(Información remitida por la empresa firmante)
Our unique assets function as last mile logistics centres for the delivery of daily goods and services for our communities in the largest cities in the Nordics combined with direct connections to public transportation. Our mix of high credit tenants are less reliant on consumer discretionary spending, which provides a level of resilience and stability reflected in our results that bode well as we look forward into 2023. We are well positioned operationally with a proven stable business model that has performed well regardless of macroeconomic pressures. This combination is enhanced by the fact that 93% of our leases are linked to indexation and stand to benefit in 2023. This provides meaningful organic growth for net rental income, which is reflected in the outlooks we are providing today. We also have the benefit of having a low occupancy cost ratio of 9.1 %, and increasing tenant sales in an inflationary environment. This positions Citycon to increase rents and service charges without jeopardizing our tenants’ ability to continue to run profitable businesses. Further, we will benefit from a full-year of Lippulaiva being open, in addition to starting to benefit from the residentials which are coming online early this year. Taken together, these factors give us confidence that 2023 results will continue to build on our strong performance in 2022, even after factoring in the recent Norwegian asset sales late last year. Our guidance reflects the benefit from inflation as indexation pushes our rents higher not only for 2023, but also future years, the growth of which will compound and grow exponentially. As a result, our estimated outlook is for 2023 direct operating profit to be in range EUR 174–192 million, EPRA EPS EUR 0.69–0.81 and adjusted EPRA EPS EUR 0.51–0.63.
STANDING PORTFOLIO KEY FIGURES 1)
1) Standing portfolio key figures include only income and expenses from investment properties that were on group balance sheet on 31 December 2022. The portfolio is the same in the reporting period and in the comparison period, hence the numbers are comparable. Lippulaiva (opened on the 31st of March 2022) is included in the standing portfolio.
2) Citycon presents alternative performance measures according to the European Securities and Markets Authority (ESMA) guidelines. More information is presented in Basis of Preparation and Accounting Policies in the notes to the accounts.
3) The key figure includes hybrid bond coupons and amortized fees.
KEY FIGURES
1) Change from previous year (comparable exchange rates). Change-% is calculated from exact figures.
2) Citycon presents alternative performance measures according to the European Securities and Markets Authority (ESMA) guidelines. More information is presented in Basis of Preparation and Accounting Policies in the notes to the accounts.
3) The key figure includes hybrid bond coupons and amortized fees.
4) Highly liquid cash investments has been taken into account in net debt.
5) Calculation updated from this and comparison periods. Divided by number of shares at balance sheet date instead of average amount of shares during the reporting period.
6) LTV Q4/2021 changed due to correction related to presentation of IFRS 16 assets. Previously reported LTV for Q4/2021 was 40.7%
7) The effect of currency rates to EPRA NRV/share was EUR -0.79.
OUTLOOK FOR 2023
The outlook assumes that there are no major changes in macroeconomic factors and that there will not be another wave of COVID-19 with restrictions resulting in significant store closures and no major disruptions from the war in Ukraine. These estimates are based on the existing property portfolio as well as on the prevailing level of inflation, the EUR–SEK and EUR–NOK exchange rates, and current interest rates.
AUDIOCAST
Citycon’s investor, analyst and press conference call and live audiocast will be organized on Friday, 17 February 2023 at 2:00 p.m. EET. The audiocast can be participated by calling in and followed live on the following website: https://citycon.videosync.fi/full-year-2022
Questions for the management can be presented by phone. To ask questions, join the teleconference by registering on the following link: http://palvelu.flik.fi/teleconference/?id=10010506
After the registration you will be provided with phone numbers and a conference ID to access the conference. To ask a question, press *5 on your telephone keypad to enter the queue.
The audiocast will be recorded and it will be available afterwards on Citycon’s website.
CITYCON OYJ
For further information, please contact:
Bret McLeod
Chief Financial Officer
Tel. +46 73 326 8455
bret.mcleod@citycon.com
Sakari Järvelä
VP, Corporate Finance and Investor Relations
Tel. +358 50 387 8180
sakari.jarvela@citycon.com
Citycon is a leading owner, manager and developer of mixed-use real estate featuring modern, necessity-based retail with residential, office and municipal service spaces that enhance the communities in which they operate. Citycon is committed to sustainable property management in the Nordic region with assets that total approximately EUR 4.3 billion. Our centres are located in urban hubs in the heart of vibrant communities with direct connections to public transport and anchored by grocery, healthcare and other services that cater to the everyday needs of customers.
Citycon has investment-grade credit ratings from Moody’s (Baa3) and Standard & Poor’s (BBB-). Citycon’s shares are listed on Nasdaq Helsinki Ltd.
www.citycon.com
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