CITYCON OYJ Interim Report 13 May 2026 at 23:50 hrs
Strong operational performance in Q1/2026
- Like-for-like net rental income increased by 4.5%1 in Q1/2026.
- Retail average rent per sq.m. increased by 0.9% with comparable FX to EUR 28.4 per sq.m (vs. Q4/2025).
- Retail economic occupancy rate 94.8% (vs. 94.8% in Q1/2025).
- Like-for-like footfall increased 2.1%.
- Like-for-like tenant sales increased 3.5%.
Balance sheet management Q1/2026
- Citycon signed a new EUR 520 million facility in January of which EUR 270 million was drawn in February and EUR 250 million remains available under an accordion option.
- In January Citycon paid a EUR 0.20 per share equity repayment, in total approximately EUR 36.7 million.
- In March Citycon completed a EUR 5 million open market repurchase of its 2029 Notes.
- In March Citycon paid a EUR 0.90 per share equity repayment, in total approximately EUR 165.2 million. The funds were paid to the shareholders on 1 April 2026.
Events post Q1/2026
- In April Citycon completed an early redemption of its 2026 Notes. The entire remaining outstanding amount of around EUR 123.5 million was redeemed.
- In April Citycon also continued strengthening liquidity by signing an additional EUR 220 million secured loan.
- On 13 May 2026 Citycon published a stock exchange release where it announced a notice of full redemption of notes due 2027 guaranteed by Citycon Oyj.
KEY FIGURES
|
Citycon Group6 |
|
Q1/2026 |
Q1/2025 |
% |
FX Adjusted Q1/2025 |
FX Adjusted %1 |
Q1-Q4/ 2025 |
|
Net rental income |
MEUR |
51.8 |
50.1 |
3.5% |
50.9 |
1.8% |
209.2 |
|
Like-for-like net rental income development8 |
% |
4.5% |
3.5% |
- |
- |
- |
5.4% |
|
Direct operating profit2 |
MEUR |
45.8 |
42.7 |
7.2% |
43.5 |
5.3% |
183.3 |
|
IFRS Earnings per share (basic)3 |
EUR |
0.08 |
-0.03 |
- |
-0.03 |
- |
0.29 |
|
Fair value of investment properties7 |
MEUR |
3,318.4 |
3,715.7 |
-10.7% |
- |
- |
3,265.9 |
|
Loan to Value (LTV)2 |
% |
49.4 |
46.9 |
5.3% |
- |
- |
44.9 |
|
EPRA based key figures2 |
|
|
|
|
|
|
|
|
EPRA Earnings4 |
MEUR |
19.0 |
19.4 |
-2.0% |
20.0 |
-5.1% |
79.0 |
|
EPRA Earnings excl. hybrid bond interests5 |
MEUR |
27.0 |
28.0 |
-3.5% |
28.7 |
-5.6% |
113.3 |
|
EPRA Earnings per share (basic)4 |
EUR |
0.10 |
0.11 |
-1.7% |
0.11 |
-4.8% |
0.43 |
|
EPRA Earnings per share excl. hybrid bond interests (basic)5 |
EUR |
0.15 |
0.15 |
-3.2% |
0.16 |
-5.3% |
0.62 |
|
EPRA NRV per share9 |
EUR |
7.61 |
8.13 |
-6.4% |
- |
- |
8.45 |
1 Change from previous year (comparable exchange rates). Change-% is calculated from exact figures.
2 Citycon presents alternative performance measures according to the European Securities and Markets Authority (ESMA) guidelines. Citycon follows updated EPRA Best Practices Recommendations (BPR) in its reporting starting from the beginning of 2025. More information is presented in section EPRA performance measures.
3 The key figure includes hybrid bond interests, amortized fees and gains/losses and expenses on hybrid bond repayments.
4 From the beginning of 2025 the key figure includes hybrid bond interests and excludes reorganisation and one-time costs.
5 A new key figure introduced at the beginning of 2025. The key figure excludes hybrid bond interests and reorganisation and one-time costs.
6 The numbers include the impact of divestments executed during 2025.
7 Excludes properties classified as held sale.
8 Net rental income growth of like-for-like assets calculated with comparable FX. Like-for-like net rental income development Q1/2026 includes a one-time adjustment to Q1/2025 NRI.
9 Including the impact of the EUR 0.20 per share and EUR 0.90 per share equity repayments.
CEO ESHEL PESTI
The first quarter of 2026 marked a solid start to the year with operating performance developing positively across key areas. Like-for-like net rental income increased by 4.5%1 with comparable FX rates, driven by index-linked rent increases and positive leasing spreads. Operating and administrative expenses remained well controlled, and our cost efficiency measures continued to support a strong operating margin. We managed to reduce administrative expenses by 17.5% to further support the P&L.
A notable contribution to the quarter’s performance was the 25%, with comparable FX, growth in general mall leasing income, including specialty leasing, energy and parking income. Through general mall leasing we can monetise our assets even further and bring additional revenue. Expanding general mall leasing income remains a key operational and value‑creation priority for Citycon in 2026.
At the end of the first quarter, retail economic occupancy rate stood at 94.8%. The decline from year-end was mainly due to normal seasonal effects. Tenant sales continued to develop favourably, with like-for-like tenant sales increasing by 3.5% compared to the corresponding period last year. Footfall followed a positive trend, with like-for-like visits increasing by 2.1%, underlining the continued relevance of our centres as local hubs for daily services.
During the quarter, we completed significant energy‑efficiency projects at four assets in Finland. These comprehensive upgrades include modernisation of heating, ventilation and air‑conditioning systems, as well as LED lighting improvements. As a result, aggregated district heating consumption across these centres is expected to decrease by up to 38%, while electricity consumption in common areas is expected to decline by up to 5%. These investments support both our sustainability objectives and long‑term cost efficiency.
We also took important actions to strengthen and derisk our balance sheet. During the first quarter we signed a new EUR 270 million secured loan. With the proceeds from the new loan we completed an early redemption of the shortest bond which was due in September 2026. The redemption was announced in March and completed in April 2026 when the remaining nominal amount of around EUR 123 million was repaid in full. In April we additionally signed a new EUR 220 million secured loan from which we received the funds in early May. These transactions are important actions to improve our credit maturity profile and to reduce our near-term refinancing needs. These secured loan transactions also demonstrate strong lender interest in our high-quality assets. Additionally, Citycon paid two dividends during Q1/2026. In January Citycon announced a EUR 0.20 per share dividend and in March a EUR 0.90 per share dividend.
We continue the work on optimising our asset portfolio by identifying and carrying out potential asset divestments. Following Q1/2026 we have been approached by several potential buyers related to selected assets in Finland, Sweden and Norway.
Looking ahead, Citycon is well positioned to deliver strong operational performance in 2026. Supported by resilient cash flows and a proactive approach to portfolio, we remain focused on creating sustainable long‑term value for all our stakeholders.
I want to thank all Citycon employees for the achievements during the quarter.
Eshel Pesti
OUTLOOK (Unchanged)
Like-for-like net rental income will grow compared to the previous year.
The outlook assumes that there are no major changes in macroeconomic factors. These estimates are based on comparable EUR–SEK and EUR–NOK exchange rates
AUDIOCAST
Citycon's live results presentation will be held on Friday, 15 May 2026 at 10:00 a.m. EEST. The link to the results presentation Zoom call will be available on our website: https://www.citycon.com/investors/financial-reports/financial-reports-2026. Questions for the management can be submitted during the call using Zoom’s Q&A function. Please note that when joining on a mobile device, the Zoom application is required to access the Q&A function.
The results presentation will be recorded and it will be available afterwards on Citycon’s website.
CITYCON OYJ
For further information, please contact:
Hilik Attias
CFO
Tel. +358 40 688 8580
hilik.attias@citycon.com
Anni Torkko
Director, Group Corporate Analysis & IR
Tel. +358 45 358 0570
anni.torkko@citycon.com
Citycon is a leading owner, manager and developer of mixed-use real estate featuring modern, necessity-based retail with residential, office and municipal service spaces that enhance the communities in which they operate. Citycon is committed to sustainable property management in the Nordic region with assets that total approximately EUR 3.8 billion. Our centres are located in urban hubs in the heart of vibrant communities with direct connections to public transport and anchored by grocery, healthcare and other services that cater to the everyday needs of customers.
Citycon’s shares are listed on Nasdaq Helsinki Ltd.
www.citycon.com
[1] Including a one-time adjustment to Q1/2025 NRI