Citycon Oyj · OMXHEX:CTY1S
Citycon Oyj — Q3 2022 Earnings Presentation
17 slides from Citycon Oyj's earnings presentation, November 2022
Slide 1: Citycon Q1-Q3/2022
Citycon Q1-Q3/2022 +5.2% +7.8% +10.8% Standing net rental Like-for-like NRI growth Standing EPRA EPS (vs. Q1-Q3/2021) income (vs. Q1-Q3/2021) (vs. Q1-Q3/2021) +12.1% 94.9% +7.0% Like-for-like footfall Retail occupancy Like-for-like tenant sales ( + 120 BPS vs Q3/2021) increase increase (vs. Q1-Q3/20
Slide 2: Operational results - performance above 2019 levels (pre-covid)
Operational results - performance above 2019 levels (pre-covid) vs. 2021 vs. 2019 +5.2% +7.2% Like-for-like NRI increase (Q1-Q3) Like-for-like tenant sales increase Q3/2022 like-for-like NRI increase +3.4% (Q1-Q3/2022 vs Q1-Q3/2019) +7.0% +0.8 € Like-for-like tenant sales (Q1-Q3) Average rent per sq
Slide 3: Occupancy rate and average rent increasing
Occupancy rate and average rent increasing 94.9% 94.2% 93.7% 23.6€ 22.7€ 22.6€ Q3/2021 Q4/2021 Q3/2022 Average rent Retail occupancy rate Audiocast Q3/2022 2
Slide 4: Indexation will be driver of rent growth in 2023
Indexation will be driver of rent growth in 2023 Estimated inflation per country (2022) 92% of leases are indexed to inflation ▪ main benefits of indexation will occur in 2023 ▪ indexation calculated at the end of each year ▪ with majority of our top tenants consisting of high credit grocers and nor
Slide 5: Post Lippulaiva - capex requirements declining
Post Lippulaiva - capex requirements declining ▪ Historical average, ex-Lippulaiva was EUR 75 million ▪ Only EUR 8 million committed development in 2023 ▪ guaranteed, fixed pricing ▪ Reduced capex increase operational free cash flow ▪ support for the balance sheet ▪ Will continue to pursue inherent
Slide 6: Continued capital recycling to strengthen balance sheet
Continued capital recycling to strengthen balance sheet Continued bond repurchases ▪ Repurchased additional EUR 29.0 million of bonds in September and subsequent to Q3 ▪ YTD, repurchased EUR 108.3 million notional at average yield of 4.9% Two assets worth approximately EUR 125 million in “held for s
Slide 7: Citycon is well positioned going forward
Citycon is well positioned going forward Continued strong operating metrics ▪ Positive LFL net rental income growth ▪ Operational figures surpassed pre-covid 2019 levels ▪ Rents strengthening as occupancy continues to improve Positive future growth driven by indexation ▪ 92% of rents linked to the i
Slide 8: Financial overview
Financial overview Audiocast Q3/2022 7
Slide 9: Q3/2022 financials
Q3/2022 financials Standing Standing Actual Actual MEUR Change Change Q3/2022* Q3/2021* Q3/2022 Q3/2021 Net rental income 50.6 48.1 5.3% 50.6 51.3 -1.3% Direct operating profit 43.6 41.5 5.1% 43.7 44.7 -2.4% EPRA Earnings 29.8 29.3 1.7% 29.8 32.5 -8.3% Adjusted EPRA Earnings 22.1 21.8 1.7% 22.1 24.9
Slide 10: Q1-Q3/2022 financials
Q1-Q3/2022 financials MEUR Standing Standing Actual Actual Change Change Q1-Q3/2022* Q1-Q3/2021* Q1-Q3/2022 Q1-Q3/2021 Net rental income 151.1 140.3 7.8% 152.4 152.5 -0.1% Direct operating profit 128.8 121.9 5.7% 130.1 133.7 -2.7% EPRA Earnings 88.9 84.9 4.6% 90.1 96.8 -6.9% Adjusted EPRA Earnings 6
Slide 11: Net rental income and EPRA earnings bridges
Net rental income and EPRA earnings bridges Net rental income bridge Q3/2021 to Q3/2022 Net rental income bridge Q1-Q3/2021 to Q1-Q3/2022 1.3 1.4 51.3 50.6 5.3 5.8 -3.3 -0.1 152.5 152.4 -11.0 -0.2 Q3/2021 Like-for-like (Re)development Divestments Other (incl. Q3/2022 Q1-Q3/2021 Like-for-like (Re)dev
Slide 12: Stable valuations overall
Stable valuations overall FAIR VALUE CHANGES, MEUR Q3/2022 Q3/2021 Q1-Q3/2022 Q1-Q3/2021 Finland & Estonia -8.1 -12.1 3.0 -5.5 Norway 5.5 1.7 13.8 10.3 Sweden & Denmark 5.3 -0.9 11.4 11.4 Investment properties. total 2.6 -11.2 28.2 16.2 Right-of-use assets classified as investment -1.7 -7.3 -5.1 -10
Slide 13: Strong, liquid balance sheet with no maturities until late 2024
Strong, liquid balance sheet with no maturities until late 2024 Improved credit profile and a stronger, more flexible balance sheet Total available liquidity ▪ No material maturities thru 2024 40% 43% Bonds 537 MEUR ▪ 3.3 years weighted avg maturities Hybrid Bonds ▪ 2.38% weighted avg interest rate
Slide 14: Stable credit ratings
Stable credit ratings Loan to value (IFRS) Interest coverage ratio 48.7 % 46.9 % 4.2x 4.1x 4.1x 4.2x 42.4 % 41.7 % 3.8x 40.3 % 2018 2019 2020 2021 Q3/2022 2018 2019 2020 2021 Q3/2022 Net debt to ebitda Weighted average interest rate 11.2x 11.1x 2.35% 2.39% 2.47% 2.38% 10.0x 10.3x 2.29% 9.2x 2018 201
Slide 15: Guidance reaffirmed
Guidance reaffirmed Current Previous Midpoint Initial Midpoint % change (10 November (10 August change vs (17 February change vs. vs. initial 2022) 2022) previous 2022) initial Direct operating profit 170–180 170–180 164–180 (MEUR) 0 +3 2% (175) (175) (172) (Midpoint) EPRA Earnings per share 0.68–0.
Slide 16: Q&A
Q&A Audiocast Q3/2022 15
Slide 17: Investor relations contacts
Bret McLeod Sakari Järvelä Chief Financial Officer VP, Investor Relations +46 73 326 8455 +358 50 387 8180 [email protected] [email protected] Audiocast Q3/2022 16