CITYCON OYJ   Interim Report   5 May 2022 at 20:30 hrs


  • Like-for-like rental income increased by +3.5% compared to the previous year.
    • Total net rental income was affected by divestments and was EUR 49.1 million (Q1/2021: 50.4).
  • Retail occupancy 95.1%; 90 bps improvement over Q4/2021 (94.2%).
  • Average rent per sq.m. increased by EUR 0.8 to EUR 23.4 per sq.m.
  • Like-for-like footfall increased +17.6%; 1920 bps improvement over Q4/2021 (-1.6%).
  • Like-for-like tenant sales increased +11.8%; +7.4% higher than in Q1/2019 (pre-pandemic level).
  • Operating properties recorded a fifth consecutive quarter of uplift as fair value change of investment properties in Q1/2022 was EUR 14.2 million.
  • EPRA NRV/share +5.7% vs Q1/2021


  • Grand opening of phase I of Lippulaiva on 31 March 2022.
    • Excellent reception from the tenants and customers.
    • Pre-leasing rate over 90% and over 110 thousand visitors during the opening weekend.
    • Stabilized NRI for full Lippulaiva project estimated at 21 MEUR.
    • Anticipated partial 2022 NRI contribution between 7–9 MEUR.
    • Metro fully constructed and opening at year-end.
    • 6 of 8 residential towers under construction and opening between 2022–2024 (Citycon will own 6).
  • Continue to execute on 600,000 sqm development opportunities in multiple locations.
    • Liljeholmen, Oasen and Trekanten are next focus projects on Citycon.


  • Strategic sale ~145.4 MEUR of two non-core centres in Norway (disclosed on 7 February) with combined yield of 5.2% and at or above IFRS book value.
    • In total, Citycon has sold 6 non-core centres during last 14 months at or above NAV.
    • Further bolsters portfolio valuations and demonstrates strength of private market.
    • Transaction closed on 28 February 2022.
  • Signed forward commitment to acquire newly developed residential asset in Stockholm, Sweden for ~69.5 MEUR (disclosed on 7 February).
    • 200 well-appointed rental and freehold apartments in growing Barkarbystaden.
    • Close proximity to existing necessity-based assets in Kista and Jakobsberg.
  • Residential construction underway in all Citycon´s main operating countries.


  • Portion of the proceeds from the Norwegian divestments were utilized to repurchase approx. EUR 25 million of 2024 bond.
    • Further stabilizes Citycon´s well laddered maturity profile and reduces a refinancing risk.
    • Attractive to earnings and earnings per share by reducing interest expense.
    • LTV improvement to 40.4%.


Q1/2022 Q1/2021 % FX Adjusted % 1) 2021
Net rental income MEUR 49.1 50.4 -2.6 % -3.2 % 202.3
Like-for-like net rental income development % 3.5 -8.1 - - -1.5
Direct Operating profit  2) MEUR 40.2 44.9 -10.3 % -10.9 % 176.1
IFRS Earnings per share (basic) 3) EUR 0.13 0.12 7.2 % 7.2 % 0.55
Fair value of investment properties MEUR 4278.2 4238.4 0.9 % - 4189.2
Loan to Value (LTV) 2) 4) % 40.4 46.5 -13.2 % - 40.7
EPRA based key figures 2)
EPRA Earnings MEUR 28.1 31.6 -11.0 % -11.6 % 124.4
Adjusted EPRA Earnings 3) MEUR 20.6 27.6 -25.4 % -25.9 % 100.0
EPRA Earnings per share (basic) EUR 0.167 0.178 -5.8 % -6.4 % 0.703
Adjusted EPRA Earnings per share (basic) 3) EUR 0.123 0.155 -20.9 % -21.5 % 0.565
EPRA NRV per share 5) EUR 12.24 11.58 5.7 % - 12.15

 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. More information is presented in Basis of Preparation and Accounting Policies in the notes to the accounts.
3) The adjusted key figure includes hybrid bond coupons and amortized fees.
4) Highly liquid cash investments has been taken into account in net debt.
5) Calculation updated from this and comparison periods. Divided by number of shares at balance sheet date instead of average amount of shares during the reporting period.


Q1/2022 Q1/2021 %
Net rental income MEUR 47.8 44.8 6.7%
Direct Operating profit  2) MEUR 38.9 39.3 -1.0%
EPRA based key figures 2)
EPRA Earnings MEUR 26.8 26.1 2.8%
Adjusted EPRA Earnings 3) MEUR 19.3 22.1 -12.6%
EPRA Earnings per share (basic) EUR 0.160 0.147 8.9%
Adjusted EPRA Earnings per share (basic) 3) EUR 0.115 0.124 -7.4%

1) New presentation method. Standing portfolio key figures include only income and expenses from investment properties that were on group balance sheet on 31 March 2022. The portfolio is the same in the reporting period and in the comparison period, hence the numbers are comparable.
2) Citycon presents alternative performance measures according to the European Securities and Markets Authority (ESMA) guidelines. More information is presented in Basis of Preparation and Accounting Policies in the notes to the accounts.
3) The adjusted key figure includes hybrid bond coupons and amortized fees.


After a strong conclusion to 2021, Citycon continued to demonstrate the strength of our strategy and portfolio during the first quarter of 2022. Like-for-like net rental income increased 3.5% over the prior year. The average rent per square meter increased 0.8 EUR to 23.4 EUR/s.qm., while retail occupancy moved up to 95.1%. We continue to see very strong growth in both footfall and tenant sales, which increased dramatically compared to the previous year. Notably, tenant sales are already above pre-pandemic (2019) levels highlighting the speed of the recovery of Citycon´s grocery- and municipal-anchored centres.

The strong operational figures reflect the stability of our necessity-based centres which serve as a last mile logistics hub for delivery of grocery, municipal, and other services directly to the consumer. With customers prioritizing convenience and accessibility, more and more tenants are leveraging their omnichannel strategies and utilizing their physical stores as the critical last-mile distribution. Our excellent urban locations in the strongest and fast-growing cities in the Nordics, and the fact that all our urban hubs have a direct connection to public transportation, offer attractive opportunities for tenants and irreplaceable convenience for customers. Tenant demand for our centres has accelerated as evidenced by our strong leasing activity with over 48,000 sq.m. of signed leases during the first quarter, resulting in increased retail occupancy of 90 bps to 95.1%, coupled with rent growth. 

Our strategy of creating mixed-use urban hubs with a focus on grocery and municipal services is paying operational dividends and driving traffic to our centers, highlighted by significant like-for-like growth in both footfall (17%) and tenant sales (12%) in the first quarter. Notably, like-for-like tenant sales are already above pre-pandemic (2019) levels, on the strength of spending in groceries, pharmacies, municipal and healthcare services. Like-for-like net rental income increased by 3.5% compared to Q1/2021 and our average rent level increased by EUR 0.8 per sq.m. to EUR 23.4 compared to year-end 2021. These operational improvements continue to positively impact asset values as our operating properties recorded a fifth consecutive quarter of uplift as total fair value change of investment properties in Q1/2022 was EUR 24.6 million and net fair value change was EUR 14.2 million. EPRA NRV per share has increased by +5.7% compared Q1/2021.

As disclosed in February 2022, we divested two additional non-core assets in Norway during the first quarter with pricing above NAV. This means we have now sold 6 non-core assets over the last 14 months at pricing that validates our increasing valuations. We entered into a forward funding agreement to purchase a brand-new residential asset comprising of 200 apartments in Stockholm near our Kista and Jacobsberg centres. During, and subsequent to, the quarter we continued to demonstrate our strategic capital allocation to strengthen the balance sheet, as part of the divestment proceeds were used to repurchase approx. EUR 25 million of our bonds maturing in October 2024. The repurchase is accretive to earnings, strengthens our maturity profile and reduces refinancing risk as we have no near-term maturities until 2024.

The absolute highlight of the quarter was the grand opening of phase one of Lippulaiva, our new mixed-use centre that represents the future of convenient urban living. Lippulaiva is the prototype of Citycon’s strategy: a full-service, mixed-use, urban hub with several large grocery anchors, a wide range of private and municipal services, direct connection to the metro, surrounded by eight residential towers. The metro construction is complete, and it will begin to operate by the year-end. Six of the eight residential towers are under construction with first ones opening up later this year. Lippulaiva is the ultimate in convenience, experience and atmosphere for consumers and it will have an immediate impact on the community and consumers that surround it. Notably, grocery stores account for approximately 45% of the centre and all necessity goods representing over 70% of Lippulaiva’s 44,000 sq.m. of gross leasable area. Lippulaiva is expected to welcome approximately 8 million annual visitors.

Lippulaiva is also the prototype of Citycon´s sustainability initiatives in action. The centre is a pioneer in sustainable energy solutions and is carbon neutral in terms of energy consumption from day one. The primary source of energy is the largest ever geothermal heating and cooling system built on a commercial building in Europe combined with integrated solar panels and a smart electricity management solution.

Finally, Lippulaiva is also an important milestone in realising the potential in Citycon’s robust development pipeline and marks the first time that Citycon has carried out its own rental housing production. The residential component of the project consists of 560 apartments, which will come online between late 2022 and 2024, further diversifying Citycon´s portfolio and revenue streams while enhancing the underlying performance of the retail centre.

As our results show, Citycon is well positioned for the anticipated inflationary environment. Our business model is inflation protected with 92% of our leases indexed to inflation and the types of goods and services that our centres sell are less dependent on discretionary income than traditional retail. Although, Citycon’s operations are not directly impacted by the war in Ukraine, there is the spill over effect of increasing energy costs. Citycon has a significant amount of onsite energy production, and the vast majority of our electricity costs are hedged, which provides further stability both for Citycon and its tenants going forward. Citycon´s relatively low occupancy cost ratio also offers the company ample headroom for rent growth particularly as sales continue to increase. This continues to translate into strong leasing activity and stable cash flow. This stable cash flow, combined with the significant value creation potential for our development pipeline and an investment grade balance sheet, provides an attractive risk-adjusted return proposition for all stakeholders.

As a result of the strong quarter and the confidence we have in the business, we are tightening our guidance and raising the mid-point on all three metrics for which we provide guidance.

OUTLOOK (specified)

Citycon forecasts the 2022 direct operating profit to be in range EUR 168–180 million, EPRA EPS EUR 0.66–0.72 and adjusted EPRA EPS EUR 0.49–0.58.

Revised Previously
Direct operating profit MEUR 168–180 164–180
EPRA Earnings per share (basic) EUR 0.66–0.72 0.62–0.72
Adjusted EPRA Earnings per share (basic) EUR 0.49–0.58 0.48–0.58

The outlook assumes that there are no major changes in macroeconomic factors and that there will not be another wave of COVID-19 with restrictions resulting in significant store closures and no major disruptions from the war in Ukraine.  These estimates are based on the existing property portfolio as well as on the prevailing level of inflation, the EUR–SEK and EUR–NOK exchange rates, and current interest rates.


Citycon's investor, analyst and press conference call and live audiocasting will held on Friday, 6 May 2022 at 10 am EEST. The audiocast can be participated by calling in and followed live on the following website:

Conference call numbers are:
Participants from Europe +44 333 300 08 04
Participants from the US +1 631 913 14 22
PIN: 77197406#

The audiocast will be recorded and it will be available afterwards on Citycon’s website.

Helsinki, 5 May 2022

Citycon Oyj
Board of Directors

For further information, please contact:
Bret McLeod
Chief Financial Officer
Tel. +46 73 326 8455

Sakari Järvelä
VP, Corporate Finance and Investor Relations
Tel. +358 50 387 8180

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 4.5 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 has investment-grade credit ratings from Moody's (Baa3) and Standard & Poor's (BBB-). Citycon Oyj’s shares are listed on Nasdaq Helsinki.