Efficient portfolio financing

Citycon focuses on having a strong capital base with an appropriate gearing level, low cost of debt and flexible access to debt financing supported by investment-grade credit ratings. Sufficient and attractively priced financing gives us the capacity and flexibility to deliver on our strategy and to buy, sell or develop when opportunities arise. Long-term joint venture partnerships extend our capital base, spread the risk and leverage the expertise.

Long-term financing targets
Loan-To-Value (LTV): 40-45%
Debt portfolio's hedge ratio: 70-90%
Average loan maturity: >5 years

 Key financing figures  
30 Sep 2020

30 Sep 2019

31 Dec 2019
Fair value of debt MEUR 2 047.8 2,134.8 1,830.7
Available liquidity MEUR 588.6 555.3 562.1
Average loan maturity years 3.9 4.3 4.6
Loan to Value (LTV)  % 46.8 49.6 42.4
Equity ratio (financial covenant > 32.5)  % 46.9 44.3 50.9
Interest cover ratio (financial covenant > 1.8) x 4.2 4.1 4.2
Solvency ratio (financial covenant < 0.65 )  x 0.46 0.47 0.42
Secured solvency ratio (financial covenant < 0.25)  x 0.04 0.02 0.02
Average interest-rate fixing period years 3.8 4.3 4.6
Interest rate hedging ratio % 81.2 82.4 88.8

Updated

05.11.2020