Finland's Citycon sees EPS drop 85% on devaluations

Finnish listed retail specialist Citycon saw its earnings per share drop 85% to EUR 0.05 in 2011, from EUR 0.34 a year before, largely as a result of devaluations in its portfolio.

Citycon's investment assets posted writedowns of EUR 17 mln in 2011, primarily due to a change in value of its supermarkets and shops, while the shopping centre segment remained broadly stable.

In a statement on Wednesday, the Helsinki-based company said it plans to focus on value-added activities, selected acquisitions and proactive asset management in 2012 as part of efforts to increase net cash-flow from operating activities. It is forecasting a 3 to 7% rise in turnover for 2012, following 10.8% growth in 2011.

'Management prioritises working on sustainable cash flows and therefore we need to improve the quality of the portfolio. We are engaged in a high level of activities to accelerate property redevelopments, disposals and selective acquisitions,' noted Citycon's CEO Marcel Kokkeel.

'In 2011, a clear distinction was made between asset classes of different quality. Overall, demand for the best properties is solid and their fair values remain stable, whereas non-prime properties show the opposite trend.'

Citycon's turnover amounted to EUR 217 mln in 2011, versus EUR 196 mln in the same period a year before. The company reported an 81% drop in pre-tax profit, which came in at EUR 20 mln in 2011 from EUR 103 mln in 2010. Net rental income increased by 13.4% to EUR 144 mln in full-year 2011.