Citycon (CTY1S) Q2 2024 earnings summary

Executive summary

• Like-for-like net rental income rose 5.9% in H1 2024, with total NRI up 9.9% and retail occupancy at 95.2%.

• EPRA earnings increased 5.4% year-over-year, and adjusted EPRA EPS rose 16.6% to €0.259.

• Fair value gains on investment properties totaled €69.3M in H1 2024.

• Divestments and refinancing actions, including Kongssenteret sale and Kista Galleria acquisition, strengthened the balance sheet.

• Retail occupancy reached 95.2%, with strong tenant sales growth (+2.6% like-for-like) and a high collection rate of 98%.

Financial highlights

• Net rental income for H1 2024 was €105.7M (+9.3% y/y); Q2 NRI was €54.7M (+11.9% y/y).

• Direct operating profit for H1 2024 was €88.6M (+10.2% y/y); Q2 was €49.0M (+16.1% y/y).

• Profit for the period was €95.1M (+16.8% y/y).

• Adjusted EPRA earnings for H1 2024 were €46.7M (+25.2% y/y); adjusted EPRA EPS for H1 was €0.259 (+16.6% y/y).

• EPRA NRV per share declined 14% year-over-year to €9.21.

Outlook and guidance

• 2024 guidance: direct operating profit €185–195M, EPRA EPS €0.62–0.68, adjusted EPRA EPS €0.46–0.52.

• Outlook assumes stable macroeconomic conditions and no major disruptions from the war in Ukraine.

• Core credit metrics expected to improve by year-end, contingent on successful divestments.