Finnish property investment firm Citycon swung to a loss of EUR 18.1 mln in the first quarter of 2009 from a profit of EUR 11.3 mln a year earlier due to a EUR -31.6 mln devaluation of its investment properties. Turnover grew by 3.6% year on year to EUR 45.9 mln in the first quarter of 2009, mostly as a result of growth in gross leasable area and active development of retail properties. The occupancy rate decreased to 95.3 % from 96% in the corresponding period last year.
Finnish property investment firm Citycon swung to a loss of EUR 18.1 mln in the first quarter of 2009 from a profit of EUR 11.3 mln a year earlier due to a EUR -31.6 mln devaluation of its investment properties. Turnover grew by 3.6% year on year to EUR 45.9 mln in the first quarter of 2009, mostly as a result of growth in gross leasable area and active development of retail properties. The occupancy rate decreased to 95.3 % from 96% in the corresponding period last year.
CEO Petri Olkinuora said: ´Citycon continued its solid financial performance during the first quarter of 2009. The direct result improved, net rental income and the net rents of like-for-like properties increased. Demand for rental premises remained good in Finland and Sweden, but turned weaker in the Baltic countries.´
Citycon's financing situation remained good and was supported by the new EUR 75 mln revolving credit facility with a group of three Nordic banks signed at the end of March.
The company will continue to focus on increasing its cash flow and operating profit. In order to implement this 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, all planned projects will be re-evaluated before their launch, the company said. Citycon intends to continue the divestment of its non-core properties to improve the property portfolio and strengthen the company's balance sheet. The company is also considering alternative property financing sources, it added.
