Slide 1: Audiocast Presentation Q1/2017
AUDIOCAST PRESENTATION Q1/2017
Slide 2: Q1/2017: Good start to the year
Q1/2017: GOOD START TO THE YEAR
Slide 3: Highlights Q1/2017
HIGHLIGHTS Q1/2017 6.6% INCREASE IN EPRA EPS TO EUR 0.043 - Good performance in Sweden and Norway compensates for weaker Finland - Overall net rental income growth and lower administrative expenses - Completed (re)development projects support earnings growth POSITIVE LIKE-FOR-LIKE NET RENTAL INCOME
Slide 4: Financial highlights
FINANCIAL HIGHLIGHTS MEUR Q1/2017 %1) Net rental income 56.6 2.5 Direct operating profit 50.3 5.0 EPRA Earnings 38.3 6.6 EPRA EPS (basic) 0.043 6.6 EPRA NAV per share 2.83 1.7 Fair value change 7.3 -72.1 Loan to Value (LTV), % 47.1 - 1) Change from previous year (Q1/2016) 4
Slide 5: Good performance in all countries except non-cores in Finland
GOOD PERFORMANCE IN ALL COUNTRIES EXCEPT NON-CORES IN FINLAND
Slide 6: Positive overall like-for-like NRI growth, non-cores in Finland still struggling
POSITIVE OVERALL LIKE-FOR-LIKE NRI GROWTH, NON-CORES IN FINLAND STILL STRUGGLING LIKE-FOR-LIKE NET RENTAL INCOME GROWTH –Strong shopping centres in 7.0% 5.3% Helsinki area (Iso Omena, Myyrmanni, Lippulaiva) all under 3.6% (re)development in Q1/2017 1.2% 1.0% 1.1% –The like-for-like portfolio in Finl
Slide 7: Overall sales and footfall remained unchanged, mild decrease of LFL sales and footfall
OVERALL SALES AND FOOTFALL REMAINED UNCHANGED, MILD DECREASE OF LFL SALES AND FOOTFALL LIKE-FOR-LIKE SALES LIKE-FOR-LIKE FOOTFALL Q1/2017 vs. Q1/2016, % 1) Q1/2017 vs. Q1/2016, % 1) 0% 0% 0% -1% 0% -1% -2% -6% -4% -4% Finland Norway Sweden Estonia & Total Finland Norway Sweden Estonia & Total Denmar
Slide 8: Occupancy remains at an overall good level
OCCUPANCY REMAINS AT AN OVERALL GOOD LEVEL OCCUPANCY RATE 1) 96.5% 96.9% 96.3% 96.0% 96.0% 2013 2014 2015 2016 Q1/2017 8 1) Including Kista Galleria 50%
Slide 9: Development portfolio
DEVELOPMENT PORTFOLIO
Slide 10: Urban developments progressing – Iso Omena phase 2 to open 98% leased
URBAN DEVELOPMENTS PROGRESSING – ISO OMENA PHASE 2 TO OPEN 98% LEASED ONGOING PROJECTS Expected Cumulative Area before/ Yield on cost1), Pre-leasing, Completion City investment, investment, after, sq.m. % % target MEUR MEUR Phase 2: 1 Iso Omena Helsinki area 63,300/101,000 270.0 258.6 6.0 Total SC:
Slide 11: Iso Omena has become the leading shopping and leisure destination in the Helsinki area
ISO OMENA HAS BECOME THE LEADING SHOPPING AND LEISURE DESTINATION IN THE HELSINKI AREA – Second phase opening 20.4. Addition of quality F&B and leisure – Zara opening early April – Strong tenant demand, 98% leased – The 6,000 sq.m. service square of Espoo has attracted >1 million visitors since open
Slide 12: Case Pori – maximizing value before divestment
CASE PORI – MAXIMIZING VALUE BEFORE DIVESTMENT – Former supermarket & shop property of 19,000 sq.m. with declining value trend – Citycon won the competition for the new University of Applied Sciences campus project in 2014 – 20-year lease agreement with the municipality. 100% pre- leased at initiati
Slide 13: Development pipeline
DEVELOPMENT PIPELINE
Slide 14: Development pipeline – urban locations in capital cities
DEVELOPMENT PIPELINE – URBAN LOCATIONS IN CAPITAL CITIES Area before/ Expected Target – Development investments of City after, investment, initiation/ MEUR 150-200 p.a. sourced sq.m. MEUR completion through recycling COMMITTED of capital Down Town Porsgrunn 38,000/46,000 75 2017/2019 PLANNED (UNCOMM
Slide 15: Key target areas 2017 and onwards
KEY TARGET AREAS 2017 AND ONWARDS FURTHER CAPITAL RECYCLING OPPORTUNITIES - Divestments of MEUR 200-250, mainly in Finland, within the coming 1.5 years - Further potential in Norway: divestments of up to MEUR 200-250 over the next three years - MEUR 150-200 p.a. in developments within the existing p
Slide 16: Financial overview
| ee FINANCIAL OVERVIEW b i) CITYCON
Slide 17: Financial results
FINANCIAL RESULTS Q1/2017 MEUR Q1/2017 Q1/2016 % INCL. KISTA 50% Gross rental income 66.1 63.3 4.4 70.4 Net rental income 56.6 55.2 2.5 60.5 Direct operating profit 50.3 47.9 5.0 54.0 EPRA Earnings 38.3 36.0 6.6 n.a. EPRA EPS (basic) 0.043 0.040 6.6 n.a. EPRA NAV per share 2.83 2.78 1.7 n.a. – EPRA
Slide 18: (Re)development projects coming online supported net rental income growth
(RE)DEVELOPMENT PROJECTS COMING ONLINE SUPPORTED NET RENTAL INCOME GROWTH NRI DEVELOPMENT MEUR 1.1 0.9 56.6 0.9 0.5 55.2 -2.0 Q1/2016 Acquisitions (Re)development Divestments LFL properties Other (incl. exchange Q1/2017 projects rate differences) 18
Slide 19: Increased average rent, occupancy at a good level
INCREASED AVERAGE RENT, OCCUPANCY AT A GOOD LEVEL Q1/2017 2016 Occupancy rate (economic) % 96.0 96.3 Average rent EUR/sq.m. 24.0 23.2 Average remaining length of lease portfolio years 3.3 3.3 Q1/2017 2016 Average rent of leases started EUR/sq.m. 25.1 22.4 Average rent of leases ended EUR/sq.m. 22.4
Slide 20: Positive valuation driven by Norway
POSITIVE VALUATION DRIVEN BY NORWAY FAIR VALUE CHANGES, MEUR Q1/2017 Q1/2016 2016 Finland -9.6 -8.3 -33.2 Norway 14.4 24.1 19.8 Sweden 3.5 8.8 39.7 Estonia & Denmark -1.0 1.7 -0.4 Investment properties, total 7.3 26.3 25.9 Kista Galleria (50%) 0.0 1.2 5.5 Investment properties and Kista Galleria (50
Slide 21: Income statement
INCOME STATEMENT MEUR Q1/2017 Q1/2016 % 2016 Gross rental income 66.1 63.3 4.4 251.4 Service charge income 20.4 20.1 1.9 80.3 Property operating expenses -29.6 -27.7 6.8 -105.5 Other expenses from leasing operations -0.3 -0.4 -16.9 -1.4 Net rental income 56.6 55.2 2.5 224.9 Administrative expenses -
Slide 22: Stable EPRA NAV
STABLE EPRA NAV CHANGE OF NET ASSET VALUE (EPRA NAV) EUR, per share 0.043 -0.01 0.01 2.82 -0.01 2.83 -0.03 Q4/2016 EPRA Earnings Indirect result Translation reserve Dividends and equity Other Q1/2017 return paid 31 MAR 2017 31 MAR 2016 31 DEC 2016 EPRA NAV per share, EUR 2.83 2.78 2.82 EPRA NNNAV pe
Slide 23: Balance sheet
BALANCE SHEET MEUR 31 MAR 2017 31 MAR 2016 31 DEC 2016 Investment properties 4,447.3 4,079.1 4,337.6 Total non-current assets 4,870.1 4,575.4 4,762.8 Investment properties held for sale 37.2 71.7 81.9 Total current assets 58.6 66.8 56.2 Total assets 4,965.9 4,714.0 4,900.9 Total shareholders’ equity
Slide 24: Financing overview
ee Cee FINANCING OVERVIEW TS CITYCON
Slide 25: Financing key figures
FINANCING KEY FIGURES 31 MAR 2017 31 MAR 2016 31 DEC 2016 Interest bearing debt, fair value MEUR 2,243.9 2,035.1 2,191.5 Available liquidity MEUR 557.1 381.2 560.4 Average loan maturity years 5.2 5.3 5.6 Interest rate hedging ratio % 90.8 85.3 93.1 Weighted average interest rate1) % 2.78 3.05 2.86 L
Slide 26: 91% of debt fixed rate, vast majority bonds
91% OF DEBT FIXED RATE, VAST MAJORITY BONDS DEBT BREAKDOWN BY TYPE DEBT BREAKDOWN BY CURRENCY Bank term Other CP loan 5% 0% SEK 9% 22% EUR 56% 2,243.9 Bonds 2,243.9 EUR million 86% EUR million Part of EUR debt has been converted to SEK NOK and NOK using cross- 23% currency swaps 26
Slide 27: Balanced maturity profile with long average loan maturity
BALANCED MATURITY PROFILE WITH LONG AVERAGE LOAN MATURITY DEBT MATURITIES 500 500 450 388 400 350 350 350 300 300 245 250 199 200 153 150 138 136 113 109 100 50 33 8 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Loans Floating to fixed swaps Undrawn loan facilities Bonds Commercial Paper
Slide 28: Outlook 2017 unchanged
OUTLOOK 2017 UNCHANGED DIRECT OPERATING PROFIT EPRA EARNINGS 220 191.5-210.5 170 138.1-156.1 198.5 151.1 200 150 175.4 130.8 180 130 160 149.1 149.8 110 99.7 140 86.7 90 120 70 100 80 50 60 30 2013 2014 2015 2016 2017E 2013 2014 2015 2016 2017E – Direct operating profit MEUR -7 to 12 – EPRA Earnings
Slide 29: Citycon's Capital Markets Day 16-17 May 2017
CITYCON’S CAPITAL MARKETS DAY 16-17 MAY 2017 –Tuesday 16 May in Iso Omena, Espoo – Management presentations and update on Nordic/Finnish market – Asset tour in Iso Omena, Lippulaiva and Myyrmanni –Wednesday 17 May possibility to join an asset tour in Stockholm – Liljeholmstorget Galleria, Kista Gall