Citycon (CTY1S) Q2 2025 earnings summary

Executive summary

• Like-for-like net rental income grew 5.2% year-over-year in H1 2025, with retail occupancy at 95% and average rent per sq.m. up 3% to €25.8.

• Fair value net gain of €34.3 million on investment properties in H1 2025, reflecting improved cash flows and lower cap rates, especially in Norway.

• Proactive capital management led to over €750 million in debt repaid in H1 2025, including a €450 million green bond issued in April, which was over six times oversubscribed.

• Profit for the period was €52.3 million, down from €95.1 million in H1 2024, mainly due to lower fair value gains.

Financial highlights

• Net rental income for Q1–Q2 2025 was €103.4 million, down 2.2% year-over-year due to divestments, despite like-for-like growth.

• EPRA earnings for Q1–Q2 2025 were €36.9 million, down 22.7% year-over-year; EPRA EPS was €0.20, down 24.3%.

• Net financial expenses increased to €56.1 million, mainly due to higher interest costs.

• EPRA NRV per share at €8.29, down 9.9% from Q2 2024.

• IFRS operating profit was €125.5 million, down from €155.3 million year-over-year.

Outlook and guidance

• Full-year 2025 EPRA EPS guidance reaffirmed at €0.41–€0.50, and €0.60–€0.69 excluding hybrid bond interest.

• Management expects to remain within guidance, though H1 results are closer to the lower end.

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