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• Net Rental Income Growth: 13.7% increase in Q3; 11.2% year-to-date.

• Like-for-Like Net Rental Income Growth: 5.2% for the first three quarters.

• Restructuring Costs: EUR 7.2 million for the first three quarters.

• Net Financial Expense Increase: EUR 12.9 million year-to-date.

• Fair Value Gain: EUR 14.7 million in Q3; EUR 84 million year-to-date.

• Weighted Average Interest Rate: 3.3% at quarter end.

• Total Liquidity Available: EUR 508 million.

• Investment Grade Rating: Retained BBB- from Standard & Poor's.

• IFRS Loan-to-Value (LTV): 47.5% at quarter end.

• Net Debt to EBITDA: Declined from 11.2% to 10.4%.

• Retail Occupancy Rate: 95.1% compared to 94.9% last year.

• New Leases Signed: 109,000 square meters in 2024.

• Divestments: EUR 145 million year-to-date; EUR 400 million under LOI or advanced negotiations.

• Capital Expenses Reduction: From EUR 96 million to approximately EUR 40 million this year.

• EPRA EPS Guidance: Raised to EUR 0.61 - EUR 0.63.

• Adjusted EPRA EPS Guidance: Raised to EUR 0.47 - EUR 0.49.

• Warning! GuruFocus has detected 5 Warning Signs with FRA:TY2B.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Citycon Oyj (FRA:TY2B) reported a strong operational and financial performance with a net rental income growth of 13.7% in Q3 and 11.2% year-to-date.

• The company achieved a 4.1% increase in average rent per square meter, contributing to the overall positive financial results.

• Retail occupancy improved slightly to 95.1%, indicating strong leasing activity with 109,000 square meters of new leases signed this year.

• Citycon Oyj completed significant divestments totaling EUR145 million year-to-date, with a pipeline of EUR400 million under LOI or advanced negotiations, exceeding their divestment target.

• The company maintained its investment-grade credit rating, with improved core credit metrics, including a decline in net debt to EBITDA from 11.2% to 10.4%.

Negative Points

• Citycon Oyj incurred EUR7.2 million in restructuring costs during the first three quarters, impacting overall financial results.

• The company faced a EUR41.9 million loss on the sale of assets, partly due to deferred CapEx and goodwill write-downs.

• Higher interest rates on refinanced debt and the consolidation of Kista Galleria led to a EUR12.9 million increase in net financial expenses year-to-date.

• The weakening of Swedish and Norwegian currencies had a minor negative impact on financial results.

• Concerns were raised about the valuation of assets in Finland, particularly in comparison to the Campe shopping center's market yield expectations.