Strong operational performance
- Total net rental income increased by 6.7% compared to the previous year.
- In comparable FX rates, total net rental income increased by 8.2%.
- Like-for-like net rental income increased by 6.5% compared to the previous year.
-
The weakening NOK and SEK FX-rates impacted on our results; the impact on total net rental income was
EUR -0.7 million . -
Average rent per sq.m. increased by 4.1% with comparable FX to
EUR 25.1 per sq.m (vs. Q1/2023). - Retail occupancy 94.9% vs 94.6% in Q1/2023 (including Kista).
- Like-for-like footfall unchanged (-0.1%).
- Like-for-like tenant sales increased 3.0%.
- Fair value change of investment properties in Q1/2024 EUR 46.2 million, including Kista.
The strengthening of the balance sheet as a priority
- In Q1,
Citycon continued to improve its balance sheet byEUR 48.2 million share issue which was 4-times oversubscribed. Citycon placed a 5-yearEUR 300 million green bond with an orderbook approximately seven times over-subscribed.Citycon executed approx.EUR 213 million tender of its bond maturing inOctober 2024 .-
Following the successful execution of these financing transactions,
Citycon's debt maturity profile was significantly improved and refinancing risk was further reduced.
Q1/2024 | Q1/2023 | % | FX Adjusted Q1/2023 | FX Adjusted % 2) | Q1-Q4/2023 | |||
Net rental income | MEUR | 51.0 | 47.8 | 6.7 % | 47.2 | 8.2 % | 195.7 | |
Like-for-like net rental income development | % | 6.5 % | 9.4 % | - | - | - | 6.5 % | |
Direct operating profit 3) | MEUR | 39.7 | 38.3 | 3.7 % | 37.7 | 5.4 % | 164.8 | |
IFRS Earnings per share (basic) 4) | EUR | 0.33 | 0.32 | 3.6 % | 0.31 | 4.9 % | -0.70 | |
Fair value of investment properties | MEUR | 4082.4 | 3996.7 | 2.1 % | - | - | 3858.2 | |
Loan to Value (LTV) 3) | % | 48.3 | 42.9 | 12.6 % | - | - | 46.3 | |
EPRA based key figures 3) | ||||||||
EPRA Earnings | MEUR | 24.5 | 25.3 | -3.0 % | 24.8 | -1.1 % | 109.6 | |
Adjusted EPRA Earnings 5) | MEUR | 22.1 | 17.9 | 23.9 % | 17.4 | 27.4 % | 80.6 | |
EPRA Earnings per share (basic) | EUR | 0.138 | 0.150 | -8.0 % | 0.147 | -6.1 % | 0.651 | |
Adjusted EPRA Earnings per share (basic) 5) | EUR | 0.125 | 0.106 | 17.6 % | 0.103 | 21.0 % | 0.479 | |
EPRA NRV per share 6) | EUR | 8.96 | 10.78 | -16.9 % | - | - | 9.30 | |
1) Standing portfolio key figures have not been presented for Q1/2024 because there have been no divestments impacting the figures during the reporting period or the comparison period.
2) Change from previous year (comparable exchange rates). Change-% is calculated from exact figures.
3)
4) The key figure includes hybrid bond coupons, amortized fees and gains and expenses on hybrid bond repayments.
5) Starting from the beginning of 2024,
6) The effect of currency rates to EPRA NRV/share was
CEO
First, I want to say that I am both excited and grateful for this opportunity to serve as the next CEO of
Operational performance in January-
Our EPRA earnings remained stable and was
In connection with the financial statements 2023 we outlined actions to be taken in 2024 regarding asset disposals and cost savings measures with the main goal of strengthening our balance sheet and cash flow. I would like to highlight our commitment to the investment-grade credit rating, which enables us to access the financing market with competitive terms. We demonstrated this commitment during the first quarter as we executed an approximately
We have set a divestment target of
During the first quarter of 2024 we have executed several cost-saving measures. Through organizational changes and consolidation of group functions to our Iso Omena head office we have been able to reduce our headcount costs substantially and are committed to delivering on our overhead run-rate target of less than 10% of NRI by the end of this year.
Years 2024 and 2025 will be years of execution and delivery. I am looking forward to building the company's future together with a strong team. Our business fundamentals are strong, and together with a focus on the balance sheet,
OUTLOOK (unchanged)
Direct operating profit | MEUR | 185-203 |
EPRA Earnings per share (basic) | EUR | 0.62-0.74 |
Adjusted EPRA Earnings per share (basic) | EUR | 0.46-0.58 |
The outlook assumes that there are no major changes in macroeconomic factors and no major disruptions from the war in
WEBCAST
Questions for the management can be presented by phone. To ask questions, join the teleconference by registering on the following link: https://palvelu.flik.fi/teleconference/?id=50048750
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 webcast will be recorded and it will be available afterwards on
For further information, please contact:
Sakari Järvelä
CFO
Tel. +358 50 387 8180
sakari.jarvela@citycon.com
www.citycon.com
https://news.cision.com/citycon-oyj/r/citycon-oyj-s-interim-report-q1-2024--strong-like-for-like-nri-growth,c3982348
https://mb.cision.com/Main/13399/3982348/2800458.pdf
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