During the quarter, Citycon registered two assets worth approximately EUR 125 million as ‘held for sale’. These transactions are in due diligence and are expected to close late in Q4/2022 with the sale proceeds earmarked to pay down debt. Excluding these assets, we have sold EUR 400 million of assets since 2021. Over the next 24 months, Citycon is targeting EUR 500 million of asset sales, inclusive of the two assets held for sale, and intends to use the proceeds to repay debt. Net fair value gain of our investment properties was EUR 0.9 million in Q3 and year-to- date EUR 23.1 million, on the strength of indexation increases and building rights development, mainly at Trekanten where zoning was approved in the third quarter. These actions, combined with continued strong operating metrics, reduced capex spend, and positive future growth driven by indexation, further stabilises Citycon´s well-laddered maturity profile and credit metrics. We have no significant maturities until October 2024, 95% of our consolidated debt is fixed, 100% of our assets are unencumbered, and we have over EUR 500 million of liquidity. As a result, Citycon is well positioned to continue to thrive despite near term disruption in the credit market.
The business model of urban hubs containing necessity retail and residential units in major markets attached to public transportation provides an attractive value proposition for all stakeholders. As a result of the solid quarter and the confidence we have in the business, we are reaffirming our guidance.
F. Scott Ball
Vice Chairman and Chief Executive Officer
OUTLOOK FOR THE YEAR 2022
Citycon reaffirms its prior full-year guidance at the levels noted in the table below:
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 arranged on Thursday 10 November 2022 at 10 am EET. The audiocast can be participated by calling in and followed live on the following website: https://citycon.videosync.fi/2022-q3
Questions for the management can be presented by phone. To ask questions, join the teleconference by registering on the following link: https://call.vsy.io/access-8157
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
Telephone +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 4.5 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
The following files are available for download:
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