Citycon (CTY1S) Q4 2024 earnings summary

Executive summary

• Direct operating profit grew 12% year-over-year to EUR 184 million, with net rental income up 10.3% to EUR 214.7 million in 2024.

• Retail occupancy rate reached 95.3%, rent collection rate was 99%, and over 175,000 sq m of leases were signed, a 33% increase from 2023.

• Major restructuring reduced headcount and expenses, with decentralization and capital expenditure cuts planned for 2025.

• Asset divestments totaled EUR 354 million in 2024, with total divestments since target announcement at EUR 475 million.

• Dividend payments suspended to prioritize debt repayment and balance sheet strengthening.

Financial highlights

• Adjusted EPRA earnings rose 12.1% to EUR 89.5 million; adjusted EPRA EPS at EUR 0.491, up 2.5% year-over-year.

• Book value of assets decreased by EUR 74.6 million, mainly due to a 1.9% portfolio valuation loss from yield expansion.

• Asset disposals reached EUR 354 million in 2024, with proceeds used to repay debt and improve the credit maturity profile.

• Liquidity at the start of 2025 was EUR 770 million.

• EPRA NRV per share decreased to EUR 7.87 from EUR 9.30 year-over-year.

Outlook and guidance

• 2025 EPRA EPS guidance set at EUR 0.41–0.53; excluding hybrid interest, EUR 0.60–0.72.

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

• Further rent growth expected, supported by low occupancy cost ratio (9.4%) and strong tenant sales.

• Targeting EUR 250 million in divestments for 2025, aiming to complete EUR 950 million target by end of 2026.

• Dividend suspended for 2025 to further strengthen the balance sheet.