CEO Marcel Kokkeel:


The first three quarters of 2017 have shown good operational results driven by strong Sweden and solid Norway. The overall performance in Finland has turned to a more positive direction, although Finnish like-for-like performance is  still negative due to the stronger Finnish centres having recently been under (re)development. Citycon’s like-for-like net rental income growth including Kista Galleria (50%) totalled 1.1%.

During the first nine months, we divested assets for approximately EUR 140 million in total. Additionally, we signed an agreement to divest a sizeable portfolio of non-core properties in Finland for approximately EUR 167 million. This transaction is expected to be closed mid-November and the proceeds from this divestment will be used to fund the development pipeline as well as to strengthen our balance sheet.

In August, we signed a letter of intent with Klövern for (re)development and extension of the current shopping centre Globen in the upcoming Meatpacking District in Stockholm, just south of CBD. The plan is to double the size of the current 20,000 sq.m. shopping centre and substantially improve the shopping centre quality. The timeline for the completion is 2022-2023 and Citycon’s ownership of the joint venture company will be 55%. This partnership is in line with our strategy to strengthen Citycon’s position in Stockholm’s dynamic urban areas with high population growth.

In September, we successfully issued a NOK 1,000 million bond, with a maturity of eight years and a fixed annual interest rate of 2.75%. The net proceeds have been used for refinancing of existing indebtedness and general corporate purposes.

Source: Citycon's Interim Report, January-September 2017