CITYCON OYJ Stock Exchange Release 12 February 2009 at 9.00 hrs
Summary of the Last Quarter of 2008
- Turnover grew by 1.4 per cent to EUR 45.2 million (Q3/2008:
EUR 44.6 million).
- Net rental income declined by 4.1 per cent to EUR 30.2 million (EUR
31.5 million) due to higher operating and maintenance expenses than
in the previous quarter as a result of customary seasonal
fluctuations.
- Net cash from operating activities per share rose to EUR 0.07 (EUR
0.02).
- Earnings per share were EUR -0.14 (EUR -0.21).
- Direct result per share (diluted) was EUR 0.05 (EUR 0.05). The
result includes a gain of EUR 1.6 million, tax effect included,
resulting from the buyback of the 2006 convertible bonds.
- The fair value change of investment properties was EUR -59.3
million (EUR -71.7 million). The fair market value of the investment
properties decreased to EUR 2,023.6 million (EUR 2,094.4 million).
- The average net yield requirement for investment properties rose
and was 6.4 per cent (6.2%) at the end of the period, according to an
external appraiser. The increase in the net yield requirement was due
to market conditions.
- Net financial expenses decreased to EUR 13.0 million (EUR 15.2
million) as a result of lower interest rates and the buyback of the
convertible bonds. The period's net financial expenses include a
non-cash expense of EUR 1.4 million (EUR 0.6 million) related to the
valuation of interest rate derivatives.
- During the period, the refurbished Trio shopping centre was opened
in Lahti while in Tallinn, Estonia, the first stage of the Rocca al
Mare shopping centre redevelopment project was completed.
-The Board of Directors proposes a per-share dividend of EUR 0.04
(EUR 0.04) and, additionally, a return of equity from invested
unrestricted equity fund of EUR 0.10 (EUR 0.10) per share.
Summary of the Year 2008
- The company's financial position remained good during the period.
Total liquidity at the end of the reporting period was
EUR 203.7 million, including unutilised committed debt facilities
amounting to EUR 187.0 million and cash of EUR 16.7 million. The
available liquidity will cover the authorised investments and
scheduled debt interest and repayments at least until 2010, without
the need for additional financing sources.
- Turnover grew by 17.7 per cent to EUR 178.3 million (2007:
EUR 151.4 million), due mainly to the growth in gross leasable area
and to active development of the retail properties.
- Profit/loss before taxes was EUR -162.3 million (EUR 253.5
million), including a EUR -216.1 million (EUR 211.4 million) change
in the fair value of investment properties.
- Net rental income from like-for-like properties rose by
3.6 per cent.
-The company's direct result rose to EUR 43.8 million
(EUR 38.3 million), up due mainly to the full-year effect of
properties acquired in 2007. Changes in the fair value of the
company's property portfolio have no effect on the company's net
rental income or direct result, but will affect the company's profit
for the period.
- Direct result per share (diluted) was EUR 0.20 (EUR 0.19).
- Earnings per share were EUR -0.56 (EUR 1.00). The decrease resulted
mainly from the fair value changes of the investment properties.
- Net rental income increased by 17.8 per cent, to EUR 121.8 million
(EUR 103.4 million).
- Occupancy rate improved to 96.0 per cent (95.7%) as a result of
advancing (re)development projects.
- Net cash from operating activities per share rose to EUR 0.21(EUR
0.20).
- The equity ratio was 38.5 per cent (43.9%). The decrease resulted
mainly from the fair value changes of the investment properties and
higher level of debt due to capital expenditure in 2008.
- Citycon signed three long-term loan agreements on competitive
terms.
Key Figures
Q4/
Q4/ 2007 Q3/ Change-%
2008 5) 2008 5) 2008 2007 5) 1)
Turnover, EUR million 45.2 43.3 44.6 178.3 151.4 17.7%
Net rental income, EUR
million 30.2 27.1 31.5 121.8 103.4 17.8%
Operating loss/profit,
EUR
million -27.9 23.7 -44.1 -105.0 298.7 -
% of turnover - 54.7% - - 197.3% -
Loss/profit before
taxes, EUR
million -40.9 10.0 -59.3 -162.3 253.5 -
Loss/profit attributable
to parent
company shareholders,
EUR
million -30.7 9.3 -46.0 -124.1 200.3 -
Direct result, EUR
million 2) 11.8 14.6 11.3 43.8 38.3 14.4%
Indirect result, EUR
million -42.5 -5.4 -57.3 -167.9 162.1 -
Earnings per share
(basic), EUR -0.14 0.04 -0.21 -0.56 1.00 -
Earnings per share
(diluted), EUR -0.14 0.04 -0.21 -0.56 0.91 -
Direct result per share
(diluted),
(diluted EPRA EPS), EUR
2) 0.05 0.07 0.05 0.20 0.19 3.3%
Net cash from operating
activities per share,
EUR 0.07 0.06 0.02 0.21 0.20 8.3%
Fair market value of
investment
properties, EUR million 2,094.4 2,023.6 2,215.7 -8.7%
Equity per share, EUR 3.87 3.62 4.44 -18.6%
Net asset value (EPRA
NAV) per share, EUR 2) 4.16 3.88 4.82 -19.6%
EPRA NNNAV per share,
EUR 4.05 3.80 4.42 -14.0%
Equity ratio, % 40.3 38.5 43.9 -
Gearing, % 133.8 141.3 111.8 -
Net interest-bearing
debt
(fair value), EUR
million 1,221.1 1,194.6 1,147.3 4.1%
Net rental yield, % 3) 5.6 5.8 5.8 -
Net rental yield,
like-for-like
properties, % 6.0 6.3 6.2 -
Occupancy rate, % 95.6 96.0 95.7 -
Personnel (at the end of the period) 112 113 102 10.8%
Dividend per share, EUR 0.04 4) 0.04 0.0%
Return from invested unrestricted equity
fund per share, EUR 0.10 4) 0.10 0.0%
Dividend and return from invested
unrestricted equity fund
per share total, EUR 0.14 4) 0.14 0.0%
1) Change-% is calculated from exact figures and refers to the change
between 2008 and 2007.
2) In comparison to previous practice direct result excludes the
changes in fair value of financial instruments that are recognized in
the income statement and net asset value excludes the fair value of
derivative financial instruments which are not under hedge
accounting. Please see the Note 4 "Reconciliation between direct and
indirect result" for direct result calculations and Note 5 "Earnings
per share" for calculation of direct result per share.
3) Includes the lots for development projects.
4) Proposal by the Board.
5) Restated according to the New IAS 23 Borrowing Costs Standard.
Please see the Note 2 "Basis of Preparation and Accounting Policies".
The Board of Directors of Citycon Oyj has yesterday approved the
Financial Statements of the company for the financial period 1
January - 31 December 2008 and they are available in pdf-format on
the company's website at www.citycon.com.
CEO Petri Olkinuora's Comments on the Year 2008:"Citycon reached its all-time high direct result in 2008. The
company's cash flow per share grew, and so did the turnover and net
rental income. The shopping centres' sales rose and the occupancy
rate was 96.0 per cent, up from 95.7 per cent at the end of 2007.
Grocery sales continued to grow in all our markets. In most of our
shopping centres, grocery retailing is the anchor that maintains a
steady footfall.
The construction of the Liljeholmstorget and Rocca al Mare shopping
centres proceeded as scheduled. Both projects will be completed late
2009. The leasing of premises is progressing well, and all anchor
tenant agreements have been signed. Financing for the projects is
secured.
In November, the Trio shopping centre in Lahti was opened after
having been redeveloped for almost two years. The opening was a big
success and the centre has regained its position as the leading
shopping centre in Lahti.
During the year, we invested in sustainable construction and we are
applying international certification for our most important
construction projects. We seek to comply with the principles of
sustainable development in our operations.
In the last quarter, the decrease in interest rates and the
successful buyback of the convertible bonds reduced our financial
expenses.
The fair value of properties continued to fall following a rise in
the current yield requirements in the markets. In 2008, the decline
of property values did offset the fair value gains in 2007. Citycon's
financial position is good and the company focuses on strong
operative cash flow."
Business Environment
Significant changes took place in financial environment in 2008. The
escalation of the financial crisis from the US housing markets into a
global economic crisis quickly led to tighter financial markets in
Finland as well. Towards the year-end, the financial crisis began to
affect the real economy, and it will not be long before the business
fluctuations are likely to reflect on retail sales too.
At the beginning of the year, retail trade was showing strong growth
but slowed down towards the year-end. In total, in cumulative terms
retail trade grew by 5.6 per cent in Finland and by 3.3 per cent in
Sweden in 2008. Trade slowdown was the most significant in the Baltic
countries. After years of considerable growth, the December retail
sales decreased by 9.0 per cent in Estonia and by 8.8 per cent in
Lithuania (Sources: Statistics Finland, Statistics Sweden, Statistics
Estonia, Statistics Lithuania).
Consumer confidence in personal financial development has clearly
weakened in Citycon's operating countries. Inflation took a downward
turn and market interest rates fell quickly from the high levels seen
early in the year. At the end of the year, construction costs and raw
material prices also fell. Economic growth is expected to decelerate
in all of Citycon's operating countries (source: Nordea).
Volatility in the global financial markets has reduced the
availability of debt and clearly raised the margins on new loans. At
the same time, long-term relationship with banks has become a key
factor in financing decisions.
The property markets were active in Finland and Sweden at the
beginning of the year. However, as financing opportunities almost
disappeared towards the year-end, the property market slowed down.
The few property deals closed in Finland at the year-end were
primarily conducted between domestic institutional investors. Also,
in Sweden deals were closed largely between domestic players. In the
Baltic countries, the property markets are almost at a complete
standstill. (Source: Catella)
Business and Property Portfolio Summary
Citycon is an active owner and long-term developer of shopping
centres, laying the foundation for a successful retail business. The
company aims to increase its net yield from shopping centres over the
long term through active retail property management and redevelopment
efforts. Citycon's retail properties serve both consumers and
retailers.
Citycon is the market leader in the Finnish shopping centre business
and holds a strong position in Sweden and a firm foothold in the
Baltic Countries. It assumes responsibility for the business
operations and administration of its investment properties. This
differentiates Citycon from many other real estate companies, with
principal focus on ownership.
Citycon is involved in the day-to-day operations of its shopping
centres and, in co-operation with its tenants, aims continuously to
increase the attractiveness, footfall, sales and profits of its
shopping centres. Citycon is a pioneer in the Nordic shopping centre
market, as it aims to factor environmental considerations into its
shopping centre management as well as its redevelopment and
development projects. The company has three sustainable development
pilot projects, and the redevelopment of shopping centre Trio was the
first one to be completed at the end of the year.
Citycon operates in Finland, Sweden and the Baltic countries. Thanks
to careful market research and good local knowledge, Citycon has been
able to acquire shopping centres in major growth centres in the
countries in which it operates. Citycon's investments are focused on
areas with expected population and purchasing power growth.
At the end of 2008, Citycon owned 33 (33) shopping centres and 52
(53) other properties. Of the shopping centres, 22 (22) were located
in Finland, eight (8) in Sweden and three (3) in the Baltic
countries.
At the end of the year, the market value of the company's property
portfolio totalled EUR 2,023.6 million (EUR 2,215.7 million) with
Finnish properties accounting for 73.1 per cent (71.6%), Swedish
properties for 19.6 per cent (23.4%) and Baltic properties for
7.3 per cent (5.0%). The gross leasable area at the end of the year
totalled 937,650 square metres.
Changes in the Fair Value of Investment Properties
Citycon measures its investment properties at fair value, under the
IAS 40 standard, according to which changes in the fair value of
investment properties are recognised through profit or loss. In
accordance with the International Accounting Standards (IAS) and the
International Valuation Standards (IVS), an external professional
appraiser conducts a valuation of Citycon's property portfolio on a
property-by-property basis at least once a year. However, in 2008,
Citycon had its properties valued by an external appraiser on a
quarterly basis, due to increased market volatility.
Citycon's property portfolio is valued by Realia Management Oy, part
of the Realia Group. Realia Management Oy works in association with
the leading provider of real estate services, the international
company CB Richard Ellis. A summary of Realia Management Oy's
Property Valuation Statement at the end of 2008 can be found at
www.citycon.com/valuation. The valuation statement includes a
description of the valuation process and the factors contributing to
the valuation, as well as the results of the valuation, and a
sensitivity analysis.
During the financial year, the fair value of Citycon's property
portfolio decreased. This decrease was due to changes in general
market conditions on the property and financial market and to higher
yield requirements resulting from the general economic recession. The
period saw a total value increase of EUR 15.3 million and a total
value decrease of EUR 231.4 million. The net effect of these changes
on the company's profit was EUR -216.1 million (EUR 211.4 million).
On 31 December 2008, the average net yield requirement defined by
Realia Management Oy for Citycon's property portfolio came to 6.4 per
cent (Q3/2008: 6.2% and 31 December 2007: 5.6%).
Lease Portfolio and Occupancy Rate
At the end of the year, Citycon had a total of 3,742 (3,700) leases.
The average remaining length of the lease agreements was 3.2 (3.0)
years. Citycon's property portfolio's net rental yield was 5.8 per
cent (5.8%) and the occupancy rate was 96.0 per cent (95.7%).
Citycon's net rental income grew by 17.8 per cent to EUR 121.8
million during the year. The leasable area rose by 1.5 per cent to
937,650 square metres. Net rental income from like-for-like
properties grew by 3.6 per cent.
Net rental income from like-for-like shopping centres grew by
4.5 per cent. Like-for-like properties are properties held by Citycon
throughout the 24-month reference period, excluding properties under
refurbishment and redevelopment as well as undeveloped lots. 77.9 per
cent of like-for-like properties are located in Finland. The
calculation method for net yield and standing (like-for-like)
investments is based on guidelines issued by the KTI Institute for
Real Estate Economics and the Investment Property Databank (IPD).
During the last 12 months, the rolling twelve-month occupancy cost
ratio for like-for-like properties was 8.5 per cent. The occupancy
cost ratio is calculated as the share of net rent and potential
service charges paid by a tenant to Citycon out of the tenant's
sales, excluding VAT. The VAT percentage is an estimate.
Lease Portfolio Summary
Q4/2008 Q4/2007 Q3/2008 2008 2007 Change-%
Number of leases
started
during the period 255 164 81 572 512 11.7
Total area of leases
started, sq.m. 69,730 27,854 12,810 124,960 103,408 20.8
Occupancy rate at end of the period,
% 95.6 96.0 95.7 0.3
Average remaining length of lease
portfolio at the
end of the period, year 3.0 3.2 3.0 6.7
Acquisitions and Divestments
Citycon continues to focus on the development and redevelopment of
the company's shopping centres, and follows developments in the
shopping centre market across its operating regions. During the year,
no new shopping centres were acquired, but the company acquired more
minority shares in several partially-owned properties. Acquisitions
totalled EUR 17.4 million during the year.
In February, Citycon sold 40 per cent of the Iso Omena shopping
centre to an affiliate of GIC Real Estate, the property investment
arm of the Government of Singapore Investment Corporation. The
purchase price totalled EUR 131.6 million, equivalent to 40 per cent
of the purchase price at which Citycon bought Iso Omena in September
2007. The parties have agreed that Citycon will continue to be
responsible for the management of Iso Omena and continue its
development according to Citycon's operating concept against agreed
consideration.
Related to the Lippulaiva shopping centre's redevelopment project,
Citycon acquired all the shares in MREC Kiinteistö Oy Majakka and, at
the same time, divested its entire holding in MREC Kiinteistö Oy
Ulappatori. Kiinteistö Oy Majakka owns undeveloped land adjacent to
Lippulaiva, in the area planned for the extension of the shopping
centre, located in Espoo, Finland. Citycon continues to have right of
possession over the leasable areas of Kiinteistö Oy Ulappatori. This
right of possession will terminate when the redevelopment project is
completed or during 2011 at the latest. Kiinteistö Oy Majakka merged
with MREC Kiinteistö Oy Lippulaiva in the beginning of July 2008.
In addition, in early July Citycon acquired an approximately 54 per
cent holding in MREC Kiinteistö Oy Espoon Asematori. This acquisition
is related to the shopping centre Espoontori's refurbishment and
redevelopment project currently in the pipeline. In January, Citycon
sold its 44 per cent holding in Pukinmäki retail centre in Helsinki,
Finland.
Development Projects
Keeping its shopping centres competitive for both customers and
tenants constitutes the core of Citycon's strategy. The company is
pursuing a long-term increase in the footfall and cash flow, as well
as in the efficiency and return of its retail properties. In the
short term, redevelopment projects may weaken returns from some
properties, as some retail premises may have to be temporarily
vacated for refurbishment, which affects rental income. Citycon aims
to carry out any redevelopment projects phase by phase so that the
whole shopping centre does not have to be closed during the works in
question, thus ensuring continuous cash flow.
Sustainable Construction and Management
In its development projects, Citycon is paying increasing attention
to environmental management methods and solutions. The company has
three pilot projects, aimed at identifying the best practices to be
implemented in the sustainable construction and management of
shopping centres. These pilot projects include building a new
shopping centre at Liljeholmen in Stockholm, Sweden, and the
redevelopment and extension of the Rocca al Mare shopping centre in
Tallinn, Estonia, and of the Trio shopping centre in Lahti, Finland.
The assessment applied in the pilot projects comprises a total of
over 60 points, reviewing various factors such as the energy
efficiency of the property, indoor air quality, the choice of
materials, the utilisation of public transport and minimising the
environmental impacts of construction work. On the basis of this
assessment, practical development measures will be introduced in
order to establish systematic, sustainable construction practices.
Citycon seeks to obtain the international LEED (Leadership in Energy
and Environmental Design) environmental certification for its
projects. Furthermore, Citycon remains confident that in the long
term a responsible approach to its business operations will enhance
its reputation as a responsible player in the shopping centre markets
and its attraction as an international investment.
(Re)development Projects in Progress
The table below lists the most significant development and
redevelopment projects in progress, as approved by the Board of
Directors. More information on planned projects can be found on
Citycon's website at www.citycon.com, in management presentations and
the Annual Report 2008 to be published in February.
Capital expenditure during the year on all development projects
amounted to EUR 56.5 million in Finland, EUR 60.5 million in Sweden
and EUR 22.7 million in the Baltic countries.
(Re)development Projects in Progress
Actual
Estimated gross
total expenditure Estimated
cost 31.12.2008 final
(EUR up to year of
Location million) (EUR million) completion
Liljeholmstorget Stockholm, Sweden 130 70.7 2009
Rocca al Mare Tallinn, Estonia 64.3 36.6 2009
Trio Lahti, Finland 60 58.31) Completed
Seinäjoki,
Torikeskus Finland 4 2.6 2009
1) Current expenditure before the final project report.
The company's largest development project and its main sustainable
construction project involves the construction of a new shopping
centre in Liljeholmen, Stockholm. During the year, the project
advanced within the planned budget and schedule. The new shopping
centre is expected to open in October 2009, and the leasing of retail
premises is also proceeding as planned, although the contract process
is taking longer in the current market conditions.
The first stage of the redevelopment of the Rocca al Mare shopping
centre in Tallinn was completed ahead of schedule, with new premises
opening on 1 October 2008. The refurbished premises are fully leased,
and the shopping centre has stayed open during the project. The next
stage of the redevelopment project has already been launched, and the
majority of the premises leased. In completely renovated form, Rocca
al Mare is expected to open in the autumn of 2009.
The second stage of the redevelopment of the Trio shopping centre in
downtown Lahti proceeded as planned and the totally refurbished Trio
was completed in November 2008 in time for the Christmas sales. Trio,
too, remained open during the whole redevelopment project, which was
launched in 2007.
Citycon's Board of Directors has also approved a redevelopment
project involving the Torikeskus in Seinäjoki.
During the year, Citycon and the City of Helsinki signed a
preliminary agreement on the purchase of land for a planned new
retail centre in Myllypuro, Helsinki. The agreement covers four lots
zoned for commercial and residential development. The aim is to
develop an attractive modern retail property in Myllypuro.
Other projects being planned but not yet approved by the Board of
Directors include the extension of the Lippulaiva shopping centre as
well as Åkersberga Centrum's and Tumba Centrum's redevelopment
projects. However, these or other possible development projects will
be started only once financing and leasing are adequately secured.
Business Units
Citycon's business operations are divided into three business units:
Finland, Sweden and the Baltic Countries. These are sub-divided into
two business areas: Retail Properties and Property Development. The
Finnish business unit also includes a Commercial Development
function, responsible for the commercial development of Citycon's
Finnish shopping centres and the development of new commercial
concepts.
Finland
Citycon is the market leader in the Finnish shopping centre business.
Citycon's market share is 24 per cent of the Finnish shopping centre
market (source: Entrecon). In 2008, the company's net rental income
from Finnish operations grew by 20.1 per cent to EUR 90.9 million in
spite of the ongoing redevelopment projects. The business unit
accounted for 74.7 per cent of the company's total net rental income.
The key figures of the Finnish property portfolio are presented
below. Ongoing development projects have been covered previously in
this document.
Lease Portfolio Summary, Finland
Q4/2008 Q4/2007 Q3/2008 2008 2007 Change-%
Number of leases
started during
the period 193 151 66 452 442 2.3
Total area of leases
started, sq.m. 31,930 18,640 11,090 79,130 74,400 6.4
Occupancy rate at end of the period,
% 95.7 95.7 95.6 0.1
Average remaining length of lease
portfolio at the end
of the period, year 3.1 3.1 3.1 0.0
Financial Performance, Finland
Q4/2008 Q4/2007 Q3/2008 2008 2007 Change-%
Gross rental income,
EUR million 30.8 29.1 30.8 122.5 100.7 21.7
Turnover, EUR
million 32.0 30.2 31.9 126.8 104.3 21.6
Net rental income,
EUR million 22.6 21.0 23.4 90.9 75.7 20.1
Net fair value
losses/gains on
investment property,
EUR million -48.6 -2.3 -45.0 -154.3 148.1 -
Operating
loss/profit, EUR
million -21.7 17.3 -22.9 -62.9 218.4 -
Capital expenditure,
EUR million 10.6 32.5 18.0 69.2 429.1 -83.9
Fair market value of investment
properties, EUR million 1,519.3 1,480.2 1,587.0 -6.7
Net rental yield, %
(1 5.8 6.0 6.2 -
Net rental yield, like-for-like
properties, % 6.3 6.5 6.6 -
1) Includes the lots for development projects.
Sweden
Citycon has achieved a substantial position in the Swedish shopping
centre market and has eight shopping centres and seven other retail
properties in Sweden, located in the Greater Stockholm and Greater
Gothenburg areas and in Umeå. The net rental income from Swedish
operations increased by 11.3 per cent to EUR 24.1 million. The
business unit's net rental income accounted for 19.8 per cent of
Citycon's total net rental income.
The key figures for the Swedish property portfolio are presented
below. Ongoing redevelopment projects have been covered previously in
this document.
Lease Portfolio Summary, Sweden
Q4/2008 Q4/2007 Q3/2008 2008 2007 Change-%
Number of leases
started during
the period 19 13 13 58 49 18.4
Total area of leases
started, sq.m. 9,060 9,179 1,670 15,340 25,800 -40.5
Occupancy rate at end of the period,
% 94.8 96.0 95.1 0.9
Average remaining length of lease
portfolio at the end
of the period, year 2.4 2.4 2.4 0.0
Financial Performance, Sweden
Q4/2008 Q4/2007 Q3/2008 2008 2007 Change-%
Gross rental income, EUR
million 9.9 9.4 11.3 41.1 35.4 16.4
Turnover, EUR million 10.1 11.1 10.5 41.9 39.0 7.2
Net rental income, EUR
million 5.3 4.7 6.5 24.1 21.6 11.3
Net fair value
losses/gains on
investment property, EUR
million -21.4 2.3 -29.3 -70.1 54.7 -
Operating loss/profit,
EUR million -16.9 6.9 -23.3 -49.1 73.4 -
Capital expenditure, EUR
million 23.0 5.5 18.5 65.6 142.4 -53.9
Fair market value of investment
properties, EUR million 464.1 396.1 517.5 -23.5
Net rental yield, % (1 4.7 5.0 4.6 -
Net rental yield, like-for-like
properties, % 5.2 5.4 4.9 -
1) Includes the lots for development projects.
Baltic Countries
At the end of 2008, Citycon owned three shopping centres in the
Baltic countries: Rocca al Mare and Magistral in Tallinn, Estonia and
Mandarinas in Vilnius, Lithuania. Due to the limited size of the
Baltic market, the turbulence in property and financial markets, and
the limited availability of suitable properties, Citycon has been
selective in making investments in the region. Net rental income from
Baltic operations increased by 13.8 per cent, to EUR 6.8 million. The
business unit accounted for 5.6 per cent of Citycon's total net
rental income.
The key figures for the Baltic property portfolio are presented
below. Ongoing redevelopment projects have been covered previously in
this document.
Lease Portfolio Summary, Baltic Countries
Q4/2008 Q4/2007 Q3/2008 2008 2007 Change-%
Number of leases
started during
the period 43 - 2 62 21 195.2
Total area of leases
started, sq.m. 28,740 - 50 30,490 3,208 850.4
Occupancy rate at end of the period, % 99,8 99,8 100,0 -0.2
Average remaining length of lease
portfolio at the end
of the period, year 2.2 6.8 2.8 142.9
Financial Performance, Baltic Countries
Q4/2008 Q4/2007 Q3/2008 2008 2007 Change-%
Gross rental income, EUR
million 3.0 2.1 2.1 9.3 7.7 20.7
Turnover, EUR million 3.1 2.0 2.1 9.6 8.0 19.4
Net rental income, EUR
million 2.2 1.4 1.5 6.8 6.0 13.8
Net fair value
gains/losses on
investment property, EUR
million 10.6 -0.1 2.6 8.3 8.7 -5.2
Operating profit/loss,
EUR million 12.6 1.0 4.0 14.4 13.8 4.3
Capital expenditure, EUR
million 6.7 5.6 3.8 22.7 31.7 -28.3
Fair market value of investment
properties,
EUR million 111.0 147.3 111.2 32.5
Net rental yield, % (1 5.8 6.2 6.2 -
Net rental yield, like-for-like
properties, % 7.1 7.2 7.3 -
1) Includes the lots for development projects.
Turnover and Profit
Turnover for the financial year came to EUR 178.3 million (EUR 151.4
million), principally derived from the rental income generated by
Citycon's retail premises. Gross rental income accounted for 97.0 per
cent (94.9%) of turnover.
Operating profit came to EUR -105.0 million (EUR 298.7 million).
Profit before taxes was EUR -162.3 million (EUR 253.5 million) and
profit after taxes attributable to the parent company's shareholders
EUR -124.1 million (EUR 200.3 million). The decrease in operating
profit was mainly due to the fair value loss of the property
portfolio. On the other hand, as a result of the completed
redevelopment projects, the operating profit rose due to net rental
income generated by increased and refurbished premises.
The effect of changes in the fair value of the property portfolio, of
gains on sales and of other indirect items on the profit attributable
to the parent company's shareholders, was EUR -167.9 million
(EUR 162.1 million), tax effects included. Taking this into account,
the direct result after taxes was EUR 5.5 million above the reference
period level (cf. Note Reconciliation between direct and indirect
result). The growth in direct result resulted mainly from increased
net rental income. Indirect result includes a EUR 5.9 million
compensation from the City of Helsinki for the premature termination
of the land lease agreement, in order to advance the Myllypuro
development project. In addition, a gain of EUR 1.6 million,
including tax effect, for the buyback of convertible bonds was booked
under direct result.
Current taxes on direct result were higher during the financial year
than during the reference period, due to direct result growth and
buyback of convertible bonds.
Earnings per share amounted to EUR -0.56 (EUR 1.00). Direct result
per share, diluted, (diluted EPRA EPS) was EUR 0.20 (EUR 0.19). Net
cash flow from operating activities per share amounted to EUR 0.21
(EUR 0.20).
Due to the new IAS 23 standard Borrowing costs, Citycon has revised
its accounting principles with respect to the capitalisation of
interest expenses. As a result of the introduction of the new
accounting principles, Citycon has adjusted its financial statements
for 2007 and 2008. The new standard was published by the
International Accounting Standards Board IASB. More information on
the effects of the adjustment is available in Note 2.
Human Resources and Administrative Expenses
At the end of the year, Citycon Group employed a total of 113 (102)
persons, of whom 76 were employed in Finland, 29 in Sweden and 8 in
the Baltic countries. Administrative expenses increased to EUR 16.9
million (EUR 16.5 million), including EUR 0.3 million (EUR 0.7
million) calculated non-cash expenses related to employee stock
options and the company's share-based incentive scheme. The higher
expenses when compared to the reference period were due to
organisation growth.
Capital Expenditure and Divestments
Citycon's reported gross capital expenditure during the year totalled
EUR 157.9 million (EUR 603.9 million). Of this, property acquisitions
accounted for EUR 17.4 million (EUR 531.3 million), property
development EUR 139.7 million (EUR 71.8 million) and other
investments EUR 0.8 million (EUR 0.8 million). These investments were
financed through cash flow from operations and existing financing
arrangements.
The financial year saw the partial divestment of the shopping centre
Iso Omena, involving the sale of a 40 per cent holding to a company
in the GIC Real Estate Group. The selling price amounted to EUR 131.6
million.
Balance Sheet and Financial Position
The balance sheet total at the end of the reporting period stood at
EUR 2,178.6 million (EUR 2,308.6 million). Liabilities totalled
EUR 1,341.5 million (EUR 1,297.7 million) with short-term liabilities
accounting for EUR 109.7 million (EUR 157.8 million). The Group's
financial position remained good during the year. At the end of the
year, Citycon's liquidity was EUR 203.7 million, of which EUR 187.0
million consisted of undrawn, committed credit facilities and EUR
16.7 million of cash and cash equivalents. At the end of the year,
Citycon's liquidity, short-term credit limits excluded, stood at EUR
158.7 million (Q3/2008: EUR 202.6 million).
For the purpose of short-term liquidity management, the company uses
a EUR 100 million non-committed Finnish commercial paper programme
and a non-committed Swedish commercial paper programme worth SEK one
billion. Due to more difficult market conditions, Citycon repaid all
of its commercial papers at the end of the year by drawing funds from
its committed long-term credit facilities. Consequently, Citycon's
financing at the end of the financial year was mainly arranged on a
long-term basis, with short-term interest-bearing debt constituting
approximately 4.2 per cent of the Group's total interest-bearing
debt.
From the reference period, interest-bearing debt increased by EUR
45.5 million to EUR 1,199.5 million (EUR 1,154.0 million). The fair
value of Group's interest-bearing debt stood at EUR 1,211.3 million
(EUR 1,171.4 million).
The Group's cash and cash equivalents totalled EUR 16.7 million
(EUR 24.2 million). The fair value of the Group's interest-bearing
net debt stood at EUR 1,194.6 million (EUR 1,147.3 million).
The year-to-date weighted average interest rate increased compared to
the previous year and was 4.85 per cent (4.68% during reference
period). The average loan maturity, weighted according to the
principal amount of the loans stood at 4.6 years (4.7 years). The
average interest-rate fixing period was 3.3 years (3.1 years).
The weighted interest rate, interest-rate swaps included, averaged
4.75 per cent on 31 December 2008.
The Group's equity ratio was 38.5 per cent (43.9%). Year-end gearing
stood at 141.3 per cent (111.8%).
Of Citycon's year-end interest-bearing debt, 75.8 per cent (81.6%)
was in floating-rate loans, of which 66.4 per cent (61.1%) had been
converted into fixed-rate loans by means of interest-rate swaps.
Fixed-rate debt accounted for 74.5 per cent (68.3%) of the Group's
year-end interest-bearing debt, interest-rate swaps included. The
loan portfolio's hedging ratio is in line with the Group's financing
policy, and the company increased the hedging ratio during the year.
Citycon applies hedge accounting, whereby changes in the fair value
of interest-rate swaps subject to hedge accounting are recognised
under equity. The period-end nominal amount of interest-rate swaps
totalled EUR 591.7 million (EUR 634.5 million), with hedge accounting
applied to interest-rate swaps whose nominal amount totalled
EUR 568.7 million (EUR 558.0 million).
On 31 December 2008, the nominal amount of all of the Group's
derivative contracts totalled EUR 614.8 million (EUR 674.8 million),
and their fair value was EUR -9.8 million (EUR 9.1 million). The
decline of market rates towards the end of the year decreased the
fair value of Citycon's interest rate derivatives. Hedge accounting
is applied for the majority of interest rate derivatives, meaning
that any changes in their fair value will be recognised directly in
shareholders' equity. Thereby, the fair value loss for these
derivatives does not affect the net profit for the financial year but
the change is recognised in the consolidated shareholders' equity,
thus weakening the consolidated equity ratio. The fair value loss
recognised in the fair value reserve under shareholders' equity,
taking account of the tax effect, totals EUR -17.7 million
(30 September 2008: EUR 5.1 million).
Net financial expenses totalled EUR 57.3 million (EUR 45.3 million).
The increase was primarily attributed to the rise in interest rates
in the first nine months of the year and increased amount of
interest-bearing debt.
Net financial expenses in the income statement for 2008 include
EUR 3.1 million in non-cash expenses related to derivative valuation
but also non-recurring income worth EUR 2.4 million for the buyback
of the convertible bonds was recorded in net financial expenses. In
addition, net financial expenses in the income statement include
EUR 1.8 million (EUR 1.8 million) in non-cash expenses related to the
option component on convertible bonds.
The IFRS standard IAS 23 was adjusted during the year with respect to
the recognition of interest expenses relating to redevelopment
projects. The adjustment of the IAS 23 standard most importantly
affects the company's financial expenses in the income statement, as
the new IAS 23 standard enables the capitalization of interest
expenses arising from the redevelopment of existing properties and
from the acquisition of lots for development projects in the balance
sheet. This effect is discussed in greater detail in Note 2 of this
report.
Loan Market Transactions
Regardless of the prevailing uncertainty in the financial market,
Citycon signed three long-term loan agreements during the year. Local
financing for the Magistral shopping centre, acquired in the summer
of 2007, was finalised through the signing of a loan agreement for
EEK 280 million, for a term of approximately five years.
Additionally, the company increased its committed long-term credit
limits by signing a EUR 50 million five-year credit facility
agreement.
In June, Citycon and the Nordic Investment Bank (NIB) agreed on a
loan amounting to EUR 30 million to be used to finance the
development of the Liljeholmstorget shopping centre, located in
Stockholm. Liljeholmstorget is Citycon's main sustainable development
project, which was an essential factor in the loan arrangement. The
maturity of the loan is 10 years. The company managed to conclude all
three loan agreements with competitive loan margins.
In addition, on 15 April 2008, Citycon signed a commercial paper
programme in Sweden worth SEK one billion (approximately EUR 102.1
million) with a Nordic bank group. Citycon intends to use the
proceeds from the commercial paper programme for short-term liquidity
management of the Group's Swedish operations. Under the programme,
commercial papers may be issued either in Swedish crowns or in euros.
Subordinated Convertible Bonds 2006
In July of 2006, Citycon's Board of Directors decided to issue
directed subordinated convertible bonds to the amount of EUR 110
million to international institutional investors. The issue of the
convertible bonds waiving the shareholders' pre-emptive subscription
rights was based on the authorisation given at Citycon's Annual
General Meeting on 14 March 2006. These convertible bonds have been
listed on the NASDAQ OMX Helsinki since 22 August 2006. The maturity
of the bonds is 7 years and they will pay a coupon of 4.5 per cent
annually in arrears. Furthermore, the conversion period is from 12
September 2006 to 27 July 2013 and the maturity date is 2 August
2013. The current conversion price is EUR 4.20.
In November-December 2008, Citycon repurchased a total of 442 bonds
of the convertible bonds in several lots. The repurchased bonds were
cancelled on 9 December 2008. After this cancellation, the number of
bonds issued under the convertible bonds is 1,758 and the maximum
number of shares to be subscribed for with bonds is 20,928,571. As a
result of the cancellation, the maximum increase of Citycon's share
capital on the basis of the convertible bonds decreased from EUR
35,357,142.60 to EUR 28,253,570.85. The amendments to Citycon's
convertible bonds were registered in the Trade Register on 19
December 2008.
On 10 December, Citycon repurchased another 100 bonds of the same
convertible bonds. By the end of the financial year, these had not
yet been cancelled.
In November-December, Citycon repurchased a total principal amount of
EUR 27.1 million of the convertible bonds, corresponding to
approximately 25 per cent of the aggregate amount of the convertible
bonds. The weighted average repurchase price was 53.5 per cent of the
face value of the bonds. These repurchases were carried out because
the market situation enabled the company to repurchase the bonds at a
price clearly below their face value and because the repurchases
enabled the company to strengthen its balance sheet and decrease its
net financial expenses.
Short-term Risks and Uncertainties
For its risk management purposes, Citycon has a holistic Enterprise
Risk Management (ERM) programme in place. Citycon's risk management
aims to ensure that the company can meet its strategic and
operational goals while the ERM's purpose is to generate up-to-date
and consistent information for the company's senior executives and
Board of Directors on any risks threatening the targets set in
strategic and annual plans.
Citycon's Board of Directors estimates that major short-term risks
and uncertainties are associated with economic developments in the
company's operating regions, availability of financing as well as
changes in the fair value of investment properties and interest
rates. Redevelopment and construction of the company's own properties
means that also the risks associated with project management and with
the leasing of new premises will increase.
A number of factors contribute to the value of retail properties,
such as general and local economic development, investment demand,
and interest rates. At present, investment property values are
subject to abnormally high uncertainty due to the global financial
crisis and the dramatically weaker economic outlook in the company's
operating regions.
As a result of the credit crisis, property prices have gone down, and
Citycon has also recorded fair value losses for 2008 from the lower
values of investment properties. During the year, trading activity in
the property markets decreased significantly. Furthermore, the
weakening economic conditions make the future development of
properties' fair value even more uncertain. While changes in the
investment properties' fair value have an effect on the company's
profit for the financial year, they do not have an immediate impact
on cash flow.
Economic fluctuations and developments materially affect the demand
for rental premises and rental rates. These represent one of the
company's key short-term risks. All of the company's operating
regions experienced a marked slow-down of economic growth in 2008.
Several economists forecast negative economic growth for almost all
of the company's operating regions for 2009. These economic
conditions could reduce the demand for business premises, weaken
tenants' ability to pay rent and raise the vacancy rate in the
company's properties, which might have a negative impact on the
company's business and financial performance.
Citycon's growth relies on the refurbishment and redevelopment of
retail properties. Implementation of this strategy requires both
equity and debt financing. Difficulties in the banking sector have
made banks more reluctant to lend money to enterprises. Furthermore,
due to falling share prices and investors' reluctance to invest in
shares, it is more difficult for listed companies to acquire equity
through share issues. Citycon's financial position is strong,
enabling it to finance its ongoing projects in full as planned. The
company will need new financing for future new investments and growth
efforts, and the terms of such arrangements will naturally be
affected by the financial crisis.
In addition to the availability of financing, Citycon's main
financial risk is the interest-rate risk of the company's loan
portfolio. In the course of 2008, the six-month interest rate in the
euro area fell by 1.74 percentage points while in Sweden the
equivalent interest rate dropped 2.25 percentage points. During this
period, Citycon's average interest rate rose by 0.17 percentage
points because the sharp decrease in interest rates took place in the
final quarter and thereby the lower interest rates could only have a
limited impact on the full-year average interest rate. The average
interest rate is likely to decrease during 2009 as a consequence of
lower interest rates.
The short-term risks involved in (re)development projects are
associated with the leasing of new premises and the implementation of
construction projects. Leasing risks in projects are minimised by
securing the allocation of sufficient resources to the leasing
operations of new properties, investing in the marketing of new
shopping centres and concluding agreements with anchor tenants prior
to a project's commencement or in its initial stage. Project
implementation risks are managed by sufficient resources.
Responsibility for projects is carried by experienced in-house
project managers.
More details of the company's risk management are available on the
company's website at www.citycon.com/riskmanagement and on pages
32-34 of the Financial Statements 2008.
Environmental Responsibility
Citycon wants to lead the way in responsible shopping centre business
and to promote sustainable development in the business. The location
of Citycon's shopping centres in city centres, local centres or
generally adjacent to major traffic flows, combined with excellent
public transport connections, makes them well positioned to face the
demands of sustainable development.
To further develop its operations, Citycon surveyed its tenants'
views in 2008 on measures that promote sustainable development and
has assembled a list of tangible proposals for improvement. The
survey covered 350 tenants and store managers in Finland and Sweden,
and another 13 persons responsible for environmental affairs in major
retail companies were also interviewed.
The survey indicated that, up to the present day, environmental
affairs have not been a key priority in sales activities conducted in
shopping centres, but in this respect the retail sector may well put
pressure on shopping centre operators in the future. Forerunners in
the retail sector are already placing demands on partners such as
shopping centres.
Citycon has initiated a Green Shopping Centre Management programme to
foster sustainable development in all shopping centres owned by the
company. The programme, to be implemented in 2009, aims to promote
energy efficiency, recycling and other operations that support
sustainable development.
Citycon is currently engaged in sustainable construction through
three pilot projects, for which the company is seeking the
international LEED (Leadership in Energy and Design) certification.
These projects form an essential element of Citycon's efforts towards
sustainable development and include the redevelopment of the Trio
shopping centre in Lahti, the redevelopment and extension of the
Rocca al Mare shopping centre in Tallinn, and the construction of the
Liljeholmstorget shopping centre in Stockholm.
Annual General Meeting
Citycon Oyj's Annual General Meeting (AGM) 2008 took place in
Helsinki, Finland, in March. The AGM adopted the consolidated
financial statements and the parent company's financial statements
for the financial year 2007 and discharged the members of the Board
of Directors and the Chief Executive Officer from liability. The AGM
decided on a dividend of EUR 0.04 per share for the financial year
2007 and, in addition, on an equity return of EUR 0.10 per share from
the invested unrestricted equity fund. The dividend and equity return
were paid on 2 April 2008.
Board of Directors
The number of Board members remained at eight with Gideon Bolotowsky,
Raimo Korpinen, Tuomo Lähdesmäki, Claes Ottosson, Dor J. Segal and
Thomas W. Wernink being re-elected to the Board for a one-year-term.
Per-Håkan Westin, M.Sc. (Eng.), and Amir Bernstein, LL.M., were
elected as new members to the Board. Thomas W. Wernink continued as
the Board Chairman and Tuomo Lähdesmäki as the Deputy Chairman.
Auditor
Ernst & Young Oy, a firm of authorised public accountants, continues
as the company auditor with Authorised Public Accountant Tuija
Korpelainen as the chief auditor.
Shareholders, Share Capital and Shares
Citycon shares have been listed on the Helsinki exchange since 1988.
Citycon is a Mid Cap company in the Financials sector, sub-industry
Real Estate Operating Companies. Its trading code is CTY1S and shares
are traded in euros. The ISIN code used in international securities
clearing is FI0009002471.
Trading and Share Performance
In 2008, the number of Citycon shares traded on the NASDAQ OMX
Helsinki totalled 150.9 million (153.7 million) at a total value of
EUR 443.1 million (EUR 738.1 million). The highest quotation during
the year was EUR 4.28 (EUR 6.09) and the lowest EUR 1.26 (EUR 3.24).
The reported trade-weighted average price was EUR 2.94 (EUR 4.76),
and the share closed at EUR 1.68 (EUR 3.65). The company's market
capitalisation at the end of the financial year totalled
EUR 371.3 million (EUR 806.6 million).
Shareholders
On 31 December 2008, Citycon had a total of 2,190 (2,090) registered
shareholders, of which ten were account managers of
nominee-registered shares. Nominee-registered and other international
shareholders held 210.7 million (210.9 million) shares, or 95.3 per
cent (95.5%) of shares and voting rights in the company.
Notifications of Changes in Shareholdings
During the year, Citycon received three notifications regarding
changes in shareholdings:
FIL Limited (formerly Fidelity International Limited) notified the
company in March that the holdings of its direct and indirect
subsidiaries in Citycon Oyj had fallen below the five per cent
threshold. According to the notification, FIL Limited and its direct
and indirect subsidiaries held a total of 10,904,704 Citycon shares
on 5 March 2008, equivalent to 4.93 per cent of the company's share
capital and voting rights.
AXA Investment Managers notified the company in March that the
holdings of AXA S.A. and its subsidiaries in Citycon Oyj's voting
rights and share capital had risen above the threshold of
five per cent. According to the notification, the AXA Group held
11,892,688 shares on 21 March 2008, equivalent to 5.38 per cent of
the company's voting rights and share capital. In May, AXA
Investments Managers notified the company that the holdings of AXA
S.A. and its subsidiaries in Citycon Oyj's voting rights and share
capital had fallen below the five per cent threshold, to 4.99 per
cent, due to stock transactions that took place on 13 May 2008.
According to the notification, the AXA Group held 11,017,656 Citycon
shares at the time.
Share Capital
At the beginning of 2008, the company's registered share capital
totalled EUR 259,570,510.20 and the number of shares 220,981,211.
During the reporting period, the number of shares increased by
10,738 shares as a result of exercise of stock option rights and by
7,040 shares that were granted to the company's key personnel under a
directed share issue without payment relating to the company's
share-based incentive plan. At the end of the year, the company's
registered share capital totalled EUR 259,570,510.20, and the number
of shares amounted to 220,998,989. The company has a single series of
shares, with each share entitling to one vote at general meetings of
shareholders. The shares have no nominal value.
Board Authorisations
The AGM for 2007 authorised the Board of Directors to decide on
issuing new shares and disposing of treasury shares through paid or
free share issues. New shares can be issued and treasury shares can
be transferred to shareholders in proportion to their existing
shareholding or through a directed share issue waiving the
pre-emptive rights of shareholders, if a weighty financial reason
exists for doing so. The Board can also decide on a free share issue
to the company itself. In addition, the Board was authorised to grant
special rights referred to in Section 1 of Chapter 10 of the Finnish
Limited Liability Companies Act, entitling their holders to receive,
against payment, new shares in the company or treasury shares. The
combined number of new shares to be issued and treasury shares to be
transferred, including the shares granted on the basis of the special
rights, may not exceed 100 million.
The Board exercised this authorisation in September 2007, when it
decided on a share issue based on the shareholders' pre-emptive
subscription right, and in May 2008, when it decided on a directed
share issue without payment relating to the company's share-based
incentive plan. As a result of these decisions, the number of shares
that can be issued or disposed of on the basis of the authorisation
now totals 72,398,178. This authorisation is valid until 13 March
2012.
At the end of the year, the Board had no other authorisations.
Treasury Shares
During the financial year, Citycon Oyj held no treasury shares.
Stock Options 2004
The Annual General Meeting held on 15 March 2004 authorised the issue
of a maximum of 3,900,000 stock options to the personnel of the
Citycon Group. Stock options 2004 A/B/C are listed on the NASDAQ OMX
Helsinki. Trading in stock options 2004 C began on 1 September 2008.
The terms and conditions of the company's stock option plan 2004 were
amended during the year under a decision taken by the AGM. The terms
and conditions were supplemented with a clause stating that the
subscription prices of options 2004 A/B/C are to be reduced by half
of potential per-share equity returns. The table below includes
information on the number of stock options 2004 and their
subscription ratios and prices at the year-end. The full terms and
conditions of the stock option plan are available on the company's
website at www.citycon.com/options.
Basic Information on Stock Options 2004 as at 31 December 2008
2004 A 2004 B 2004 C
No. of options granted 1,040,000 1,090,000 1,050,000
No. held by Veniamo-Invest Oy ¹) 260,000 210,000 250,000
Subscription ratio, option/shares 1:1,2127 1:1,2127 1:1,2127
Subscription price per share, EUR ²) 2,2732 2,6608 4,3613
Subscription period began 1.9.2006 1.9.2007 1.9.2008
Subscription period ends 31.3.2009 31.3.2010 31.3.2011
No. of options exercised 345,075 - -
No. of shares subscribed with options 386,448 - -
¹) Veniamo-Invest Oy, a wholly-owned subsidiary of Citycon Oyj,
cannot subscribe for its parent company's shares.
²) Following the dividend payment and equity return in 2008. The
share subscription prices are reduced by half of the per-share
dividends paid and per-share equity returned. However, the share
subscription price is always at least EUR 1.35.
During the reporting period, 10,132 shares were subscribed based on
the A stock options relating to Citycon's stock option plan 2004, at
a per-share subscription price of EUR 2.2732. Shares subscribed
entitle their holders to a dividend for the financial year 2008.
The maximum number of shares that can be further subscribed for
exercising the outstanding stock options 2004 amounts to 3,437,913
new shares.
Events after the Financial Year
At the end of January, Citycon divested all shares in its subsidiary
MREC Kiinteistö Oy Keijutie 15. The debt-free sales price of this
non-core property in Lahti amounted to approximately EUR 3 million.
Board Proposal for Dividend Distribution and Distribution of Assets
from the Invested Unrestricted Equity Fund
The parent company's retained earnings amount to EUR 17.8 million, of
which profit for the period accounts for EUR 14.1 million. On the
date of publication of the Financial Statements, funds in the parent
company's invested unrestricted equity fund total EUR 179.0 million.
The Board of Directors proposes to the Annual General Meeting of 18
March 2009 that a per-share dividend of EUR 0.04 be paid out for the
financial year ending on 31 December 2008 and that EUR 0.10 per share
be returned from the invested unrestricted equity fund. The Board of
Directors proposes that the record date for dividend payment and
equity return be 23 March 2009 and that the dividend and equity
return be paid on 3 April 2009.
Outlook
Citycon continues to focus on increasing its cash flow and operating
profit (excluding fair value changes). In order to implement its
strategy, the company will focus on value-added activities while
cautiously monitoring the market for potential acquisitions.
Due to market changes and tight financing conditions, any project
will be re-evaluated before its launch. Citycon intends to continue
the divestment of its non-core properties to improve the property
portfolio and to strengthen the balance sheet. The company is also
considering alternative property financing sources.
The company expects its net rental income to increase in 2009 from
the previous year's level based on at the end of 2008 completed and
ongoing extension and redevelopment projects that will increase the
leasable area, as well as on further improvements in shopping centre
management.
Helsinki, 11 February 2009
Citycon Oyj
Board of Directors
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1 January - 31 December 2008
Condensed Consolidated Income Statement, IFRS
Q4/ Q4/
EUR million 2008 2007 5) Change-% 2008 2007 5) Change-%
Gross rental income 43.7 40.6 7.8% 173.0 143.7 20.3%
Service charge
income 1.5 2.7 -45.7% 5.3 7.7 -30.5%
Turnover (Note 3) 45.2 43.3 4.4% 178.3 151.4 17.7%
Property operating
expenses 14.9 16.0 -6.9% 56.3 47.8 17.9%
Other expenses from
leasing operations 0.1 0.2 -33.8% 0.2 0.3 -24.2%
Net rental income 30.2 27.1 11.4% 121.8 103.4 17.8%
Administrative
expenses 4.7 3.9 21.1% 16.9 16.5 2.7%
Other operating
income
and expenses 6.0 0.6 - 6.1 0.5 -
Net fair value
losses/gains
on investment
property -59.3 -0.1 - -216.1 211.4 -
Net gains/losses on
sale of
investment property 0.0 0.0 - 0.1 -0.1 -
Operating loss/profit -27.9 23.7 -217.9% -105.0 298.7 -
Net financial income
and
expenses 13.0 13.7 -5.0% 57.3 45.3 26.5%
Loss/profit before
taxes -40.9 10.0 - -162.3 253.5 -164.0%
Current taxes 2.2 -3.2 - -6.6 -3.4 96.0%
Change in deferred
taxes -7.6 3.3 - 30.0 -46.2 -
Loss/profit for the
period -35.5 9.9 - -138.9 203.9 -
Attributable to
Parent company
shareholders -30.7 9.3 - -124.1 200.3 -
Minority interest -4.8 0.6 - -14.8 3.6 -
Earnings per share
(basic),
EUR (Note 5) -0.14 0.04 - -0.56 1.00 -
Earnings per share
(diluted),
EUR (Note 5) -0.14 0.04 - -0.56 0.91 -
Direct result (Note 4) 11.8 14.6 -19.2% 43.8 38.3 14.4%
Indirect result (Note
4) -42.5 -5.4 692.6% -167.9 162.1 -
Loss/profit for the
period
attributable to parent
company shareholders -30.7 9.3 - -124.1 200.3 -
Condensed Consolidated Balance Sheet, IFRS
EUR million 31 Dec. 2008 31 Dec. 2007
Assets
Non-current assets
Investment property (Note 6) 2,023.6 2,215.7
Development property (Note 7) 88.1 33.2
Intangible assets and property, plant and
equipment 1.7 1.4
Deferred tax assets 6.8 -
Derivative financial instruments and
other non-current
assets (Note 9) 6.0 10.1
Total non-current assets 2,126.1 2,260.5
Current assets
Derivative financial instruments (Note 9) 13.9 1.2
Trade and other receivables 21.7 22.7
Cash and cash equivalents (Note 8) 16.7 24.2
Total current assets 52.4 48.1
Total assets 2,178.5 2,308.6
Liabilities and Shareholders' Equity
Equity attributable to parent company
shareholders
Share capital 259.6 259.6
Share issue - -
Share premium fund and other restricted
reserves 131.1 131.1
Fair value reserve (Note 9) -17.7 4.9
Invested unrestricted equity fund (Note
10) 177.3 199.3
Retained earnings (Note 10) 248.8 387.0
Total equity attributable to parent company
shareholders 799.1 982.0
Minority interest 38.2 28.9
Total shareholders' equity 837.3 1,010.9
Liabilities
Long-term interest-bearing debt (Note 11) 1,149.2 1,049.3
Derivative financial instruments and
other non-interest
bearing liabilities (Note 9) 25.5 2.4
Deferred tax liabilities 57.1 88.1
Total long-term liabilities 1,231.7 1,139.9
Short-term interest-bearing debt (Note
11) 50.3 104.7
Trade and other payables 59.2 53.1
Total short-term liabilities 109.5 157.8
Total liabilities 1,341.2 1,297.7
Total liabilities and shareholders' equity 2,178.5 2,308.6
Condensed Consolidated Statement of Changes in Shareholders' Equity,
IFRS
EUR million
Equity attributable to parent company
shareholders
Share
premium Invested
fund and Fair unrestricted
Share Share other value equity Retained
EUR million capital issue reserves reserve fund earnings
Balance at
1 Jan. 2007 225.7 0.1 131.1 -1.3 - 209.7
Cash flow
hedges 6.3
Loss/profit
for the period 200.3
Total recognized income
and expense for the
period 6.3 200.3
Share issues 33.8 197.6
Share
subscriptions
based on stock
options 0.1 -0.1 0.0 1.8
Dividends
(Note 10) -23.4
Translation
differences -0.3
Share-based
payments 0.6
Other changes
Balance at
31 Dec. 2007 259.6 - 131.1 4.9 199.3 387.0
Balance at
1 Jan. 2008 259.6 - 131.1 4.9 199.3 387.0
Cash flow
hedges -22,6
Loss/profit for the
period -124.1
Total recognized
income and
expense for the
period -22.6 -124.1
Share
subscriptions
based on stock
options 0.0
Recognized gain
in the equity
arising
from convertible
bond buybacks 4.6
Dividends and
return from the
invested
unrestricted
equity fund
(Note 10) -22.1 -8.8
Translation
differences -10.0
Share-based
payments 0.3
Other changes
Balance at
31 Dec. 2008 259.6 - 131.1 -17.7 177.3 248.8
Equity Minority Shareholders'
attributable to interest equity, total
parent company
shareholders
Balance at 1 Jan. 2007 565.3 15.0 580.3
Cash flow hedges 6.3 6.3
Loss/profit for the period 200.3 3.6 203.9
Total recognized income and
expense for
the period 206.6 3.6 210.2
Share issues 231.3 231.3
Share subscriptions based on
stock options 1.8 1.8
Dividends (Note 10) -23.4 -23.4
Translation differences -0.3 -0.7 -1.0
Share-based payments 0.6 0.6
Other changes 0.0 11.0 11.0
Balance at 31 Dec. 2007 982.0 28.9 1,010.9
Balance at 1 Jan. 2008 982.0 28.9 1,010.9
Cash flow hedges -22.6 -22.6
Loss/profit for the period -124.1 -14.8 -138.9
Total recognized income and
expense for
the period -146.7 -14.8 -161.5
Share subscriptions based on
stock options 0.0 0.0
Recognized gain in the equity
arising from
convertible bond buybacks 4.6 4.6
Dividends and return from the
invested
unrestricted equity fund (Note
10) -30.9 -30.9
Translation differences -10.0 -3.0 -13.0
Share-based payments 0.3 0.3
Other changes 0.0 27.0 27.0
Balance at 31 Dec. 2008 799.1 38.2 837.3
Condensed Consolidated Cash Flow Statement, IFRS
EUR million Note 2008 2007
Cash flow from operating activities
Loss/profit before taxes -162.3 253.5
Adjustments 268.1 -164.9
Cash flow before change in working capital 105.8 88.5
Change in working capital -2.1 0.2
Cash generated from operations 103.7 88.8
Paid interest and other financial charges -63.1 -42.7
Interest income, exchange rate gains and other
financial
income received 6.3 3.1
Taxes paid 0.2 -10.0
Net cash from operating activities 47.2 39.3
Cash flow from investing activities
Acquisition of subsidiaries, less cash acquired 6, 7 -24.0 -517.6
Acquisition of investment properties 6 - -16.0
Capital expenditure on investment properties 6 -58.2 -39.3
Capital expenditure on development properties,
other
PP&E and intangible assets 7 -68.8 -24.5
Sale of investment property 7.0 0.3
Net cash used in investing activities -144.1 -597.1
Cash flow from financing activities
Proceeds from share issue - 232.4
Proceeds from pending share issue - -
Equity contribution from minority shareholder 25.9 -
Proceeds from short-term loans 11 72.1 773.1
Repayments of short-term loans 11 -125.8 -727.9
Proceeds from long-term loans 11 623.3 535.8
Repayments of long-term loans 11 -473.6 -228.9
Dividends paid 10 -30.9 -23.4
Net cash from financing activities 90.9 561.1
Net change in cash and cash equivalents -6.1 3.3
Cash and cash equivalents at period-start 8 24.2 21.3
Effects of exchange rate changes -1.4 -0.4
Cash and cash equivalents at period-end 8 16.7 24.2
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basic Company Data
Citycon is a real estate company investing in retail premises.
Citycon operates mainly in Finland, Sweden and the Baltic countries.
Citycon is a Finnish public limited company established under Finnish
law and domiciled in Helsinki. The Board of Directors has approved
the financial statements on 11 February 2009.
2. Basis of Preparation and Accounting Policies
Basis of preparation
Citycon has prepared its consolidated financial statements in
accordance with the International Financial Reporting Standards
(IFRS) and applied the IFRS/IAS standards, effective as of 31
December 2008, which refer to the approved applicable standards and
their interpretations under European Union Regulation No. 1606/2002.
More information about the accounting policies can be found from
Citycon's annual financial statements for the year ended 31 December
2008.
Restatement of the Financial Information in 2007 and 2008 due to the
New IAS 23 Borrowing Costs Standard
Due to the new IAS 23 Borrowing Costs standard, Citycon has
re-evaluated its accounting policy regarding the capitalisation of
the interest expenses and has concluded to revise the policy. As a
result of adopting the revised accounting policy relating to the
capitalisation of interest expenses, Citycon has restated its 2007
and 2008 financial statements. The new standard has been issued by
the IASB and been endorsed by the EU on 12 December 2008. Before the
adoption of the new standard, Citycon capitalised the interest
expenses arising only from the development projects, in which
significant extensions or new self-constructed properties were built
and measured at cost in accordance with IAS 16. After applying the
new standard in its 2008 Financial Statements, Citycon expanded its
policy of capitalizing the interest expenses into the redevelopment
projects, in which the existing investment properties are refurbished
and measured at fair value. The following table presents the impact
of the new IAS 23 on the financial information for 2007 and 2008. The
new IAS 23 had no impact on the profit for the period nor the balance
sheet, since the change in financial expenses is offset by the change
in net fair value gains/losses on investment property.
Due to the new IAS 23 -standard, Citycon capitalized an additional
financial expenses of EUR 3.5 million in 2008 (EUR 2.0 million in
2007) in its income statement than before the application of a new
standard.
2008 Before Q1-Q3 Q1-Q3/2008
EUR million 2008 Restatement /2008 Before Restatement
Net fair value
losses/gains
on investment property -216.1 -212.6 -156.7 -154.1
Operating loss/profit -105.0 -101.5 -77.1 -74.5
Net financial income
and
expenses 57.3 60.8 44.2 46.9
Loss/profit before
taxes -162.3 -162.3 -121.4 -121.4
Loss/profit for the
period -138.9 -138.9 -103.4 -103.4
Direct result 43.8 40.3 31.9 29.3
Indirect result -167.9 -164.4 -125.4 -122.8
Q1-Q2/2008
Q1-Q2 Before Q1/2008 Before
EUR million /2008 Restatement Q1/2008 Restatement
Net fair value
losses/gains
on investment property -85.1 -83.3 0.5 1.4
Operating loss/profit -33.0 -31.3 26.4 27.4
Net financial income
and
expenses 29.0 30.8 15.1 16.1
Loss/profit before
taxes -62.1 -62.1 11.3 11.3
Loss/profit for the
period -51.6 -51.6 11.3 11.3
Direct result 20.6 18.9 10.4 9.5
Indirect result -68.1 -66.4 -1.3 -0.4
2007 Before Q1-Q3 Q1-Q3/2007
EUR million 2007 Restatement /2007 Before Restatement
Net fair value
gains/losses
on investment property 211.4 213.4 211.5 212.7
Operating profit/loss 298.7 300.7 275.1 276.2
Net financial income and
expenses 45.3 47.3 31.6 32.7
Profit/loss before taxes 253.5 253.5 243.5 243.5
Profit/loss for the
period 203.9 203.9 194.0 194.0
Direct result 38.3 36.3 23.6 22.5
Indirect result 162.1 164.0 167.4 168.6
Q1-Q2/2007
Q1-Q2 Before Q1/2007 Before
EUR million /2007 Restatement Q1/2007 Restatement
Net fair value
gains/losses
on investment property 191.2 191.6 31.4 31.5
Operating profit/loss 231.5 231.9 50.3 50.4
Net financial income and
expenses 19.0 19.4 9.4 9.5
Profit/loss before taxes 212.5 212.5 40.9 40.9
Profit/loss for the
period 170.4 170.4 34.6 34.6
Direct result 14.7 14.3 6.7 6.7
Indirect result 152.9 153.3 26.3 26.3
3. Segment Information
Citycon's business consists of the regional business units Finland,
Sweden and the Baltic Countries.
EUR million Q4/2008 Q4/2007 Change-% 2008 2007 Change-%
Turnover
Finland 32.0 30.2 5.9% 126.8 104.3 21.6%
Sweden 10.1 11.1 -8.8% 41.9 39.0 7.2%
Baltic Countries 3.1 2.0 55.7% 9.6 8.0 19.4%
Total 45.2 43.3 4.4% 178.3 151.4 17.8%
Operating
loss/profit
Finland -21.7 17.3 -225.3% -62.9 218.4 -128.8%
Sweden -16.9 6.9 -343.7% -49.1 73.4 -166.9%
Baltic Countries 12.6 1.0 1,201.6% 14.4 13.8 4.4%
Other -2.0 -1.5 27.7% -7.4 -6.8 9.0%
Total -27.9 23.7 -217.9% -105.0 298.7 -135.2%
EUR million
31 Dec. 31 Dec.
Assets 2008 2007 Change-%
Finland 1,504.2 1,594.2 -5.6%
Sweden 466.9 542.2 -13.9%
Baltic Countries 156.3 125.3 24.7%
Other 51.1 46.9 8.9%
Total 2,178.5 2,308.6 -5.6%
The change in segment assets is mainly due to the fair value losses
in investment properties offset by the capital expenditure.
4. Reconciliation Between Direct and Indirect Result
Due to the nature of Citycon's business and the obligation to apply
IFRS, the consolidated income statement includes several items
related to non-operating activities. In addition to the consolidated
income statement under IFRS, Citycon also presents its profit for the
period with direct result and indirect result separately specified,
in an attempt to enhance the transparency of its operations and to
facilitate comparability of financial periods. Direct result
describes the profitability of the Group's operations during the
financial period disregarding the effects of fair value changes,
gains or losses on sales and other extraordinary items. Earnings per
share calculated based on direct result corresponds to the earnings
per share definition recommended by EPRA.
In comparison to previous practice direct result excludes the changes
in fair value of financial instruments that are recognized in the
income statement. In order to hedge against interest rate risk,
Citycon has entered into, in accordance with its interest rate risk
management policy, interest rate and inflation derivatives which do
not qualify under hedge accounting treatment under IFRS. Changes in
fair value of such derivatives are recognized in the income
statement. These derivatives hedge the group against interest rate
risk and in accordance with the terms of the derivatives Citycon
receives floating money market interest rate which has a matching
interest rate determination procedure with group's floating rate
debt. The interest rate which Citycon pays under these derivatives
does not depend on the money market interest rate which means that
these derivatives hedge Citycon against rising floating interest
rates. The aim is to ensure effectiveness of the hedges by matching
the interest rate fixing procedure between the derivatives recognized
in the income statement and floating rate debt of Citycon.
EUR million Q4/2008 Q4/2007 Change-% 2008 2007 Change-%
Direct result
Net rental income 30.2 27.1 11.4% 121.8 103.4 17.8%
Direct administrative
expenses -4.6 -3.9 19.7% -16.5 -16.5 0.2%
Direct other operating
income and expenses 0.1 0.6 -87.9% 0.1 0.5 -77.9%
Direct net financial
income
and expenses -11.7 -13.9 -15.8% -54.2 -44.7 21.2%
Direct current taxes -1.4 3.2 - -4.8 -3.4 40.0%
Direct change in
deferred
taxes 0.0 1.7 -97.3% 0.2 -0.2 -
Direct minority
interest -0.7 -0.2 270.9% -2.8 -0.9 223.7%
Total 11.8 14.6 -19.2% 43.8 38.3 14.4%
Direct result per
share (diluted),
(diluted EPRA EPS),
EUR 1) 0.05 0.07 -20.0% 0.20 0.19 3.3%
Indirect result
Net fair value
losses/gains on
investment property -59.3 -0.1 - -216.1 211.4 -
Profit/loss on
disposal of
investment property 0.0 0.0 - 0.1 -0.1 -
Indirect
administrative
expenses -0.1 - - -0.4 - -
Indirect other
operating
income and expenses 5.9 - - 6.0 - -
Movement in fair value
of
financial instruments -1.4 0.2 - -3.1 -0.6 439.3%
Indirect current taxes -0.8 - - -1.8 - -
Change in indirect
deferred
taxes 7.5 -5.0 - 29.7 -46.0 -
Indirect minority
interest 5.6 -0.4 - 17.6 -2.7 -
Total -42.5 -5.4 692.6% -167.9 162.1 -
Indirect result per
share, diluted -0.19 -0.02 721.3% -0.76 0.71 -
Loss/profit for the
period
attributable to parent
company shareholders -30.7 9.3 - -124.1 200.3 -
¹) The calculation of the direct result per share is presented in the
Note 5 "Earnings per share".
5. Earnings per Share
2008 2007
A) Earnings per share calculated from the profit/loss for the period
Earnings per share, basic
Loss/profit attributable to parent company shareholders,
EUR million -124.1 200.3
Issue-adjusted average number of shares, Million 221.0 199.4
Earnings per share (basic), EUR -0.56 1.00
Earnings per share, diluted
Loss/profit attributable to parent company shareholders,
EUR million -124.1 200.3
Expenses from convertible loan, the tax effect deducted
(EUR million) - 5.7
Loss/profit used in the calculation of diluted earnings
per share,
EUR million -124.1 206.0
Issue-adjusted average number of shares, Million 221.0 199.4
Convertible capital loan impact, Million - 26.2
Issue-adjusted adjustment for stock options, Million - 1.5
Issue-adjusted average number of shares used in the
calculation of diluted
earnings per share, Million 221.0 227.1
Earnings per share (diluted), EUR -0.56 0.91
The incremental shares from assumed conversions or any income or cost
related to dilutive potential shares are not included in calculating
2008 diluted per-share amounts because the profit attributable to
parent company shareholders was negative.
B) Earnings per share calculated from the direct result for the
period
Direct result per share (diluted), (diluted EPRA EPS)
Direct result, EUR million (Note 4) 43.8 38.3
Expenses arising from convertible loan, adjusted with the
tax effect
deduction, EUR million 5.6 5.7
Profit used in the calculation of direct result per
share, EUR million 49.4 43.9
Issue-adjusted average number of shares used in the
calculation of diluted
earnings per share, Million 247.2 227.1
Direct result per share (diluted), (diluted EPRA EPS),
EUR 0.20 0.19
6. Investment Property
EUR million 31 Dec. 2008 31 Dec. 2007
At period-start 2,215.7 1,447.9
Acquisitions 10.6 531.3
Investments 62.7 44.8
Disposals -7.6 -0.3
Capitalized interest 3.3 2.0
Fair value gains on investment property 15.3 219.0
Fair value losses on investment property -231.4 -7.5
Exchange differences -67.8 -15.1
Transfer into the development properties 22.9 -6.4
At period-end 2,023.6 2,222.0
An external professional appraiser has conducted the valuation of the
company's properties with a net rental income based cash flow
analysis. Market rents, occupancy rate, operating expenses and yield
requirement form the key variables used in the cash flow analysis.
The segments' yield requirements and market rents used by the
external appraiser in the cash flow analysis were as follows:
Yield requirement (%) Market rents (€/m²/month)
2008 2007 2008 2007
Finland 6.4 5.7 21.9 21.1
Sweden 6.4 5.4 12.3 13.2
Baltic Countries 7.4 6.4 20.2 16.4
Average 6.4 5.6 19.9 19.0
7. Development Property
As at 31 December 2008, the development properties consisted of the
capital expenditure relating to extension projects in Rocca al Mare,
Åkersberga, Liljeholmstorget and Lippulaiva shopping centres.
EUR million 2008 2007
At period-start 33.2 -
Acquisitions 6.8 -
Investments 70.3 26.4
Capitalized interest 3.5 0.6
Exchange differences -2.6 -
Transfer from investment property -23.1 6.2
At period-end 88.1 33.2
8. Cash and Cash Equivalents
EUR million 2008 2007
Cash in hand and at bank 16.7 24.2
Short-term deposits - -
Total 16.7 24.2
9. Derivative Financial Instruments
EUR million 2008 2007
Nominal Nominal amount Fair value amount Fair value
Interest rate derivatives
Interest rate swaps
Maturity:
less than 1 year 86.0 1.4 40.0 0.2
1-2 years 46.0 -1.5 112.5 -0.6
2-3 years 70.0 3.5 83.0 -1.1
3-4 years 41.8 -1.9 70.0 1.7
4-5 years 228.8 -10.1 20.0 0.2
over 5 years 119.0 -8.9 309.0 8.5
Subtotal 591.7 -17.5 634.5 8.8
Foreign exchange derivatives
Forward agreements
Maturity:
less than 1 year 23.1 7.6 40.4 0.3
Total 614.8 -9.8 674.8 9.1
The fair value of derivative financial instruments represents the
market value of the instrument with prices prevailing on the balance
sheet date. Derivative financial instruments are used in hedging the
interest rate risk of the interest bearing liabilities and foreign
currency risk.
The fair values include foreign exchange gain of EUR 16.2 million
(EUR 1.0 million) which is recognized in the income statement.
Hedge accounting is applied for interest rates swaps which have
nominal amount of EUR 568.7 million (EUR 558.0 million). The fair
value loss recognized in the fair value reserve under shareholders'
equity taking account the tax effect totals EUR -17.7 million (EUR
4.9 million).
10. Dividends and Return From the Invested Unrestricted Equity Fund
The Board of Directors proposes to the Annual General Meeting of 18
March 2009 that a per-share dividend of EUR 0.04 be paid out for the
financial year ending on 31 December 2008 and that EUR 0.10 per share
be returned from the invested unrestricted equity fund.
In accordance with the proposal by the Board of Directors and the
decision by the Annual General Meeting held on 13 March 2008 dividend
for the financial year 2007 amounted to EUR 0.04 per share and EUR
0.10 per share was decided to be returned from the invested
unrestricted equity fund (dividend of EUR 0.14 for the financial year
2006).
Dividends and equity returns paid amounted to EUR 30.9 million (EUR
23.4 million) during the period.
11. Interest-bearing Liabilities
During the period, Citycon has agreed on a new long-term bank loan in
the amount of EUR 30 million as part of the Liljeholmstorget shopping
center development project in Stockholm. The loan bears a floating
interest rate and is repayable within 10 years. Also, the EUR 17.9
million loan for financing Magistral shopping centre in Tallinn was
drawn, and is repayable approximately in five years. From the
long-term credit limit (a EUR 50 million five-year revolving credit
facility) EUR 5 million remained undrawn. During the period,
repayments of other bank loans amounting to EUR 19.6 million were
made in line with previously disclosed repayment terms.
Other proceeds and repayments from/of long-term loans in the
cash-flow statement arose from the use of revolving credit
facilities.
12. Contingent Liabilities
EUR million 2008 2007
Mortgages on land and buildings 40.6 46.4
Bank guarantees 45.6 49.8
Capital commitments 13.0 31.0
VAT refund liabilities 21.3 15.6
At 31 December 2008, Citycon had capital commitments of EUR 13.0
million relating mainly to development and redevelopment projects.
13. Related Party Transactions
There were no significant transactions with the related parties
during the period.
14. Key Figures
Q4/2008 Q4/2007 Change-% 2008 2007 5) Change-%
Earnings per share
(basic), EUR -0.14 0.04 - -0.56 1.00 -
Earnings per share
(diluted), EUR -0.14 0.04 - -0.56 0.91 -
Equity per share, EUR 3.62 4.44 -18.6%
Net asset value (EPRA
NAV) per share, EUR 3.88 4.82 -19.6%
Equity ratio, % 38.5 43.9 -
The formulas for key figures can be found from the 2008 annual
financial statements.
Financial reports in 2009
Citycon will publish its Annual Report for 2008 on its website in
week 9 at the latest and its printed version in week 10 at the
latest.
Citycon will issue three interim reports during the financial year
2009 as follows:
Q1/2009 on Thursday, 23 April 2009, at approximately 9:00 am
Q2/2009 on Friday, 17 July 2009, at approximately 9:00 am
Q3/2009 on Thursday, 15 October 2009, at approximately 9:00 am
Annual General Meeting
Citycon Oyj will hold its AGM at Finlandia Hall, Helsinki Auditorium,
Mannerheimintie 13e, Helsinki, Finland, on Wednesday 18 March 2009,
starting at 2:00 pm.
For further information for investors, please visit Citycon's
website, www.citycon.com.
For further information, please contact:
Petri Olkinuora, CEO
Tel +358 20 766 4401 or +358 400 333 256
petri.olkinuora@citycon.fi
Eero Sihvonen, CFO
Tel +358 20 766 4459 or +358 50 557 9137
eero.sihvonen@citycon.fi
DISTRIBUTION:
NASDAQ OMX Helsinki
Major media
www.citycon.com
