Citycon Oyj's Interim Report for 1 January - 30 June 2009

Stock exchange releases - 17 July 2009


Solid operational performance and lower financing costs

Summary of the Second Quarter of 2009 Compared with the Previous
Quarter

- Turnover came to EUR 45.6 million and was at the same level as in
the previous quarter (Q1/2009: EUR 45.9 million).
- Net rental income increased by 2.3 per cent to EUR 31.0 million
(EUR 30.3 million) mainly due to lower property operating expenses
than in the previous quarter reflecting the common seasonal
variations.
- Net cash from operating activities per share was EUR 0.09 (EUR
0.10).
- Earnings per share were EUR -0.03 (EUR -0.08).
- Direct result per share (diluted) increased and was EUR 0.06 (EUR
0.05).
- The fair value change of investment properties was EUR -26.0
million (EUR -31.6 million). The fair market value of the investment
properties was EUR 2,104.5 million (EUR 2,097.3 million).
- The average net yield requirement for investment properties rose
and was 6.6 per cent (6.5%) at the end of the period, according to an
external appraiser. The increase in the net yield requirement was due
to general market conditions.
- Financial expenses totalled EUR 11.8 million (EUR 12.2 million),
decreasing due to lower interest rates. The previous quarter included
a one-off EUR 0.6 million gain from the buybacks of the company's
convertible bonds. The company booked a fair value gain of EUR 0.3
million related to derivative contracts in Q2 (Q1/2009: fair value
loss of EUR 0.3 million).
- Citycon's interest cover ratio covenant was 2.1x (2.0x) and equity
ratio covenant as defined in the loan agreements was 42.9 per cent
(43.2%).
- The second stage of the redevelopment project of the Rocca al Mare
shopping centre in Tallinn, Fashion Gallery, was opened in May, fully
leased.
- The apartments under construction in Liljeholmen in Stockholm,
Sweden, were agreed to be sold for SEK 176 million (approx.
EUR 16.3 million).

Summary of January-June 2009 Compared with the Corresponding Period
of 2008

- Turnover increased by 3.3 per cent to EUR 91.5 million (Q1-2/2008:
EUR 88.5 million), due to growth in gross leasable area, particularly
at Rocca al Mare, and development of retail properties. Turnover
growth was reduced by slightly higher vacancy.
- Profit/loss before taxes was EUR -28.7 million (EUR -62.1 million),
including a EUR -57.6 million (EUR -85.1 million) change in the fair
value of investment properties.
- Net rental income increased by 2.0 per cent to EUR 61.3 million
(EUR 60.1 million). If the impact of the weakened Swedish krona is
excluded, net rental income increased by 4.9 per cent.
- Net rental income from like-for-like properties rose by
2.1 per cent.
- The company's direct result rose to EUR 24.2 million
(EUR 20.6 million).
- Direct result per share (diluted) was EUR 0.11 (EUR 0.09).
- Earnings per share were EUR -0.11 (EUR -0.21). The fair value
changes of the investment properties have a significant impact on
earnings per share.
- The occupancy rate was 94.8 per cent (95.7%). The decrease in
occupancy rate resulted from the slightly increased vacancy across
the portfolio in all of Citycon's operating countries.
- Net cash from operating activities per share was EUR 0.19 (EUR
0.12). The increase was due mainly to non-recurring realized foreign
exchange rate gains, positive change of working capital as well as
lower financing costs.
- The equity ratio was 36.2 per cent (42.1%). This decrease resulted
mainly from the fair value changes of the investment properties and
higher debt due to investments.
- The company's financial position remained good during the period.
Total liquidity at the end of the reporting period was
EUR 242.5 million, including unutilised committed debt facilities
amounting to EUR 225.8 million and EUR 16.7 million in cash. The
available liquidity will cover the authorised investments and
scheduled debt interest and repayments until at least the end of
2010, without the need for additional financing.

Key figures

Q2/ Q2/ Q1/ Q1-Q2/ Q1-Q2/ Change-
2009 2008 2009 2009 2008 % 1) 2008
Turnover, EUR
million 45.6 44.2 45.9 91.5 88.5 3.3% 178.3
Net rental
income, EUR
million 31.0 30.5 30.3 61.3 60.1 2.0% 121.8
Operating
profit/loss, EUR
million 1.1 -59.5 -5.8 -4.7 -33.0 -85.8% -105.0
% of turnover 2.4% - - - - - -
Loss/profit
before taxes,
EUR million -10.7 -73.4 -18.1 -28.7 -62.1 -53.7% -162.3
Loss/profit
attributable to
parent
company
shareholders,
EUR million -7.0 -56.6 -16.8 -23.8 -47.5 -49.9% -124.1

Direct operating
profit, EUR
million 27.1 26.2 25.7 52.8 52.1 1.3% 105.3
% of turnover 59.4% 59.2% 56.1% 57.7% 58.9% - 59.1%
Direct result,
EUR million 12.6 10.2 11.6 24.2 20.6 17.0% 43.8
Indirect result,
EUR million -19.5 -66.8 -28.4 -48.0 -68.1 -29.6% -167.9

Earnings per
share (basic),
EUR -0.03 -0.26 -0.08 -0.11 -0.21 -49.9% -0.56
Earnings per
share (diluted),
EUR -0.03 -0.26 -0.08 -0.11 -0.21 -49.9% -0.56
Direct result
per share
(diluted),
(diluted EPRA
EPS), EUR 0.06 0.05 0.05 0.11 0.09 15.5% 0.20
Net cash from
operating
activities
per share, EUR 0.09 0.06 0.10 0.19 0.12 60.0% 0.21

Fair value of investment
properties, EUR million 2) 2,097.3 2,104.5 2,233.1 -5.8% 2,111.6

Equity per share, EUR 3.37 3.35 4.13 -18.9% 3.62
Net asset value (EPRA NAV)
per share, EUR 3.62 3.58 4.46 -19.7% 3.88
EPRA NNNAV per share,
EUR 3.55 3.46 4.20 -17.6% 3.80
Equity ratio, % 36.4 36.2 42.1 - 38.5
Gearing, % 151.2 157.4 123.3 - 141.3
Net interest-bearing
debt (fair value),
EUR million 1,191.3 1,234.8 1,205.3 2.4% 1,194.6
Net rental yield, % 5.9 6.0 5.4 - 5.8
Net rental yield,
like-for-like
properties, % 6.5 6.7 5.9 - 6.3
Occupancy rate, % 95.3 94.8 95.7 - 96.0
Personnel (at the end
of the period) 113 114 110 3.6% 113

1) Change-% is calculated from exact figures and refers to the change
between 2009 and 2008.
2) Due to the adoption of amended IAS 40 Investment property
-standard, the fair value of investment properties also includes
development properties.

CEO Petri Olkinuora's Comments on January-June 2009:

"Citycon continued its solid financial performance. The direct result
increased to EUR 24.2 million and the net cash flow from operating
activities was strong. Net rental income from like-for-like
properties grew 2.1 per cent during the period despite the
challenging market conditions. Occupancy rate decreased due to
decline of demand. Aggregate sales in all shopping centres were at
the previous year's level.

The company's key (re)development projects progressed according to
the plans and the second phase of the Rocca al Mare redevelopment
project was opened successfully in early May. The centre has been
well received by the shoppers and enjoys a good footfall. In June,
Citycon agreed to sell the apartments under construction in
Liljeholmen and shopping centre Trio in Lahti was granted the first
LEED-certificate in the Nordic countries.

Financial position remained good and the decrease in financial
expenses continued as a result of lower interest rates."

Business Environment

The economic environment remained difficult during the second quarter
due to the global downturn. Retail sales decreased in Finland and in
the Baltic countries, but increased in Sweden in May. Grocery sales
grew in Finland and Sweden. In May, inflation declined to zero in
Finland and Sweden and also in Estonia. In the Baltic countries, the
economic situation continues to be challenging. (Sources: Statistics
Finland, Statistics Sweden, Statistics Estonia)

In Finland and Sweden, consumer confidence index turned positive and,
in Estonia and Lithuania, grew more positive in comparison to the
gloomy figures for the early part of the year (Eurostat). However,
the rise in unemployment in all of Citycon's operating countries
affects consumers' purchasing power.

Volatility in the global financial markets has reduced the
availability of financing and clearly raised the margins on new
loans.

The volume of transactions in the property market has slightly
increased but remained on a low level. Construction costs have
clearly decreased, which supports Citycon's property development
operations.

Business and Property Portfolio Summary

Citycon is an active owner, operator and long-term developer of
shopping centres, laying the foundation for a successful retail
business. The company aims to increase its net yield from shopping
centres over the long term through active retail property management
and redevelopment efforts. Citycon's retail properties serve both
consumers and retailers.

Citycon is the market leader in the Finnish shopping centre business
and holds a strong position in Sweden and a firm foothold in the
Baltic countries. It assumes responsibility for the business
operations and administration of its investment properties.

Citycon is involved in the day-to-day operations of its shopping
centres and, in co-operation with its tenants, aims to increase the
attractiveness, footfall, sales and profits of its shopping centres
on a continuous basis. Citycon is a pioneer in the Nordic shopping
centre market, as it aims to factor environmental considerations into
its shopping centre management as well as its redevelopment and
development projects. The company has three sustainable development
pilot projects, and the redevelopment of the Trio shopping centre was
the first to be completed at the end of 2008.

Citycon operates in Finland, Sweden and the Baltic countries. Thanks
to careful market research and good local knowledge, Citycon has been
able to acquire shopping centres in major growth centres in the
countries in which it operates. Citycon's investments are focused on
areas with expected population and purchasing power growth.

At the end of the period under review, Citycon owned 33 (33) shopping
centres and 51 (52) other properties. Of the shopping centres, 22
(22) were located in Finland, eight (8) in Sweden and three (3) in
the Baltic countries.

At the end of June, the market value of the company's property
portfolio totalled EUR 2,104.5 million (EUR 2,233.1 million) with
Finnish properties accounting for 69.0 per cent (69.8%), Swedish
properties for 23.6 per cent (24.2%) and Baltic properties for
7.4 per cent (5.9%). The gross leasable area at the end of June
totalled 949,150 square metres.

Changes in the Fair Value of Investment Properties

Citycon measures its investment properties at fair value, under the
IAS 40 standard, according to which changes in the fair value of
investment properties are recognised through profit or loss.
Furthermore, due to the amendment to IAS 40 standard effective from 1
January 2009, Citycon also measures its development properties at
fair value instead of at cost and no longer presents development
properties separately from investment properties on the statement of
financial position. In accordance with the International Accounting
Standards (IAS) and the International Valuation Standards (IVS), an
external professional appraiser conducts a valuation of Citycon's
property portfolio on a property-by-property basis at least once a
year. However, in 2009, Citycon will have its properties valued by an
external appraiser on a quarterly basis, due to market volatility.

Citycon's property portfolio is valued by Realia Management Oy, part
of the Realia Group. Realia Management Oy is the preferred appraisal
service supplier of CB Richard Ellis in Finland. A summary of Realia
Management Oy's Property Valuation Statement at the end of June 2009
can be found at www.citycon.com/valuation. The valuation statement
includes a description of the valuation process and the factors
contributing to the valuation, as well as the results of the
valuation, and a sensitivity analysis.

During the period under review, the fair value of Citycon's property
portfolio decreased. This decrease was due to changes in the general
conditions in the property and financial market and to higher yield
requirements resulting from the general economic downturn. The period
saw a total value increase of EUR 8.6 million and a total value
decrease of EUR 66.2 million. The net effect of these changes on the
company's profit was EUR -57.6 million (EUR -85.1 million).

On 30 June 2009, the average net yield requirement defined by Realia
Management Oy for Citycon's property portfolio came to 6.6 per cent
(31 March 2009: 6.5%, and 30 June 2008: 6.0%).

Lease Portfolio and Occupancy Rate

At the end of the period under review, Citycon had a total of 4,080
(3,662) leases. The average remaining length of the lease agreements
was 3.0 (2.8) years. Citycon's property portfolio's net rental yield
was 6.0 per cent (5.4%) and the economic occupancy rate was 94.8 per
cent (95.7%). The decrease in occupancy rate was a result of a slight
increase in vacancy across the portfolio in all of Citycon's
operating countries due to toughened market conditions. Compared to
the previous quarter, the occupancy rate decreased by 0.5 percentage
point due mainly to one recently vacated space in Finland.

Citycon's net rental income grew by 2.0 per cent to EUR 61.3 million
during the period under review. The leasable area rose by
2.4 per cent to 949,150 square metres. Net rental income from
like-for-like properties grew by 2.1 per cent when excluding the
impact of the weakened Swedish krona.

Like-for-like properties are properties held by Citycon throughout
the 24-month reference period, excluding properties under
refurbishment and redevelopment as well as undeveloped lots. 73.6 per
cent of like-for-like properties are located in Finland. The
calculation method for net yield and standing (like-for-like)
investments is based on guidelines issued by the KTI Institute for
Real Estate Economics and the Investment Property Databank (IPD).

During the last 12 months, the rolling twelve-month occupancy cost
ratio for like-for-like properties was 8.6 per. The occupancy cost
ratio is calculated as the share of net rent and potential service
charges paid by a tenant to Citycon, of the tenant's sales, excluding
VAT. The VAT percentage is an estimate.

Lease Portfolio Summary

Q2/ Q2/ Q1/ Q1-Q2/ Q1-Q2/ Change-
2009 2008 2009 2009 2008 % 2008
Number of leases
started during
the period 219 112 128 347 236 47.0 572
Total area of
leases started,
sq.m. 32,511 18,170 16,066 48,577 42,410 14.5 124,960
Occupancy rate at end of the
period, % 95.3 94.8 95.7 -0.9 96.0
Average remaining length of
lease portfolio
at the end of the period, year 3.1 3.0 2.8 7.1 3,1 1)

1) Interpretation of the remaining length of a lease agreement has
been revised.

Acquisitions and Divestments

Citycon continues to focus on the development and redevelopment of
the company's shopping centres, and follows developments in the
shopping centre market across its operating regions. No new shopping
centres were acquired during the period.

In June, Citycon agreed to sell the apartments under construction in
connection with the Liljeholmstorget shopping centre located in
Stockholm, to Heba Fastighets AB for approximately SEK 176 million
(approximately EUR 16.3 million). The apartments to be built have
been incorporated into a separate real estate company, and detached
from the shopping centre. The total number of apartments is 72 and
the leasable area totals some 6,100 square metres. Citycon will bring
the residential development to an end and the deal is expected to be
finalised in April 2010, after the completion of the apartments. The
gain on sale is estimated to be around SEK 30 million (around EUR 2.8
million) depending on the final construction expenditure. Gain on
sale will be recognized under fair value changes in the statement of
comprehensive income along with the progress of the apartments'
construction.

At the end of January, Citycon divested all the shares in its
subsidiary MREC Kiinteistö Oy Keijutie 15. The debt-free selling
price of this non-core property in Lahti amounted to approximately
EUR 3 million and the company booked a gain on sale of EUR 0.1
million. The company's strategy is to continue the sale of non-core
properties.

Development Projects

Citycon currently has two major development projects in progress,
Rocca al Mare in Tallinn and Liljeholmstorget in Stockholm. The
purpose of the company's development activities is to keep its
shopping centres competitive for both customers and tenants. Citycon
is pursuing a long-term increase in the footfall and cash flow, as
well as in the efficiency and return of its retail properties.

In the short term, redevelopment projects may weaken returns from
some properties, as some retail premises may have to be temporarily
vacated for refurbishment, which affects rental income. Citycon aims
to carry out any redevelopment projects phase by phase so that the
whole shopping centre does not have to be closed during the works in
progress, thus ensuring continuous cash flow.

Sustainable Construction and Management

In its development projects, Citycon is paying attention to
environmental management methods and solutions. The company has three
pilot projects, aimed at identifying the best practices to be
implemented in the sustainable construction and management of
shopping centres. These pilot projects include building a new
shopping centre at Liljeholmen in Stockholm, Sweden, the
redevelopment and extension of the Rocca al Mare shopping centre in
Tallinn, Estonia, and the already completed redevelopment of the Trio
shopping centre in Lahti, Finland.

The assessment applied in the pilot projects comprises a total of
over 60 points, reviewing various factors such as the energy
efficiency of the property, indoor air quality, the choice of
materials, the utilisation of public transport and minimising the
environmental impacts of construction work. On the basis of this
assessment, practical development measures will be introduced in
order to establish systematic, sustainable construction practices.

The Trio shopping centre was the first shopping centre in Finland and
in the Nordic countries to be granted the international LEED®
(Leadership in Energy and Environmental Design) environmental
certification, in June. The objective is to obtain this certification
for other pilot projects as well. Citycon remains confident that, in
the long term, a responsible approach to its business operations will
enhance its reputation as a responsible player in the shopping centre
markets and its attractiveness as an international investment.

(Re)development Projects in Progress

The table below lists the most significant development and
redevelopment projects in progress, as approved by the Board of
Directors. More information on planned projects can be found on the
corporate website at www.citycon.com and the Annual Report 2008.

Capital expenditure during the course of 2009 on all development
projects amounted to EUR 6.3 million in Finland, EUR 33.4 million in
Sweden and EUR 11.0 million in the Baltic countries.

(Re)development Projects in Progress, 30 June 2009

Estimated Actual gross Estimated
total expenditure final
cost (EUR by 30 June 2009 year of
Location million) (EUR million) completion
Stockholm,
Liljeholmstorget Sweden 130 100.6 2009
Tallinn,
Rocca al Mare Estonia 61.3 47.3 2009
Seinäjoki,
Torikeskus Finland 4 2.6 2009

The company's largest development project, which is also its main
sustainable construction project, involves the construction of a new
shopping centre in Liljeholmen, Stockholm. This project has advanced
within the planned budget and schedule. Among others, the shopping
centre's anchor tenants include the ICA-Kvantum grocery retailer,
Hennes & Mauritz, MQ-fashion chain and Systembolaget. The new
shopping centre is expected to open in October 2009, and the leasing
of its premises is proceeding as planned.

For the Rocca al Mare shopping centre in Tallinn, the new premises
completed during the first stage of the redevelopment project were
opened as early as October 2008. The second stage of the
redevelopment project was completed during the period under review,
resulting in the opening of the Fashion Gallery in May. This fashion
world encompasses more than 60 fashion stores, including two major
European fashion brands, New Yorker and Marks & Spencer. The New
Yorker store is the chain's largest in Estonia, while Marks & Spencer
opened its first store in the country. All premises included in the
project's second stage were leased by the opening day. The completely
redeveloped shopping centre Rocca al Mare is scheduled to open in the
autumn of 2009.

Citycon's Board of Directors has also approved a refurbishment
project involving the Torikeskus in Seinäjoki. No other projects had
been approved by the company's Board of Directors during the
reporting period, and new development projects will be started only
once financing and lease agreements have been adequately secured.

Business Units

Citycon's business operations are divided into three business units:
Finland, Sweden and the Baltic Countries. These are sub-divided into
two business areas: Retail Properties and Property Development. The
Finnish business unit also includes a Commercial Development
function, responsible for the commercial development of Citycon's
Finnish shopping centres and the development of new commercial
concepts.

Finland

Citycon is the market leader in the Finnish shopping centre business.
Citycon's market share was 24 per cent of the Finnish shopping centre
market in 2008 (source: Entrecon). The company's net rental income
from Finnish operations during the period under review was EUR 46.0
million (EUR 44.9 million). The business unit accounted for
74.9 per cent of Citycon's total net rental income.

The key figures of the Finnish property portfolio are presented
below. Ongoing development projects have been covered previously in
this document.

Lease Portfolio Summary, Finland

Q2/ Q2/ Q1/ Q1-Q2/ Q1-Q2/ Change-
2009 2008 2009 2009 2008 % 2008
Number of leases
started during
the period 80 93 66 146 193 -24.4 452
Total area of leases
started, sq.m. 9,080 14,310 9,190 18,270 36,110 -49.4 79,130
Occupancy rate at end
of the period, % 94.9 94.5 95.6 -1.2 95.7
Average remaining
length of lease
portfolio at the end
of the period, year 3.0 2.9 3.1 -6.5 3.1

Financial Performance, Finland

Q2/ Q2/ Q1/ Q1-Q2/ Q1-Q2/ Change-
2009 2008 2009 2009 2008 % 2008
Gross rental
income, EUR million 31.4 30.5 32.3 63.7 60.9 4.5 122.5
Turnover, EUR
million 32.6 31.6 33.5 66.1 62.9 5.0 126.8
Net rental income,
EUR million 22.9 22.5 23.1 46.0 44.9 2.5 90.9
Net fair value
losses/gains on
investment
property, EUR
million -20.5 -58.5 -25.5 -46.0 -60.6 -24.2 -154.3
Operating
loss/profit, EUR
million 1.0 -37.4 -4.0 -3.0 -18.3 -83.6 -62.9
Capital
expenditure, EUR
million 3.2 17.9 3.2 6.4 41.0 -84.4 69.2

Fair market value
of investment
properties, EUR
million (1 1,468.9 1451.6 1559.7 -6.9 1,494.0
Net rental yield, %
(2 6.2 6.3 5.6 - 6.0
Net rental yield,
like-for-like
properties, % 6.7 6.9 6.2 - 6.5

1) Due to the adoption of amended IAS 40 Investment property
-standard, the fair value of investment properties also includes
development properties.
2) Includes the lots for development projects.

Sweden

Citycon has achieved a substantial position in the Swedish shopping
centre market and has eight shopping centres and seven other retail
properties in Sweden, located in the Greater Stockholm and Greater
Gothenburg areas and in Umeå. The company's net rental income from
Swedish operations decreased by 11.6 per cent and totalled EUR 10.8
million (EUR 12.2 million). If the impact of the weakened Swedish
krona is excluded, net rental income from Swedish operations
increased by 2.4 per cent in comparison with the previous year. The
business unit accounted for 17.6 per cent of Citycon's total net
rental income.

The key figures for the Swedish property portfolio are presented
below. Ongoing development projects have been covered previously in
this document.

Lease Portfolio Summary, Sweden

Q2/ Q2/ Q1/ Q1-Q2/ Q1-Q2/ Change-
2009 2008 2009 2009 2008 % 2008
Number of leases
started during
the period 72 18 61 133 26 411.5 58
Total area of leases
started, sq.m. 7,320 3,760 6,873 14,193 4,600 208.5 15,340
Occupancy rate at end
of the period, % 95.5 94.4 95.2 -0.8 96.0
Average remaining
length of lease
portfolio at the end
of the period, year 2.3 2.4 2.1 14.3 2.4

Financial Performance, Sweden

Q2/ Q2/ Q1/ Q1-Q2/ Q1-Q2/ Change-
2009 2008 2009 2009 2008 % 2008
Gross rental income, EUR
million 9.2 10.8 9.0 18.2 20.0 -8.8 41.1
Turnover, EUR million 9.5 10.6 9.3 18.8 21.2 -11.7 41.9
Net rental income, EUR
million 5.6 6.4 5.2 10.8 12.2 -11.6 24.1
Net fair value
gains/losses on
investment
property, EUR million -4.7 -21.1 3.4 -1.3 -19.4 - -70.1
Operating profit/loss,
EUR million 0.1 -15.7 7.8 7.9 -9.0 - -49.1
Capital expenditure, EUR
million 19.0 16.3 14.4 33.4 25.0 33.7 65.6

Fair market value of
investment
properties, EUR million
(1 477.2 496.8 541.4 -8.2 462.4
Net rental yield, % (2 5.1 4.9 4.6 - 5.0
Net rental yield,
like-for-like
properties, % 5.9 6.1 5.3 - 5.6

1) Due to the adoption of amended IAS 40 Investment property
-standard, the fair value of investment properties also includes
development properties.
2) Includes the lots for development projects.

Baltic Countries

At the end of the period under review, Citycon owned three shopping
centres in the Baltic countries: Rocca al Mare and Magistral in
Tallinn, Estonia, and Mandarinas in Vilnius, Lithuania. The
deteriorating economical situation in the Baltic countries has
affected the sales and footfall of Citycon's shopping centres and
increased tenants' requests for rent reductions. Vacancy has not,
however, increased remarkably during the period. Net rental income
from Baltic operations amounted to EUR 4.6 million (EUR 3.1 million).
The business unit accounted for 7.5 per cent of Citycon's total net
rental income.

The key figures for the Baltic property portfolio are presented
below. Ongoing development projects have been covered previously in
this document.

Lease Portfolio Summary, Baltic Countries

Q2/ Q2/ Q1/ Q1-Q2/ Q1-Q2/ Change-
2009 2008 2009 2009 2008 % 2008
Number of leases
started during
the period 67 1 1 68 17 300.0 62
Total area of leases
started, sq.m. 16,111 100 3 16,114 1,700 - 30,490
Occupancy rate at end
of the period, % 99.5 99.9 100.0 -0.1 99.8
Average remaining
length of lease
portfolio at the end of
the period, year 5.4 5.6 2.3 143.5 5,4 1)

1) Interpretation of the remaining length of a lease agreement has
been revised.

Financial Performance, Baltic Countries

Q2/ Q2/ Q1/ Q1-Q2/ Q1-Q2/ Change-
2009 2008 2009 2009 2008 % 2008
Gross rental income, EUR
million 3.3 2.1 3.0 6.3 4.2 49.4 9.3
Turnover, EUR million 3.5 2.1 3.1 6.6 4.3 52.7 9.6
Net rental income, EUR
million 2.5 1.5 2.1 4.6 3.1 48.9 6.8
Net fair value
losses/gains on
investment property, EUR
million -0.7 -5.9 -9.6 -10.3 -5.0 104.5 8.3
Operating loss/profit,
EUR million 1.5 -4.5 -7.7 -6.2 -2.2 178.5 14.4
Capital expenditure, EUR
million 5.7 6.7 5.3 11.0 12.6 -12.7 22.7

Fair market value of
investment
properties, EUR million
(1 151.1 156.1 132.0 18.3 155.3
Net rental yield, % (2 6.1 6.4 5.9 - 6.2
Net rental yield,
like-for-like properties,
% 7.2 7.4 7.0 - 7.2

1) Due to the adoption of amended IAS 40 Investment property
-standard, the fair value of investment properties also includes
development properties.
2) Includes the lots for development projects.

Turnover and Profit

Turnover for the period came to EUR 91.5 million (EUR 88.5 million),
principally derived from the rental income generated by Citycon's
retail premises. Gross rental income accounted for 96.5 per cent
(96.2%) of turnover.

Operating profit came to EUR -4.7 million (EUR -33.0 million). Profit
before taxes was EUR -28.7 million (EUR -62.1 million) and profit
after taxes attributable to the parent company's shareholders EUR
-23.8 million (EUR -47.5 million). The decrease in operating profit
was mainly due to the fair value loss of the property portfolio. On
the other hand, as a result of the completed redevelopment projects,
the operating profit rose due to net rental income generated by
increased and refurbished premises.

The effect of changes in the fair value of the property portfolio, of
gains on sales and of other indirect items on the profit attributable
to parent company shareholders, was EUR -48.0 million (EUR -68.1
million), tax effects included. Taking this into account, the direct
result after taxes was EUR 3.5 million above the reference period
level (cf. Note "Reconciliation between direct and indirect result").
The growth in the direct result came mainly from increased net rental
income as well as exchange rate changes and decreased interest rates
resulting in lower financial expenses. In addition, a gain of EUR 0.4
million, including tax effects, for the buybacks of convertible bonds
was recognised under the direct result.

Current taxes on the direct result were higher during the reporting
period than during the reference period, due to growth in the direct
result and the buybacks of convertible bonds.

Earnings per share were EUR -0.11 (EUR -0.21). Direct result per
share, diluted, (diluted EPRA EPS) was EUR 0.11 (EUR 0.09). Net cash
flow from operating activities per share amounted to EUR 0.19 (EUR
0.12).

Human Resources and Administrative Expenses

At the end of the report period, Citycon Group employed a total of
114 (110) persons, of whom 75 were employed in Finland, 31 in Sweden
and eight in the Baltic countries. Administrative expenses remained
at the same level and were EUR 8.5 million (EUR 8.4 million),
including EUR 0.2 million (EUR 0.2 million) in calculated non-cash
expenses related to employee stock options and the company's
share-based incentive scheme.

Capital Expenditure and Divestments

Citycon's reported gross capital expenditure during the reporting
period totalled EUR 51.0 million (EUR 79.1 million). Of this,
property acquisitions accounted for EUR 0.0 million (EUR
2.5 million), property development EUR 50.7 million (EUR
75.9 million) and other investments EUR 0.3 million (EUR
0.6 million). These investments were financed through cash flow from
operations and existing financing arrangements.

In June, Citycon agreed to sell the apartments under construction
connected to the Liljeholmstorget shopping centre in Stockholm,
Sweden, for approximately SEK 176 million (approximately EUR 16.3
million). At the end of January, Citycon divested all the shares in
its subsidiary MREC Kiinteistö Oy Keijutie 15. The debt-free selling
price of this non-core property in Lahti amounted to approximately
EUR 3 million.

Statement of Financial Position and Financing

The total assets at the end of the reporting period stood at EUR
2,147.5 million (EUR 2,293.0 million). Liabilities totalled
EUR 1,370.2 million (EUR 1,328.6 million), with short-term
liabilities accounting for EUR 141.8 million (EUR 179.2 million). The
Group's financial position remained good. At the end of the period
under review, Citycon's liquidity was EUR 242.5 million, of which EUR
225.8 million consisted of undrawn, committed credit facilities and
EUR 16.7 million of cash and cash equivalents. At the end of the
period, Citycon's liquidity, short-term credit limits and commercial
papers excluded, stood at EUR 222.5 million (31 March 2009: EUR 270.4
million).

For the purpose of short-term liquidity management, the company uses
a EUR 100 million non-committed Finnish commercial paper programme
and a non-committed Swedish commercial paper programme worth SEK one
billion. By the end of the period under review, Citycon had issued
commercial papers to the value of EUR 5.0 million. Citycon's
financing is mainly arranged on a long-term basis, with short-term
interest-bearing debt constituting approximately 8.0 per cent of the
Group's total interest-bearing debt at the end of the report period.

From the reference period, interest-bearing debt increased by EUR
27.7 million to EUR 1,240.6 million (EUR 1,212.9 million). The fair
value of the Group's interest-bearing debt stood at EUR 1,251.6
million (EUR 1,229.2 million).

The Group's cash and cash equivalents totalled EUR 16.7 million
(EUR 23.8 million). The fair value of the Group's interest-bearing
net debt stood at EUR 1,234.8 million (EUR 1,205.3 million).

The year-to-date weighted average interest rate decreased compared to
the previous year and was 4.24 per cent (4.90% during the reference
period). The average loan maturity, weighted according to the
principal amount of the loans, stood at 4.2 years (4.8 years). The
average interest-rate fixing period was 3.1 years (3.0 years).

Citycon's interest cover ratio covenant improved due to lower
interest costs and came to 2.1x (Q1/2009: 2.0x). The company's equity
ratio as defined in the loan agreements decreased due to dividend and
equity return payout as well as the fair value change of the property
portfolio, and was 42.9 per cent (Q1/2009: 43.2%).

The weighted interest rate, interest-rate swaps included, averaged
4.10 per cent on 30 June 2009.

At the end of the reporting period, the Group's equity ratio was 36.2
per cent (42.1%). Gearing stood at 157.4 per cent (123.3%).

Of Citycon's interest-bearing debt at the end of the period under
review, 76.8 per cent (73.8%) was in floating-rate loans, of which
70.1 per cent (68.8%) had been converted into fixed-rate loans by
means of interest-rate swaps. Fixed-rate debt accounted for
77.1 per cent (76.9%) of the Group's year-end interest-bearing debt,
interest-rate swaps included. The loan portfolio's hedging ratio is
in line with the Group's financing policy. During the second quarter
in 2009, Citycon took advantage of the current low interest rates and
rolled forward maturing interest rate swaps and entered into new
hedges which slightly increased the hedge ratio.

Citycon applies hedge accounting, whereby changes in the fair value
of interest-rate swaps subject to hedge accounting are recognised
under other comprehensive income. The period-end nominal amount of
interest-rate swaps totalled EUR 673.5 million (EUR 674.0 million),
with hedge accounting applied to interest-rate swaps whose nominal
amount totalled EUR 650.4 million (EUR 597.6 million).

On 30 June 2009, the nominal amount of all of the Group's derivative
contracts totalled EUR 678.3 million (EUR 798.0 million), and their
fair value was EUR -26.2 million (EUR 23.2 million). The decline of
market interest rates at the beginning of the year decreased the fair
value of Citycon's interest rate derivatives. Hedge accounting is
applied for the majority of interest rate derivatives, meaning that
any changes in their fair value will be recognised under other
comprehensive income. Thereby, the fair value loss for these
derivatives does not affect the profit for the period or earnings per
share but the total comprehensive income. On 30 June 2009, the fair
value loss recognised under other comprehensive income, taking
account of the tax effect, totalled EUR -4.4 million (EUR 10.2
million).

Net financial expenses totalled EUR 24.0 million (EUR 29.0 million).
The decrease in financial expenses is mainly attributable to lower
interest rates and the buybacks of the convertible bonds.

Net financial expenses in the statement of comprehensive income
include EUR 0.0 million in non-cash expenses related to derivative
valuation, while a one-off gain of EUR 0.6 million for the buybacks
of the convertible bonds was also recorded under net financial
expenses. In addition, net financial expenses in the statement of
comprehensive income include EUR 0.7 million (EUR 0.9 million) in
non-cash expenses related to the option component on convertible
bonds.

Loan Market Transactions

In March, Citycon signed an agreement for a EUR 75 million unsecured
revolving credit facility with a group of three Nordic banks. The
agreement is valid for three years.

The new syndicated loan will further strengthen the company's
available liquidity and will provide the means of financing Citycon's
growth on a committed basis. The proceeds from the credit facility
will be used to finance strategic investments such as shopping centre
redevelopment projects. The credit margins of the loan are subject to
a pricing grid based on Citycon's interest cover ratio covenant, as
has been the case with the company's previous loan agreements.

Buybacks of Subordinated Convertible Capital Bonds Issued in 2006

In July 2006, Citycon's Board of Directors decided to issue
subordinated capital convertible bonds, to the amount of EUR 110
million, directed at international institutional investors. The issue
of the convertible bonds, waiving the shareholders' pre-emptive
subscription rights, was based on the authorisation given at
Citycon's Annual General Meeting on 14 March 2006. These convertible
bonds have been listed on the NASDAQ OMX Helsinki exchange since 22
August 2006. The maturity of the bonds is 7 years and they will pay a
coupon of 4.5 per cent annually in arrears. The conversion period
runs from 12 September 2006 to 27 July 2013 and the maturity date is
2 August 2013. The current conversion price is EUR 4.20.

In autumn 2008, Citycon began the repurchases of the convertible
bonds, since the market situation enabled the company to repurchase
the bonds at a price clearly below their face value and because the
repurchases enabled the company to strengthen its statement of
financial position and decrease its net financial expenses. In
November-December 2008, Citycon repurchased a total of 542 bonds,
each with a face value of EUR 50,000, which the company's Board of
Directors decided to cancel on 9 December 2008 and 11 February 2009,
in accordance with the terms and conditions of the convertible bonds.

Citycon continued the buybacks of the convertible bonds during the
period under review by repurchasing a total of 128 bonds for EUR 3.6
million (including interest accrued), on 27 February 2009 and 10
March 2009. The repurchased bonds were cancelled on 18 March 2009.
After this cancellation, the number of bonds issued under the
convertible bonds is 1,530 and the maximum number of shares to be
subscribed for with the bonds is 18,214,285. As a result of the
cancellation, the maximum increase in Citycon's share capital on the
basis of the convertible bonds decreased from EUR 26,646,428.25 to
EUR 24,589,284.75. The amendments to Citycon's convertible bonds were
registered in the Trade Register on 2 April 2009.

By the end of June, Citycon had repurchased a total principal amount
of EUR 33.5 million of the 2006 convertible bonds, corresponding to
approximately 30.5 per cent of the aggregate amount of the
convertible bonds. The weighted average repurchase price was 53.5 per
cent of the face value of the bonds.

Short-term Risks and Uncertainties

For risk management purposes, Citycon has a holistic Enterprise Risk
Management (ERM) programme in place. Citycon's risk management aims
to ensure that the company can meet its strategic and operational
goals, while the ERM's purpose is to generate up-to-date and
consistent information for the company's senior executives and Board
of Directors on any risks threatening the targets set in strategic
and annual plans.

Citycon's Board of Directors estimates that major short-term risks
and uncertainties are associated with economic developments in the
company's operating regions, the availability of financing as well as
changes in the fair value of investment properties and interest
rates. Redevelopment and construction of the company's own properties
means that the risks associated with project management and with the
leasing of new premises will also increase.

A number of factors contribute to the value of retail properties,
such as general and local economic development, investment demand,
and interest rates. At present, investment property values are
subject to abnormally high uncertainty due to the global financial
crisis and the dramatically weaker economic outlook in the company's
operating regions.

As a result of the credit crisis, property prices have fallen, and
Citycon has also recorded fair value losses for the period under
review from the lower values of investment properties. During the
period under review, trading activity on the property markets has
been slow. Furthermore, weakening economic conditions make the future
development of properties' fair value even more uncertain. While
changes in the investment properties' fair value have an effect on
the company's profit for the period, they do not have an immediate
impact on cash flow.

Economic fluctuations and developments materially affect demand for
rental premises and rental rates. These represent one of the
company's key short-term risks. All of the company's operating
regions experienced a marked slow-down in economic growth compared
with the same period last year. Several economists forecast markedly
negative economic growth for all of the company's operating regions
for the rest of the year. If these economic conditions continue for a
prolonged period, they will reduce demand for retail premises, weaken
tenants' ability to pay rent and raise the vacancy rate in the
company's properties, which might have a negative impact on the
company's business and financial performance.

Citycon's growth relies on the refurbishment and redevelopment of
retail properties. Implementation of this strategy requires both
equity and debt financing. Difficulties in the banking sector have
made banks more reluctant to lend money to enterprises. Furthermore,
due to falling share prices and investors' reluctance to invest in
shares, it is more difficult for listed companies to acquire equity
through share issues. However, Citycon's financial position is good,
enabling it to finance its ongoing projects in full as planned. The
company will need new financing for future new investments and growth
efforts, and the terms of such arrangements will naturally be
affected by the financial situation at that time.

In addition to the availability of financing, Citycon's main
financial risk is the interest-rate risk of the company's loan
portfolio. During the period under review, the six-month interest
rate in the euro area fell by 1.66 percentage points, while in Sweden
the equivalent interest rate dropped 1.20 percentage points. During
this period, Citycon's average interest rate decreased by
0.66 percentage points due to the clear decline in market rates.

The short-term risks involved in (re)development projects are
associated with the leasing of new premises and the implementation of
construction projects. Leasing risks in projects are minimised by
securing the allocation of sufficient resources to the leasing
operations of new properties, investing in the marketing of new
shopping centres and concluding agreements with anchor tenants prior
to a project's commencement or at its initial stage. Project
implementation risks are managed using sufficient resources.
Responsibility for projects is borne by experienced in-house project
managers.

More details on the company's risk management are available on the
company's website at www.citycon.com/riskmanagement and on pages
32-34 of the Financial Statements 2008.

Environmental Responsibility

Citycon seeks to lead the way in responsible shopping centre business
and to promote sustainable development within the business. The
location of Citycon's shopping centres in city centres, local centres
or generally adjacent to major traffic flows, combined with excellent
public transport connections, makes them well positioned to face the
demands of sustainable development.

Citycon has initiated a Green Shopping Centre Management programme to
foster sustainable development in all shopping centres owned by the
company. The programme, to be implemented in 2009, aims to promote
energy efficiency, recycling and other operations that support
sustainable development.

At the end of June, the Trio shopping centre was awarded the first
LEED® (Leadership in Energy and Environmental Design) environmental
certificate in the Nordic countries. Trio, located in Lahti, Finland,
is one of Citycon's three pilot projects in sustainable construction.
The other LEED projects include the redevelopment and extension of
the Rocca al Mare shopping centre in Tallinn, and the construction of
the Liljeholmstorget shopping centre in Stockholm. Citycon will also
seek LEED certification for these projects once they are completed.
Certification forms an essential element of Citycon's efforts toward
sustainable development.

LEED is an internationally recognised and the most widely spread
rating system for green buildings. In the certification process, a
construction project is assessed against six criteria: Sustainable
Sites, Water Efficiency, Energy and Atmosphere, Materials and
Resources, Indoor Environmental Quality and Innovation in Design. The
assessment is conducted by an independent third party, the Green
Building Certification Institute, functioning under the U.S. Green
Building Council.

Annual General Meeting 2009

Citycon Oyj's Annual General Meeting (AGM) took place in Helsinki,
Finland, in March. The AGM adopted the company's financial statements
for the financial year 2008 and discharged the members of the Board
of Directors and the Chief Executive Officer from liability. The AGM
decided on a dividend of EUR 0.04 per share for the financial year
2008 and, in addition, on an equity return of EUR 0.10 per share from
the invested unrestricted equity fund. The dividend and equity return
were paid on 3 April 2009. Other decisions made at the Annual General
Meeting have been reported in the previous interim report, published
on 23 April 2009.

Shareholders, Share Capital and Shares

Trading and Share Performance

During January-June, the number of Citycon shares traded on the
NASDAQ OMX Helsinki totalled 92.7 million (74.0 million) at a total
value of EUR 150.2 million (EUR 275.0 million). The highest quotation
during the period was EUR 2.02 (EUR 4.28) and the lowest EUR 1.30
(EUR 3.03). The reported trade-weighted average price was EUR 1.62
(EUR 3.71), and the share closed at EUR 1.86 (EUR 3.21). The
company's market capitalisation at the end of June totalled
EUR 411.2 million (EUR 709.4 million).

Shareholders

At the end of June, Citycon had a total of 3,160 (1,984) registered
shareholders, of which 10 were account managers of nominee-registered
shares. Nominee-registered and other international shareholders held
202.6 million (211.8 million) shares, or 91.6 per cent (95.8%) of
shares and voting rights in the company.

Notifications of Changes in Shareholdings

Perennial Investment Partners Limited notified the company in March
that its holdings in Citycon Oyj had fallen below the five per cent
threshold. According to the notification, Perennial Investment
Partners Limited held a total of 7,770,418 Citycon shares on 12 March
2009, equivalent to 3.52 per cent of the company's share capital and
voting rights.

Share Capital

At the end of June 2009, the company's registered share capital
totalled EUR 259,570,510.20 and the number of shares 221,059,735.
During the period, there were no changes in the company's share
capital but the number of shares grew by 60,746 shares, which the
company issued through directed, free share issues in May as part of
the company's long-term, share-based incentive plan. The company has
a single series of shares, with each share entitling to one vote at
general meetings of shareholders. The shares have no nominal value.

Board Authorisations

The AGM for 2007 authorised the Board of Directors to decide on
issuing new shares and disposing of treasury shares through paid or
free share issues. New shares can be issued and treasury shares can
be transferred to shareholders in proportion to their existing
shareholding or through a directed share issue waiving the
pre-emptive rights of shareholders, if a weighty financial reason
exists for doing so. The Board can also decide on a free share issue
to the company itself. In addition, the Board was authorised to grant
the special rights referred to in Section 1 of Chapter 10 of the
Finnish Limited Liability Companies Act, entitling their holders to
receive, against payment, new shares in the company or treasury
shares. The combined number of new shares to be issued and treasury
shares to be transferred, including the shares granted on the basis
of the special rights, may not exceed 100 million. At the end of
June, the number of shares that can be issued or disposed of on the
basis of the authorisation totalled 72,317,432. This authorisation is
valid until 13 March 2012.

The AGM for 2009 authorised the Board of Directors to decide on the
acquisition of 20 million of the company's own shares. This
acquisition authorisation will be valid until the next Annual General
Meeting. The company had no treasury shares at the end of the period.

At the end of the period under review, the Board had no other
authorisations.

Stock Options 2004

The Annual General Meeting held on 15 March 2004 authorised the issue
of a maximum of 3,900,000 stock options to the personnel of the
Citycon Group. The stock options are listed on the NASDAQ OMX
Helsinki exchange.

The subscription period for Citycon's stock options 2004 A expired at
the end of March. A total of 386,448 shares were subscribed with
these options. The number of unexercised stock options 2004 A
totalled 694,925. These stock options have been deleted as worthless
from their holders' book-entry accounts.

The table below includes information on the number of stock options
2004 and their subscription ratios and subscription prices. The full
terms and conditions of the stock option plan are available on the
company's website at www.citycon.com/options. No shares were
subscribed based on the stock options 2004 during the period under
review.

Basic Information on Stock Options 2004 as at 30 June 2009

2004 B 2004 C
No. of options granted 1,090,000 1,050,000
No. held by Veniamo-Invest Oy ¹) 210,000 250,000
Subscription ratio, option/shares 1:1.2127 1:1.2127
Subscription price per share, EUR ²) 2.5908 4.2913
Subscription period began 1 Sept. 2007 1 Sept. 2008
Subscription period ends 31 March 2010 31 March 2011
No. of options exercised - -
No. of shares subscribed with options - -
No. of options available for share 1,090,000 1,050,000
subscription
No. of shares that can be subscribed 1,321,843 1,273,335

¹) Veniamo-Invest Oy, a wholly-owned subsidiary of Citycon Oyj,
cannot subscribe for its parent company's shares.
²) Following the dividend payment and equity return in 2009. The
share subscription prices are reduced by half of the per-share
dividends paid and per-share equity returned. However, the share
subscription price is always at least EUR 1.35.

Events after the Reporting Period

Early July, Citycon agreed on the divestment of two mainly
residential properties connected to the Åkersberga Centrum shopping
centre, located in the Greater Stockholm area. The buyer was the
Swedish investment company Tegeltornet AB and the price SEK 181
million (approx. EUR 16.7 million), which corresponds to the fair
value of these properties in Citycon's statement of financial
position on 30 June 2009. Consequently, no gains or losses on the
sale of investment properties are recognized.

At the same time, Citycon decided to expand and refurbish Åkersberga
Centrum. The cost estimate for the construction project totals
approximately SEK 467 million, or approximately EUR 44 million.
Åkersberga Centrum's owners, Citycon and Armada Fastigheter AB,
re-invest the proceeds from the divestment of Åkersberga Centrum's
apartments in the redevelopment project (SEK 181 million). Citycon's
share of the development investment is 75 per cent and Armada
Fastigheter AB's 25 per cent.

The leasable area of the shopping centre will increase by
approximately 13,000 square metres to 33,000 square metres while the
premises of the old shopping centre will be renewed and an additional
350 new parking spaces built. Construction work will start this
summer and the refurbishment of the entire shopping centre, which
will remain open during the entire construction project, will be
completed in 2011.

Outlook

Citycon continues to focus on increasing its cash flow and operating
profit (excluding fair value changes). In order to implement this
strategy, the company will focus on value-added activities while
cautiously monitoring the market for potential acquisitions.

Due to market changes and tight financing conditions, the launch of
planned projects will be re-evaluated. Citycon intends to continue
the divestment of its non-core properties to improve the property
portfolio and strengthen the company's financial position. The
company is also considering alternative property financing sources.

The grocery sales sector, which accounts for a substantial share of
the company's lease portfolio, cushions the impact of rental
cyclicality in the company's business. The company expects its
full-year direct result and net cash from operating activities to
increase and net rental income to remain stable as a result of
redevelopment projects coming online, active shopping centre
management as well as lower interest rates.

Helsinki, 16 July 2009

Citycon Oyj
Board of Directors

Financial reports in 2009

In 2009, Citycon will publish one more interim report as follows:

January-September 2009, on Thursday, 15 October 2009, at
approximately 9:00 a.m.

For further information for investors, please visit Citycon's
website, www.citycon.com.

For further information, please contact:
Petri Olkinuora, CEO
Tel +358 20 766 4401 or +358 400 333 256
petri.olkinuora@citycon.fi

Eero Sihvonen, CFO
Tel +358 20 766 4459 or +358 50 557 9137
eero.sihvonen@citycon.fi

Distribution:
NASDAQ OMX Helsinki
Major media
www.citycon.com

UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
1 January - 30 June 2009

Condensed Consolidated Statement of Comprehensive Income, IFRS

Q2/ Q2/ Change- Q1-Q2/ Q1-Q2/ Change-
EUR million 2009 2008 % 2009 2008 % 2008

Gross rental income 43.9 43.4 1.2% 88.2 85.1 3.6% 173.0
Service charge
income 1.7 0.8 104.1% 3.2 3.4 -4.0% 5.3
Turnover (Note 3) 45.6 44.2 3.1% 91.5 88.5 3.3% 178.3
Property operating
expenses 14.4 13.8 4.6% 29.8 28.4 5.1% 56.3
Other expenses from
leasing operations 0.2 0.0 - 0.4 0.0 - 0.2
Net rental income 31.0 30.5 1.8% 61.3 60.1 2.0% 121.8
Administrative
expenses 3.9 4.4 -10.8% 8.5 8.4 1.7% 16.9
Other operating
income and expenses 0.0 0.0 -75.5% 0.0 0.1 -105.3% 6.1
Net fair value
losses/gains on
investment property -26.0 -85.5 -69.6% -57.6 -85.1 -32.3% -216.1
Net gains/losses on
sale of investment
property 0.0 0.0 -100.0% 0.1 0.1 -46.5% 0.1

Operating
profit/loss 1.1 -59.5 - -4.7 -33.0 -85.8% -105.0

Net financial income
and expenses 11.8 13.9 -15.2% 24.0 29.0 -17.2% 57.3
Loss/profit before
taxes -10.7 -73.4 -85.4% -28.7 -62.1 -53.7% -162.3
Current taxes -1.5 -1.2 30.2% -3.3 -3.4 -4.7% -6.6
Change in deferred
taxes 4.5 11.7 -61.2% 6.0 14.0 -56.7% 30.0
Loss/profit for the
period -7.7 -62.8 -87.8% -26.0 -51.6 -49.6% -138.9
Net gains/losses on
cash flow hedges 4.8 19.6 -75.8% -6.0 13.7 - -30.5
Income taxes
relating to cash
flow hedges -1.2 -5.1 -75.8% 1.6 -3.6 - 7.9
Exchange
gains/losses on
translating
foreign operations 0.4 -0.7 - 0.2 -0.2 - -13.0
Other comprehensive
income/expenses
for the period, net
of tax 3.9 13.8 -71.5% -4.2 9.9 - -35.6
Total comprehensive
loss/profit for the
period -3.7 -49.0 -92.4% -30.2 -41.6 -27.5% -174.6

Loss/profit
attributable to
Parent company
shareholders -7.0 -56.6 -87.7% -23.8 -47.5 -49.9% -124.1
Minority interest -0.7 -6.3 -89.1% -2.2 -4.1 -47.1% -14.8

Total comprehensive
loss/profit
attributable to
Parent company
shareholders -3.1 -42.6 -92.7% -28.1 -37.5 -24.9% -156.8
Minority interest -0.6 -6.4 -90.8% -2.1 -4.1 -50.4% -17.8

Earnings per share
(basic), EUR (Note
5) -0.03 -0.26 -87.7% -0.11 -0.21 -49.9% -0.56
Earnings per share
(diluted), EUR (Note
5) -0.03 -0.26 -87.7% -0.11 -0.21 -49.9% -0.56

Direct result (Note
4) 12.6 10.2 22.8% 24.2 20.6 17.0% 43.8
Indirect result
(Note 4) -19.5 -66.8 -70.8% -48.0 -68.1 -29.6% -167.9
Loss/profit for the
period attributable
to parent company
shareholders -7.0 -56.6 -87.7% -23.8 -47.5 -49.9% -124.1

Condensed Consolidated Statement of Financial Position, IFRS

30 June 31 Dec.
EUR million Note 30 June 2009 2008 2008
Assets

Non-current assets
Investment properties 6 2,104.5 2,233.1 2,111.6
Intangible assets and property,
plant and
equipment 1.6 1.7 1.7
Deferred tax assets 8.3 - 6.8
Derivative financial instruments
and
other non-current assets 8 0.0 20.1 6.0
Total non-current assets 2,114.5 2,254.9 2,126.1

Current assets
Derivative financial instruments 8 5.8 3.2 13.9
Trade and other receivables 10.5 11.1 21.7
Cash and cash equivalents 7 16.7 23.8 16.7
Total current assets 33.0 38.1 52.4

Total assets 2,147.5 2,293.0 2,178.5

Liabilities and Shareholders'
Equity

Equity attributable to parent
company shareholders
Share capital 259.6 259.6 259.6
Share issue - - -
Share premium fund and other
restricted
reserves 131.1 131.1 131.1
Fair value reserve 8 -22.1 15.1 -17.7
Invested unrestricted equity fund 9 155.2 177.2 177.3
Retained earnings 9 217.4 330.7 248.8
Total equity attributable to parent
company shareholders 741.3 913.7 799.1
Minority interest 36.1 50.7 38.2
Total shareholders' equity 777.4 964.4 837.3

Liabilities
Long-term interest-bearing debt 10 1,145.3 1,071.1 1,149.2
Derivative financial instruments
and
other non-interest bearing
liabilities 8 32.1 0.7 25.5
Deferred tax liabilities 51.0 77.7 57.1
Total long-term liabilities 1,228.4 1,149.5 1,231.7

Short-term interest-bearing debt 10 95.3 141.9 50.3
Derivate financial instruments 8 1.1 0.0 4.9
Trade and other payables 45.4 37.3 54.3
Total short-term liabilities 141.8 179.2 109.5

Total liabilities 1,370.2 1,328.6 1,341.2

Total liabilities and shareholders'
equity 2,147.5 2,293.0 2,178.5

Condensed Consolidated Cash Flow Statement, IFRS

Q1-Q2/ Q1-Q2/
EUR million Note 2009 2008 2008

Cash flow from operating activities
Loss/profit before taxes -28.7 -62.1 -162.3
Adjustments 81.9 114.5 268.1
Cash flow before change in working capital 53.1 52.4 105.8
Change in working capital 8.0 -0.7 -2.1

Cash generated from operations 61.1 51.7 103.7

Paid interest and other financial charges -32.7 -30.5 -63.1
Interest income, exchange rate gains and
other financial income received 17.0 1.5 6.3
Taxes paid/received -3.7 3.4 0.2

Net cash from operating activities 41.7 26.1 47.2

Cash flow from investing activities
Acquisition of subsidiaries, less cash
acquired 6 - -16.7 -24.0
Acquisition of investment properties 6 - - -
Capital expenditure on investment
properties
as well as on intangible assets and PP&E 6 -52.1 -70.3 -127.0
Sale of investment properties 6 3.1 7.7 7.0
Net cash used in investing activities -49.0 -79.3 -144.1

Cash flow from financing activities
Proceeds from share issue - - -
Proceeds from pending share issue - 25.9 25.9
Equity contribution from minority
shareholder - 25.9 25.9
Proceeds from short-term loans 10 86.5 67.5 72.1
Repayments of short-term loans 10 -41.5 -30.0 -125.8
Proceeds from long-term loans 10 142.1 287.5 623.3
Repayments of long-term loans 10 -149.0 -266.9 -473.6
Dividends paid 9 -30.9 -30.9 -30.9
Net cash used in/from financing activities 7.2 52.9 90.9

Net change in cash and cash equivalents -0.1 -0.3 -6.1
Cash and cash equivalents at period-start 7 16.7 24.2 24.2
Effects of exchange rate changes 0.1 0.0 -1.4
Cash and cash equivalents at period-end 7 16.7 23.8 16.7

Condensed Consolidated Statement of Changes in Shareholders' Equity,
IFRS
EUR million

Equity attributable to parent company shareholders
Share
premium
fund and Fair Invested
Share other value unrestricted Translation Retained
capital reserves reserve equity fund reserve earnings

Balance at 1
Jan. 2008 259.6 131.1 4.9 199.3 -0.3 387.3
Total
comprehensive
loss/profit
for the
period 10.2 -0.2 -47.5
Dividends and
return from
the invested
unrestricted
equity fund
(Note 9) -22.1 -8.8
Share-based
payments 0.2
Acquisition
of minority
interests
Balance at 30
June 2008 259.6 131.1 15.1 177.2 -0.4 331.1

Balance at 1
Jan. 2009 259.6 131.1 -17.7 177.3 -10.3 259.1
Total
comprehensive
loss/profit
for the
period -4.4 0.1 -23.8
Recognized
gain in the
equity
arising
from
convertible
bond buybacks 1.1
Sale of
treasury
shares 0.0
Dividends and
return from
the invested
unrestricted
equity fund
(Note 9) -22.1 -8.8
Share-based
payments 0.1
Balance at 30
June 2009 259.6 131.1 -22.1 155.2 -10.2 227.7

Equity
attributable to
parent company Minority Shareholders'
shareholders interest equity, total

Balance at 1 Jan. 2008 982.0 28.9 1,010.9
Total comprehensive
loss/profit for
the period -37.5 -4.1 -41.6
Dividends and return from the
invested
unrestricted equity fund (Note
9) -30.9 -30.9
Share-based payments 0.2 0.2
Acquisition of minority
interests - 25.9 25.9
Balance at 30 June 2008 913.7 50.7 964.4

Balance at 1 Jan. 2009 799.1 38.2 837.3
Total comprehensive
loss/profit for
the period -28.1 -2.1 -30.2
Recognized gain in the equity
arising
from convertible bond buybacks 1.1 1.1
Sale of treasury shares 0.0 0.0
Dividends and return from the
invested
unrestricted equity fund (Note
9) -30.9 -30.9
Share-based payments 0.1 0.1
Balance at 30 June 2009 741.3 36.1 777.4

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Basic Company Data

Citycon is a real estate company investing in retail premises.
Citycon operates mainly in Finland, Sweden and the Baltic countries.
Citycon is a Finnish public limited liability company established
under Finnish law and domiciled in Helsinki. The Board of Directors
has approved the interim financial statements on 16 July 2009.

2. Basis of Preparation and Accounting Policies

Citycon prepares its consolidated financial statements in accordance
with the International Financial Reporting Standards (IFRS). The
interim condensed consolidated financial statements for the period 1
January-30 June 2009 have been prepared in accordance with IAS 34
Interim Financial Reporting. The following new standards as well as
amendments and interpretations to the existing standards have been
adopted in the interim financial statements: IFRS 8 (new standard)
Operating Segments, IAS 1 (revised) Presentation of Financial
Statements and IAS 40 (amendment) Investment Property and
consequential amendments to IAS 16 Property, Plant and Equipment. The
adoption of IFRS 8 Operating Segments and IAS 1 Presentation of
Financial Statements amended the presentation of financial statements
and the adoption of IAS 40 Investment Property changed the
measurement of development properties. The adoption of IFRS 8
Operating Segments did not change the number or the content of the
reported segments. The corporate management follows the segments'
direct operating profit. Therefore, direct operating profit for each
segment is presented due to the adoption of IFRS 8. The adoption of
IAS 1 Presentation of Financial Statements changed the income
statement format and the format of statement of changes in the
shareholders' equity. Due to the adoption of IAS 40 Investment
Property, Citycon measures its development properties in fair value
instead of at cost. Since the development properties are now measured
at fair value just like the operative investment properties, Citycon
no longer presents development properties separately from investment
properties on the statement of financial position. In the Notes to
the Financial Statements, Citycon divides its investment properties
into two groups: operative investment properties and
development/redevelopment properties. The fair value gains of the
development properties amounted to EUR 11.4 million during the
Q1/2009. Additional information on the new standards as well as on
the amendments and interpretations to the existing standards are
available in Citycon's Financial Statements 2008, in Chapter 3
"Changes in IFRS and accounting policies" under the Notes to the
Consolidated Financial Statements (see pages 18-19 in the Financial
Statements).

Otherwise, same accounting principles and policies are applied in the
interim financial statements as in the annual financial statements
for the year 2008. The interim financial statements do not include
all the disclosures required to be disclosed in the annual financial
statements. Therefore, they should be read in conjunction with
Citycon's annual financial statements for the year 2008.

3. Segment information

Citycon's business consists of the regional business units Finland,
Sweden and the Baltic Countries.

Q2/ Q2/ Change- Q1-Q2/ Q1-Q2/ Change-
EUR million 2009 2008 % 2009 2008 % 2008
Turnover
Finland 32.6 31.6 3.3% 66.1 62.9 5.0% 126.8
Sweden 9.5 10.6 -10.4% 18.8 21.2 -11.7% 41.9
Baltic Countries 3.5 2.1 66.9% 6.6 4.3 52.7% 9.6
Total 45.6 44.2 3.1% 91.5 88.5 3.3% 178.3

Net rental income
Finland 22.9 22.5 1.7% 46.0 44.9 2.5% 90.9
Sweden 5.6 6.4 -13.2% 10.8 12.2 -11.6% 24.1
Baltic Countries 2.5 1.5 66.5% 4.6 3.1 48.9% 6.8
Other 0.0 0.0 -100.0% 0.0 0.0 138.5% 0.0
Total 31.0 30.5 1.8% 61.3 60.1 2.0% 121.8

Direct operating
profit/loss
Finland 21.4 21.2 1.3% 42.9 42.2 1.7% 85.4
Sweden 4.8 5.4 -10.5% 9.2 10.4 -11.7% 21.0
Baltic Countries 2.2 1.4 61.3% 4.1 2.8 46.4% 6.2
Other -1.4 -1.7 -18.2% -3.4 -3.3 3.7% -7.2
Total 27.1 26.2 3.3% 52.8 52.1 1.3% 105.3

Operating
profit/loss
Finland 1.0 -37.4 - -3.0 -18.3 -83.6% -62.9
Sweden 0.1 -15.7 - 7.9 -9.0 - -49.1
Baltic Countries 1.5 -4.5 - -6.2 -2.2 178.5% 14.4
Other -1.4 -1.6 -14.1% -3.4 -3.5 -2.3% -7.4
Total 1.1 -59.2 - -4.7 -33.0 -85.8% -105.0

EUR million

30 June 30 June Change- 31 Dec.
Assets 2009 2008 % 2008
Finland 1,455.7 1,563.2 -6.9% 1,504.2
Sweden 501.3 546.9 -8.3% 466.9
Baltic Countries 157.5 133.0 18.4% 156.3
Other 33.1 49.9 -33.7% 51.1
Total 2,147.5 2,293.0 -6.3% 2,178.5

The change in segment assets was due to the fair value losses in
investment properties, weakened Swedish krona and capital
expenditure.

4. Reconciliation between Direct and Indirect Result

Due to the nature of Citycon's business and the obligation to apply
IFRS, the consolidated statement of comprehensive income includes
several items related to non-operating activities. In addition to the
consolidated statement of comprehensive income under IFRS, Citycon
also presents its profit/loss attributable to parent company
shareholders with direct result and indirect result separately
specified, in an attempt to enhance the transparency of its
operations and to facilitate comparability of reporting periods.
Direct result describes the profitability of the Group's operations
during the reporting period disregarding the effects of fair value
changes, gains or losses on sales, other extraordinary items and
other comprehensive income items. Earnings per share calculated based
on direct result corresponds to the earnings per share definition
recommended by EPRA.
Direct result excludes the changes in fair value of financial
instruments that are recognized in the statement of comprehensive
income under net financial income and expenses. In order to hedge
against interest rate risk, Citycon has entered into, in accordance
with its interest rate risk management policy, interest rate and
inflation derivatives which do not qualify under hedge accounting
treatment under IFRS. Changes in fair value of such derivatives are
recognized in the statement of comprehensive income under net
financial income and expenses. These derivatives hedge the group
against interest rate risk and in accordance with the terms of the
derivatives Citycon receives floating money market interest rate
which has a matching interest rate determination procedure with
group's floating rate debt. The interest rate which Citycon pays
under these derivatives does not depend on the money market interest
rate which means that these derivatives hedge Citycon against rising
floating interest rates. The aim is to ensure effectiveness of the
hedges by matching the interest rate fixing procedure between the
derivatives recognized in the statement of comprehensive income under
net financial income and expenses and floating rate debt of Citycon.

Q2/ Q2/ Change- Q1-Q2/ Q1-Q2/ Change-
EUR million 2009 2008 % 2009 2008 % 2008

Direct result
Net rental income 31.0 30.5 1.8% 61.3 60.1 2.0% 121.8
Direct
administrative
expenses -3.9 -4.2 -7.3% -8.5 -8.0 6.1% -16.5
Direct other
operating
income and expenses 0.0 0.0 -75.5% 0.0 0.0 -146.1% 0.1
Direct operating
profit 27.1 26.2 3.3% 52.8 52.1 1.3% 105.3
Direct net financial
income and expenses -12.1 -14.1 -14.4% -24.1 -27.9 -13.7% -54.2
Direct current taxes -1.5 -1.2 30.2% -3.0 -2.4 25.9% -4.8
Direct change in
deferred taxes -0.2 0.0 - -0.2 -0.1 279.1% 0.2
Direct minority
interest -0.7 -0.7 -4.4% -1.4 -1.2 19.7% -2.8
Total direct result 12.6 10.2 22.8% 24.2 20.6 17.0% 43.8

Direct result per
share (diluted),
(diluted EPRA EPS),
EUR 1) 0.06 0.05 20.8% 0.11 0.09 15.5% 0.20

Indirect result
Net fair value
losses/gains on
investment property -26.0 -85.5 -69.6% -57.6 -85.1 -32.3% -216.1
Profit/loss on
disposal
of investment
property - 0.0 - 0.1 0.1 -46.5% 0.1
Indirect
administrative
expenses - -0.2 - - -0.3 - -0.4
Indirect other
operating
income and expenses - - - - 0.1 - 6.0
Movement in fair
value
of financial
instruments 0.3 0.2 34.1% 0.0 -1.2 - -3.1
Indirect current
taxes - - - -0.3 -1.1 -72.6% -1.8
Change in indirect
deferred taxes 4.7 11.6 -59.3% 6.2 14.0 -55.5% 29.7
Indirect minority
interest 1.4 7.0 -80.2% 3.6 5.3 -32.1% 17.6
Total indirect
result -19.5 -66.8 -70.8% -48.0 -68.1 -29.6% -167.9

Indirect result per
share, diluted -0.09 -0.30 -70.8% -0.22 -0.31 -29.9% -0.76

Loss/profit for the
period attributable
to parent company
shareholders -7.0 -56.6 -87.7% -23.8 -47.5 -49.9% -124.1

¹) The calculation of the direct result per share is presented in the
Note 5 "Earnings per share".

5. Earnings per Share

Q1-Q2/ Q1-Q2/
2009 2008 2008

A) Earnings per share calculated from the
profit/loss for the period

Earnings per share, basic
Loss/profit attributable to parent company
shareholders,
EUR million -23.8 -47.5 -124.1
Issue-adjusted average number of shares, Million 221.0 221.0 221.0
Earnings per share (basic), EUR -0.11 -0.21 -0.56

Earnings per share, diluted
Loss/profit attributable to parent company
shareholders,
EUR million -23.8 -47.5 -124.1
Expenses from convertible capital loan, the tax
effect deducted,
EUR million - - -
Loss/profit used in the calculation of diluted
earnings per share,
EUR million -23.8 -47.5 -124.1
Issue-adjusted average number of shares,
Million 221.0 221.0 221.0
Convertible capital loan impact, Million - - -
Adjustment for stock options, Million - - -
Issue-adjusted average number of shares used in
the
calculation of diluted earnings per share,
Million 221.0 221.0 221.0
Earnings per share (diluted), EUR -0.11 -0.21 -0.56

The incremental shares from assumed conversions or any income or cost
related to dilutive potential shares are not included in calculating
Q1-Q2/2009 and 2008 diluted per-share figures because the profit
attributable to parent company shareholders was negative.

B) Earnings per share calculated from the direct
result for the period

Direct result per share (diluted), (diluted EPRA
EPS)
Direct result, EUR million (Note 4) 24.2 20.6 43.8
Expenses arising from convertible capital loan,
adjusted with the tax effect deduction, EUR million 2.1 2.9 5.6
Profit used in the calculation of direct result per
share, EUR million 26.2 23.5 49.4
Issue-adjusted average number of shares used in the
calculation
of diluted earnings per share, Million 239.8 248.2 247.2
Direct result per share (diluted), (diluted EPRA
EPS), EUR 0.11 0.09 0.20

6. Investment Property

Citycon divides its investment properties into two categories:
properties under redevelopment and operative investment properties.
Due to the adoption of amended IAS 40 Investment property -standard,
Citycon presents the development properties under the investment
properties. Therefore, previously presented properties under
redevelopment -category is extended to include also development
properties and is called development/redevelopment properties. During
the period, development/redevelopment properties included the
projects in the following shopping centres: Liljeholmstorget, Rocca
al Mare, Lippulaiva, Åkersberga Centrum, Jakobsbergs Centrum,
Stenungs Torg and Porin Isolinnankatu 18.

EUR million 30 June 2009
Development/ Operative Investment
redevelopment investment properties
properties properties total
At period-start 271.8 1,839.9 2,111.6
Acquisitions - - -
Investments 42.4 4.3 46.7
Disposals - -2.7 -2.7
Capitalized interest 3.6 0.3 4.0
Fair value gains on investment
property 7.1 1.5 8.6
Fair value losses on investment
property -12.4 -53.8 -66.2
Exchange differences 1.3 1.2 2.5
Transfers between items 222.7 -222.7 0.0
At period-end 536.5 1,568.0 2,104.5

EUR million 30 June 2008
Development/ Operative Investment
redevelopment investment properties
properties properties total
At period-start 544.5 1,704.4 2,248.9
Acquisitions 7.1 2.5 9.6
Investments 59.7 6.2 65.8
Disposals - -7.6 -7.6
Capitalized interest 1.3 1.7 3.0
Fair value gains on investment
property - 3.8 3.8
Fair value losses on investment
property -23.6 -65.3 -88.9
Exchange differences 0.5 -2.2 -1.6
Transfers between items -69.9 69.9 0.0
At period-end 519.6 1,713.4 2,233.1

EUR million 31 Dec. 2008
Development/ Operative Investment
redevelopment investment properties
properties properties total
At period-start 544.5 1,704.4 2,248.9
Acquisitions 6.8 10.6 17.4
Investments 120.9 12.0 132.9
Disposals 0.0 -7.6 -7.6
Capitalized interest 6.8 0.0 6.8
Fair value gains on investment
property 4.8 10.5 15.3
Fair value losses on investment
property -44.5 -186.9 -231.4
Exchange differences -28.8 -41.6 -70.4
Transfers between items -338.7 338.5 -0.2
At period-end 271.8 1,839.9 2,111.6

An external professional appraiser has conducted the valuation of the
company's investment properties with a net rental income based cash
flow analysis. Market rents, occupancy rate, operating expenses and
yield requirement form the key variables used in the cash flow
analysis. The segments' yield requirements and market rents used by
the external appraiser in the cash flow analysis were as follows:

Yield requirement (%) Market rents (€/m²)
30 June 30 June 31 Dec. 30 June 30 June 31 Dec.
2009 2008 2008 2009 2008 2008
Finland 6.5 6.0 6.4 22.2 21.3 21.9
Sweden 1) 6.5 5.7 6.4 18.9 13.7 12.3
Baltic Countries 7.7 6.9 7.4 20.5 19.6 20.2
Average 6.6 6.0 6.4 21.3 19.4 19.9

1) Figures for Sweden on 30 June 2009 include the development project
of the Liljeholmstorget shopping centre.

7. Cash and Cash Equivalents

EUR million 30 June 2009 30 June 2008 31 Dec. 2008

Cash in hand and at bank 16.7 17.4 16.7
Short-term deposits - 6.5 -
Total 16.7 23.8 16.7

8. Derivative Financial Instruments

EUR million 30 June 2009 30 June 2008 31 Dec. 2008
Nominal Fair Nominal Fair Nominal Fair
amount value amount value amount value
Interest rate derivatives
Interest rate swaps
Maturity:
less than 1 year 66.0 -1.0 60.0 0.7 86.0 1.4
1-2 years 86.2 2.6 92.4 0.2 46.0 -1.5
2-3 years 70.0 -3.5 40.0 2.5 70.0 3.5
3-4 years 133.0 -7.5 70.0 2.3 41.8 -1.9
4-5 years 146.2 -7.4 103.0 2.3 228.8 -10.1
over 5 years 172.1 -9.5 308.6 13.5 119.0 -8.9
Subtotal 673.5 -26.3 674.0 21.5 591.7 -17.5

Foreign exchange
derivatives
Forward agreements
Maturity:
less than 1 year 4.8 0.1 124.0 1.6 23.1 7.6
Total 678.3 -26.2 798.0 23.2 614.8 -9.8

The fair value of derivative financial instruments represents the
market value of the instrument with prices prevailing at the end of
the period. Derivative financial instruments are used in hedging the
interest rate risk of the interest bearing liabilities and foreign
currency risk.

The fair values include foreign exchange rate gain of EUR 5.7 million
(EUR 2.6 million) which is recognized in the statement of
comprehensive income under net financial income and expenses.
Hedge accounting is applied for interest rates swaps which have
nominal amount of EUR 650.4 million (EUR 597.6 million). The fair
value loss recognized under other comprehensive income taking into
account the tax effect totals EUR -4.4 million (EUR 10.2 million).

9. Dividends and Return from the Invested Unrestricted Equity Fund

In accordance with the proposal by the Board of Directors and the
decision by the Annual General Meeting held on 18 March 2009,
dividend for the financial year 2008 amounted to EUR 0.04 per share
(EUR 0.04 for the financial year 2007) and EUR 0.10 per share was
decided to be returned from the invested unrestricted equity fund
(EUR 0.10 for the financial year 2007). Dividend and equity return of
EUR 30.9 million for the financial year 2008 (EUR 30.9 million for
the financial year 2007) were paid on 3 April 2009.

10. Interest-bearing Liabilities

During the period, Citycon has agreed on a new revolving credit
facility in the amount of EUR 75 million in order to finance future
strategic investments. The loan bears a floating interest rate and is
due within 3 years. During the period, repayments of other bank loans
amounting to EUR 12.4 million were made in line with previously
disclosed repayment terms.
Other proceeds and repayments from/of long-term loans in the
cash-flow statement arose from the use of revolving credit
facilities.

11. Contingent Liabilities

EUR million 30 June 2009 30 June 2008 31 Dec. 2008
Mortgages on land and 40.8 46.3 40.6
buildings
Bank guarantees 49.7 48.8 45.6
Capital commitments 11.6 26.8 13.0

On 30 June 2009, Citycon had capital commitments of EUR 11.6 million
(EUR 26.8 million) relating mainly to development and redevelopment
projects.

12. Related Party Transactions

There were no significant transactions with the related parties
during the period.

13. Key Figures

Q2/ Q2/ Change- Q1-Q2/ Q1-Q2/ Change-
2009 2008 % 2009 2008 % 2008

Earnings per share
(basic), EUR -0.03 -0.26 -87.7% -0.11 -0.21 -49.9% -0.56
Earnings per share
(diluted), EUR -0.03 -0.26 -87.7% -0.11 -0.21 -49.9% -0.56
Equity per share, EUR 3.35 4.13 -18.9% 3.62
Net asset value
(EPRA NAV) per share,
EUR 3.58 4.46 -19.7% 3.88
Equity ratio, % 36.2 42.1 - 38.5

The formulas for key figures can be found from the 2008 annual
financial statements.

REPORT ON REVIEW OF CITYCON OYJ'S INTERIM FINANCIAL INFORMATION FOR
THE PERIOD JANUARY 1 - JUNE 30, 2009

To the Board of Directors of Citycon Oyj

Introduction

We have reviewed the accompanying statement of financial position of
Citycon Oyj as of June 30, 2009 and the related statements of
comprehensive income, changes in equity and cash flows for the
six-month period then ended, and explanatory notes prepared in
accordance with International Financial Reporting Standards as
adopted by the EU. The Board of Directors and the Managing Director
are responsible for the preparation and fair presentation of this
interim financial information in accordance with the Securities
Market Act, chapter 2, paragraph 5 a. Based on our interim review we
express at the request of the Board of Directors a report in
accordance with the Securities Market Act, chapter 2, paragraph 5 a,
sub-paragraph 7.

Scope of Review

We conducted our review in accordance with International Standard on
Review Engagements 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity." A review of
interim financial information consists of making inquiries, primarily
of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance
with Standards on Auditing and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not
express an audit opinion.

Opinion

Based on our review, nothing has come to our attention that causes us
to believe that the accompanying interim financial information,
prepared in accordance with International Financial Reporting
Standards as adopted by the EU, does not give a true and fair view of
the financial position of the entity as at June 30, 2009, and of its
financial performance and its cash flows for the six-month period
then ended in accordance with the Securities Market Act.

Helsinki, July 16, 2009

Ernst & Young Oy
Authorized Public Accountants

Tuija Korpelainen, Authorized Public Accountant
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