Citycon Oyj's Interim Report for 1 January - 31 March 2010
(Thomson Reuters ONE) -
Citycon Oyj Stock Exchange Release 21 April 2010 at 09.00 hrs
Citycon Oyj's Interim Report for 1 January - 31 March 2010
Summary of the First Quarter of 2010 Compared with the Previous Quarter
- Turnover increased and came to EUR 49.5 million (Q4/2009: EUR 48.9 million)
due mainly to added rental income from the newly opened Liljeholmstorget in
Stockholm and redeveloped Rocca al Mare in Tallinn, while the turnover growth
was reduced by the start-up of new (re)development projects.
- Net rental income decreased by 3.2 per cent to EUR 30.6 million (EUR 31.6
million) due mainly to higher property operating expenses than in the previous
quarter, reflecting common seasonal fluctuation and the exceptionally cold and
snowy winter.
- Earnings per share were EUR 0.06 (EUR -0.11).
- Direct result per share (diluted) was EUR 0.05 (EUR 0.06).
- The fair value change of investment properties was EUR 0.8 million (EUR -38.6
million). The fair value of investment properties was EUR 2,193.5 million (EUR
2,147.4 million).
- According to the external appraiser, the average net yield requirement for
investment properties remained at the previous quarter's level at 6.6 per cent
at the end of the reporting period (6.6%).
- Net financial expenses increased to EUR 13.1 million (EUR 12.0 million) due
mainly to lower interest capitalization after completion of Rocca al Mare and
Liljeholmstorget (re)development projects.
- On the basis of Citycon's loan agreement covenants, Citycon's interest cover
ratio was 2.3x (2.3x) and equity ratio 39.2 per cent (40.6%).
- Three new (re)development projects were started during the reporting period:
the refurbishment of the Espoontori shopping centre in Espoo and the Forum
shopping centre in Jyväskylä and the construction of a new shopping centre in
Myllypuro in Helsinki replacing the old retail property.
- The Liljeholmstorget shopping centre was awarded the platinum LEED®
(Leadership in Energy and Environmental Design) environmental certificate, the
first platinum certificate awarded to a European shopping centre.
Summary of the First Quarter of 2010 Compared with the Corresponding Quarter of
Last Year
- Turnover increased by 7.9 per cent, to EUR 49.5 million (Q1/2009:
EUR 45.9 million), due to growth in gross leasable area and to the development
of retail properties. Turnover growth was reduced by slightly higher vacancy and
the start-up of new (re)development projects.
- Profit/loss before taxes was EUR 17.2 million (EUR -18.1 million), including a
EUR 0.8 million (EUR -31.6 million) change in the fair value of investment
properties.
- Net rental income increased by 1.0 per cent and came to EUR 30.6 million (EUR
30.3 million). If the impact of the strengthened Swedish krona is excluded, net
rental income decreased by 0.7 per cent.
- Net rental income from like-for-like properties decreased by 5.8 per cent due
mainly to higher property operating expenses than in the corresponding period
caused by exceptionally severe winter conditions and slightly increased vacancy.
Additionally, prevailing low inflation or deflation resulted in very low
indexation-based rental increases.
- The company's direct result reduced to EUR 11.4 million (EUR 11.6 million).
- Direct result per share (diluted) was EUR 0.05 (EUR 0.05).
- Earnings per share were EUR 0.06 (EUR -0.08). Fair value changes in investment
properties have a significant impact on earnings per share.
- Occupancy rate was 94.5 per cent (95.3 %). The decrease in occupancy rate
resulted from the start-up of new (re)development projects and slightly higher
vacancy.
- Net cash flow from operating activities per share decreased to EUR 0.03
(EUR 0.10) due to extraordinary and timing items.
- The equity ratio was 32.7 per cent (36.4%). This decrease resulted mainly from
paid up dividends and equity return and higher debt due to investments.
- The company's financial position remained good during the period. Total
available liquidity at the end of the reporting period was EUR 212.7 million,
including unutilised committed debt facilities amounting to EUR 164.0 million
and EUR 48.7 million in cash.
- About 25 per cent of the apartments in Jakobsbergs Centrum in Järfälla, which
is located in the Greater Stockholm area, were sold for SEK 120 million (about
EUR 12 million) in March. Citycon recorded a gain on sale of EUR 1.0 million for
the transaction.
CEO Petri Olkinuora's Comments on the Beginning of 2010:
"Citycon's turnover grew by 7.9 per cent during the first quarter of 2010 and
net rental income increased 1.0 per cent compared with the same period last year
despite the extra expenses caused by the cold and snowy winter and low
indexation-based rental increases. The increase was based on active retail
property management and the development projects completed in Stockholm and
Tallinn at the end of 2009. Growth in net rental income and turnover was slowed
down by started new development projects, which resulted in less income
generating retail premises. The occupancy rate declined slightly from last year,
mainly due to one-off reasons.
In accordance with its strategy, Citycon divested a number of the apartments in
Jakobsbergs Centrum in Järfälla, Sweden, during the reporting period. The
divestment of apartments built in Liljeholmstorget was finalised in early April
and the divestment of apartments in Åkersberga Centrum is expected to be
completed in June. After the completion of these transactions, the company still
has more than 600 residential units in Sweden, the value of which amounts to
approximately EUR 40 million. Citycon's objective is to divest all of its
residential units in Sweden, as these are not part of the company's core
business.
The company has currently four major redevelopment projects under way: the
extension and refurbishment of Åkersberga Centrum in the Greater Stockholm area,
the construction of a new shopping centre in Myllypuro in Helsinki and the
refurbishment projects of the Espoontori shopping centre in Espoo and the Forum
shopping centre in Jyväskylä. In addition, the company is refurbishing shopping
centre Myyrmanni and Hansa property, part of Trio. Through these redevelopment
projects and its professional shopping centre management, the company continues
to seek growth in its existing shopping centres.
We are proud of the first platinum-level certificate awarded to the
Liljeholmstorget shopping centre as the first shopping centre in Europe. This
clearly demonstrates that our company is committed to sustainable development
and has the capability to construct buildings that comply with the strictest
international standards. All of Citycon's future development projects will be
carried out in accordance with the quality criteria of environmental
certificates. Citycon has also published its first social responsibility report
and defined its strategic objectives for environmental responsibility, which
will impact both the company's current operations and existing property
portfolio as well as new projects."
Outlook
Citycon continues to focus on increasing its net cash from operating activities
and direct operating profit. In order to implement this strategy, the company
will pursue value-added activities while cautiously monitoring the market for
potential acquisitions.
Due to market changes and tight financing conditions, the initiation of planned
projects will be carefully evaluated against stricter pre-leasing criteria.
Citycon intends to continue the divestment of its non-core properties to improve
the property portfolio and strengthen the company's financial position. The
company is also considering alternative property financing sources.
In 2010, Citycon's turnover is expected to grow approximately by 3 - 7 per cent
and direct operating profit approximately by 3 - 6 per cent compared with the
previous year based on existing portfolio. The estimate is based on completed
(re)development projects and prevailing low inflation level. In addition,
properties taken offline for planned (re)development projects will reduce net
rental income during the year. The company expects only moderate changes in its
direct result.
Helsinki, 20 April 2010
Citycon Oyj
Board of Directors
The entire report with tables in pdf-format can be downloaded from the link
below.
Financial reports in 2010
Citycon will issue two more interim reports during the financial year 2010 as
follows:
January-June 2010, on Wednesday 14 July 2010, at approximately 9:00 a.m. and
January-September 2010, on Wednesday 13 October 2010, at approximately 9:00 a.m.
For more investor information, please visit the corporate website at
www.citycon.com.
For further information, please contact:
Petri Olkinuora, CEO
Tel +358 20 766 4401 or +358 400 333 256
petri.olkinuora(at)citycon.fi
Eero Sihvonen, Executive Vice President and CFO
Tel +358 20 766 4459 or +358 50 557 9137
eero.sihvonen(at)citycon.fi
Distribution:
NASDAQ OMX Helsinki
Major media
www.citycon.com
[HUG#1406034]
Citycon Interim Report 1.1.-31.3.2010: http://hugin.info/3030/R/1406034/359672.pdf
Unternehmensinformation / Kurzprofil:
Datum: 21.04.2010 - 08:00 Uhr
Sprache: Deutsch
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