Citycon Oyj · OMXHEX:CTY1S
Citycon Oyj — Q3 2023 Earnings Presentation
20 slides from Citycon Oyj's earnings presentation, 2023
Slide 1: Citycon Q1-Q3/2023 - comparable FX rates
Citycon Q1-Q3/2023 - comparable FX rates +6.9%Like-for-like NRI growth +5.3% Standing NRI growth (vs. Q1-Q3/2022) (vs. Q1-Q3/2022) +7.6% Adjusted like-for-like NRI increase* +7.6% Adjusted standing NRI growth* +4.1% Like-for-like tenant sales increase (vs. Q1-Q3/2022) (vs. Q1-Q3/2022) (vs. Q1-Q3/202
Slide 2: Resilient underlying business performing
Resilient underlying business performing +7.0% Like-for-like NRI increase in comparable currency Q3/2023 vs Q3/2022 +6.9% Like-for-like NRI increase in comparable currency Q1-Q3/2023 vs Q1-Q3/2022 Currencies NOK and SEK both rebounding from 20 years lows vs euro. Citycon I Audiocast Q3/2023 2
Slide 3: Necessity-based retail with inflation protected rents
Necessity-based retail with inflation protected rents Last-mile logistics hubs — 45% of our tenants are necessity based. — majority of our top tenants consist of high credit grocers and Nordic municipalities. — locations in central urban areas. — 100% of the centres connected to public transportatio
Slide 4: Strengthening the balance sheet
Strengthening the balance sheet EUR 650 million credit facility signed in April 2023 — replaced and expanded existing EUR 500 million credit facility maturing in June 2024. — consisting of a EUR 400 million revolver and EUR 250 million term loan. EUR 236 million bond repurchases in 2023 — took an ad
Slide 5: Asset management continues to implement strategy – case study
Asset management continues to implement strategy – case study Case Myyrmanni: — Opened 1,800 sqm Lidl in the basement and enlarged current supermarket to a 7,300 sqm Prisma hypermarket. → replacing under-performing and low rent paying fashion tenants with daily necessities. More stable cash flow. →
Slide 6: Strong business fundamentals
Strong business fundamentals Recipe for success… — high quality real estate — the goods and services consumers require — easy to access and convenient locations — compounding rent growth supported by wage growth and increasing sales. … combined with Citycon’s strong business fundamentals and well-pe
Slide 7: Financial overview
Financial overview Citycon I Audiocast Q3/2023 7
Slide 8: Q3/2023 financials
Q3/2023 financials +7.0 % Like-for-like NRI increase Standing* All Change FX Adjusted Change FX Adjusted EUR million Q3/2023 Q3/2022 Q3/2023 Q3/2022 (%) % (%) % NRI 48.4 48.8 -1.0 % 4.9 % 48.4 50.6 -4.4 % 1.4 % Direct operating profit 42.7 41.9 1.9 % 8.1 % 42.7 43.7 -2.2 % 4.0 % EPRA earnings 29.0 2
Slide 9: Q1-Q3/2023 financials
Q1-Q3/2023 financials +6.9 % +7.6 % Excluding one-time items Like-for-like NRI increase Q2/2022 Standing* All Change FX Adjusted Change FX Adjusted EUR million Q1-Q3/2023 Q1-Q3/2022 Q1-Q3/2023 Q1-Q3/2022 (%) % (%) % NRI 145.1 145.9 -0.5 % 5.3 % 145.1 152.4 -4.8 % 1.0 % Direct operating profit 123.2
Slide 10: Cumulative impact of FX, Torvbyen & Q2/2022 one-off items
Cumulative impact of FX, Torvbyen & Q2/2022 one-off items Q3/2023 Q3/2022 % Q1-Q3/2023 Q1-Q3/2022 % Standing NRI 48.4 48.8 -1.0% 145.1 145.9 -0.5% FX impact -2.7 -585 bps -8.1 -580 bps Adjusted Standing NRI 48.4 46.1 4.9% 145.1 137.8 5.3% Torvbyen 0.4 -0.6 -225 bps 0.3 -2.0 -180 bps Adjusted Standin
Slide 11: Detailed NRI bridge
Detailed NRI bridge NRI bridge Q3/2023 0.7 2.6 -1.0 0.0 51.3 50.6 -1.6 48.4 -2.9 Actual Q3/2022 LFL properties (Re)deve- Torvbyen Divestments Other Actual Q3/23 FX impact Actual Q3/2023 lopments before FX NRI bridge Q1-Q3/2023 1.6 7.8 -2.3 0.3 153.9 152.4 -5.9 145.1 -8.8 Actual LFL properties (Re)de
Slide 12: Detailed EPRA Earnings bridge
Detailed EPRA Earnings bridge EPRA Earnings bridge Q3/2023 0.7 2.6 0.8 0.1 0.2 0.1 31.3 0.6 0.0 -1.6 29.8 -1.0 -1.0 29.1 -2.2 Actual LFL (Re) Divestments Torvbyen G&A Other Financial Direct Change Direct result Other Actuals FX impact Actual Q3 2022 properties developments operating inc.&exp. curren
Slide 13: Valuation
Valuation Fair value change EPRA per share metrics MEUR Q1-Q3/2023 Change Q3/2023 Q2/2023 Finland -22.4 EPRA NRV per share 10.43 10.71 EPRA NTA per share 9.07 9.34 Norway 14.5 EPRA NDV per share 9.41 10.02 Sweden -8.0 Average yield 5.6 5.5 requirement,%* Denmark & Estonia 15.2 FX adjusted EPRA NRV/s
Slide 14: FX impact scenarios to LTV, NRV and IFRS equity
FX impact scenarios to LTV, NRV and IFRS equity Actual 31.12.2022 31.12.2021 FX-rates FX-rates FX-rates Q3/2023 LTV (%) 43.9% 43.2% 41.7% EPRA NRV per share 10.43 10.78 11.14 Equity increase compared to - 50.2 102.7 Q2 actual (MEUR) NOK and SEK continue to be nearly at twenty-year lows. However, the
Slide 15: Continued active liability management
Continued active liability management EUR 266 million asset sales in the last 24 months — executed close to book value — including EUR 120 million in December 2022 — EUR 380 million remaning on EUR 500 million 2024 target EUR 650 million credit facility replaced and expanded in Q2/2023 — EUR 400 mil
Slide 16: Strong, liquid balance sheet
Strong, liquid balance sheet Improved credit profile and a stronger, more flexible balance sheet* 1% 9% Bonds – no material maturities thru October 2024 Total available Hybrid Equity – 2.9 years weighted avg maturities* liquidity EUR 442 million 36% Commercial paper – 2.59% weighted avg interest rat
Slide 17: Stable credit metrics
Stable credit metrics Loan to value (IFRS) Net debt to EBITDA 46.9% 11.1x 42.4% 41.7% 43.9% 43.2% 10.0x 10.3 40.3% 9.2x 9.5x 2019 2020 2021 2022 Q3/2023 FX adjusted 2019 2020 2021 2022 Q3/2023 *FX impacted LTV negatively by 1.0% points in Q2/2023. Q3/2023* **Since year-end 2021 FX has impacted LTV b
Slide 18: Updated 2023 guidance
Updated 2023 guidance Current outlook FY2023 Potential FY2023 Previous outlook FY2023 with year-end 2022 FX rates negative FX impact with year-end 2022 FX rates Direct operating profit (MEUR) 174–182 174–192 -10 MEUR (Midpoint) (178) (183) EPRA Earnings per share (basic) (EUR) 0.69–0.78 0.69–0.81 -0
Slide 19: Q&A
Q&A Citycon I Audiocast Q3/2023 19
Slide 20: Contact details
Bret McLeod Sakari Järvelä Chief Financial Officer VP, Investor Relations +46 73 326 8455 +358 50 387 8180 bret.mcleod@citycon.com sakari.jarvela@citycon.com Citycon I Audiocast Q3/2023 20