CITYCON OYJ Half-Year Financial Report 12 August 2026 at 18:45 hrs
Strong operational performance in H1/2026
- Like-for-like net rental income increased by 5.6%1 in Q1-Q2/2026.
- Retail average rent per sq.m. increased by +1.8% with comparable FX to EUR 28.5 per sq.m (vs. Q2/2025).
- Retail occupancy rate (sq.m.) 94.4% (vs. 95.3% in Q2/2025).
- Like-for-like footfall increased 3.1%.
- Like-for-like tenant sales increased 2.6%.
- Fair value net gain of investment properties in Q1-Q2/2026 was EUR 2.7 million.
Balance sheet management
- Citycon signed a new EUR 520 million facility in January of which EUR 270 million was drawn in February and EUR 250 million remains available under an accordion option.
- In January Citycon paid a EUR 0.20 per share equity repayment, in total approximately EUR 36.7 million.
- In March Citycon completed a EUR 5 million open market repurchase of its 2029 Notes.
- In March Citycon paid a EUR 0.90 per share equity repayment, in total approximately EUR 165.2 million. The funds were paid to the shareholders on 1 April 2026.
- In April Citycon completed an early redemption of its 2026 Notes. The entire remaining outstanding amount of around EUR 123.5 million was redeemed.
- In April Citycon also continued strengthening liquidity by signing an additional EUR 214 million secured loan 2.
- In May Citycon completed an early redemption of its 2027 Notes. The entire remaining outstanding amount of around EUR 128.6 million was redeemed.
- In May Citycon signed a EUR 200 million maximum mutual on-call related-party loan facility agreement with G City Ltd.
Events post H1/2026
- The voluntary public cash tender offer announced by G City Ltd for all remaining shares in Citycon commenced on 6 July 2026 and ended on 3 August 2026. The Tender Offer Shares, together with the current holdings of G City and G City’s fully owned subsidiary Gazit Europe Netherlands, represent in aggregate a holding of 164,631,860 Shares, corresponding to approximately 89.68 percent of all the Shares and voting rights in Citycon. On 5 August 2026 G City also announced that it commences a subsequent offer period which starts on 6 August 2026 and ends on 27 August 2026.
1 Includes a one-time adjustment to Q1/2025 NRI.
2 Calculated with Q2/2026 end exchange rates. The loan is drawn in SEK and NOK.
KEY FIGURES
| Citycon Group6 | Q2/2026 | Q2/2025 | % | FX Adjusted Q2/2025 | FX Adjusted % 1) | ||
| Net rental income | MEUR | 57.5 | 53.3 | 7.8% | 54.3 | 5.9% | |
| Like-for-like net rental income development8 | % | 6.5% | 6.8% | - | - | - | |
| Direct operating profit2 | MEUR | 50.8 | 47.7 | 6.5% | 48.6 | 4.6% | |
| IFRS Earnings per share (basic)3 | EUR | 0.05 | 0.21 | -78.1% | 0.22 | -78.8% | |
| Fair value of investment properties7 | MEUR | 3,026.0 | 3,766.0 | -19.7% | - | - | |
| Loan to Value (LTV)2 | % | 51.4 | 46.4 | 10.7% | - | - | |
| EPRA based key figures2 | |||||||
| EPRA Earnings4 | MEUR | 17.6 | 17.5 | 0.7% | 18.3 | -4.1% | |
| EPRA Earnings excl. hybrid bond interests5 | MEUR | 25.7 | 26.3 | -2.2% | 27.2 | -5.4% | |
| EPRA Earnings per share (basic)4 | EUR | 0.10 | 0.09 | 1.0% | 0.10 | -3.8% | |
| EPRA Earnings per share excl. hybrid bond interests (basic)5 | EUR | 0.14 | 0.14 | -1.9% | 0.15 | -5.0% | |
| EPRA NRV per share | EUR | 7.64 | 8.29 | -7.9% | - | - | |
| Citycon Group6 | Q1-Q2/2026 | Q1-Q2/2025 | % | FX Adjusted Q1-Q2/2025 | FX Adjusted % 1) | Q1-Q4/2025 | |
| Net rental income | MEUR | 109.3 | 103.4 | 5.7% | 105.3 | 3.9% | 209.2 |
| Like-for-like net rental income development8 | % | 5.6% | 5.2% | - | - | - | 5.4% |
| Direct operating profit2 | MEUR | 96.6 | 90.4 | 6.8% | 92.1 | 4.9% | 183.3 |
| IFRS Earnings per share (basic)3 | EUR | 0.12 | 0.18 | -32.4% | 0.19 | -35.8% | 0.29 |
| Fair value of investment properties7 | MEUR | 3,026.0 | 3,766.0 | -19.7% | - | - | 3,265.9 |
| Loan to Value (LTV)2 | % | 51.4 | 46.4 | 10.7% | - | - | 44.9 |
| EPRA based key figures2 | |||||||
| EPRA Earnings4 | MEUR | 36.6 | 36.9 | -0.8% | 38.4 | -4.6% | 79.0 |
| EPRA Earnings excl. hybrid bond interests5 | MEUR | 52.8 | 54.3 | -2.9% | 55.8 | -5.5% | 113.3 |
| EPRA Earnings per share (basic)4 | EUR | 0.20 | 0.20 | -0.4% | 0.21 | -4.3% | 0.43 |
| EPRA Earnings per share excl. hybrid bond interests (basic)5 | EUR | 0.29 | 0.29 | -2.5% | 0.30 | -5.2% | 0.62 |
| EPRA NRV per share | EUR | 7.64 | 8.29 | -7.9% | - | - | 8.45 |
| 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. |
| 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 numbers include the impact of divestments executed during 2025. |
| 7 Excludes properties classified as held sale. |
| 8 Net rental income growth of like-for-like assets calculated with comparable FX. Like-for-like net rental income development Q1-Q2/2026 includes a one-time adjustment to Q1/2025 NRI. |
CEO ESHEL PESTI:
The first half of 2026 represented an outstanding period for Citycon. Our portfolio continued to perform well, supported by very good leasing activity, healthy customer demand and proactive financial management.
In H1/2026 like-for-like net rental income increased by 5.6% year-on-year1, beating the average European LFL NRI growth second year in a row. This strong growth was driven by extraordinary growth in the general mall leasing, strong leasing spreads (7.6%) and indexation of rents. Customer activity across our centres remained positive throughout the period. Like-for-like footfall grew by 3.1%, while like-for-like tenant sales increased by 2.6%, reflecting the continued relevance of our urban, grocery-anchored centres as destinations for everyday needs.
Retail occupancy rate stood at 94.4% at the end of the period. Demand from tenants continues to be healthy across our portfolio. Our leasing strategy remains focused on strengthening the tenant mix, maintaining the attractiveness of our centres and creating conditions for sustainable rental growth.
Alongside our operational achievements, we continued to actively manage our debt financing. During the second quarter, we extended our debt maturity profile by signing and drawing a new five-year secured loan of EUR 214 million2. At the same time, we repaid bonds totaling EUR 252 million that were due in 2026 and 2027. These transactions further enhance our financial flexibility, extend debt maturities and support the long-term stability of our capital structure. Our next debt maturity is now in March 2028.
We are in advanced negotiations regarding divestment of three assets in Finland. While we are in discussion with potential buyers for a few assets in Sweden and Norway.
Our business continues to demonstrate resilience. The strong performance delivered in the first half of the year highlights the strength of our strategy, which is focused on serving the daily needs of customers in our high-quality urban assets in some of the most attractive catchment areas across the Nordics.
I would like to thank our employees for another period of hard work and commitment. We enter the second half of 2026 with confidence, supported by strong operational momentum and focus on creating value for all our stakeholders.
1 Includes a one-time adjustment to Q1/2025 NRI.
2 Calculated with Q2/2026 end exchange rates. The loan is drawn in SEK and NOK.
OUTLOOK (unchanged)
Like-for-like net rental income will grow compared to the previous year.
The outlook assumes that there are no major changes in macroeconomic factors. These estimates are based on comparable EUR–SEK and EUR–NOK exchange rates
AUDIOCAST
Citycon's live results presentation will be held on Thursday, 13 August 2026 at 10:00 a.m. EEST. The link to the results presentation Zoom call is available on our website: https://www.citycon.com/investors/financial-reports/financial-reports-2026.
Questions for the management can be submitted during the call using Zoom’s Q&A function. Please note that when joining on a mobile device, the Zoom application is required to access the Q&A function.
The results presentation will be recorded and it will be available afterwards on Citycon’s website.
CITYCON OYJ
For further information, please contact:
Hilik Attias
Chief Financial Officer
Tel. +358 40 688 8580
hilik.attias@citycon.com
Anni Torkko
Director, Group Corporate Analysis & IR
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