CITYCON'S INTERIM REPORT 1 JANUARY – 30 JUNE 2004
- Profit before extraordinary items and taxes rose to EUR 11.6
million (EUR 9.9 million)
- Turnover increased to EUR 44.1 million (EUR 38.7 million)
- Earnings per share increased to EUR 0.08 (EUR 0.07)
- Demand for retail premises and occupancy rates continued to be
strong during the period
- Citycon started a process to asses business opportunities in the
Scandinavian and Baltic countries

KEY INDICATORS
1-6 2004 1-6 2003 1-12 2003
Turnover, EUR million 44.1 38.7 78.1
Operating profit,
EUR million 24.5 21.6 43.3
% of turnover 55.5 55.8 55.5
Profit before extraordinary
items and taxes,
EUR million 11.6 9.9 19.1
Profit , EUR million 8.4 7.1 14.3

Earnings per share, EUR 0.08 0.07 0.14
Earnings per share,
diluted, EUR 0.08 0.07 0.14
Equity per share, EUR 1.95 1.94 2.01
P/E (price/earnings) ratio 12 8 11
Return on equity (ROE), % 8.5 7.3 7.1
Return on equity including
minority interest,% 5.6 5.0 4.9
Return on investment (ROI), % 6.1 6.0 5.8
Equity ratio, % 44.5 48.3 44.9
Equity ratio with capital loan
not counted as part of
shareholder's equity, % 36.2 39.1 36.7
Gearing, % 170.8 148.5 163.1
Net rental income, % 8.5 8.4 8.5
Occupancy rate, % 97.1 97.1 97.3
Personnel at the end of period 41 36 34

Trend in the business environment
According to Statistics Finland, retail sales grew by 5.8 per cent
in the period from December 2003 to February 2004 and the growth
rate in the period March-May 2004 was 4.7 per cent. Department
store trade grew by 6.3 and 3.4 per cent in these periods.

Strong retail sales kept up healthy demand for retail premises and
vacancy rates remained low, particularly in the Helsinki
Metropolitan Area and Finland's other major cities.

Interest rates in the euro zone continued to be at historical
lows, although euro interest rates rose during the period.

The internationalisation of the Finnish property market continued.

Property portfolio and business activities
The book value of the property portfolio owned by Citycon was EUR
731.0 million at the end of the period (EUR 644.2 million).
Citycon owned 16 shopping centres, which comprised 58.8 per cent
of the company's property portfolio book value, and 130
supermarket and shop properties, which comprised 41.2 per cent of
the book value of the company's property portfolio. At the end of
the period, in terms of balance sheet values, 46.7 per cent of the
properties were in the Helsinki Metropolitan Area, 35.5 per cent
were in other major Finnish cities and 17.7 per cent were in other
parts of Finland.

On 26 May 2004, the Board of Directors of Citycon Oyj decided to
start a process to assess business opportunities in Scandinavian
and the Baltic countries. At the same time, the company will
continue the implementation of its strategy of expanding its core
business in Finland. Based on the outcome of the assessment
process, the Board will later consider amending the geographical
scope of its strategy. Citycon will continue, in accordance with
its strategy, to focus on retail premises in Finland, mainly in
the Helsinki Metropolitan Area and the biggest regional centres.

Customers, the portfolio of leases, and the occupancy rate
Citycon's customers are Finnish and international speciality and
grocery retail chains, supermarkets and department stores, and
independent dealers who are not part of chains. There were no
significant changes in the customer structure during the period.

During the period, the company signed a total of 182 leases, of
which 79 came with the acquisition of Torikeskus in Seinäjoki. At
the end of the period, Citycon had a total of 1,465 leases with
roughly 860 lessees. The average length of the leases was 3.6
years. The occupancy rate for Citycon's entire property portfolio
was 97.1 per cent (97.1%).

TREND IN PORTFOLIO OF LEASES BY DIVISION
1-6 2004 1-6 2003 1-12 2003
Shopping centres
Number of leases signed during
the period, total 137 62 151
Total area of leases signed, sg.m. 16,601 7,076 16,399
Occupancy rate at the end of
period, % 97.6 97.6 97.6
Average length of lease portfolio
at the end of period, years 2.8 3.1 3.0

Supermarkets and shops
Number of leases signed during
the period, total 45 22 51
Total area of leases signed, sg.m. 17,702 5,308 9,806
Occupancy rate at the end of
period, % 96.5 96.6 96.8
Average length of lease portfolio
at the end of period, years 4.4 4.6 4.4

Rental income
The net rental income of Citycon's leasing business during the
period totalled EUR 30.7 million (EUR 27.1 million). The average
net rental yield of the properties owned by the company was 8.5
per cent (8.4%).

Shopping centres accounted for 54.9 per cent of the net rental
income (49.6%) and supermarkets and shops accounted for 45.1 per
cent (50.4%). Of net income, roughly 47.4 per cent was generated
by properties in the Helsinki Metropolitan Area, 34.2 per cent by
properties in other major Finnish cities, and roughly 18.4 per
cent by other properties in Finland.

TREND IN RENTAL INCOME BY DIVISION
1-6 2003 1-6 2002 1-12 2003
Shopping centres
Gross rental income,
EUR million 23.0 17.9 36.5
Net rental income,
EUR million 16.8 13.4 27.5
Net rental yield, % *7.9 7.9 *8.1
*Figures include uncompleted projects

Supermarkets and shops
Gross rental income, EUR million 18.3 18.2 36.5
Net rental income, EUR million 13.9 13.6 27.2
Net rental yield, % 9,2 8.9 8.9

Investments and development projects
Citycon's gross investments amounted to EUR 12.7 million (EUR 0.9
million). Gross investments include the acquisition of a new
shopping centre, Torikeskus in Seinäjoki, for EUR 7.1 million, and
EUR 5.6 million for business development projects.

The Shopping Centres Division's property portfolio grew on 1 March
2004 with Torikeskus in Seinäjoki, one of the foremost shopping
centres in the Southern Ostrobothnia region.

During the second quarter, Citycon continued work on an extension
to the IsoKarhu shopping centre in Pori. The extension will be
completed in the third quarter and will have a positive effect on
income during the fourth quarter of the year. Refurbishment at the
Jyväskeskus shopping centre in Jyväskylä was completed in May
2004, which gave rental income an immediate boost. The combined
total of the investments in IsoKarhu and Jyväskeskus is roughly
EUR 12.0 million. The Shopping Centres Division also continued the
planning for extensions at the Lippulaiva and Espoontori shopping
centres in Espoo, the Myyrmanni shopping centre in Vantaa, and the
Koskikeskus shopping centre in Tampere.

The Supermarkets and Shops Division invested EUR 0.2 million in a
property on Laajavuorenkuja in Vantaa during the second quarter,
which will boost rental income in the third quarter. The division
continued a revamp of the Länsikeskus property in Espoo and the
development of a shopping centre in the Hervanta district of
Tampere.

The Property Development Division continued the planning of
development projects for Citycon's retail sites together with the
other divisions as well as investigating the commercial framework
for new shopping centres in the Helsinki Metropolitan Area and in
the Tampere and Turku market zones.

Divestments
During the period, Citycon sold in accordance with its strategy
three (3) properties belonging to the Supermarkets and Shops
Division. The combined balance sheet value of the properties sold
was EUR 0.6 million and the capital gains were EUR 0.1 million
EUR.

Turnover and profit
During the period, Citycon's turnover increased to EUR 44.1
million (EUR 38.7 million). Operating profit increased to EUR 24.5
million (EUR 21.6 million). The increase was largely due to the
acquisitions of shopping centres at the end of 2003 and in the
first quarter of 2004. Gross rental income accounted for 93,6 per
cent (93,4 %) of turnover.

Balance sheet and financing
The Group's financing situation remained good during the period.
The balance sheet total was EUR 834.2 million (EUR 742.7 million),
of which cash and cash equivalents were EUR 4.8 million (EUR 12.1
million). At the end of the period, Citycon had a total of EUR
460.9 million (EUR 381.7 million) of liabilities. Interest-bearing
liabilities increased by EUR 5.7 million during the period to EUR
517.7 million (EUR 440.3 million), when the capital loan of EUR
68.5 million (EUR 68.5 million) was included in the figure. The
average interest rate for interest-bearing liabilities during the
period was 5.2 per cent (5.4 %). The average loan period, weighted
according to the principals of the loans, was roughly 4.1 years
(5.0 years), and the average interest-rate fixing period was 3.9
years (4.4 years).

Citycon's interest-bearing liabilities included 86.5 per cent of
floating rate loans, of which 77.6 per cent has been converted to
a fixed rate by means of interest rate swaps and 12.3 per cent has
been hedged with interest rate caps. The par value of the interest
rate swaps at the end of the period was EUR 340.8 million and that
of the interest rate caps was EUR 53.8 million. The interest
coverage ratio, the previous twelve months' profit before interest
expenses, taxes and depreciation to net financial expenses was 2.1
(2.1). The Group's equity ratio was 44.5 per cent (48.3%). If the
capital loan is not included in shareholders' equity, the equity
ratio was 36.2 per cent (39.1%).

Net financial expenses rose to EUR 12.9 million (EUR 11.7
million).

Citycon and IFRS
Citycon Oyj is to go over to reporting in accordance with IAS/IFRS
standards (International Financial Reporting Standards) in its
interim reports and financial statements in 2005. The company made
decisions on the main optional accounting principles in IFRS at
the beginning of 2004 and examined the effect of the adoption of
IFRS on its accounting principles in its financial statements
bulletin released on 12 February 2004.

Citycon will issue further information on the effect of the
IAS/IFRS standards in a separate bulletin on 31 August 2004.

Personnel
At the end of the period, the Citycon Group had a total of 41 (36)
employees, of whom 31 (29) were employed by the parent company.

Shares and shareholders
Citycon's share capital as at 30 June 2004 was EUR 142,800,108.30
and the number of shares was 105,777,858. The par value of a share
is EUR 1.35.

Traded volume and price
During the period, the total for Citycon shares traded on the
Helsinki Exchanges was 94.0 million shares and EUR 176.2 million.
The high price quoted during the period was EUR 2.15 and the low
was EUR 1.52. The weighted average price for the period was EUR
1.87 and the closing price of the period was EUR 2.04. The
company's market capitalisation at the end of the period was EUR
207.9 million (EUR 110.1 million), after deducting the portion of
treasury shares from the total.

Shareholdings
At the end of the period, Citycon had a total of 1,268 registered
shareholders. The registered shareholders held 60.2 million
shares, so they had 56.9 per cent of the shares and voting rights.
Nominee-registered shareholders had 45.6 million shares, which is
43.1 per cent of the number of shares and voting rights.

Treasury shares and the shareholdings of the Board of Directors
and the management
The number of treasury shares remained the same during the period,
at 3,874,000 shares, which is the equivalent of 3.7 per cent of
the company's total shares and voting rights. The total purchase
price of the shares was EUR 4.7 million. The book value of
treasury shares on 30 June 2004 corresponded to their purchase
price, which was lower than their market value at the end of
period. The effect of treasury shares has been deducted for the
calculation of the key figures.

The members of Citycon Oyj's Board of Directors held a total of
66,453 shares on 30 June 2004, which was 0.06 per cent of the
company's total shares and voting rights. Citycon's CEO held
100,000 shares and 1,650,000 stock options as well as the other
members of the Corporate Management Committee held a total of
3,000 shares and 971,670 stock options on 30 June 2004.

Citycon in international investors' comparative indexes
Citycon is included in international property investment
companies' indexes.
The EPRA/NAREIT Global Real Estate Index and the GPR 250 Property
Securities Index serve as comparative indexes for international
investors.

Authorisations and stock options and the use thereof
Citycon's annual general meeting of 15 March 2004 authorised the
Board of Directors to decide whether to increase the share capital
by means of a new issues of shares and to decide on the
acquisition and conveyance of treasury shares. The authorisations
will be valid for one year following the decision made by the AGM.
At the end of the review period, no part of the authorisations had
been utilised.

Citycon Oyj decided on 16 April 2004 to apply for the listing of
the 1999 A/B warrants on the main list of the Helsinki Exchanges.
The warrants have been included on the main list of the Helsinki
Exchanges since 23 April 2004. The details of the listing of the
warrants can be found in the stock exchange bulletin issued by
Citycon on 16 April 2004.

The annual general meeting of 15 March 2004 decided on issuing
stock options to personnel of Citycon Oyj and of its subsidiaries
and to a wholly owned subsidiary of Citycon Oyj as part of the
Group's personnel incentive and commitment system. Citycon's Board
of Directors decided on 26 May 2004 on the distribution of stock
options in accordance with the decision of the annual general
meeting.
A total of 1,135,000 2004A stock options were distributed to the
personnel of the Group. The rest of the stock options 2,765,000
(A/B/C) were granted to Veniamo-Invest Oy, a subsidiary of Citycon
Oyj, to be further distributed to the present and future personnel
of the Group.
The complete terms of the stock options issued by the annual
general meeting can be found in the stock exchange bulletin issued
by the company on 26 May 2004.

Events after the end of the review period
An extraordinary general meeting of the company held on 10 August
2004 decided, in accordance with a proposal from the Board of
Directors' Nomination Committee, to increase the number of the
Board members from seven to eight within the limits set in the
company's articles of association. In addition, the extraordinary
general meeting decided to augment the Board's expertise in the
international property business by electing American citizen Dor
Segal on a proposal from the Nomination Committee. Segal is the
President and CEO of First Capital Realty Inc. and the President
of Gazit-Globe (1982) Ltd. His membership will be in effect until
the next annual general meeting.

Outlook for the future
Citycon forecasts that demand, occupancy rates and rents for its
retail premises will remain good in the Helsinki Metropolitan Area
and Finland's major cities. Citycon estimates that turnover and
profit for the current year will grow due to favourable market
view, combined with the shopping centres acquired at the end of
2003 and the beginning of 2004.

Helsinki, 11 August 2004

Citycon Oyj
Board of Directors

CONSOLIDATED INCOME STATEMENT, EUR million
1-6 2004 1-6 2003 1-12 2003
Turnover 44.1 38.7 78.1
Other income 0.1 -0.1 -0.5
Expenses
Materials and services 11.7 9.2 18.7
Salaries and social expenses 1.4 1.3 2.6
Depreciation and impairments 3.8 3.2 6.5
Rents and maintenance charges 1.5 2.1 4.1
Share of associated companies'
profit 0.2 0.2 0.4
Other expenses of business
operations 1.1 0.9 1.9
Expenses, total 19.7 16.9 34.3
Operating profit 24.5 21.6 43.3
Financial income and
expenses -12.9 -11.7 -24.2
Profit before extraordinary
items and taxes 11.6 9.9 19.1

Taxes -3.3 -2.7 -4.9
Profit 8.4 7.1 14.3

CONSOLIDATED BALANCE SHEET, EUR million
Assets
Non-current assets
Intangible assets 4.8 4.1 4.5
Tangible assets 740.0 621.3 729.1
Investments
Holdings in associated companies 55.4 74.9 55.5
Treasury shares 4.7 4.2 4.7
Other investments 21.4 22.3 23.1
Investments, total 81.5 101.4 83.3
Non-current assets, total 826.3 726.8 816.9

Current assets
Short-term receivables 3.1 3.7 3.4
Cash and cash equivalents 4.8 12.1 15.1
Current assets, total 7.9 15.8 18.5
Assets, total 834.2 742.7 835.3

Liabilities and shareholders' equity
Shareholders' equity
Share capital 142.8 142.8 142.8
Share premium fund 28.3 28.3 28,3
Treasury share reserve 4.7 4.2 4.7
Other funds 6.6 6.6 6.6
Retained profits 13.0 13.0 13.0
Profit 8.4 7.1 14.3
Capital loan 68.5 68.5 68.5
Shareholders' equity, total 272.1 270.4 278.0

Minority interest 101.2 90.6 99.8

Liabilities
Long-term liabilities 426.5 371.7 428.3
Short-term liabilities 34.4 10.0 29.2
Liabilities, total 460.9 381.7 457.5

Liabilities and shareholders'
equity, total 834.2 742.7 835.3

Gross investment in non-
current assets 12.7 0.9 84.2
% of turnover 28.9 2.4 107.9
Depreciations and
impairments 3.8 3.2 6.5
Personnel, average 40 33 33

CASH FLOW STATEMENT, EUR million
1-6 2004 1-6 2003 1-12 2003
Operating activities
Profit before
extraordinary items 11.6 9.9 19.1
Adjustments:
Depreciation 3.8 3.2 6.5
Financial income and expenses 12.9 11.7 24.2
Other adjustments 0.1 0.3 0.9
Cash flow before change in
working capital 28.4 25.1 50.8

Change in working capital 0.4 1.2 0.0
Cash flow from operating
activities before financial
items and taxes 28.8 26.3 50.7

Interest paid and payments for
other financial expenses of
operating activities -15.6 -14.5 -24.1
Dividend and interest received
from business operations 0.4 0.2 0.5
Taxes paid -2.3 -2.2 -4.7
Cash flow from operating
activities 11.4 9.8 22.4

Investing activities
Investments in tangible
and intangible assets -6.2 -0.7 -4.9
Shares in subsidiaries purchased -7.6 0.0 -77.1
Shares in subsidiaries sold 0.7 0.2 1.4
Shares in associated companies
purchased 0.0 -0.2 -0.8
Shares in associated companies
sold 0.0 0.5 1.6
Other items 0.0 0.1 0.1
Cash flow from investing
activities -13.1 -0.1 -79.7

Financial activities
Withdrawals of short-term loans 8.1 2.1
Withdrawals of long-term loans 4.9 67.9
Repayments of long-term loans -7.3 -0.2 -0.2
Dividend paid and other
distribution of profit -14.3 -9.2 -9.2
Cash flow from financial
activities -8.6 -9.3 60.6

Increase in cash and cash
Equivalents -10.3 0.4 3.3

Cash and cash equivalents at the
beginning of period 15.1 11.7 11.7
Cash and cash equivalents
at the end of period 4.8 12.2 15.1

KEY FINANCIAL FIGURES 1-6 2004 1-6 2003 1-12 2003

Earnings per share, EUR 0.08 0.07 0.14
Equity per share, EUR 1.95 1.94 2.01
Return on equity (ROE), % 8.5 7.3 7.1
Return on equity including
minority interest, % 5.6 5.0 4.9
Return on investment(ROI), % 6.1 6.0 5.8
Equity ratio, % 44.5 48.3 44.9
Equity ratio with capital
loan not counted as
part of shareholders' equity, % 36.2 39.1 36.7

TREASURY SHARES 1-6 2004 1-6 2003 1-12 2003
Acquired between
25 November 1999 and 31 March 2004
Number of shares, million 3.9 3.9 3.9
Total par value, EUR million 5.2 5.2 5.2
Share of shareholders'
equity, % 3.7 3.7 3.7
Share of voting rights, % 3.7 3.7 3.7
Acquisition cost, EUR million 4.7 4.7 4.7

The book value of treasury shares on 30 June 2004 corresponded to
the purchase price, which was lower than market value at the end
of period. The value/number of treasury shares are deducted from
shareholders' equity and the number of shares for the calculation
of the key figures.

CONSOLIDATED CONTINGENT LIABILITIES, EUR million
Mortgages on land
and buildings 362.3 337.2 338.4
Group company shares pledged 76.9 78,4
Other pledged shares 76.8 97.0 76.7
Other pledges given 0.6 1.4 3.2

GROUP'S DERIVATIVES, EUR million

30 June 2004 30 June 2003 30 Dec 2003
Par values Par values Par values
Interest-rate derivatives
Interest-rate swaps
Maturing in 2004 50.0
Maturing in 2007 78.2 78.2 78.2
Maturing in 2008 50.0 50.0
Maturing in 2009 129.6 66.0 91.0
Maturing in 2010 83.0 83.0 83.0
Total 340.8 277.2 302.2

Interest-rate options
Interest-rate caps purchased
Maturing in 2004 53.8 53.8 53.8
Total 53.8 53.8 53.8

GROUP'S DERIVATIVES, EUR million
30 June 2004 30 June 2003 31 Dec 2003
Fair values Fair values Fair values
Interest-rate derivatives
Interest-rate swaps
Maturing in 2004 -1.7
Maturing in 2007 0.6 -0.3 1.1
Maturing in 2008 -1.3 -1.3
Maturing in 2009 -5.0 -7.4 -5.4
Maturing in 2010 -5.5 -8.7 -5.8
Total -11.1 -18.1 -11.4

Interest-rate options
Interest-rate caps purchased
Maturing in 2004 0.0 0.0 0.0
Total 0.0 0.0 0.0

The fair values for derivatives describe their value if all
agreements had been closed at the market price of the end of
period.
Derivatives have been used for hedging the loan portfolio.
The accrued interest for the period included in the derivatives'
fair values, being EUR 0.8 million (EUR 0.4 million) has been
booked in interest expenses.

The taxes correspond to the profit of the period.
The figures are unaudited.

ACCOUNTING PRINCIPLES
Accounting principles applied in the annual financial statements
as of 31 December 2003 are applied in these financial statements.

FINANCIAL REPORTING
Citycon Oyj will publish its interim report for January-September
on 21 October 2004. Further information for investors can be seen
on Citycon's website, www.citycon.fi

Press conference
The company will hold a press conference and briefing for analysts
today, Wednesday 11 August 2004, starting at 2 p.m. at Citycon
Oyj's business premises at Pohjoisesplanadi 35 AB. CEO Petri
Olkinuora will report on business and profit during the review
period and on the outlook for the future. The presentation
material will be available after the conference on Citycon's
website.

Further information
CEO Petri Olkinuora
Tel. +358 9 6803 6738 or +358 400 333 256
Petri.olkinuora@citycon.fi

CFO Pirkko Salminen
Tel. +358 9 6803 6730 or +358 50 3022 485
pirkko.salminen@citycon.fi

Distribution
Helsinki Exchanges
Main media
www.citycon.fi

Independent Auditors' Review Report to the Board of Directors of
Citycon Oyj

We have reviewed the consolidated balance sheet of Citycon Oyj as
of June 30, 2004, the related consolidated statements of
operations for the six-month period ended June 30, 2004, and the
related consolidated statements of cash flows for the three-month
period ended June 30, 2004, which are included in the Company's
interim report. These consolidated financial statements are the
responsibility of the Board of Directors and the company's
management.

We conducted our review in accordance with the International
Standard on Auditing applicable to review engagements. This
standard requires that we plan and perform the review to obtain
moderate assurance as to whether the financial statements are free
of material misstatement. A review is limited primarily to
inquiries of company personnel and analytical procedures applied
to financial data and thus provides less assurance than an audit.
We have not performed an audit and, accordingly, we do not express
an audit opinion.

Based on our reviews, we are not aware of any material
modifications that should be made to the consolidated financial
statements referred to above for them to be in conformity with the
Accounting Act and other rules and regulations governing the
preparation of interim financial statements in Finland.

Helsinki, August 11, 2004

Ari Ahti   Jaakko Nyman
Authorized Public Accountant  Authorized Public Accountant

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