Citycon Oyj · OMXHEX:CTY1S
Citycon Oyj — Investor Day (September 2010)
152 slides from Citycon Oyj's investor day presentation, Sep 22, 2010
Slide 1: Citycon's Capital Markets Day
Citycon's Capital Markets Day 22 September 2010 Tallinn, Estonia
Slide 2: Strategy
Strategy Citycon • wants to be the leading shopping centre owner, operator and developer in the Nordic and Baltic countries. • invests in shopping centres and retail properties in major growing cities with good demographics. • seeks growth through matching acquisitions and property development. • ad
Slide 3: Citycon's Financial Position
Citycon's Financial Position CFO, Executive Vice President Eero Sihvonen
Slide 4: Main Points Q2 2010
Main Points Q2 2010 Q2 2010 (vs. Q1 2010) • The fair value change was EUR 22.9 million (EUR 0.8 m) and the market value of property portfolio was EUR 2,229.5 million (EUR 2,193.5 m) • The valuation yield 6.6% (6.6%) by external appraiser • Net rental income was EUR 31.8 million (EUR 30.6m) • Direct
Slide 5: Property Portfolio
Property Portfolio • 4,019 (4,080) leases with an average length of 3.3 (3.0) years • GLA totalled 947 050 sq.m. • Net rental income increased by 1.8% to EUR 62.5 million • Net rental income for like-for-like properties decreased by 1.0% due to higher property operating expenses reflecting seasonal
Slide 6: Like-for-like and Other NRI Development by Segments
Like-for-like and Other NRI Development by Segments 34.000 sq.m. of GLA is currently out of -Q1-Q2/2009 vs. Q1-Q2/2010 production due to redevelopment the Baltic EUR million Finland Sweden Countries Other Total 1H/2008 44,9 12,2 3,1 0,0 60,1 Acquisitions 0,4 0,0 -0,1 0,0 0,4 (Re)developments 0,5 0,0
Slide 7: Key Figures – Profitability
Key Figures – Profitability Quarterly Net Rental Income by segments Quarterly Operating Profit1) by segments 40,0 40,0 Fi nl a nd Sweden Fi nl a nd Sweden CAGR +11.4 % CAGR +11.5 % 35,0 Ba l tics Other 35,0 Ba l tics Other 32,5 31,8 31,0 28,6 30,5 31,5 30,2 30,3 31,6 30,6 27,6 27,1 26,2 26,2 26,1 29
Slide 8: Key Figures – Profitability
Key Figures – Profitability Quarterly Net Rental Income by segments Quarterly Operating Profit1) by segments 40 40 CAGR +13.7 % CAGR +13.1 % 35 33,4 35 Redevel opment 32,7 28,3 31,0 32,5 Wi nter 28,6 27,7 Redevel opment 30,5 31,5 30,2 30,3 31,6 Other 27,6 27,1 26,2 Wi nter 29,7 30 30 Other Ba l tics
Slide 9: Key Figures – Profitability
Key Figures – Profitability Rolling 12-month Direct Result (EUR million) Rolling 12-month Direct Result per Share (EUR/ share) 23,0 22,9 22,7 50,9 50,7 21,9 50,2 21,5 48,2 21,2 46,6 47,3 20,7 20,3 20,5 45,0 20,0 44,2 43,8 19,4 41,9 38,3 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2
Slide 10: Financing Overview
Financing Overview • Total asset stood at EUR 2,308.9 million • Total liquidity of EUR 246.2 million incl. unutilized committed debt facilities (EUR 221.2 m) and cash (EUR 25.0 m) • Equity ratio 33.8%, hedging ratio of the loan portfolio 82% • Average year-to-date interest rate 4.0% (4.2%). • Period
Slide 11: Breakdown of Financial Expenses
Breakdown of Financial Expenses 2q 1q 2q Change-% Change-% YTD YTD Change-% Net Financial Expenses (EUR million) 2010 2010 2009 (y-o-y) (q-o-q) 2010 2009 (YTD) Financial Expenses: Interest expenses -13,2 -12,3 -11,3 17 % 7% -25,6 -22,8 12 % Foreign exchange losses 0,0 0,0 0,0 nm 135 % 0,0 0,0 82 % C
Slide 12: Key Figures – Financing Overview
Key Figures – Financing Overview Maturity profile of loans and derivatives 600 500 482 Convertible Bonds (EUR 72.8m) 400 304 300 238 222 196 204 206 200 Loans (EUR 1,394.7m) Fixed derivatives (EUR 877.3m) 123 83 90 100 70 52 0 2010 2011 2012 2013 2014 2015- • Favorable maturity structure of debt as
Slide 13: Key Figures – Financing Overview
Key Figures – Financing Overview Interest-bearing debt by fixing type EUR 1, 394.7 million 1) Floating rate debt 18% Fixed rate debt 19% Fixed rate swaps 63% • During second quarter in 2010, the period-end interest-bearing net debt increased by EUR 43 million as a result of dividend payment and inve
Slide 14: Key Figures – Financing Overview
Key Figures – Financing Overview Maturity profile of fixed and floating rate loans and Period-end interest rate by maturity for fixed rate debt undrawn committed credit limits and swaps 450 4,3 % 408 Fixed (EUR 260.6m) 4,19 % 400 4,2 % Floating (EUR 1,134.1m) 350 4,1 % 4,05 % Undrawn credits (EUR 22
Slide 15: Key Figures - Debt Portfolio
Key Figures - Debt Portfolio Breakdown by debt type Breakdown by currency EUR 1,394.7 million 1) EUR 1,394.7 million 1) Other LTL 1% 26% Syndicated term loans EEK 3% 42% EUR 58% CP SEK 3% 38% Revolving credit facility 21% Bonds 8% • The backbone of the debt financing continues to be the syndicated t
Slide 16: Sustainability - an important part of Citycon's strategy
Sustainability - an important part of Citycon's strategy Kisu Borg Manager Sustainability
Slide 17: Updates: Long-term Goals, LEED Projects
Updates: Long-term Goals LEED Projects Existing Shopping Centres Reporting 17 CMD 2010
Slide 18: Long-term Goals Related to Environmental Responsibility
Long-term Goals Related to Environmental Responsibility Climate change Reduction of greenhouse gas emissions by 20% by year 2020 from the 2009 baseline level. Energy Reduction of energy consumption by 9% by 2016 from the 2009 level Improvements in energy efficiency Finding renewable energy solutions
Slide 19: Coping with Consumption and Costs
Coping with Consumption and Costs Like for like portfolios example – the same assets / activities for all years £1,900,000 (£) Additional (millions£)£) 30 cost if 30 £1,400,000 consumption expenditure(millions 376 (£) (£)Expenditure Expenditure 376 had remained at 357 2006 levels 357 354 354 Electri
Slide 20: Economical and Ecological Impacts
Economical and Ecological Impacts Mainte- Mainte- Mainte- nance nance Mainte- Mainte- nance charge charge nance PROFIT nance charge charge charge LOSS Capital Capital Capital Capital Capital rent rent rent rent rent 20 CMD 2010
Slide 21: Citycon's LEED Projects
Citycon’s LEED® Projects 21 CMD 2010
Slide 22: Internal Green Shopping Centre Management Program
Internal Green Shopping Centre Management Program for Existing Buildings Tool for Shopping Centre Management • Energy • Green • Water thinking in • Waste action Internal • Refrigerants • Recognition benchmark • Transport of • Procurement Development • Training areas • Marketing • Monitoring 22 CMD 2
Slide 23: Results of Internal Green Auditing
Results of Internal Green Auditing Green Index - Finnish SCs 10,0 9,0 8,0 7,0 6,0 5,0 2010 4,0 2009 3,0 2,0 1,0 0,0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Green Index - Swedish SCs Green Index - Baltian SCs 10,0 10,0 9,0 9,0 8,0 8,0 7,0 7,0 6,0 6,0 5,0 2010 5,0 2010 4,0 2009 4,0 20
Slide 24: Green Index
Results of Internal Green Auditing Green Index 2009 2010 8,5 7,9 6,9 5,4 4,1 2,2 AVERAGE MAX MIN 24 CMD 2010
Slide 25: CMD 2010
25 CMD 2010
Slide 26: CSR Reporting
CSR Reporting • Economic, Social and Environmental Responsibility • Global Reporting Initiative’s (GRI) guidelines and reporting principles as a framework in CSR reporting. 26 CMD 2010
Slide 27: Citycon is an Active Player in the Field of Sustainability
Citycon is an Active Player in the Field of Sustainability! • Carbon Disclosure Project -> launch of Nordic Report in October • Global Reporting Initiative’s Construction and Real Estate Sector Supplement –> Citycon representing Europe in the group • Green Building Council Finland –> Citycon a found
Slide 28: Citycon in the Baltic Countries
Citycon in the Baltic Countries Harri Holmström Vice President, Baltic operations
Slide 29: GDP in Northern Europe
GPD in Northern Europe Source:Nordea 29 CMD 2010
Slide 30: 2007- Q1/2010 Salaries in Estonia
2007- Q1/2010 Salaries i Estonia 30 CMD 2010
Slide 31: Consumer Confidence in Estonia
Consumer Confidence in Estonia Consumers’ behaviour depends on overall economical performance and dominance of unemployment fears. Consumer confidence is expected to continue its improvement in both Estonia and abroad to ensure sustainable growth, it is possible to forecast consumption expenditure g
Slide 32: GDP, Inflation and Unemployment Rate in Estonia
GDP, Inflation and Unemployment Rate in Estonia 18% 14% 10% 6% 2% -2% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010f 2011f 2012f 2013f 2014f -6% -10% -14% -18% GDP, % GDP, optimistic forecast Unemployment rate, % Unemployment, optimistic forecast Inflation, % Inflation optimistic, forecast Sourc
Slide 33: Retail Sales in Estonia
Retail Sales in Estonia 33 CMD 2010
Slide 34: Recent News in Baltic countries
Recent News in Baltic countries Number of accommodated tourists up 11% in a year in Estonia In July, 357,000 tourists including 244,000 foreign tourists used the services of accommodation establishments in Estonia, of which 57% came from Finland, 7% from Germany, and 5% from Russia. Tallink carried
Slide 35: Recent News in Estonian Retail Sector
Recent News in Estonian Retail Sector Estonia: Decrease in retail sales slowed in July In Estonia, the retail sales of goods of retail trade enterprises decreased 1% at constant prices in July 2010 from July 2009, according to Statistics Estonia. In January the retail sales of goods decreased 13% fr
Slide 36: News in Retail Sector
News in Retail Sector Baltic: Rimi closes 24 supermarkets in Lithuania; opens 2 in Latvia Rimi Lietuva, the operator of Rimi supermarkets and hypermarkets in Lithuania, is closing 24 supermarkets in 2010. Ten supermarkets are already closed, and the remaining 14 will be closed by the end of 2010. Li
Slide 37: Citycon Present Situation
Citycon Present Situation • Citycon has established its presence in the Baltic States with three shopping centres: • Rocca al Mare in Tallinn • Magistral in Tallinn • Mandarinas in Vilnius • Occupancy rate: 99.5 % • Citycon is the market leader in Tallinn with almost 25% market share in major shoppi
Slide 38: Rocca al Mare
Rocca al Mare • Shopping Centre Rocca al Mare extension is now completed and it is the biggest and best selling shopping centre in Estonia. • Rocca al Mare is also the most recommended shopping centre in Estonia. • Every tenth customer is a Finnish tourist and depending on the sector they add 15 to
Slide 39: Magistral
Magistral • Magistral is a neighbourhood shopping centre (GLA 9,500 sq.m.) in a highly populated area of Mustamäe (catchment area 60,000 inhabitants) • Anchor tenant RIMI 39 CMD 2010
Slide 40: Magistral extension
Magistral extension • SC Magistral extension approx. 3,000 sq.m. is in pre-letting phase and we plan to start the construction in spring 2011. 40 CMD 2010
Slide 41: Mandarinas
Mandarinas • Shopping centre Mandarinas (GLA 8,000 sq.m.) is a neighbourhood centre and it is fully let even in this deep recession where competitors struggle with 20-30 % vacancies. • Anchor tenant RIMI 41 CMD 2010
Slide 42: Distribution of Retail Space in Tallinn by Size
Distribution of Retail Space in Tallinn by Size By the summer 2010, the stock of Tallinn retail space increased by approx. 20,000 sq.m., to a total of 468,800 sq.m. (1.15 sq.m. per capita). Dynamics of Retail Space in Tallinn 600 500 400 Sqm ( 000s) 300 200 100 0 2001 2002 2003 2004 2005 2006 2007 2
Slide 43: Distribution of Retail Space in Tallinn by Size
Distribution of Retail Space in Tallinn by Size Tallinn currently has 9 shopping centres with individual GLA of over 15,000 sq.m. These centres have a total of approx. 280,000 sq.m. of retail space (62% of total retail GLA). Tallinn’s largest shopping centres are Rocca al Mare with a GLA of approx.
Slide 44: Shopping Centre Turnover in Tallinn
Shopping Centre Turnover in Tallinn Turnover change 50% 40% 30% 20% 10% 0% Viru Ülemiste Kristiine Rocca al Mare -10% -20% -30% 2006 2007 2008 2009 Source:Colliers 44 CMD 2010
Slide 45: Customers and Retail Markets
Customers and Retail Markets • Local and international retailers reported extensive decline (20- 50%) in sales figures during 2009, but now there is a clear stabilising period and already some good news especially from Estonia. • Purchasing power has suffered during recession. • Consumer confidence
Slide 46: Investors in Baltic States
Investors in Baltic States • Only few investors are still active in the market, many have left • The yield levels have stabilised, however no comparables to confirm this • There has been no distressed sales of shopping centres in capital cities. • Only two shopping centres under construction in the
Slide 47: Citycon strategy in the Baltic countries
Citycon strategy in the Baltic countries • Citycon will focus on capital cities only • Citycon will continue to grow in Tallinn, Estonia to gain even larger market share • In Vilnius, Lithuania the real estate market is still unstable and there is oversupply of shopping centre space especially in ma
Slide 48: General Baltic Leasing Update
General Baltic Leasing Update Case Study ”International, new chain in Rocca al Mare” Pekka Huttunen Property Investment Manager
Slide 49: Major Grocery Retailers in Estonia
Major Grocery Retailers in Estonia (No. of shops, market share %) Others n/a; 11 % Rimi and Säästumarket Prisma 82; 22 % 5; 11 % Maxima 5 Maksimarket, 3; 16 % Konsum, A&O 232; 21 % Selver 35; 19 % Source: Niras AS, 2010 49 CMD 2010
Slide 50: Examples of International Retailers in Estonia
Examples of International Retailers in Estonia (non food) • Stockmann Group (27 shops) • Lindex, Seppälä, Stockmann department store, Stockmann Outlet • LPP Retail Group (15 shops) • Reserved, CroppTown, House, Home&You • New Yorker (5 shops) • M&S (2 shops) • ONOFF (4 shops) • Expert (10 shops) • T
Slide 51: Examples of Local Retailers in Estonia
Examples of Local Retailers in Estonia • Baltika Group (35 shops) • Monton, Mosaic, Ivo Nikkolo, Baltman • NG Investments (27 shops) • Kaubamaja department store, I.L.U., ABC King, Shu! • Sportland Group (29 shops) • Sportland, Timberland, O’Neill, Nike • Sandman Group (17 shops) • Euronics • Radema
Slide 52: Examples of the Biggest Franchisees
Examples of the Biggest Franchisees • Apranga (9 shops) • Zara, Bershka, Pull&Bear, Stradivarius, Mexx, Mango, Armani, Boss • Põldma Trading (27 shops) • Guess, Tommy Hilfiger, Tom Taylor, Energie, Miss Sixty • A&G Trading (23 shops) • Esprit, Vero Moda, Jack&Jones, Broadway • Profester Invest (23 s
Slide 53: What Makes Rocca al Mare Different?
What Makes Rocca al Mare Different? • The widest offering • No. 1 in total sales • Strong anchor tenants • Several flagship shops Key facts • The first proper restaurant area GLA, sq.m. 53,500 Built in 1998 • Attractive neighbours Extended/renovated 2007-2009 • Tourists & Rocca al Mare shuttle bus N
Slide 54: Rocca al Mare Catchment Area and Competition
Rocca al Mare Catchment Area and Competition Shopping centre GLA sq. m. Profile Rocca al Mare SC 53,500 Regional sc Ülemiste Centre 40,000 Regional sc Järve Centre 39,000 Furniture/interior goods oriented sc Kristiine SC 35,500 Regional sc Viru Centre 25,000 City centre sc, fashion oriented • The to
Slide 55: Sales of TOP Four Centres in Tallinn
MEUR 0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0 55 JAN 2009 FEB 2009 MAR 2009 APR 2009 Opening MAY 2009 Fashion Gallery JUN 2009 JUL 2009 AUG 2009 SEP 2009 OCT 2009 NOV 2009 CMD 2010 DEC 2009 JAN 2010 FEB 2010 MAR 2010 Grand Opening APR 2010 MAY 2010 JUN 2010 JUL 2010 AUG 2010 Sales of TOP Four Centres in T
Slide 56: Foot fall in Rocca al Mare
Foot fall in Rocca al Mare (2009-2010) Footfall 700 000 600 000 500 000 400 000 300 000 200 000 100 000 - JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 2010 2010 2010 56 CMD 2010
Slide 57: Customer Survey 03/2010: Customer Profile
Customer Survey 03/2010: Customer Profile Almost every tenth visitor from Finland. 20 % of customers Russian speaking (first language) (n=502) % 57 CMD 2010
Slide 58: Rocca al Mare Shuttle Bus
Rocca al Mare Shuttle Bus 58 CMD 2010
Slide 59: Rocca al Mare Ranked the most Customer Friendly Shopping Centre
Rocca al Mare Ranked the most Customer Friendly Shopping Centre in Estonia! • An independent survey by Tallinn Technical University on February 2010 • Respondents were asked on question: “ How likely are you to recommend the company or product your friend or acquaintance on a scale of 0 to 10?” • Ro
Slide 60: CMD 2010
60 CMD 2010
Slide 61: Extension possibility (approx. 4,000 sq. m.)
Extension possibility (approx. 4,000 sq. m.) 61 CMD 2010
Slide 62: Case: Marks & Spencer
Case: Marks & Spencer THE FIRST STORE IN ESTONIA • Operated by Marks & Spencer Czech Republic • Was operating stores in Czech Republic, Poland and Slovakia and in Lithuania before entering Estonia. • First contact on February 2010 • Signing on 19 December 2009 • Opened at Rocca al Mare in May 2009 •
Slide 63: Citycon in Sweden
Citycon in Sweden Ulf Attebrant Vice President, Swedish operations Jonas Tapio Leasing and Commercial Dev. Director
Slide 64: How is the Swedish SC market?
How is the Swedish SC market? 64 CMD 2010
Slide 65: Sweden at Fourth Place in European Growth League
Sweden at Fourth Place in European Growth League Poland 141,2 Romania 138,5 Bulgaria 127,5 Sweden 120,5 Czech Republic 120,4 Norway 120,3 Retail growth since 2005 Switzerland 116,8 Slovakia 116,4 Finland 115,5 United Kingdom 115,4 France 115 125 Ireland 109,4 120,5 Austria 108,1 120 Slovenia 107,4 B
Slide 66: Good Opportunity for Consumption among Swedish Consumers
Good Opportunity for Consumption among Swedish Consumers 10% 8% Hushold Consumption Consumer will Disposable Income have appetite for 6% consumption! 4% 2% 0% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -2% 66 CMD 2010
Slide 67: Households Savings Will Decrease as Interest Costs Increase
Households Savings Will Decrease as Interest Costs Increase Index Houshold savings % 14,0 12,0 10,0 8,0 6,0 4,0 Clothes sales % 2,0 0,0 Furniture sales % 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 -2,0 -4,0 -6,0 Interest rates correlates Sparkvot, procent Kl
Slide 68: Citycon's Markets: Growth above Average
Citycon's Markets: Growth above Average 180 170 Stockholm falls behind because of weaker 160 Stockholm Gothenburg municipalities outside the Umeå Sweden city. Stockholm is above 150 average when the county 140 is measured. 130 120 110 100 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 68 CMD
Slide 69: Real adjusted Gross Disposable Income of Households per Capita
Real adjusted Gross Disposable Income of Households per Capita (€) 25 000 22 939 21 002 20 754 20 000 19 213 15 000 10 685 10 000 5 000 0 EU 27 Euro area Sweden Latvia (lowest) Austria (highest) 69 CMD 2010
Slide 70: Swedish SC Market - Effects of 2008-2009: Recovery
Swedish SC Market - Effects of 2008-2009: Recovery • Competition, Current Project pipeline: - 1.1 million sq.m. planned, over 50% postponed • Center performance: - Location, location, location. - Clear difference - attractive/less attractive centers (owners). • Transactions - Low activity so far, bu
Slide 71: Retailers
Retailers 71 CMD 2010
Slide 72: Retailers
Retailers 72 CMD 2010
Slide 73: Retailers
Retailers “a ICA ‘ent MEA} ¥ INTERSPORT™ clas ohlson ‘stadium coop WiLLY:S =m KCNSUM cw 201 citycon
Slide 74: Retailers
Retailers 74 CMD 2010
Slide 75: Retailers
Retailers 75 Handelsbanker vedbank a4 citycon
Slide 76: Retailers
LL Retailers 76 <n citycon
Slide 77: Outlook - Sweden
Outlook - Sweden • Consumption will grow 2011 – 2012: +3.0% p.a. (source: HUI, inflation 1 % p.a.) • Retailers are very selective, agreements back to market level Back to fundamentals: Well located centers with good catchment areas and natural traffic flow and can increase profitability. • Increas
Slide 78: Swedish shopping centres
JAKOBSBERG STRÖMPILEN ÅKERSBERGA CENTRUM CENTRUM ÅKERMYNTAN LILJEHOLMSTORGET STENUNGSTORG CENTRUM GALLERIA CENTRUM FRUÄNGENS TUMBA BACKA 3, 78 CENTRUM CENTRUM CMD 2010 BACKAPLAN 4
Slide 79: CMD 2010
| UIWEHOLMS TORGET “™ 79 cv 201 citycon
Slide 80: CMD 2010
80 CMD 2010
Slide 81: Performance 2010 has been a challenging year
- performance 2010 has been a challenging year: • Cold winter, tough technical start • Delayed occupancies from signed retailers • More bankruptcies than expected (restaurants) • Higher substitution rate: - Weaker concepts needed more attention. • Increased start up Marketing. - Not enough success i
Slide 82: Performance - Convincing Sales
Performance - Convincing Sales As if the center would have full year sales from all 120 000 000 stores 100 000 000 80 000 000 Actual/FC 2010 60 000 000 Budget 2010 2009 40 000 000 2010 FP 20 000 000 0 jan feb mar apr maj jun jul aug sep okt nov dec Target 2010 850 MSEK Result: + 900 MSEK (F.P 1,100
Slide 83: How Has This Been Addressed and What Is the Outlook?
How Has This Been Addressed and What Is the Outlook? • Leasing - All anchors are in place - Five new restaurants - Substituted concepts: 10 new stores - Healthcare center/office: new tenants signed 83 CMD 2010
Slide 84: How Has This Been Addressed and What Is the Outlook?
How Has This Been Addressed and What Is the Outlook? • Stabilized costs: trimmed systems, marketing, security and cleaning down to normal. • Business plan 2011: Increase sales and footfall further - Target to increase the traffic to the garage by attracting missing customers in target groups. • Cent
Slide 85: Europe's most Green SC!
Europe's most Green SC! Q1/2010 Platinum Core & Shell 85 CMD 2010
Slide 86: Developments
Developments • Åkersberga SC - On budget - In time - Phase one opens 21 October • Stenungstorg SC - Phase one completed - Phase 2 (Planning and design) • Strömpilen SC - Ongoing (Planning and design) • Planning and design for re-development : Jakobsberg SC, Tumba SC, Åkermyntan SC, Lindome and Fruän
Slide 87: Citycon in Finland
Citycon in Finland Kaisa Vuorio, Vice President, Finnish operations Pekka Helin, Commercial Director
Slide 88: Citycon Finland: Leasing and Property Development
Citycon Finland Leasing • Measures • Update of The Maturity Issue • Leasing Situation • Clusters and Leasing Development Property Development • Ongoing projects • Development projects under preparation • Additional information about developments and development possibilities 88 CMD 2010
Slide 89: Overview of Leasing Situation
Overview of Leasing Situation 89 CMD 2010
Slide 90: Retail Market in Finland
Retail Market in Finland • In 2009 • The turnover of the retail sector was down by 1.6% • The daily consumer goods turnover was up by 2.1% • In Jan-July 2010 • The turnover of the retail sector was up by 3.4% • The daily consumer goods turnover was up by 3.7% • Consumer confidence was very strong in
Slide 91: Grocery Market in Finland
Citycon SC Sales by Branch 2009 Grocery Market in Finland 2009 Sales 14.5 billion euros Cafes & Restaurants 14 % 6 % Health & Beauty 14 % Other Specialty Stores 11 % 2% Services & Offices 6% Clothes & Fashion Groceries 14 % Department Stores 33 % Leisure & Home Supplies 91 Source: AC Nielsen CMD 201
Slide 92: Citycon Leasing
A Citycon Leasing 92 ee CcITYCON
Slide 93: Leasing Measures
Leasing Measures Finnish Operations Number of leases started during the period Q1 Q2 Q3 Q4 Q1-Q4 2008 100 93 66 193 452 2009 66 72 65 84 295 2010 99 103 Total area of leases started during the period, sq.m. Q1 Q2 Q3 Q4 Q1-Q4 2008 21 800 14 310 11 090 31 930 79 130 2009 9 190 9 080 20 530 18 420 57 2
Slide 94: Total Lease Portfolio
Total Lease Portfolio by contract type and start year, Finnish Operations 20,00 18,00 16,00 14,00 12,00 % of GRI € 10,00 Valid until further notice contract 8,00 Fixed-term contract Initially fixed-term contract 6,00 4,00 2,00 0,00 94 CMD 2010
Slide 95: First Possible Termination Year of The Leases
First Possible Termination Year of The Leases by contract type, contracts started 2009-2010, Finnish Operations 2009 2010 5,0 5,0 4,5 4,5 4,0 4,0 % of GRI € % of GRI € 3,5 3,5 3,0 3,0 2,5 2,5 2,0 2,0 1,5 1,5 1,0 1,0 0,5 0,5 0,0 0,0 2010 2011 2012 2013 2014 2015 2016 2019 2010 2011 2012 2013 2014 201
Slide 96: Leases Terminated/Terminating in 2010
Leases Terminated/Terminating in 2010 by contract type and start year, Finnish Operations 40,0 35,0 30,0 25,0 % of GRI € 20,0 Valid until further notice contract Fixed-term contract 15,0 Initially fixed-term contract 10,0 5,0 0,0 96 CMD 2010
Slide 97: Until-Further-Notice Contracts Terminated/Terminating in 2010
Until-Further-Notice Contracts Terminated/Terminating in 2010 by Party Giving Notice, Finnish Operations 80 70 60 50 % of GRI € 40 30 20 10 0 Leaseholder Lessor 97 CMD 2010
Slide 98: Leasing Situation
Leasing Situation • Market situation • Market has gradually improved during 2010 • Grocery market continued duopoly • Within fashion there is constantly more demand for shopping centres and new chains have re-opened their plans for Finland • Finnish entries announced / initiated e.g. by XXL Sport, M
Slide 99: Clusters - Retail Branch and Citycon Development Opportunities
Clusters - Retail Branch and Citycon Development Opportunities Meeting Points in City Centres Local Shopping Centres Partners in Everyday Life SCs Brand’s role Pulsing heart of the city, “Close” to its community, Everyday service centre for offering irresistible fulfilling all basic family in life s
Slide 100: Development projects
Development projects 100 CMD 2010
Slide 101: Ongoing (Re)development Projects
Ongoing (Re)development Projects PROPERTY LOCATION AREA, sq.m. TOTAL ACTUAL EST. before and ESTIMATED CUMULATIVE FINAL after INVESTMENT CAPEX, by the YEAR OF NEED, MEUR end of 10Q2, COMPLE MEUR TION New constructions Martinlaakso Vantaa, FIN 3 800 26.3 2.7 2011 Building of a new retail centre replac
Slide 102: Citycon Assets in Helsinki MA
Citycon Assets in Helsinki MA Helsinki Metropolitan Area: Population ~ 1 million Households 500 000 102 Purchasing Power ~ 16.5 billion CMD 2010
Slide 103: Martinlaakso
Martinlaakso Helsinki CBD 103 CMD 2010
Slide 104: Martinlaakso Shopping Centre
Martinlaakso Shopping Centre Excellent location next to Martinlaakso train station Partner in Everyday Life – cluster shopping centre Mixed use project Retail GLA 7,400 sq.m. 67 apartments (sold to Skanska) 475 parking places (roof, basement) Anchored by two supermarkets Anchor tenan
Slide 105: Martinlaakso Shopping Centre
Martinlaakso Shopping Centre Railway station Martinlaakso SC Bus terminal 105 CMD 2010
Slide 106: Martinlaakso Old Retail Centre
Martinlaakso Old Retail Centre 106 CMD 2010
Slide 107: CMD 2010
107 CMD 2010
Slide 108: Martinlaakso Shopping Centre
Martinlaakso Shopping Centre 108 CMD 2010
Slide 109: Martinlaakso Shopping Centre
Martinlaakso Shopping Centre 109 CMD 2010
Slide 110: Myllypuro
Myllypuro Helsinki CBD 110 CMD 2010
Slide 111: Myllypuro Shopping Centre
Myllypuro Shopping Centre Excellent location next to Myllypuro metro station Project started 10/Q1, opening in several phases 6/11-5/12 Partner in Everyday Life - cluster SC Grocery driven tenant mix, strong service Anchor tenant S-market Mixed use development GLA 7.300 sq.m. 255 apa
Slide 112: Myllypuro Before
Myllypuro Before 112 CMD 2010
Slide 113: Myllypuro Shopping Centre
Myllypuro Shopping Centre 113 CMD 2010
Slide 114: Myllypuro Shopping Centre
Myllypuro Shopping Centre 114 CMD 2010
Slide 115: Myllypuro Shopping Centre
Citycon has a purchase option; housing Myllypuro Shopping Centre project plot, Σ 3800 sqm) Metrostation (C) 115 CMD 2010
Slide 116: Espoontori
Espoontori Helsinki CBD 116 CMD 2010
Slide 117: Espoontori
Espoontori • Excellent location next to railway station, offices and residential areas. Population is growing. • Before project centre was commercially and technically outdated • Competing SC Entresse opened 2008 Aim of refurbishment: • Strengthen position as a Partner in Every Day Life - centre • B
Slide 118: City Plan
City Plan Building right for extension Refurbishment area 118 CMD 2010
Slide 119: Espoontori Before Renovation
Espoontori Before Renovation 119 CMD 2010
Slide 120: Espoontori Shopping Centre
Espoontori Shopping Centre 120 CMD 2010
Slide 121: Espoontori Shopping Centre
Espoontori Shopping Centre 121 CMD 2010
Slide 122: Forum
Forum 122 CMD 2010
Slide 123: Forum
Forum • Meeting place of City centre – cluster Shopping centre in the heart of Jyväskylä • GLA ~17.000 sq.m. • 138 parking places • Forum is the best Shopping Centre in Jyväskylä market area • Renovation project highlights: • Increasing retail GLA • Fashion and leisure oriented tenant mix • Commerci
Slide 124: Forum
Forum Citycon’s part Of Forum OP bank’s part OP bank of Forum SC Jyväskeskus Citycon Department store Sokos SC Tawastinkulma SC Torikeskus 124 CMD 2010
Slide 125: Situation before, Kauppakatu Street Level View
Situation before, Kauppakatu Street Level View 125 CMD 2010
Slide 126: Forum, Kauppakatu Street Level View after Refurbishment
Forum, Kauppakatu Street Level View after Refurbishment 126 CMD 2010
Slide 127: Situation before, Asemakatu Street Level View
Situation before, Asemakatu Street Level View 127 CMD 2010
Slide 128: Asemakatu Street Level View after Refurbishment
Asemakatu Street Level View after Refurbishment 128 CMD 2010
Slide 129: Trio / Hansa
Trio / Hansa 129 CMD 2010
Slide 130: Trio in brief
Trio in brief • Meeting point in City Centre – cluster shopping centre in excellent location in Lahti CBD • Consists of two MREC’s: TRIO- HANSA • MREC Lahden Trio • Total turn-around project between 2007-2008 TRIO I & II • Opened in two phases: 2007-2008 11/2007 and 11/2008 • MREC Hansa • Acquired 1
Slide 131: Trio and Hansa
Trio and Hansa 131 CMD 2010
Slide 132: Trio and Hansa
Trio and Hansa Ground floor 1. floor HANSA (Before development) HANSA (Before development) TRIO TRIO 132 CMD 2010
Slide 133: Trio / Hansa - Before
Trio / Hansa - Before 133 CMD 2010
Slide 134: Trio / Hansa - After
Trio / Hansa - After 134 CMD 2010
Slide 135: Myyrmanni
Myyrmanni Helsinki CBD 135 CMD 2010
Slide 136: Myyrmanni
Myyrmanni • Local centre- cluster shopping centre next to railway station in Myyrmäki, Vantaa • Part of the centre renovated; department store Anttila space reforming created excellent possibility to diversify Myyrmanni tenant mix • Refreshing Myyrmanni commercial outlook • Additional investment EUR
Slide 137: Myyrmanni
Myyrmanni CcITYCON CMD 2010
Slide 138: Myyrmanni
Myyrmanni co 2010 ciITYCONn
Slide 139: Myyrmanni extension potential
Myyrmanni extension potential ISOMYYRI Existing parking house MYYRMANNI 139 CMD 2010
Slide 140: Torikeskus and Isolinnankatu
Torikeskus and Isolinnankatu •Torikeskus SC: tenant fitting 1st floor • Isolinnankatu (former Anttila department store) 1st floor tenant fitting •Projects are pending due to leasing 140 CMD 2010
Slide 141: Torikeskus in Seinäjoki
Torikeskus in Seinäjoki 141 CMD 2010
Slide 142: Development Pipeline
Development Pipeline Iso Omena – extension + metro station Koskikeskus – redevelopment (Myyrmanni – extension) 142 CMD 2010
Slide 143: Matinkylä Metro in 2015 and Iso Omena Extension
Matinkylä Metro in 2015 and Iso Omena Extension • Helsinki wetern metro line will be expanded to Espoo and it will open in 2015 • Citycon has a planning reservation together with NCC to plan Iso Omena extension on top of metro station • City planning starting • Opening target 2015 143 CMD 2010
Slide 144: Iso Omena – The Big Apple
Iso Omena – “The Big Apple” Future extension potential 144 CMD 2010
Slide 145: Iso Omena & Matinkylä Metro Station
Iso Omena & Matinkylä Metro Station 145 CMD 2010
Slide 146: Koskikeskus
Koskikeskus 146 CMD 2010
Slide 147: Koskikeskus
Koskikeskus • Meeting point of City centre SC in an excellent location in a best ranked city • Established market position, highest top-of-mind ranking among customers • Aim of the project: • Improve quality of the centre • Increase retail GLA • Commercial outlook facelift • Technical investments un
Slide 148: Koskikeskus
Koskikeskus CcITYCON CMD 2010
Slide 149: Koskikeskus
Koskikeskus 149 CMD 2010
Slide 150: Koskikeskus
Koskikeskus ah, _ ciTycon
Slide 151: Koskikeskus
Koskikeskus CcITYCON CMD 2010
Slide 152: Pipeline
Pipeline Filling vacancy – ongoing leasing projects • Supermarket property, Kirkkonummi and Asema-aukio, Pori; tenant changes ongoing, both will be upgraded as Everyday Life shopping centres Pipeline • Pori Citymarket conversion to shopping centre • Kirkkonummi supermarket/mixed use conversion to sh