Place de cotation: Helsinki
Stock Exchange - (Finland)
Citycon Oyj is a Finland-based
property investment company that specializes in retail premises. Its principal
activities include leasing, management and development of the property
portfolio, as well as planning and commissioning of the construction of
new premises. As of December 31, 2008, the property portfolio comprised
33 shopping centers and 50 other retail properties. The Company’s main
competence areas include development and redevelopment, as well as acquisition
management. Its operations are concentrated around urban growth centers
in Finland, Sweden and the Baltic countries, and they are organized into
three divisions. The Retail Properties division markets the Company’s properties
and manages their maintenance. The Property Development division primarily
develops and extends the Company’s existing retails sites. The Leasing
business division operates a portfolio of properties available to let.
Oyj's Interim Report for 1 January - 30 June 2010
Oyj Stock Exchange Release
14 July 2010 at 09.00 hrs
of the Second Quarter of 2010 Compared with the Previous Quarter
Turnover decreased to EUR 48.6 million (Q1/2010: EUR 49.5 million), due
mainly to several (re)development projects initiated in Finland causing
temporary reduction in turnover.
Net rental income increased by 4.0 per cent to EUR 31.8 million (EUR 30.6
million). This increase was due to lower property operating expenses reflecting
common seasonal variations.
Earnings per share increased to EUR 0.13 (EUR 0.06) due mainly to fair
Direct result per share (diluted) was EUR 0.05 (EUR 0.05).
The fair value change of investment properties was EUR 22.9 million (EUR
0.8 million), and the fair value of investment properties totalled EUR
2,229.5 million (EUR 2,193.5 million).
The average net yield requirement for investment properties remained at
the previous quarter's level and was 6.6 per cent (6.6%) at the end of
the period, according to an external appraiser.
Net financial expenses increased to EUR 14.4 million (EUR 13.1 million)
due mainly to higher interest expenses.
On the basis of Citycon's loan agreement covenants, its interest cover
ratio was 2.2x (2.3x) and equity ratio 37.1 per cent (39.2%).
Citycon conducted repurchases of its convertible bonds due 2013 for EUR
During the period, the company signed three loan agreements, each worth
EUR 50 million and maturing in five years.
The construction of the Martinlaakso shopping centre was initiated during
the period. The apartments built within the Liljeholmstorget shopping centre
were sold, as per a previous agreement, for a price of SEK 176 million
(approx. EUR 18.5 million).
Chaim Katzman was elected to the Board of Directors by the Extraordinary
General Meeting of 17 May 2010 and was appointed Board Chairman in June.
The company revises its guidance regarding direct result and direct operating
profit (from 3-6 per cent to 1-4 per cent). The change is due mainly to
slower stabilisation and development of certain projects.
Oyj's Interim Report for 1 January - 31 March 2010
of the First Quarter of 2010 Compared with the Previous Quarter
Turnover increased and came to EUR 49.5 million (Q4/2009: EUR 48.9 million)
due mainly to added rental income from the newly opened Liljeholmstorget
in Stockholm and redeveloped Rocca al Mare in Tallinn, while the turnover
growth was reduced by the start-up of new (re)development projects.
Net rental income decreased by 3.2 per cent to EUR 30.6 million (EUR 31.6
million) due mainly to higher property operating expenses than in the previous
quarter, reflecting common seasonal fluctuation and the exceptionally cold
and snowy winter.
Earnings per share were EUR 0.06 (EUR -0.11).
Direct result per share (diluted) was EUR 0.05 (EUR 0.06).
The fair value change of investment properties was EUR 0.8 million (EUR
-38.6 million). The fair value of investment properties was EUR 2,193.5
million (EUR 2,147.4 million).
According to the external appraiser, the average net yield requirement
for investment properties remained at the previous quarter's level at 6.6
per cent at the end of the reporting period (6.6%).
Net financial expenses increased to EUR 13.1 million (EUR 12.0 million)
due mainly to lower interest capitalization after completion of Rocca al
Mare and Liljeholmstorget (re)development projects.
On the basis of Citycon's loan agreement covenants, Citycon's interest
cover ratio was 2.3x (2.3x) and equity ratio 39.2 per cent (40.6%).
Three new (re)development projects were started during the reporting period:
the refurbishment of the Espoontori shopping centre in Espoo and the Forum
shopping centre in Jyväskylä and the construction of a new shopping
centre in Myllypuro in Helsinki replacing the old retail property.
The Liljeholmstorget shopping centre was awarded the platinum LEED®
(Leadership in Energy and Environmental Design) environmental certificate,
the first platinum certificate awarded to a European shopping centre.
of the First Quarter of 2010 Compared with the Corresponding Quarter of
Turnover increased by 7.9 per cent, to EUR 49.5 million (Q1/2009: EUR 45.9
million), due to growth in gross leasable area and to the development of
retail properties. Turnover growth was reduced by slightly higher vacancy
and the start-up of new (re)development projects.
Profit/loss before taxes was EUR 17.2 million (EUR -18.1 million), including
a EUR 0.8 million (EUR -31.6 million) change in the fair value of investment
Net rental income increased by 1.0 per cent and came to EUR 30.6 million
(EUR 30.3 million). If the impact of the strengthened Swedish krona is
excluded, net rental income decreased by 0.7 per cent.
Net rental income from like-for-like properties decreased by 5.8 per cent
due mainly to higher property operating expenses than in the corresponding
period caused by exceptionally severe winter conditions and slightly increased
vacancy. Additionally, prevailing low inflation or deflation resulted in
very low indexation-based rental increases.