
Offices | |||
Cafes and | 35.8 EUR/sqm | ~3 years | 10.8% |
Restaurants | |||
Fashion | 23.0 EUR/sqm | <2 years | 18.7% |
TOTAL* | 25.1 EUR/sqm | 3.5 years |
*Includes all subcategories (home and sporting goods, cosmetics and pharmacies, wellness, residential and hotels, specialty stores and leisure)
Citycon I Q1/2024 | 4 |
Q1/2024: Strong underlying business performance
+6.5% | +8.2% | |
LFL NRI growth | Total NRI growth | |
with comparable FX | with comparable FX | |
(vs. Q1/2023) | (vs. Q1/2023) | |
+4.1% 94.9%
Avg. rent increase | Retail occupancy |
with comparable FX | |
rate | |
(vs. Q1/2023) | |
+3.0%
LFL tenant sales
(vs. Q1/2023)
+46.2M€
Fair value change of investment properties
Citycon I Q1/2024 | 5 |
Average rent continues to increase following indexation and active leasing
Average rent per sq.m.*/**
+4.1% | |
25.1 | |
24.1 | |
Q4/2023 | Q1/2024 |
Retail occupancy rate vs. previous quarter**
-50 bps | |
95.4% | |
94.9% | |
Q4/2023 | Q1/2024 |
Retail occupancy rate vs. last year**
+30 bps
94.9% | |
94.6% | |
Q1/2023 | Q1/2024 |
Occupancy cost ratio remains at a modest level of 9.3%
* With comparable FX rate | Citycon I Q1/2024 | 6 |
**Including Kista Galleria 100% |
Committed to investment grade credit rating
Actions taken in 2024
48 MEUR
Share issuance
300 MEUR
5-year bond issuance
213 MEUR
Bond tender
Post quarter end events:
650 MEUR credit facility extended
206 MEUR Kista loan extended
Citycon I Q1/2024 | 7 |
Divestment of Kongssenteret
Transaction details
- Citycon has signed an agreement to sell Kongssenteret in Kongsvinger, Norway
- Pricing close to the latest IFRS fair value of the asset
- The transaction is estimated to close by the end of May.
380 MEUR divestment | EUR 950 million of | |
target by the end of | asset sales over the | |
2024 | next 24 months. | |
Continue to own and
manage core properties
that offer a strong growth trajectory
Citycon I Q1/2024 | 8 |
G&A expenses to decline following FTE reduction and cost savings
FTE development
251
234
220
179
Q4/2022 | Q4/2023 | Q1/2024 | 8/2024 (Run-rate |
after current | |||
actions completed) |
Target: G&A run rate
< 10% of NRI by year-end 2024.
Administrative expenses
were in Q1 EUR 11.3 million of
which EUR 4.3 million was
reorganization
and one-time costs.
Citycon I Q1/2024 | 9 |
Citycon recognized as a European Climate Leader and ranks number one in the Nordic real estate sector
4th consecutive Financial Times' European Climate Leaders
- Highest GHG emissions reduction relative to revenues
- Citycon number one in the Nordic real estate sector and ranks among the top 20% of all European companies.
1st real estate company in Finland to join science-based targets initiative
- Committed to reduce GHG emissions in line with 1.5°C Paris goal
Nordic leader with long track records of sustainable financing
Lippulaiva - showcase of Citycon's sustainability efforts
- Recognized for its innovative energy systems
- Positioned on top of Europe's largest geothermal heating and cooling plant in a commercial building
- Microgrid system controls and optimizes energy consumption throughout the building
Financial Times, Europe's Climate Leaders 2024
CITYCON IS PROUD TO
BE RECOGNISED AS ONE OF
EUROPE'S CLIMATE LEADERS 2024
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Citycon Oyj published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 05:41:02 UTC.
