Citycon Oyj · OMXHEX:CTY1S
Citycon Oyj — Q1 2023 Earnings Presentation
16 slides from Citycon Oyj's earnings presentation, April 2023
Slide 1: Citycon Q1/2023 - comparable FX rates
Citycon Q1/2023 - comparable FX rates +9.4% Like-for-like NRI growth +8.7% Standing NRI growth +9.0% Standing Adjusted EPRA EPS (vs. Q1/2022) (vs. Q1/2022) (vs. Q1/2022) +7.6% Like-for-like footfall increase 95.4% Retail occupancy +6.2% Like-for-like tenant sales increase (vs. Q1/2022) (vs. Q1/2022)
Slide 2: SEK and NOK rates near long-term, historical lows
SEK and NOK rates near long-term, historical lows Standing net rental income Standing direct operating profit SEK and NOK rate development in last 10 years 49.9 47.9 46.1 40.0 38.3 37.4 0.135 0.125 0.115 Adjusted for Actual Q1/2022 Adjusted for Actual Q1/2022 FX impact Q1/2023 FX impact Q1/2023 Q1/2
Slide 3: EUR 650 million credit facility signed
EUR 650 million credit facility signed Refinancing and expansion of sustainability-linked revolving credit facility — New EUR 650 million credit facility signed to replace and expand existing EUR 500 million credit facility maturing in June 2024. — EUR 400 million revolving credit facility and — EUR
Slide 4: Strengthening the balance sheet
Strengthening the balance sheet Tender offer on 2024 bond and hybrids in January 2023 — EUR 57.4 million bond tenders with EUR 41.4 million cash Bond repurchases from open market in March 2023 — EUR 22.5 million repurchases with EUR 21.7 million cash EUR 380 million non-core asset sales target remai
Slide 5: Property update
Property update Lippulaiva residentials opened in Q1/2023 - Remaining three residential towers in Lippulaiva now open - Retail occupancy 95% - Residential occupancy approx. 50% - Strong considering just opened - Creates additional demand for the property and diversify Citycon’s revenue streams. - Ne
Slide 6: Highlights for the quarter
Highlights for the quarter — Strong operational growth — LFL NRI growth 9.4% in comparable FX — Like-for-like tenant sales increased 6.2% — Retail occupancy 95.4% vs 95.1% in Q1/2022 — Average rent per sq.m. increased by EUR 1.6 with comparable FX to EUR 24.4 per sq.m. — Historically low FX rates im
Slide 7: Financial overview
Financial overview Citycon I Audiocast Q1/2023 7
Slide 8: Q1/2023 financials
Q1/2023 financials +9.4% Like-for-like NRI increase Standing* All Change FX Adjusted Change FX Adjusted EUR million Q1/2023 Q1/2022 Q1/2023 Q1/2022 (%) % (%) % NRI 47.9 46.1 3.8 % 8.7% 47.8 49.1 -2.7 % 2.2 % Direct operating profit 38.3 37.4 2.4 % 7.5% 38.3 40.2 -4.9 % 0.1 % EPRA earnings 25.3 25.3
Slide 9: NRI and EPRA earnings bridges
NRI and EPRA earnings bridges NRI bridge Q1/2022–Q1/2023 3.5 -2.8 0.5 50.2 49.1 -0.2 47.8 -2.4 Q1/2022 LFL properties (Re)developments Divestments Other Q1/2023 FX impact Actual Q1/2023 Before FX EPRA earnings bridge Q1/2022–Q1/2023 28.1 -1.3 0.3 0.1 0.2 25.3 -1.2 -0.9 Q1/2022 NRI Direct net Direct
Slide 10: Valuation improvements due to updated rents via indexation
Valuation improvements due to updated rents via indexation Fair value change EPRA per share metrics MEUR Q1/2023 Change Q1/2023 Q4/2022 Finland 3.5 EPRA NRV per share* 10.78 11.01 EPRA NTA per share 9.43 9.66 Norway 23.6 EPRA NDV per share 10.22 10.42 Sweden 3.6 Average yield 5.5 5.5 requirement,%*
Slide 11: Credit facility
Credit facility RCF Term Loan Total volume EUR 400 million EUR 250 million Oasen, Norway Pricing at BBB- 215 bps 230 bps (Based on rating grid) Tenor 3+1 years 3+1 years Linderud, Norway Security Common 5 asset security package Sustainability adjustment +/- 5bps based on meeting pre-defined targets
Slide 12: Strong, liquid balance sheet following the new credit facility signed on 28 April
Strong, liquid balance sheet following the new credit facility signed on 28 April Improved credit profile and a stronger, more flexible balance sheet* 6% Bonds Total available 2% – No material maturities thru 2024 Hybrid liquidity EUR 678 – 2.9 years weighted avg maturities Equity million** 39% Comm
Slide 13: Stable credit ratings
Stable credit ratings Net debt to ebitda Loan to value (IFRS) 46.9% 11.1x 42.4% 40.3% 41.7% 42.9% 42.4% 10.0x 9.9x 9.2x 9.5x 2019 2020 2021 2022 Q1/2023 Adjusted 2019 2020 2021 2022 Q1/2023 for FX impact Interest coverage ratio Q1/2023 Weighted average interest rate 4.2x 4.1x 4.1x 4.0x 4.0x 2.39% 2.
Slide 14: 2023 Guidance - affirmed
2023 Guidance - affirmed Outlook for 2023 Direct operating profit (MEUR) 174–192 (Midpoint) (183) EPRA Earnings per share (basic) (EUR) 0.69–0.81 (Midpoint) (0.75) Adjusted EPRA Earnings per share (EUR) 0.51–0.63 (Midpoint) (0.57) The outlook assumes that there are no major changes in macroeconomic
Slide 15: Q&A
Q&A Citycon I Audiocast Q1/2023 15
Slide 16: Bret McLeod, Sakari Järvelä
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 Q1/2023 16