In This Article:
-
Like-for-Like Footfall Increase: 2.4%
-
Tenant Sales Growth: 1.2%
-
Retail Occupancy: 94.8%
-
Like-for-Like Net Rental Income Increase: 3.5%
-
Direct Operating Profit: EUR 42.7 million, an increase of 8.2%
-
Debt Repayment: EUR 250 million during the quarter, additional EUR 200 million after quarter-end
-
New Bond Issuance: EUR 450 million with 6.25 years maturity
-
EPRA EPS Guidance: EUR 0.41 to EUR 0.50 per share
-
EPRA EPS Excluding Hybrid Interest Guidance: EUR 0.60 to EUR 0.69
-
Net Rental Income: EUR 50.1 million
-
EPRA Earnings: EUR 19.4 million
-
EPRA EPS: EUR 0.105, a decrease of 16.8%
-
EPRA NRV Per Share: Increased from EUR 7.87 to EUR 8.13
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Citycon Oyj (FRA:TY2B) reported a 2.4% increase in like-for-like footfall and a 1.2% growth in tenant sales, indicating positive operational performance.
-
The company achieved an 8.2% increase in direct operating profit, reaching EUR42.7 million, primarily due to reduced SG&A costs.
-
Citycon Oyj successfully managed its debt portfolio by repaying EUR250 million of debt during the quarter and an additional EUR200 million after the quarter end.
-
The company issued a new EUR450 million bond with a 6.25-year maturity, which was oversubscribed by more than six times, reflecting strong market confidence.
-
Citycon Oyj plans to repurchase its own shares, suggesting confidence in the company's valuation and a strategic move to enhance shareholder value.
Negative Points
-
Retail occupancy slightly decreased to 94.8%, which is a decline from the year-end numbers.
-
Net rental income was approximately EUR900,000 below the previous year's first quarter level, impacted by substantial disposals of centers.
-
EPRA earnings were EUR3 million below last year's level, partly due to the hybrid capital exchange conducted last year.
-
EPRA EPS decreased by 16.8% compared to the previous year, influenced by an increased share count.
-
The company anticipates an increase in financial costs due to refinancing exercises, leading to a tightened upper end of the 2025 guidance.
Q & A Highlights
Q: How committed is Citycon to maintaining its investment-grade rating, especially in light of the share buyback announcement which might bring the company closer to the S&P downgrade threshold? A: Eero Sihvonen, Chief Financial Officer, stated that Citycon is committed to maintaining its investment-grade rating. While they aim to improve their ratings over time, all transactions will be conducted with this commitment in mind.