Citycon Oyj updates its guidance policy following the issuance of Capital Securities

CITYCON OYJ   Stock Exchange Release   6 February 2020 at 09.05 hrs

Citycon’s Board of Directors has resolved to update Citycon’s guidance policy following the issuance of Subordinated Capital Securities (“hybrid bond”). In order to quantify the impact of hybrid bond coupons, Citycon will also provide guidance on adjusted EPRA EPS after hybrid bond coupon payments. As of 2020, Citycon will provide guidance on direct operating profit, EPRA EPS and adjusted EPRA EPS.

Citycon announced on 18 November 2019 that it issued EUR 350 million green hybrid bond with an issue date of 22 November 2019. The procedure of the hybrid bond has been explained in more detail in Citycon’s stock exchange release issued on 18 November 2019. The hybrid bond is subordinated to certain other debt obligations and is treated as equity in Citycon’s consolidated financial statements prepared in accordance with IFRS. Coupons of the hybrid bond are deducted from equity instead of being part of financial expenses.

As published in the Financial Statement Release, Citycon´s outlook for 2020 is:

Citycon forecasts the 2020 EPRA Earnings per share (basic) to be EUR 0.815-0.915. Furthermore, the Direct operating profit is expected to be in the range of EUR 191-209 million and adjusted EPRA EPS in the range of EUR 0.720-0.820 million.

The acquisition of the remaining interest in the portfolio of three shopping centres, as disclosed on 5 February 2020, is included in the estimates.  Otherwise, the 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. Premises taken offline for planned or ongoing (re)development projects reduce net rental income during the year.

Citycon’s disclosure policy is updated to reflect the new guidance policy and is available on Citycon’s website.

Espoo, 5 February 2020

For further information, please contact:
Eero Sihvonen, Executive Vice President and CFO
Tel. +358 50 557 9137
eero.sihvonen@citycon.com


Citycon Oyj is a leading owner, manager and developer of urban, grocery-anchored shopping centres in the Nordic region, managing assets that total approximately EUR 4.4 billion. Citycon is the number one shopping centre owner in Finland and among the market leaders in Norway, Sweden and Estonia. Citycon has also established a foothold in Denmark.

Citycon Oyj has investment-grade credit ratings from Moody’s (Baa3) and Standard & Poor’s (BBB-). Citycon Oyj’s shares are listed on Nasdaq Helsinki Ltd. stock exchange.

For more information about Citycon Oyj, please visit www.citycon.com.