Citycon (CTY1S) Q3 2024 earnings summary

Executive summary

• Net rental income (NRI) grew 13.7% in Q3 and 11.2% year-to-date, driven by rent indexation, Kista Galleria consolidation, and new developments.

• Retail occupancy increased to 95.1%, with 109,000 sq.m. of new leases signed year-to-date and average rent per sq.m. up 4.1% to €24.7.

• Major asset transactions included full acquisition of Kista Galleria and divestments in Norway and Sweden, totaling €145 million sold year-to-date and €400 million in pipeline.

• Fair value gains on investment properties totaled €84 million year-to-date.

• Profit for the period was €92.5 million, up from €35.2 million year-over-year.

Financial highlights

• Q3 2024 NRI: €54.7 million (+13.7% FX-adjusted year-over-year); Q1–Q3 2024 NRI: €160.4 million (+11.2% FX-adjusted year-over-year).

• Like-for-like NRI grew 5.2% for Q1–Q3 2024.

• EPRA earnings Q1–Q3 2024: €86.5 million (+6.9% year-over-year); adjusted EPRA earnings: €70.1 million (+18.5% year-over-year).

• EPRA EPS Q1–Q3 2024: €0.476 (–1.2% year-over-year); adjusted EPRA EPS: €0.386 (+9.6% year-over-year).

• Net financial expenses increased to €64.5 million, mainly due to Kista Galleria consolidation and higher interest rates.

Outlook and guidance

• FY 2024 direct operating profit guidance: €183–187 million.

• EPRA EPS (basic) guidance: €0.61–0.63; adjusted EPRA EPS: €0.47–0.49.

• Confident in exceeding €380 million divestment target for 2024 and on track for €950 million by end of 2025.

• Capital expenses reduced from €96 million to ~€40 million for 2024, with further reduction to €20 million planned for 2025.

• Guidance assumes no major macroeconomic disruptions and includes impact from Kista and executed divestments.