Citycon Oyj · OMXHEX:CTY1S
Citycon Oyj — Q1 2024 Earnings Presentation
21 slides from Citycon Oyj's earnings presentation, May 16, 2024
Slide 1: Q1/2024
Q1/2024 Citycon I Q1/2024 1
Slide 2: New leadership team
New leadership team HENRICA GINSTRÖM SAKARI JÄRVELÄ HELEN METSVAHT JUSSI VYYRYLÄINEN ERIK LENNHAMMAR CHIEF EXECUTIVE CHIEF FINANCIAL CHIEF OPERATING SR. VICE PRESIDENT, CHIEF DEVELOPMENT OFFICER OFFICER OFFICER LEASING OFFICER Citycon I Q1/2024 2
Slide 3: We stay committed to our necessity-based strategy
We stay committed to our necessity-based strategy Convenient, everyday use Dense and growing locations Top credit tenants with low OCRs throughout cycles Densely populated urban locations All Citycon’s centers connected to Grocery anchored centers with a in the largest and fast-growing cities public
Slide 4: High share of groceries and low share of fashion de-risks the business
High share of groceries and low share of fashion de-risks the business Average rent Average lease term % of GRI 25.5 EUR/sqm >5 years 19.3% Groceries Services and 24.1 EUR/sqm ~4 years 15.2% Offices Cafes and 35.8 EUR/sqm ~3 years 10.8% Restaurants Fashion 23.0 EUR/sqm <2 years 18.7% TOTAL* 25.1 EUR
Slide 5: Q1/2024: Strong underlying business performance
Q1/2024: Strong underlying business performance +6.5% +8.2% +3.0% LFL NRI growth Total NRI growth LFL tenant sales with comparable FX with comparable FX (vs. Q1/2023) (vs. Q1/2023) (vs. Q1/2023) +4.1% 94.9% +46.2M€ Avg. rent increase Fair value change of Retail occupancy with comparable FX investmen
Slide 6: Average rent continues to increase following indexation and active leasing
Average rent continues to increase following indexation and active leasing Retail occupancy rate Retail occupancy rate Average rent per sq.m.*/** vs. previous quarter** vs. last year** +4.1% +30 bps -50 bps 25.1 95.4% 94.9% 94.9% 94.6% 24.1 Q4/2023 Q1/2024 Q4/2023 Q1/2024 Q1/2023 Q1/2024 Occupancy c
Slide 7: Committed to investment grade credit rating
Committed to investment grade credit rating Actions taken in 2024 48 MEUR Share issuance 300 MEUR 5-year bond issuance 213 MEUR Bond tender Post quarter end events: 650 MEUR credit facility extended 206 MEUR Kista loan extended Citycon I Q1/2024 7
Slide 8: Divestment of Kongssenteret
Divestment of Kongssenteret Transaction details — Citycon has signed an agreement to sell Kongssenteret in Kongsvinger, Norway — Pricing close to the latest IFRS fair value of the asset — The transaction is estimated to close by the end of May. 380 MEUR divestment EUR 950 million of target by the en
Slide 9: G&A expenses to decline following FTE reduction and cost savings
G&A expenses to decline following FTE reduction and cost savings FTE development 251 234 220 179 Target: G&A run rate < 10% of NRI by year-end 2024. Administrative expenses were in Q1 EUR 11.3 million of which EUR 4.3 million was reorganization and one-time costs. Q4/2022 Q4/2023 Q1/2024 8/2024 (Run
Slide 10: Citycon recognized as a European Climate Leader
Citycon recognized as a European Climate Leader and ranks number one in the Nordic real estate sector 4th consecutive Financial Times’ European Climate Leaders — Highest GHG emissions reduction relative to revenues — Citycon number one in the Nordic real estate sector and ranks among the top 20% of
Slide 11: Financial overview
Financial overview Citycon I Q1/2024 11
Slide 12: Q1/2024 financials
Q1/2024 financials Like-for-like NRI +6.5 % All EUR million Q1/2024 Q1/2023 Change (%) FX Adjusted % NRI 51.0 47.8 6.7 % 8.2 % Direct operating profit 39.7 38.3 3.7 % 5.4 % EPRA earnings 24.5 25.3 -3.0 % -1.1 % Adjusted EPRA earnings* 22.1 17.9 23.9 % 27.4 % EPRA EPS, EUR 0.138 0.150 -8.0 % -6.1 % A
Slide 13: Detailed NRI bridge
Detailed NRI bridge NRI bridge Q1/2024 1.1 51.7 -0.4 0.0 2.5 -0.3 51.0 -0.7 1.0 47.8 Actual Q1/2023 Kista LFL properties (Re)deve- Torvbyen Divestments Other Actual Q1/24 FX impact Actual Q1/2024 lopments before FX Citycon I Q1/2024 13
Slide 14: Detailed EPRA Earnings bridge
Detailed EPRA Earnings bridge EPRA Earnings bridge Q1/2024 3.9 -1.7 -0.2 25.3 0.3 25.0 24.5 -2.8 0.2 -0.5 Actual Q1/2023 Net rental income G&A Other operating Financial inc.&exp. Direct current taxes Direct result of JVs Actuals Q1/2024 FX impact Actual Q1/2024 inc. and exp. before FX Citycon I Q1/2
Slide 15: Valuation
Valuation Fair value change EPRA per share metrics MEUR Q1/2024 Change Q1/2024 Q1/2023 EPRA NRV per share 8.96 10.78 Finland 4.7 EPRA NTA per share 7.79 9.43 Norway 1.0 EPRA NDV per share 7.69 10.22 Average yield Sweden 43.2 5.9 5.5 requirement.%* Denmark & Estonia -1.1 The effect of currency rates
Slide 16: Continued active liability management
Continued active liability management EUR 48 million share issuance — strengthened the balance sheet and improved its capital structure — Necessary action to defend investment grade credit rating EUR 300 million bond issuance — The 5-year senior unsecured fixed rate (6.5%) EUR-denominated bond — Cit
Slide 17: Strong, liquid balance sheet
Strong, liquid balance sheet Improved credit profile and a stronger, more flexible balance sheet 13% Bonds – 2.9 years weighted avg maturity Total available Hybrid 1% Equity – pro forma weighted average liquidity EUR 535 million 37% Commercial paper maturity 3.4 years Bank loans – 3.18 % weighted av
Slide 18: Key credit metrics
Key credit metrics Loan to value (IFRS) Net debt to EBITDA 46.9% 46.3% 48.3% 47.8% 11.1x 11.7x 41.7% 10.7x 40.3% 10.0x 9.5x 2020 2021 2022 2023 Q1/2024 Q1/2024 2020 2021 2022 2023 Q1/2024 FX adjusted Interest coverage ratio Weighted average interest rate 4.1x 4.1x 4.0x 3.18% 3.7x 3.5 2.47% 2.61% 2.3
Slide 19: 2024 guidance reaffirmed
2024 guidance reaffirmed Outlook FY2024 (unchanged) Direct operating profit (MEUR) 185–203 (Midpoint) (194) EPRA Earnings per share (basic) (EUR) 0.62–0.74 (Midpoint) (0.68) Adjusted EPRA Earnings per share (EUR) 0.46–0.58 (Midpoint) (0.52) The outlook assumes that there are no major changes in macr
Slide 20: Q&A
Q&A Citycon I Q1/2024 20
Slide 21: Sakari Järvelä, Chief Financial Officer
Sakari Järvelä Chief Financial Officer +358 50 387 8180 sakari.jarvela@citycon.com Citycon I Q1/2024 21