Q3 2024 Citycon Oyj Earnings Call Transcript
Key Points
- Citycon Oyj (FRA:TY2B) reported a strong operational and financial performance with a net rental income growth of 13.7% in Q3 and 11.2% year-to-date.
- The company achieved a 4.1% increase in average rent per square meter, contributing to the overall positive financial results.
- Retail occupancy improved slightly to 95.1%, indicating strong leasing activity with 109,000 square meters of new leases signed this year.
- Citycon Oyj completed significant divestments totaling EUR145 million year-to-date, with a pipeline of EUR400 million under LOI or advanced negotiations, exceeding their divestment target.
- The company maintained its investment-grade credit rating, with improved core credit metrics, including a decline in net debt to EBITDA from 11.2% to 10.4%.
- Citycon Oyj incurred EUR7.2 million in restructuring costs during the first three quarters, impacting overall financial results.
- The company faced a EUR41.9 million loss on the sale of assets, partly due to deferred CapEx and goodwill write-downs.
- Higher interest rates on refinanced debt and the consolidation of Kista Galleria led to a EUR12.9 million increase in net financial expenses year-to-date.
- The weakening of Swedish and Norwegian currencies had a minor negative impact on financial results.
- Concerns were raised about the valuation of assets in Finland, particularly in comparison to the Campe shopping center's market yield expectations.
Good morning, everyone and welcome to Citycon's third quarter results audiocast. My name is [Hanna Jaakkola] and I'm working as the investor relations manager here at Citycon. Last night, we published our third quarter 2024 interim report and in this audiocast, we will present the financial and operational key highlights from the results.
The third quarter interim report is available on our website in the investors section together with me here in the audio call. Our interim CEO, Mr. Scott Ball and CFO, Mr. Sakari Järvelä. Sakari will start the presentations by going through the key highlights from our financial results.
Following that, Scott will present a summary of our operational highlights and go through the financial guidance for full year 2024. After the presentations by Sakari and Scott, there will be a separate Q&A session and we will open the line for questions from the audience.
With that. I pass on to Sakari. Please go ahead.
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