Citycon Oyj : Audiocast Presentation Q4/2021

AUDIOCAST PRESENTATION

Q4/2021

1 Q4 2021 I Audiocast

BUSINESS SUMMARY

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LIKE-FOR-LIKE NRI GROWTH AND NET FAIR VALUE INCREASES

FINANCIAL PERFORMANCE Q4/2021

• Encouraging operating trends, at or approaching 2019 levels
• • LFL NRI growth of 2.9%
  • Retail occupancy 94.2%; +50 bps improvement over Q3/2021 (93.7%)
  • LFL footfall increased 8.2%; +10.5 ppts improvement over Q3/2021 (-2.3%) and higher than Q4/2020
  • LFL tenant sales increased 7.6%; +480 bps improvement over Q3/2021 (2.8%), higher than Q4/2020 and Q4/2019
  • Rent collection held at 96%; prior quarter increased to 97%
  • Net fair value increased 42.7 MEUR, largest quarterly gain in 2021

FINANCIAL PERFORMANCE FY 2021

• Solid operating results in comparison to 2020 which was partially pre-pandemic (Q1/2020)
• Full-yearDirect Operating Profit and EPRA EPS in-line with consensus and company guidance
• • LFL footfall improved 14.0 ppts to -1.6% over FY 2020 (-15.6%)
  • LFL tenant sales grew 3.8% and improved +760 bps over FY 2020 (-3.8%)
  • LFL NRI slightly lower at -1.5% vs. 2020, a pre-pandemic comp year
• Fair value gains increased 1.2% to 48.6 MEUR in 2021 with 10 bps reduction in cap rates
• • Without Lippulaiva and Kista, net fair value increased by 2.3% (88 MEUR)
  • Operating properties increased value for four straight quarters
• IFRS LTV (40.7%) and Credit Ratings LTV (48.6%) improved by 620 bps and 230 bps, respectively
• • Inclusive of strategic Columbus asset sale and approx. 69 MEUR share repurchase

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ACTIVE CAPITAL RECYCLING CONTINUED IN 2021

CAPITAL RECYCLING

• Opportunistically sold 4 non-core assets for 253 MEUR at a premium to book values.
• • In Q4/2021 opportunistically sold Columbus for 106.2 MEUR, +10 MEUR above Q4/2020 valuation.
  • Portion of Columbus proceeds used to repurchase ~69 MEUR of shares at ~40% discount to NRV.

FINANCING

• 700 MEUR of financings in 2021.
• • In March 2021, issued 350 MEUR green bond; partial use of proceeds to repay 2022 bonds.
  • In May 2021, issued 350 MEUR green capital securities, further strengthening balance sheet.
• In October 2021, repaid remaining amount of 2022 bonds and 70 MEUR of commercial paper.
• • Citycon has no significant near-term debt maturities until 2024.
  • Investment grade rating with 'stable' outlook from all three major credit rating agencies.

DEVELOPMENT ACTIVITIES

• Great progress on Lippulaiva, which opens in April 2022.
• • 8 residential towers to be completed between 2022-2024 (Citycon will own 6).
  • Anticipated partial 2022 NRI contribution between 7-9 MEUR.
  • Stabilized NRI for full Lippulaiva project estimated at 21 MEUR.
• Continue to execute on 600,000 sqm development opportunities in multiple locations.
• • Liljeholmen, Oasen, and Trekanten

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POST Q4/2021 ACTIVITIES AND OUTLOOK

DIVESTING TWO NON-CORE CENTRES IN NORWAY

• Opportunistic sale ~145.4 MEUR to close Q1/2022 with combined yield of 5.2% and in-line with IFRS book value.
• • Premium to book value when factoring in required near-term capex.
  • Further bolsters portfolio valuations and demonstrates strength of private market.

ACQUIRING RESIDENTIAL PROPERTY IN SWEDEN

• Signed forward commitment to acquire newly developed residential asset in Stockholm, Sweden for ~69.5 MEUR.
• • 200 well-appointed rental and freehold apartments in growing Barkarbystaden.
  • Close proximity to existing necessity-based assets in Kista and Jakobsberg.
• Completed in two construction phases in Q1/2024 and Q2/2024 with closing after completion of each phase
• • Initial deposit of 6.6 MEUR with no additional cash required prior to first closing in 2024.

CONTINUED SHARE REPURCHASE

• Early in Q1/2022, continued open-market repurchase of ~200K of its own shares for ~3.5 MEUR.
• • Completed 10M share repurchase at ~40% discount to NRV.

5 Q4 2021 I Audiocast