Citycon to accelerate earnings growth in 2013

Citycon is predicting a €15–30 mln rise of its EPRA earnings in 2013, the Finnish listed retail specialist said on Wednesday.

In 2012, EPRA earnings increased by €10.6 mln to €64 mln, versus €53 mln a year before.

In the presentation of its full-year result, Citycon said it expects its turnover to increase by €5–20 mln in 2013, while EPRA operating profit is forecast to rise by €5–20 mln in 2013, based on the current property portfolio.

The company posted a turnover of €239 mln in 2012, up 10% versus €217 mln in 2011. Net rental income rose 4.9% on a like for like basis in 2012, 12.3% in general, largely driven by the completion of development projects and the acquisitions of shopping centres Kristiine, Högdalen Centrum, Arabia and Albertslund which had a positive impact of €13.4 mln.

Over the past 12 months, the company broadened its portfolio geographically to Denmark by acquiring Albertslund Centrum in Copenhagen in July and strengthened its market position considerably in Sweden by acquiring Kista Galleria in Stockholm. The €500 mln transaction was carried out in a joint venture with Canadian sovereign wealth fund CPPIB.
'The acquisition of Kista Galleria balances the weight of Citycon’s different business areas in the company’s property portfolio in accordance with its growth strategy,' commented CEO Marcel Kokkeel.

Last year, Citycon refinanced practically all of the loans maturing in 2013, and expanded its financing sources to the bond markets while further strengthened our balance sheet in October by a rights issue. The firm has started planning another rights issue mainly to finance the acquisition as well as to strengthen the balance sheet.

Citycon said it will focus in 2013 on increasing both its net cash flow from operating activities and its direct operating profit. In order to implement this strategy, the company said it will pursue value-added activities, selective acquisitions and proactive asset management.