CITYCON'S INTERIM REPORT 1 JANUARY ? 31

CITYCON OYJ STOCK EXCHANGE BULLETIN 27 APRIL 2004 11.00AM CITYCON'S INTERIM REPORT 1 JANUARY – 31 MARCH 2004 - Profit before extraordinary items and taxes rose to EUR 5.7 million (EUR 4.8 million) - Turnover increased to EUR 21.9 million (EUR 19.4 million) - Earnings per share increased to EUR 0.04 (EUR 0.03) - The acquisition of the Torikeskus shopping centre in Seinäjoki boosted Citycon's shopping centres to 16 - Demand for retail premises and occupancy rates continued to be strong during the period KEY INDICATORS 1-3 2004 1-3 2003 1-12 2003 Turnover, EUR million 21.9 19.4 78.1 Operating profit, EUR million 12.2 10.8 43.3 % of turnover 55.7 55.5 55.5 Profit before extraordinary items and taxes, EUR million 5.7 4.8 19.1 Profit , EUR million 4.1 3.5 14.3 Earnings per share, EUR 0.04 0.03 0.14 Earnings per share, diluted, EUR 0.04 0.03 0.14 Equity per share, EUR 1.91 1.91 2.01 P/E (price/earnings) ratio 13 7 11 Return on equity (ROE), % 8.4 7.2 7.1 Return on equity including minority interest,% 5.6 4.9 4.9 Return on investment (ROI), % 6.0 6.0 5.8 Equity ratio, % 43.8 47.6 44.9 Equity ratio with capital loan not counted as part of shareholder's equity, % 35.6 38.4 36.7 Net rental income, % 8.4 8.4 8.5 Occupancy rate, % 97.1 97.3 97.3 Personnel at the end of period 41 33 34 Trend in the business environment According to Statistics Finland, the value of retail sales in January 2004 was 6.8 per cent and in February 5.6 per cent higher than on the same period last year. Department store trade grew by 8.3 per cent in January and 6.2 per cent in February. Groceries trade grew by 3.6 per cent in January and 4.4 per cent in February compared to the figures on the same period last year. 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. Property portfolio The book value of the property portfolio owned by Citycon was EUR 730.7 million at the end of the period (EUR 646.6 million). Citycon owned 16 shopping centres, which comprised 58.6 per cent of the company's property portfolio, and 132 supermarket and shop properties, which comprised 41.4 per cent of the company's property portfolio. At the end of the period 46.8 per cent were in the Helsinki Metropolitan Area, 35.4 per cent were in other major Finnish cities and 17.8 per cent were in other parts of Finland. Customers, the trend in 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, the company signed a total of 98 leases. The acquisition of Torikeskus in Seinäjoki meant Citycon gained 79 new leases. At the end of the period, Citycon had a total of 1,438 leases with roughly 830 lessees. The average length of the leases was 3.7 years. The occupancy rate for Citycon's entire property portfolio was 97.1 per cent (97.3%). TREND IN PORTFOLIO OF LEASES BY DIVISION 1-3 2004 1-3 2003 1-12 2003 Shopping centres Number of leases signed during the period 73 36 151 Total area of leases signed, sg.m. 11,039 3,304 16,399 Ooccupancy rate at the end of period, % 97.5 97.7 97.6 Average lenght of lease portfolio at the end of period, years 2.9 3.3 3.0 Supermarkets and shops Number of leases signed during the period 25 9 51 Total area of leases signed, sg.m. 13,564 2,038 9,806 Ooccupancy rate at the end of period, % 96.9 96.9 96.8 Average lenght of lease portfolio at the end of period, years 4.6 4.8 4.4 Rental income The net rental income of Citycon's leasing business during the period totalled EUR 15.2 million (EUR 13.8 million). The average net rental yield of the properties owned by the company was 8.4 per cent. Shopping centres accounted for 55.1 per cent of the net rental income (49.2 %) and supermarkets and shops accounted for 44.9 per cent (50.8 %). Of the income, roughly 47.5 per cent was generated by properties in the Helsinki Metropolitan Area, 34.4 per cent by properties in other major Finnish cities, and roughly 18.1 per cent by other properties in Finland. TREND IN RENTAL INCOME BY DIVISION 1-9 2003 1-12 2002 1-12 2003 Shopping centres Gross rental income, EUR million 11.4 8.8 36.5 Net rental income, EUR million 8.4 6.7 27.5 Net rental yield, % *7.9 7.9 *8.1 *Figures include uncompleted projects Supermarkets and shops Gross rental income, EUR million 9.2 9.2 36.5 Net rental income, EUR million 6.8 6.9 27.2 Net rental yield, % 9,1 9,0 8.9 Investments and development projects Citycon's gross investments amounted to EUR 9.4 million (EUR 0.2 million). Gross investments include the acquisition of a new shopping centre, Torikeskus in Seinäjoki, for EUR 7.1 million, and EUR 2.3 million for business development projects. The Shopping Centres Division's property portfolio grew during the period with Torikeskus in Seinäjoki, one of the foremost shopping centres in the Southern Ostrobothnia region. Torikeskus became owned by Citycon on 1 March 2004. The net rental yield of Torikeskus on the acquisition price at the date of the transaction was 8.6 per cent. The Shopping Centres Division's biggest investments under way were extensions and conversions at the shopping centres IsoKarhu in Pori and Jyväskeskus in Jyväskylä. The combined total of the investments is roughly EUR 12.0 million. The projects are scheduled for completion in the third quarter. The investments will begin to have a positive effect on income in the fourth quarter. The shopping Centres Division also continued the planning for extension at the Myyrmanni shopping centre in Vantaa and the Lippulaiva shopping centre in Espoo. The Supermarkets and Shops Division did not make any significant investments during the period. 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. Citycon deployed effort in the processes of land acquisition and city planning according to plan during the period. Divestments During the period, Citycon sold one property in accordance with its strategy. The sale did not have a significant impact on profit. Turnover and profit During the period, Citycon's turnover increased to EUR 21.9 million (EUR 19.4 million). The increase was largely due to the acquisitions of shopping centres at the end of 2003. Gross rental income accounted for 94.1 per cent of turnover (93.3 %). Operating profit increased to EUR 12.2 million (EUR 10.8 million) due to the acquisitions in the end of 2003. Balance sheet and financing The Group's financing situation remained good during the period. The balance sheet total was EUR 836.4 million (EUR 745.8 million), of which cash and cash equivalents were EUR 7.2 million (EUR 13.4 million). At the end of the period, Citycon had a total of EUR 467.3 million (EUR 388.8 million) of liabilities. Interest-bearing liabilities increased by EUR 4.5 million during the period to EUR 516.5 million (EUR 440.4 million), when capital loan 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 5.1 per cent (5.4 %). The average loan period, weighted according to the principals of the loans, was roughly 4.3 years (5.3 years), and the average interest-rate fixing period was 4.2 years (3.8 years). Citycon's interest-bearing liabilities included 86.7 per cent of floating rate loans, of which 76.8 per cent has been converted to a fixed rate by means of interest rate swaps and 12.1 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 342.2 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 2.2. The Group's equity ratio was 43.8 per cent (47.6 %). If the capital loan is not included in shareholders' equity, the equity ratio was 35.6 per cent (38.4 %). Financial income and expenses rose to EUR 6.5 million (EUR 5.9 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 adoption IFRS on its accounting principles in its financial statements bulletin released on 12 February 2004. Personnel At the end of the period, the Citycon Group had a total of 41 (33) employees, of whom 32 (27) were employed by the parent company. Shares and shareholdings Citycon's share capital as at 31 March 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 78.8 million shares and EUR 146.7 million. The high price quoted during the period was EUR 2.05 and the low was EUR 1.52. The weighted average price for the period was EUR 1.86 and the closing price of the period was EUR 2.05. The company's market capitalisation at the end of the period was EUR 208.9 million (EUR 102.9 million), after deduction the portion of treasury shares from the total. Shareholders During the period Gazit-Globe (1982) Ltd announced on 3 March 2004 that it has increased its holdings in the company's shares and voting rights to 25.43 per cent. At the end of the period, Citycon had a total of 1,351 registered shareholders. The registered shareholders held 56.0 million shares, so they had 53 per cent of the shares and voting rights. Nominee-registered shareholders had 49.8 million shares, which is 47 per cent of the number of shares and voting rights. Treasury shares, the Board of Directors and the management share holdings 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 31 March 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 31 March 2004, which was 0.06 per cent of the company's total shares and voting rights. Citycon's CEO held 100,000 shares and the other members of the Corporate Management Committee held a total of 3,000 shares on 31 March 2004. Annual General Meeting Citycon's Annual General Meeting of 15 March 2004 adopted the company's financial statements for 2003 and granted release from personal liability to the company's Board of Directors and CEO. The Board's proposals passed by the AGM can be seen in their entirety in the Citycon stock exchange bulletin issued on 12 February 2004. Authorisations and warrants The annual general meeting granted the Board of Directors an authorisation, within one year of the AGM, to decide on increasing the share capital by means of one or more new issues of shares, in such a way that the total number of shares subscribed in the new issue is no more than 21,085,106 new shares in the company with a par value of EUR 1.35 per share and the company's share capital may be increased by a maximum of EUR 28,464,893.10. The authorisation includes an entitlement to waive existing shareholders' pre-emption rights. The annual general meeting granted the Board of Directors an authorisation to decide, within one year of the AGM, on buying back company shares. The maximum number of shares that may be bought back will have a combined par value, combined with the par value of the shares already held by the company, equivalent to five per cent of the company's share capital and of the voting rights conferred by all the shares. Company shares may be bought back, for example, to be used as consideration in prospective property or share transactions or for the acquisition of other assets of importance to the company's business. The AGM granted the Board of Directors an authorisation to decide, within one year of the AGM, to decide on the surrender of all the shares acquired on the basis of the authorisation granted to the Board and other treasury shares to be used, for example, as consideration in prospective property or share transactions or for the acquisition of other assets of importance to the company's business. The AGM decided in accordance with a proposal by the Board on issuing warrants to personnel of Citycon Oyj and of its subsidiaries and to a wholly owned subsidiary of Citycon Oyj. Existing shareholders' pre-emption rights may be waived as the warrants are intended to be part of the Group's personnel incentive and commitment system. The number of warrants is 3,900,000. Each option will confer the right to subscribe one (1) Citycon share. Citycon Oyj's share capital may, as a result of the share subscriptions from the 2004 share options, increase by a maximum total of EUR 5,265,000 and the number of shares may rise by a maximum of 3,900,000 new shares, which is no more than 3.8 per cent of the company's total number of shares and voting rights when treasury shares have been deducted. At the end of the review period, no part of the authorisations had been utilised. Board of Directors and auditors The annual general meeting decided to re-elect the following to the Board of Directors: Stig-Erik Bergström and Carl G. Nordman, and to elect as new members Executive Vice President Amir Gal, Head of Real Estate Investments Timo Kankuri, Managing Director Raimo Korpinen, MSc (Eng), MBA Tuomo Lähdesmäki, and CEO Claes Ottosson. The Board of Directors elected Stig-Erik Bergström as chairman and Tuomo Lähdesmäki as deputy chairman. Ari Ahti, Authorised Public Accountant, and Jaakko Nyman, APA, were re-elected as the company's auditors with the APA firm KPMG Wideri Oy Ab as deputy auditor. Dividend The AGM decided, in accordance with a proposal from the Board of Directors, to pay dividend on shares in non-company ownership for the financial year 1 January – 31 December 2003 in the amount of EUR 0.14 per share. The dividend payment's date of record was 18 March 2004 and 25 March 2004 was the payment date. Events after the end of the review period Gazit-Globe (1982) Ltd announced on 6 April 2004 that it had increased its holdings of the company's shares and voting rights to 33.4 per cent. Citycon was selected for international property investment companies' indexes as of 1 April 2004. EPRA/NAREIT Global Real Estate Index and GPR 250 Property Securities Index serve as comparative indexes for international investors. Citycon's 1999 A/B warrants were included on the main list of the Helsinki Exchanges since 23 April 2004. 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, 27 April 2004 Citycon Oyj Board of Directors CONSOLIDATED INCOME STATEMENT, EUR million 1-3 2004 1-3 2003 1-12 2003 Turnover 21.9 19.4 78.1 Other income 0.0 0.0 -0.5 Expenses Materials and services 5.8 4.7 18.7 Salaries and social expenses 0.7 0.7 2.6 Depreciation and impairments 1.8 1.6 6.5 Rents and maintenance charges 0.8 1.0 4.1 Share of associated companies' profit 0.1 0.1 0.4 Other expenses of business operations 0.5 0.6 1.9 Expenses, total 9.7 8.7 34.3 Operating profit 12.2 10.8 43.3 Financial income and expenses -6.5 -5.9 -24.2 Profit before extraordinary items and taxes 5.7 4.8 19.1 Taxes -1.6 -1.3 -4.9 Profit 4.1 3.5 14.3 CONSOLIDATED BALANCE SHEET, EUR million Assets Non-current assets Intangible assets 4.7 4.1 4.5 Tangible assets 739.4 624.0 729.1 Investments Holdings in associated companies 55.4 74.9 55.5 Treasury shares 4.7 3.9 4.7 Other investments 21.4 22.3 23.1 Investments, total 81.5 101.2 83.3 Non-current assets, total 825.6 729.2 816.9 Current assets Short-term receivables 3.6 3.2 3.4 Cash and cash equivalents 7.2 13.4 15.1 Current assets, total 10.8 16.6 18.5 Assets, total 836.4 745.8 835.3 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 3.9 4.7 Other funds 6.6 6.6 6.6 Retained profits 13.0 13.0 13.0 Profit 4.1 3.5 14.3 Capital loan 68.5 68.5 68.5 Shareholders' equity, total 267.8 266.5 278.0 Minority interest 101.2 90.5 99.8 Liabilities Long-term liabilities 433.2 371.8 428.3 Short-term liabilities 34.1 17.0 29.2 Liabilities, total 467.3 388.8 457.5 Liabilities and shareholders' equity, total 836.4 745.8 835.3 Gross investment in non- current assets 9.4 0.2 84.2 % of turnover 42.9 0,8 107.9 Depreciations and impairments 1.8 1.6 6.5 Personnel, average 39 32 33 CASH FLOW STATEMENT, EUR million 1-3 2004 1-3 2003 1-12 2003 Operating activities Profit before extraordinary items 5.7 4.8 19.1 Adjustments: Depreciation 1.8 1.6 6.5 Financial income and expenses 6.5 5.9 24.2 Other adjustments 0.1 0.1 0.9 Cash flow before change in working capital 14.2 12.4 50.8 Change in working capital 0.1 0.4 0.0 Cash flow from operating activities before financial items and taxes 14.2 12.9 50.7 Interest paid and payments for other financial expenses of operating activities -1.4 -1.4 -24.1 Dividend and interest received from business operations 0.1 0.1 0.5 Taxes paid -1.1 -1.0 -4.7 Cash flow from operating activities 11.9 10.6 22.4 Investing actitivies Investments in tangible and intangible assets -3.1 -0.2 -4.9 Shares in subsidiaries purchased -7.5 -77.1 Shares in subsidiaries sold 0.1 1.4 Shares in associated companies purchased -0.8 Shares in associated companies sold 0.4 1.6 Other items 0.1 Cash flow from investing activities -10.5 0.2 -79.7 Financial activities Withdrawals of short-term loans 0.2 2.1 Withdrawals of long-term loans 4.9 67.9 Repayments of long-term loans -0.5 -0.2 Dividend paid and other distribution of profit -13.7 -9.1 -9.2 Cash flow from financial activities -9.2 -9.1 60.6 Increase in cash and cash Equivalents -7.9 1.7 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 7.2 13.4 15.1 KEY FINANCIAL FIGURES 1-3 2004 1-3 2003 1-12 2003 Earnings per share, EUR 0.04 0.03 0.14 Equity per share, EUR 1.91 1.91 2.01 Return on equity (ROE), % 8.4 7.2 7.1 Return on equity including minority interest, % 5.6 4.9 4.9 Return on investment(ROI), % 6.0 6.0 5.8 Equity ratio, % 43.8 47.6 44.9 Equity ratio with capital loan not counted as part of shareholders' equity, % 35.6 38.4 36.7 TREASURY SHARES 1-3 2004 1-3 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 31 March 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 338.4 323.4 338.4 Group company shares pledged 85,3 78,4 Other pledged shares 76.7 96.9 76.7 Other pledges given 0,1 1.0 3.2 GROUP'S DERIVATIVES, EUR million 31 March 2004 31 March 2003 31 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 Maturing in 2008 50.0 50.0 Maturing in 2009 131.0 66.0 91.0 Maturing in 2010 83.0 83.0 83.0 Total 342.2 199.0 302.2 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 31 March 2004 31 March 2003 31 Dec 2003 Fair values Fair values Fair values Interest-rate derivatives Interest-rate swaps Maturing in 2004 -1.7 Maturing in 2007 -0.3 1.1 Maturing in 2008 -2.6 -1.3 Maturing in 2009 -8.5 -6.1 -5.4 Maturing in 2010 -7.7 -6.5 -5.8 Total -19.2 -14.3 -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 1.7 million (EUR 1.0 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 other interim reports for 2004 as follows: January-June 11 August 2004 January-September 21 October 2004 Further information for investors can be seen on Citycon's website, www.citycon.fi 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

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