Citycon Oyj · OMXHEX:CTY1S
Citycon Oyj — Investor Presentation (2022)
44 slides from Citycon Oyj's investor presentation, Jul 5, 2022
Slide 1: Citycon Company Presentation Q2/2022
CITYCON COMPANY PRESENTATION Q2/2022 1 Public | This is Citycon
Slide 2: This is Citycon
THIS IS CITYCON 2 Public | This is Citycon
Slide 3: Leading owner, manager and developer of urban community hubs in the Nordics
LEADING OWNER, MANAGER AND DEVELOPER OF URBAN COMMUNITY HUBS IN THE NORDICS • Net rental income in 2021 MEUR 202.3 1) • 35 premises 2) • 100% of centres connected to the public transportation 9 • 120 million visitors p.a. 1) centre • GLA 1.1 million sqm 1) 16 s • Portfolio value 4.5 bnEUR2) centre •
Slide 4: 90% of Citycon's centres are located in capital or major cities
90% OF CITYCON’S CENTRES ARE LOCATED IN CAPITAL OR MAJOR CITIES ISO OMENA, KISTA GALLERIA, LILJEHOLMSTORGET. KOSKIKESKUS, OASEN, HELSINKI AREA STOCKHOLM 2) GALLERIA, STOCKHOLM TAMPERE BERGEN GLA, sq.m. 1) 101,800 93,100 41,400 35,100 49,900 2) Kista Galleria (100%) 1) Figures are for 2021 Visitors,
Slide 5: Our seven largest assets account for ~50% of our portfolio
OUR SEVEN LARGEST ASSETS ACCOUNT FOR ~50% OF OUR PORTFOLIO LILJEHOLMSTORG ISO OMENA, KISTA GALLERIA, OASEN, ROCCA AL MARE, HERKULES MYYRMANNI ET GALLERIA, HELSINKI AREA STOCKHOLM 2) BERGEN TALLINN SKIEN HELSINKI AREA STOCKHOLM GLA, sq.m. 1) 101,800 41,400 93,100 50,200 57,800 50,300 41,500 2) Kista
Slide 6: We have 30 years of retail experience and Nordic expansion
WE HAVE 30 YEARS OF RETAIL EXPERIENCE AND NORDIC EXPANSION 5 PORTFOLIO VALUE Q1/2022 • Portfolio value EUR 4 2005 2015 4.5 billion • Acquisition of • International Norwegian Sektor expansion starts: Gruppen for EUR 1.5 3 first acquisitions billion in Sweden and 1988 2003 Estonia 2014 • Founded by Sa
Slide 7: Our Strategy
OUR STRATEGY 7 Public | This is Citycon
Slide 8: What we bring to the market: attractive urban hubs
WHAT WE BRING TO THE MARKET: We are passionate, solution-oriented, ATTRACTIVE URBAN HUBS together one OWN MANAGE DEVELOP • Strong portfolio of convenience- • Inhouse retail expertise • Area development – creating based centres throughout the centre value attractive places for living, • Located in gr
Slide 9: Urban hubs driven by strong demographics
URBAN HUBS DRIVEN BY STRONG DEMOGRAPHICS CORE ASSETS: • Urban environments, located where people live and work • Strong population growth and natural footfall • Integrated with public transportation • Shared access to education, health care, culture, municipal services 9 Public | This is Citycon
Slide 10: Our operational model based on efficient urban hubs and necessity tenants
OUR OPERATIONAL MODEL BASED ON EFFICIENT URBAN HUBS AND LARGE SHARE OF NECESSITY TENANTS BRINGS STABILITY GROCERY-ANCHORED CENTRES • Large proportion of resilient necessity-based tenants OPERATIONAL EXCELLENCE • Harmonizing practices • Centralizing procurement • Maintain strict control on operating
Slide 11: Connection to public transportation provides natural footfall
CONNECTION TO PUBLIC TRANSPORTATION PROVIDES NATURAL FOOTFALL 100% OF OUR SHOPPING All of our centres are accessible by bus CENTRES 10 centres directly connected to metro lines, 17 to train lines and CONNECTED TO 6 to tram lines PUBLIC TRANSPORTATION 54% OF VISITORS Almost 4,000 dedicated bicy
Slide 12: Sustainability
SUSTAINABILITY 12 Public | This is Citycon
Slide 13: Our sustainability strategy
OUR SUSTAINABILITY STRATEGY CARBON NEUTRAL ACCESSIBLE CONVENIENT AND SAFE − Citycon is carbon neutral by − 100% of assets are connected − Tenant satisfaction stays 2030 to public transportation, consistently above 90% in encouraging green ways to areas of safety, security, visit our centres hospital
Slide 14: Striving for excellence in action
STRIVING FOR EXCELLENCE IN ACTION SUSTAINABILITY KEY FIGURES Citycon wants to have a positive impact on people, communities and the environment. “Excellence in action” is present in what everyone at Citycon does every day. We want to make best sustainable practices the norm throughout the company, s
Slide 15: Commercial Concept
COMMERCIAL CONCEPT 15 Public | This is Citycon
Slide 16: Our necessity-based urban hubs provide stability
OUR NECESSITY-BASED URBAN HUBS PROVIDE STABILITY GROSS RENTAL INCOME BY TENANT CATEGORY, OVER 35 % OF GROSS RENTAL INCOME FROM NECESSITY TENANTS Q1/2022 • Focus on daily needs of customers Fashion and Groceries • 4 out of top 5 tenants are grocery stores accessories 21% 18% SMALL PORTION OF TURNOVER
Slide 17: Public sector tenants - a growing part of our business
PUBLIC SECTOR TENANTS - A GROWING PART OF OUR BUSINESS DENMAR SWEDEN NORWAY FINLAND ESTONIA TOTAL K CREDIT RATING AAA AAA AA+ AA- AAA MUNICIPAL/GOVERNMENTAL TENANTS Leased GLA ~36,000 ~9,000 ~19,000 ~100 ~3,000 ~67,000 Share of total 11% 2% 6% 0% 6% ~5% 1% GRI % 1% ALCOHOL MONOPOLY (ALKO, 3% SYSTEMB
Slide 18: Higher essential business and lower fashion exposure than peers
SIGNIFICANTLY HIGHER “ESSENTIAL” BUSINESS AND LOWER FASHION EXPOSURE THAN OTHER PAN-EUROPEAN RETAIL PEERS PROPORTION OF GROCERIES IN TOP 10 TENANCIES CITYCON – TOP TEN TENANTS - % OF NRI) (% OF RENTAL INCOME) SHARE OF FASHION IN - % OF NRI Kesko Group Grocery 4.1% Peer 4 0% Citycon 22% S Group Groce
Slide 19: Leasing, occupancy and footfall improving
LEASING, OCCUPANCY AND FOOTFALL IMPROVING LEASES STARTED, SQM in RETAIL OCCUPANCY RATE WEEKLY FOOTFALL thousands DEVELOPMENT DEVELOPMENT 2021 vs. 2020 +11% 160.0% 248 94.1% 94.1% 93.7% 94.2% 224 140.0% 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% May 31st June 21st Feb 15th April ... Jan 4th Jan 25th
Slide 20: Attractive tenant mix of Nordic and international brands
ATTRACTIVE TENANT MIX OF NORDIC AND INTERNATIONAL BRANDS GROCERIES & CAFÉS & LEISURE & HEALTH, BEAUTY & FASHION HOME & DESIGN DAILY NEEDS RESTAURANTS SPORT SERVICES 20 Public | This is Citycon
Slide 21: Creating great and consistent experiences at every step of the customer journey
CREATING GREAT AND CONSISTENT EXPERIENCES AT EVERY STEP OF THE CUSTOMER JOURNEY 2 GETTING 3 1 THERE 4 ENTRY DECISION TO GO 6 4 5 ATMOSPHERE/ FEEDBACK/ EXPERIENCE LOYALTY EXIT 21 Public | This is Citycon
Slide 22: Portfolio Transformation
PORTFOLIO TRANSFORMATION 22 Public | This is Citycon
Slide 23: Perfectly positioned to participate in densification
PERFECTLY POSITIONED TO PARTICIPATE IN DENSIFICATION • Direct connections to the most important public transportation hubs place assets in prime EXISTING/OWNED ASSETS position for zoning and gaining building rights. IN PRIME LOCATIONS • Existing relationships and co-operation with municipalities mak
Slide 24: Focus on portfolio transformation towards a mixed-use portfolio
CITYCON CONTINUES TO FOCUS ON PORTFOLIO TRANSFORMATION TOWARDS A MIXED-USE PORTFOLIO CURRENT NEW TARGET PORTFOLIO DEVELOPMENT PORTFOLIO OPPORTUNITIES 19.5% 13% GLA GLA 40.0% GLA 40.0% 57.5% 1.1m 0.6m* 1.5m 23.0% 87% 20.0% RETAIL NECESSITY RESIDENTIAL, OFFICE & OTHER Note: * Includes 0.2 msq.m. of co
Slide 25: Mixed-uses for long-lasting commercial and social benefit
MIXED-USES FOR LONG-LASTING COMMERCIAL AND SOCIAL BENEFIT CA 2005 CA 2015 FUTURE SINGLE USE – ”BIG BOX” MIXED-USE – ”SHOPPING CENTRE” MULTI-PURPOSE – ”MEETING PLACE” Retail Resident Retail Office Office Hotel Service als Residential Servic Resid Culture e entals Office Service/Health Health Retail F
Slide 26: Building rights portfolio includes over 300,000 sqm of residential pipeline
OUR TOTAL BUILDING RIGHTS PORTFOLIO INCLUDES OVER 300,000 SQM OF RESIDENTIAL DEVELOPMENT PIPELINE • Citycon has created a significant residential development pipeline of 22 Constructio projects n • The whole scale of development € Valid Zoning projects is covered, ranging from early Ongoing pre-zoni
Slide 27: Several options to realize our densification potential
WE HAVE SEVERAL OPTIONS TO REALIZE OUR DENSIFICATION POTENTIAL DIVESTMENT TO THIRD OWN DEVELOPMENT JOINT VENTURE PARTY + Control of project planning + Exchange of expertise + Not capital intensive and execution + Efficient risk distribution + Minimized execution risk + Access to entire upside - High
Slide 28: Significant potential in our development pipeline
Click the icon to add an image 1 2 SIGNIFICANT POTENTIAL IN OUR DEVELOPMENT PIPELINE 1. KISTA GALLERIA Stockholm, Sweden 2. LILJEHOLMSTORGET Stockholm, Sweden 3 4 3. TREKANTEN Asker, Norway 4. OASEN Bergen, Norway 28 Public | This is Citycon
Slide 29: Lippulaiva is a great example of a mixed-use development
LIPPULAIVA IS A GREAT EXAMPLE OF A MIXED- USE DEVELOPMENT LIPPULAIVA • The new, modern and urban centre Lippulaiva opened on March 31st, 2022. • The retail mix focuses on a strong grocery and daily shopping service offering that will serve the everyday shopping needs of the growing population in the
Slide 30: Re:Liljeholmen: transforming track area into a new urban space
Mixed-use urban RE:LILJEHOLMEN: TRANSFORMING hub in the heart of Stockholm TRACK AREA INTO A NEW URBAN SPACE • 70,000 sqm new areas, distributed between offices, hotels, retail, services, culture and public meeting places. • 120 new apartments, 3,000 workplaces and a glazed plaza with space for acti
Slide 31: Local Markets at a Glance
LOCAL MARKETS AT A GLANCE 31 Public | This is Citycon
Slide 32: Fastest growing cities in Europe
FASTEST GROWING CITIES IN EUROPE PERCENTAGE OF POPULATION IN URBAN POPULATION GROWTH Tampere Helsinki AREAS 2015–2035 Tallinn Stockholm Gothenburg Oslo Copenhagen Source: UN World Urbanization Prospects 2018 12% 15% 29% 25% 10% 22% 16% 32 Public | This is Citycon
Slide 33: Citycon's largest properties in Finland
CITYCON’S 5 LARGEST PROPERTIES IN FINLAND ISO OMENA TRIO MYYRMANNI ISOKRISTIINA KOSKIKESKUS HELSINKI AREA LAHTI HELSINKI AREA LAPPEENRANTA TAMPERE GLA, sq.m. 1) 101,800 46,100 41,500 33,900 35,100 1) Figures are for 2021 Visitors, 14.7 3.3 7.0 3.4 3.8 million 1) Sales, MEUR 1) 375 33 149 94 101 33 P
Slide 34: Helsinki area
HELSINKI AREA 3 Martinlaakson Ostari Competitors Tikkuri Jumbo Citycon-owned 45 Isomyyri E75 E18 E18 Myyrmanni Kaari 1 Myllypuron Sello Ostari Espoontori Arabia Itis Entresse Tripla Heikintori Forum Redi Ainoa Kamppi Lippulaiva Iso Omena CBD 51 34 Public | This is Citycon
Slide 35: Citycon's largest properties in Sweden
CITYCON’S 5 LARGEST PROPERTIES IN SWEDEN STENUNGNSTORG KISTA GALLERIA, JAKOBSBERG CENTRUM, LILJEHOLMSTORGET ÅKERBERGA CENTRUM, CENTRUM, STOCKHOLM STOCKHOLM GALLERIA, STOCKHOLM STOCKHOLM STENUNGSUND 1) Figures are for 2021 GLA, sq.m. 1) 93,100 42,600 41,400 35,500 28,400 Visitors, 12.6 3.5 7.3 2.6 5.
Slide 36: Stockholm area
STOCKHOLM AREA 25 km E18 Competitors E18 Citycon-owned Åkersberga E4 Centrum Sollentuna Barkaby Handelsplats Centrum Täby Centrum Jakobsbergs Centrum Kista Galleria Mall of Scandinavia Solna Centrum Bromma Blocks CBD Liljeholmstorget Skärholmen Nacka Forum E4 Farsta Centrum E20 36 Public | This is C
Slide 37: Citycon's largest properties in Norway
CITYCON’S 6 LARGEST PROPERTIES IN NORWAY OASEN LIERTOPPEN HERKULES STOVNER SENTER DOWN TOWN TREKANTEN SENTER KJØPESENTER OSLO AREA SKIEN OSLO AREA PORSGRUNN OSLO AREA FYLLINGSDALEN GLA, sq.m. 1) 50,200 49,900 42,900 36,700 26,600 24,000 1) Figures are for 2021 Visitors, 3.3 3.4 3.9 2.0 2.0 3.4 milli
Slide 38: Oslo area
OSLO AREA Stovner senter 32 km Competitors E16 Storo Storsenter Citycon-owned Linderud Senter Oslo City E6 Byporten CBD CC Vest Alna Senter Tveita Senter Sandvika Storsenter Aker Brygge Manglerud Senter Lambertseter Bryn Senter Senter Liertoppen Trekanten Senter Kolbotn Torg Torget Vest CC Drammen S
Slide 39: Citycon's properties in Estonia and Denmark
CITYCON’S PROPERTIES IN ESTONIA AND DENMARK ROCCA AL MARE KRISTIINE KESKUS STRÆDET ALBERTSLUND CENTRUM 2) Figures are for 2019, Pre-COVID-19 TALLINN TALLINN KØGE COPENHAGEN GLA, sq.m. 1) 57,800 45,100 19,000 17,000 1) Figures are for 2020 Visitors, 4.0 5.1 - 4.8 million 2) Sales, MEUR 2) 127 111 30
Slide 40: Tallinn area
TALLINN AREA Competitors Citycon-owned Nautica Solaris Viru Keskus 1 Lasnamäe T1 Centrum Rocca Kristiine CBD al Mare Ülemiste Mustikas 8 Magistral 2 Järve Keskus 4 40 Public | This is Citycon
Slide 41: Finland & Estonia
FINLAND & ESTONIA KEY FIGURES 2021 Fair value of properties 1,961.2 MEUR Gross Leasable Area 391,190 sq.m. Retail GLA 323,900 sq.m. Economic occupancy rate 95.0% Average yield requirement 5.5% Average rent 24.6 EUR / sq.m. RENTAL INCOME BY Groceries 24% CATEGORY Fashion and Accessories 20% Home and
Slide 42: Sweden & Denmark
SWEDEN & DENMARK KEY FIGURES 2021 Fair value of properties 800.7 MEUR Gross Leasable Area 301,680 sq.m. Retail GLA 210,600 sq.m. Economic occupancy rate 91.2% Average yield requirement 5.7% Average rent 23.7 EUR / sq.m. RENTAL INCOME BY CATEGORY Fashion and Accessories 19% Groceries 18% Services and
Slide 43: Norway
NORWAY KEY FIGURES 2021 Fair value of properties 1,427.3 MEUR Gross Leasable Area 457,700 sq.m. Retail GLA 373,100 sq.m. Economic occupancy rate 92.3% Average yield requirement 5.6% Average rent 20.6 EUR / sq.m. RENTAL INCOME BY CATEGORY Home and Sporting Goods 28% Fashion and Accessories 25% Servic
Slide 44: Thank you!
THANK YOU! citycon.com www.linked.com/citycon 44 Public | This is Citycon