Citycon Oyj's Interim Report for 1 January - 30 September 2009
(Thomson Reuters ONE) - CITYCON OYJ Stock Exchange Release 15 October 2009 at 09:00 a.m.Solid performance enhanced by low financing costsSummary of the Third Quarter of 2009 Compared with the PreviousQuarter- Turnover increased slightly to EUR 45.9 million (Q2/2009: EUR45.6 million).- Net rental income increased by 4.8 per cent to EUR 32.5 million(EUR 31.0 million) mainly due to lower property operating expensesthan in the previous quarter, reflecting common seasonal variations.- Net cash from operating activities per share was EUR 0.05 (EUR0.09). The reduction was due to extraordinary items during theprevious quarter and timing differences.- Earnings per share were EUR 0.06 (EUR -0.03).- Direct result per share (diluted) was EUR 0.06 (EUR 0.06).- The fair value change of investment properties was EUR -1.2 million(EUR -26.0 million). The fair market value of investment propertieswas EUR 2,162.7 million (EUR 2,104.5 million).- The average net yield requirement for investment propertiesremained at the previous quarter's level, at 6.6 per cent (6.6%) atthe end of the period, according to an external appraiser.- Financial expenses totalled EUR 11.7 million (EUR 11.8 million).- On the basis of Citycon's loan agreement covenants, Citycon'sinterest cover ratio improved and was 2.2x (2.1x) and equity ratiodeclined to 42.4 per cent (42.9%).- Citycon agreed on the sale of 181 apartments in ÿkersberga Centrumin the Greater Stockholm area for a sale price of approximately EUR16.7 million. Simultaneously, the company made a decision on theredevelopment of the shopping centre. The estimated total investmentis EUR 46 million with Citycon accounting for 75 per cent.Summary of January-September 2009 Compared with the CorrespondingPeriod of 2008- Turnover increased by 3.2 per cent to EUR 137.4 million (Q1-3/2008:EUR 133.1 million), due to growth in gross leasable area anddevelopment of retail properties. Turnover growth was reduced byslightly higher vacancy.- Profit/loss before taxes was EUR -13.1 million (EUR -121.4million), including a EUR -58.7 million (EUR -156.7 million) changein the fair value of investment properties.- Net rental income increased by 2.4 per cent to EUR 93.8 million(EUR 91.6 million). If the impact of the weakened Swedish krona isexcluded, net rental income increased by 5.1 per cent.- Net rental income from like-for-like properties rose by0.5 per cent.- The company's direct result was EUR 38.4 million(EUR 31.9 million).- Direct result per share (diluted) increased to EUR 0.17 (EUR 0.15).- Earnings per share were EUR -0.05 (EUR -0.42). The fair valuechanges in investment properties have a significant impact onearnings per share.- The occupancy rate was 94.7 per cent (95.6%). The decrease inoccupancy rate resulted from a slightly increased vacancy in Finlandand the Baltic countries.- Net cash from operating activities per share remained strong andincreased to EUR 0.24 (EUR 0.14). The increase was due mainly tonon-recurring realised foreign exchange rate gains, positive changein working capital, lower financing costs as well as higher operatingprofit.- The equity ratio was 35.9 per cent (40.3%). This decrease resultedmainly from the fair value changes in the investment properties andhigher debt due to investments.- The company's financial position remained good during the period.Total liquidity at the end of the reporting period wasEUR 212.6 million, including unutilised committed debt facilitiesamounting to EUR 193.2 million and EUR 19.4 million in cash. Theavailable liquidity will cover the authorised investments andscheduled debt interest and repayments until at least the end of2010, without the need for additional financing.- In June, Citycon agreed to sell the apartments under constructionin Liljeholmen, Stockholm, for SEK 176 million (approx. EUR 16.3million).CEO Petri Olkinuora's Comments on January-September 2009:"Citycon's cash flow, financial performance and financial positionremained good during the period. The direct result increased to EUR38.4 million mainly due to higher net rental income and clearly lowerfinancial expenses. Also, net cash flow from operating activitiesincreased. Net rental income from like-for-like properties wasslightly higher than during the comparison period (0.5%), despite the0.9 per cent fall in occupancy rate year-on-year. Aggregate sales inour shopping centres were almost at the previous year's level despitethe general slowdown in retail sales.During the period under review, Citycon decided to launch aredevelopment project in the ÿkersberga Centrum shopping centre inthe Greater Stockholm area. This project supports Citycon's growthstrategy and further strengthens its position in Sweden. Thepre-leasing of the project has been successful and the execution ofthe project will benefit from lower building costs.Citycon's two largest projects, the new Liljeholmstorget shoppingcentre in Stockholm and the redevelopment of Rocca al Mare shoppingcentre in Tallinn, have progressed as scheduled. The grand opening ofLiljeholmstorget will be on 22 October and the final phase of Roccaal Mare will be completed and opened to the public in November. Bothshopping centres are almost fully leased and their completion willstrengthen Citycon's rental income and cash flow.We continue to focus on investing in our existing portfolio toimprove the long-term competitiveness of our properties. New projectsin the pipeline include the developments of the Martinlaakso andMyllypuro shopping centres in Helsinki Metropolitan Area. Citycon hasa planning reservation for Matinkylä metro station site on theLänsimetro western metro line which provides the company with theopportunity to extend Iso Omena shopping centre and to develop itscommercial concept."OutlookCitycon continues to focus on increasing its cash flow and operatingprofit (excluding fair value changes). In order to implement thisstrategy, the company will focus on value-added activities whilecautiously monitoring the market for potential acquisitions.Due to market changes and tight financing conditions, the launch ofplanned projects will be re-evaluated. Citycon intends to continuethe divestment of its non-core properties to improve the propertyportfolio and strengthen the company's financial position. Thecompany is also considering alternative property financing sources.The grocery sales sector, which accounts for a substantial share ofthe company's lease portfolio, cushions the impact of rentalcyclicality in the company's business. The company expects itsfull-year direct result and net cash from operating activities toincrease and net rental income to remain stable as a result ofredevelopment projects coming online, active shopping centremanagement as well as lower interest rates.Helsinki, 14 October 2009Citycon OyjBoard of DirectorsThe entire report with tables in pdf-format can be downloaded fromthe link below.Financial statements and financial statements bulletin 2009Citycon will publish its financial statements and a financialstatements bulletin for the financial year 1 January - 31 December2009 on Wednesday, 10 February 2010 at about 9:00 a.m.For further information for investors, please visit Citycon'swebsite, www.citycon.com.For further information, please contact:Petri Olkinuora, CEOTel +358 20 766 4401 or +358 400 333 256petri.olkinuora(at)citycon.fiEero Sihvonen, CFOTel +358 20 766 4459 or +358 50 557 9137eero.sihvonen(at)citycon.fiDistribution:NASDAQ OMX HelsinkiMajor mediawww.citycon.comhttp://hugin.info/3030/R/1347642/324059.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 15.10.2009 - 08:00 Uhr
Sprache: Deutsch
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