Citycon divests a non-core portfolio in Finland for EUR 74 million and makes an adjustment to the outlook for Direct Operating profit
CITYCON OYJ Stock Exchange Release 29 April 2016 at 12:15
Citycon continues to implement its strategy by divesting a portfolio of non-core properties. Citycon has today sold five properties comprising 46,800 sq.m. and located across Finland to a Finnish investment fund, eQ Finnish Real Estate, for a total value of approximately EUR 74 million. The sales price is above the IFRS fair value for the properties.
“These divestments are part of Citycon’s strategy to recycle capital and focus on urban, grocery-anchored shopping centres in the Nordics and Baltics,” says Nils Styf, Chief Investment Officer at Citycon.
The portfolio consists of the following assets: Sinikalliontie 1 Koy (Espoo), Kontulan Asemakeskus Koy (Helsinki), Lentolan Perusyhtiö Oy (Kangasala), Lillinkulma Koy (Kaarina) and Länsi-Keskus Koy (Espoo).
Adjustment to the Direct Operating profit outlook
According to the outlook announced by Citycon on 28 April 2016, the company forecasted that its Direct Operating profit will in 2016 increase by EUR 20-34 million compared to the previous year based on the existing property portfolio. Due to the divestment of the non-core portfolio, Citycon has today adjusted the outlook and forecasts that its Direct Operating profit will change by EUR 16-30 million from the previous year. The EPRA Earnings and EPRA Earnings per share (basic) guidance remains unchanged.
Helsinki, 29 April 2016
For further information, please contact:
Nils Styf, Chief Investment Officer
Tel.: +46 733 506 039
Eero Sihvonen, CFO, Executive Vice President
Tel.: +358 50 557 9137
Citycon is an owner, developer and manager of urban grocery-anchored shopping centres in the Nordic and Baltic region, managing assets that total EUR 4.7 billion and with market capitalisation of approximately EUR 2 billion. Citycon is the No. 1 shopping centre owner in Finland and Estonia and among the market leaders in Norway and Sweden. Citycon has also established a foothold in Denmark.
Citycon has investment-grade credit ratings from Moody's (Baa1) and Standard & Poor's (BBB). Citycon Oyj’s share is listed in NASDAQ Helsinki.