Slide 1: Audiocast Presentation Q1/2022
AUDIOCAST PRESENTATION Q1/2022
Slide 2: Business Summary
BUSINESS SUMMARY 1 Q1 2022 I Audiocast
Slide 3: Operational Performance Q1/2022
OPERATIONAL PERFORMANCE Q1/2022 +3.5% +5.7% +14.2 MEUR Like-for-like NRI Growth EPRA NRV / Share Increase Net Fair Value Gains 5th consecutive quarter fair value gains in (vs. Q1/2021) (vs. Q1/2021) operational properties 95.1% + 0.8 EUR +11.8% Retail Occupancy Average Rent / sq.m. Increase Like-for
Slide 4: Citycon's necessity-based centres focused on serving as last-mile logistics hubs
CITYCON’S NECESSITY-BASED CENTRES FOCUSED ON SERVING AS A LAST-MILE LOGISTICS HUBS DENSELY POPULATED ALL CITYCON CENTRES CONNECTED IN THE LARGEST AND FAST- WITH A LARGE SHARE OF NECESSITY TO GROWING CITIES IN THE NORDICS AND MUNICIPAL TENANTS VALUABLE CONVENIENCE FOR ATTRACTIVE OPPORTUNITIES FOR TO
Slide 5: Positive footfall and strong tenant sales development
POSITIVE FOOTFALL AND STRONG TENANT SALES DEVELOPMENT LIKE-FOR-LIKE TENANT SALES INCREASED BY +7.4 % COMPARED TO 2019 LEVELS WEEKLY FOOTFALL DEVELOPMENT, 2022 vs. 2021 TENANT SALES DEVELOPMENT 11.8% 160% 140% 7.6% 120% 100% 80% 60% -0.7% -0.8% 40% -4.7% 20% -5.7% Q1/2021 Q4/2021 Q1/2022 0% Week 1 We
Slide 6: Occupancy rate and average rent increasing
OCCUPANCY RATE AND AVERAGE RENT INCREASING AVERAGE RENT PER SQ.M. RETAIL OCCUPANCY RATE DEVELOPMENT* INCREASED BY 95.1 0.8 EUR TO 23.4 EUR PER SQ.M. 94.2 94.1 93.7 Q2/2021 Q3/2021 Q4/2021 Q1/2022 8.0% OCR PROVIDES AMPLE HEADROOM FOR CONTINUED RENT GROWTH 5 Q1 2022 I Audiocast *Excl. Kista Galleria 5
Slide 7: Strategic capital recycling
STRATEGIC CAPITAL RECYCLING DIVESTED 6 NON-CORE ASSETS OVER THE LAST 14 MONTHS AT PRICING THAT VALIDATES OUR INCREASING VALUATIONS • As disclosed in February 2022, we divested two non-core assets in Norway during the first quarter with pricing above NAV. ACQUIRED A RESIDENTIAL PROPERTY OF OVER 200 A
Slide 8: Phase 1 development of Lippulaiva opened
PHASE 1 DEVELOPMENT OF LIPPULAIVA OPENED • Grand opening of Lippulaiva on 31 March 2022. • 70% necessity-based tenants. • Pre-leasing rate over 90%. • 110 000 visitors during the opening weekend. • Anticipated partial 2022 NRI contribution approx. 8 MEUR. • 8 residential towers to be completed be
Slide 9: Grand opening of Lippulaiva – Citycon's strategy in action
G R A N D O P E N I N G O F L I P P U L A I VA – C I T Y C O N ´ S S T R AT E GY I N A C T I O N “Citycon is paving the way for better understanding and realization of energy and sustainability goals with clear strategy, innovations, applications, and solutions that push the market to think differen
Slide 10: Citycon well positioned for the new inflationary environment
CITYCON WELL POSITIONED FOR THE NEW INFLATIONARY ENVIRONMENT 92% OF RENTS TIED TO INDEXATION - Indexation once a year, typically in October- November. ALL ELECTRICITY COSTS HEDGED IN CITYCON´S MAIN OPERATING COUNTRIES - Provides stability both for Citycon and its tenants. SIGNIFICANT AMOUNT OF ONSIT
Slide 11: Financial Overview
FINANCIAL OVERVIEW 10 Q1 2022 I Audiocast
Slide 12: Q1/2022 Financials
+3.5% Quarterly Like- Q1/2022 FINANCIALS for-like NRI growth Standing Standing Actual Actual MEUR Change Change Q1/2022 Q1/2021 Q1/2022 Q1/2021 Gross rental income 55.0 51.3 7.3% 56.4 57.2 -1.4% Net rental income 47.8 44.8 6.7% 49.1 50.4 -2.6% Direct operating profit 38.9 39.3 -1.0% 40.2 44.9 -10.3%
Slide 13: Net rental income and EPRA earnings bridge
NET RENTAL INCOME AND EPRA EARNINGS BRIDGE NET RENTAL INCOME BRIDGE Q1/2021 to Q1/2022 1.3 1.4 50.4 0.5 49.1 -4.4 Q1/2021 Like-for-like properties (Re)development projects Divestments Other (incl. exchange Q1/2022 rate differences) EPRA EARNINGS BRIDGE Q1/2021 to Q1/2022 31.6 1.7 -1.3 28.1 -3.1 -0.2
Slide 14: Portfolio valuations increased
PORTFOLIO VALUATIONS INCREASED EPRA NRV PER SHARE +5.7% vs. Q1/2021 OPERATING FAIR VALUE CHANGES, MEUR Q1/2022 Q1/2021 PROPERTIES Finland & Estonia 7.6 3.1 RECORDED FIFTH Norway 8.0 -1.3 CONSECUTIVE Sweden & Denmark 0.3 8.1 QUARTER OF Investment properties. total 15.9 10.0 UPLIFT Right-of-use assets
Slide 15: Strong and flexible balance sheet with ample liquidity
STRONG AND FLEXIBLE BALANCE SHEET WITH AMPLE LIQUIDITY IMPROVED CREDIT PROFILE AND A STRONGER, MORE FLEXIBLE BALANCE SHEET Total available liquidity • No material maturities thru 2024 41% 43% 604 MEUR • 4.0 years weighted avg maturities • 2.47% weighted avg interest rate 16% Investment grade Bonds H
Slide 16: Credit metrics strengthening
CREDIT METRICS STRENGTHENING LOAN TO VALUE (IFRS) INTEREST COVERAGE RATIO 48.7 % 46.9 % 4.2x 4.1x 4.1x 4.0x 42.4 % 3.8x 40.7 % 40.4 % 2018 2019 2020 2021 Q1/2022 2018 2019 2020 2021 Q1/2022 NET DEBT TO EBITDA WEIGHTED AVERAGE INTEREST RATE 11.2x 11.1x 2.39% 2.47% 2.47% 2.35% 2.29% 10.0x 10.0x 9.2x 2
Slide 17: Outlook for 2022
OUTLOOK FOR 2022 Updated Previously Midpoint Change Direct operating profit 168-180 164-180 MEUR +2 (Midpoint) (174) (172) EPRA Earnings per share (basic) 0.66-0.72 0.62-0.72 EUR +0.02 (Midpoint) (0.69) (0.67) Adjusted EPRA Earnings per share (basic) 0.49-0.58 0.48-0.58 EUR +0.005 (Midpoint) (0.535)
Slide 18: Q&A
17 Q1.2022 | Audiocast CICITYCON
Slide 19: Bret McLeod, Sakari Järvelä – Contacts
BRET MCLEOD SAKARI JÄRVELÄ Chief Financial Officer VP, Corporate Finance and Investor Relations +46 73 326 8455 +358 50 387 8180 bret.mcleod@citycon.com sakari.jarvela@citycon.com CITYCON.COM
Slide 20: Thank you!
i. cox) - > THANK YOU! citycon.com CICITYCON