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 Q3/ Q3/ % FX FX
7) Adjusted Adjusted
2025 2024 Q3/2024 % 1)
Net rental MEUR 52.2 54.7 -4.4 55.0 -5.0 %
income %
Like-for-like % 6.8 % 3.9 % - - -
net rental
income
development
Direct MEUR 45.8 49.1 -6.8 49.4 -7.3 %
operating %
profit 2)
IFRS Earnings EUR 0.06 -0.07 - -0.07 -
per share
(basic)
3)
Fair value of MEUR 3,746.3 3,699.6 1.3 % - -
investment
properties
Loan to Value % 46.9 47.5 -1.3 - -
(LTV) 2) %
EPRA based key Q3/ Q3/ % FX FX
figures 2) Adjusted Adjusted
2025 2024 Q3/2024 % 1)
EPRA Earnings MEUR 23.1 24.0 -3.9% 24.3 -4.9 %
4)
EPRA Earnings MEUR 31.7 32.7 -3.2% 33.0 -4.0 %
excl. hybrid
bond
interests 5)
EPRA Earnings EUR 0.13 0.13 -3.6% 0.13 -4.7 %
per share
(basic)
4)
EPRA Earnings EUR 0.17 0.18 -2.9% 0.18 -3.7 %
per share excl.
hybrid bond
interests
(basic)
5)
EPRA NRV per EUR 8.33 8.92 -6.6% - -
share 6)
Citycon Group Q1-Q3/ Q1-Q3/ % FX FX Q1-Q4/
7) Adjusted Adjusted
2025 2024 Q1-Q3/ % 1) 2024
2024
Net rental MEUR 155.7 160.4 -2.9 160.8 -3.2 % 214.7
income %
Like-for-like % 5.7 % 5.2 % - - - 4.6 %
net rental
income
development
Direct MEUR 136.2 137.7 -1.1 138.1 -1.4 % 183.6
operating %
profit 2)
IFRS Earnings EUR 0.24 0.37 -35.5 0.37 -36.4 % -0.40
per share %
(basic)
3)
Fair value of MEUR 3,746.3 3,699.6 1.3 % - - 3,627.8
investment
properties
Loan to Value % 46.9 47.5 -1.3 - - 47.3
(LTV) 2) %
EPRA based key Q1-Q3/ Q1-Q3/ % FX FX Q1-Q4/
figures 2) Adjusted Adjusted
2025 2024 Q1-Q3/ % 1) 2024
2024
EPRA Earnings MEUR 59.9 71.7 -16.4% 72.0 -16.8 % 91.9
4)
EPRA Earnings MEUR 86.0 93.7 -8.2% 94.0 -8.5 % 122.6
excl. hybrid
bond
interests 5)
EPRA Earnings EUR 0.33 0.39 -17.4% 0.40 -17.8 % 0.50
per share
(basic)
4)
EPRA Earnings EUR 0.47 0.52 -9.3% 0.52 -9.6 % 0.67
per share excl.
hybrid bond
interests
(basic)
5)
EPRA NRV per EUR 8.33 8.92 -6.6% - - 7.87
share 6)
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 EUR 0.60-0.65 0.60-0.69
excluding hybrid bond interests
(basic)
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