Citycon (CTY1S) Q4 2025 earnings summary

Executive summary

• Like-for-like net rental income (NRI/NOI) grew 5.4% year-over-year, with retail economic occupancy at 95.5% and average rent per sq.m. up 3.3% to €27.7.

• Operational and administrative costs were significantly reduced, and 142,000 sqm of new leases were signed.

• Portfolio remains healthy, with 83% of tenants outside the sensitive fashion sector and a strong focus on necessity-based retail.

• Completed strategic divestments, including the sale of Lippulaiva housing companies for €61.5 million.

• Strengthened balance sheet by repaying over €870 million in debt and issuing a €450 million bond, reducing LTV to 44.9%.

Financial highlights

• Full-year NRI was €209.2 million, down 2.6% year-over-year due to divestments; like-for-like NOI growth contributed €11.8 million.

• EBITDA/EPRA earnings were €79.0 million, with EPRA EPS at €0.43, in line with guidance.

• Fair value net gain of investment properties was €51.1 million, reversing a prior year loss.

• NOI/NRI margin remained high at 93.7%.

• Operating profit (IFRS) was €226.6 million, up from €29.8 million in 2024.

Outlook and guidance

• Targeting divestment of €500 million to €1 billion in non-core assets over the next 24 months.

• Expects like-for-like net rental income to grow in 2026, assuming stable macroeconomic conditions.

• Continued focus on portfolio optimization, aggressive marketing, operational cost reductions, and selective investments in energy and sustainability.

• Dividend distribution will be considered after debt repayment and when free cash is available; one-time equity repayment of €0.20/share paid in January 2026.