Citycon (CTY1S) Q1 2025 earnings summary

Executive summary

• Like-for-like net rental income increased by 3.5% year-over-year, supported by indexation, lower expenses, and improved recovery rates.

• Retail occupancy rate was 94.8%, with a slight sequential decline due to seasonal variation.

• Direct operating profit rose 8.2%–8.5% year-over-year to EUR 42.7 million, driven by lower SG&A costs.

• Asset divestments since the plan announcement reached EUR 475 million, with EUR 354 million in 2024.

• CEO transition completed in March 2025; Oleg Zaslavsky appointed as new CEO.

Financial highlights

• Total net rental income was EUR 50.1 million, down 1.8% year-over-year, mainly due to 2024 divestments.

• EPRA earnings were EUR 19.4 million, down 13.4% year-over-year, mainly due to hybrid capital exchange.

• EPRA EPS was EUR 0.105, down 16.8% year-over-year, partly due to increased share count.

• Fair value of properties increased by EUR 0.7 million in Q1 2025.

• IFRS operating profit was EUR 44.2 million, down from EUR 86.1 million in Q1/2024.

Outlook and guidance

• 2025 EPRA EPS guidance set at EUR 0.41–0.50 per share; excluding hybrid interest, EUR 0.60–0.69.

• Guidance reflects higher financial expenses following the April bond issuance.

• Assumes no major macroeconomic changes or disruptions from the war in Ukraine.

• Operational performance is in line with expectations, but higher financial costs anticipated due to refinancing.

• Focus remains on core necessity-based assets and balance sheet improvement.