Citycon (CTY1S) Q3 2024 earnings summary

Executive summary

• Net rental income (NRI) grew 13.7% in Q3 and 11.2% year-to-date at comparable FX, driven by rent indexation, Kista Galleria consolidation, and new developments.

• Retail occupancy reached 95.1%, with 109,000 sq m of new leases signed year-to-date and average rent per sq.m. up 4.1% to €24.7.

• Major divestments completed, including Kongssenteret and Trekanten, totaling €145 million year-to-date, with €400 million under negotiation.

• Full acquisition of Kista Galleria and key tenant openings, such as Prisma grocery and Nike concept store, contributed to operational strength.

• Guidance for 2024 updated, reflecting divestments and one-off restructuring costs.

Financial highlights

• Q3 2024 NRI: €54.7M (+13.7% FX-adjusted); Q1–Q3 2024 NRI: €160.4M (+11.2% FX-adjusted).

• EPRA earnings Q1–Q3 2024: €86.5M (+6.9%); adjusted EPRA earnings: €70.1M (+18.5%).

• EPRA EPS Q1–Q3 2024: €0.476 (-1.2%); adjusted EPRA EPS: €0.386 (+9.6%).

• Fair value gains of €84M YTD, including €46M from Kista Galleria in Q1.

• Net financial expenses increased to €64.5M YTD, mainly from higher interest and Kista consolidation.

Outlook and guidance

• FY 2024 direct operating profit guidance: €183–187M.

• EPRA EPS guidance: €0.61–0.63; adjusted EPRA EPS: €0.47–0.49.

• Guidance assumes no major macroeconomic changes or disruptions from the Ukraine war.

• Confident in exceeding €380M divestment target for 2024 and on track for €950M by end of 2025.

• Operational actions to accelerate in Q4, including cost reductions and decentralization.