Q2 2024 Citycon Oyj Earnings Call Transcript
Key Points
- Like-for-like net rental income increased by 5.9%, supported by rent indexations and strong performance in core assets.
- Total net rental income grew by 9.9%, bolstered by the Quest acquisition executed in February.
- Retail occupancy remained solid at 95.2%, with strong tenant sales growth across main retail segments.
- Average rents increased by 4.10% compared to last year, indicating successful rent indexations.
- Operational performance led to a EUR23 million fair value gain in the second quarter, with a total positive change in fair values of EUR69 million for the first half.
- Higher administrative expenses due to one-time reorganization costs and increased financial expenses slightly offset earnings growth.
- Financial expenses increased by EUR9.6 million compared to last year, partly due to higher interest rates and the consolidation of Kista.
- The company incurred EUR6.9 million in one-time restructuring costs in the first half of the year.
- Leverage remains elevated, with IFRS LTV standing at 47.6%, though improvements are expected by year-end.
- The company faces ongoing challenges in executing divestments, with EUR350 million in remaining targets for the year.
Good morning, and welcome to Citycon's Q2 results webcast. My name is Valtteri Piri, and I'm working as Legal and Investor Relations Manager in Citycon. Today with me, we have our CEO, Henrica Ginström and CFO, Sakari Järvelä. We will now present the key highlights from the first half of the year. And after that, we open the line for the questions Henrica, please go ahead.
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Thank you, Valtteri, and welcome. Also on my behalf to this Q2 webcast. The first half of the year was characterized again by strong underlying business performance. Like-for-like net rental income increased by 5.9%, and that was supported by both rent indexations and also strong performance in our core assets. Our total net rental income grew a little bit more by 9.9%, and that was supported by the Quest acquisition, which was executed in February this year, our earnings increased by 5.4% following the strong net rental income development and was
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