Citycon Oyj's Interim Report for 1 January - 30 September 2018
Solid Operating Performance Continued and Administrative expenses Declined Significantly
ESPOO, Finland, October 18, 2018 /PRNewswire/ --
Citycon Oyj Interim Report 18 October 2018 at 09:00 hrs
- Occupancy remained at a high level of 96.1%.
- Successful opening of newest asset Mölndal Galleria in Gothenburg Sweden.
- Divestments conducted in 2017 and in 2018 as well as weaker currencies impacted net rental income and EPRA Earnings as expected.
- Cost savings initiatives progressed well and administrative expenses decreased significantly by 14% year-on-year.
- Fair value change of investment properties was EUR -54.2 million mainly driven by secondary assets in Finland and Norway.
- Loan-to-value (LTV) increased to 48.2% as a result of fair value changes and higher outstanding debt mainly due to the acquisition of the remaining 50% share in Mölndal Galleria.
- Guidance related to Direct operating profit, EPRA Earnings and EPRA Earnings per share specified.
JULY-SEPTEMBER 2018
- Net rental income was EUR 53.6 million (Q3/2017: 58.6). Divestments decreased net rental income by EUR 5.1 million and weaker
currencies by EUR 1.3 million.
- EPRA Earnings was EUR 36.8 million (39.3) due to lower net rental income following disposals. Lower administrative and direct net financial expenses partly offset
this reduction. EPRA Earnings per share (basic) was EUR 0.041 (0.044), negative impact from weaker currencies was EUR 0.001.
- IFRS-based earnings per share was EUR -0.01 (0.01) as a result of increase in net financial expenses due to indirect one-off costs of EUR 21.5
million mainly related to the bond tender as well as impacts from divestments and currencies. Bond buy-back will reduce financing costs going forward.
JANUARY-SEPTEMBER 2018
- Net rental income was EUR 161.2 million (Q1-Q3/2017: 174.6). (Re)development projects and acquisition of Straedet in Denmark
increased NRI by EUR 6.2 million, while property divestments decreased net rental income by EUR 14.4 million and weaker SEK and NOK by
EUR 4.2 million.
- EPRA Earnings was EUR 109.3 million (118.5) due to lower net rental income. Lower administrative expenses as well as direct net financial expenses partly offset this
reduction. EPRA Earnings per share (basic) was EUR 0.123 (0.133), negative impact from weaker currencies was EUR 0.004.
- IFRS-based earnings per share was EUR 0.01 (0.07) as a result of net fair value losses on investment properties, increase in net financial expenses and impacts from
property divestments as well as currencies.