Today, Citycon presented its Interim Report 1 Januaryâ"31 March 2005. The highlights are:
- Profit before taxes amounted to EUR 7.8 million (EUR 7.4 million);
- Turnover totalled EUR 21.2 million (EUR 21.0 million);
- Earnings per share were EUR 0.05 (EUR 0.08).
Business Activities and Property Portfolio
Cityconâs business activities comprise the entire chain of retail premises ownership, i.e. ownership, leasing, management and property development. Citycon operates in three divisions (business segments) according to customer needs and the type of premises: Shopping Centres, Supermarkets and Shops, and Property Development.
At the end of the reporting period, Citycon owned 144 properties (148) with a fair value totalling EUR 736.4 million (EUR 735.4 million). Practically all of the companyâs property portfolio consists of retail properties.
The company owned 16 shopping centres and 128 supermarkets and shops. Shopping centres accounted for 60.8 per cent and supermarket and shop premises for 39.2 per cent of the property portfolioâs fair value. In terms of fair values, 45.0 per cent of the properties were in the Helsinki Metropolitan Area, 37.0 in other major Finnish cities and 18.0 in other parts of Finland at the end of the period.
At the end of the period, Citycon had a total of 1,463 leases with roughly 845 lessees. The average length of leases was 3.6 years. The period-end occupancy rate for Cityconâs property portfolio was 96.4 per cent (97.1%), the change in the occupancy rate being due to normal fluctuations in the leasing business.
Property Development Division
The Property Development Divisionâs mission is to contribute to realising the corporate strategy by developing and extending Cityconâs existing retail sites, alongside the other divisions. The division is also responsible for commissioning the construction of new retail sites â" i.e., for acquiring land and controlling and developing the related commercial and functional planning, including negotiations on planning permission, liaison with the authorities and administering projects. The division also handles the marketing and leasing of premises on new retail sites.
Turnover and Profit
The turnover for the period was EUR 21.2 million (EUR 21.0 million). Gross rental income accounted for 98.6 per cent (98.1 %) of turnover. Operating profit rose to EUR 14.2 million (EUR 13.9 million). Profit before taxes amounted to EUR 7.8 million (EUR 7.4 million) and profit after taxes was EUR 5.6 million (EUR 8.4 million). Profit after taxes in the corresponding period of the previous year included one time deferred tax receivable of EUR 2.6 million related to the acquisition of Torikeskus in SeinÃ¤joki which was booked in income taxes. The profit includes EUR 0.3 million in capital gains from investment properties.
Balance Sheet and Financing
The period-end balance sheet total was EUR 765.8 million (EUR 746.9 million), of which cash and cash equivalents were EUR 23.1 million (EUR 6.7 million). The Groupâs financial situation remained sound.
Share Capital and Shares
At the beginning of the reporting period, the companyâs share capital was EUR 156,655,833.30 and the number of shares was 116,041,358. The share capital increased by EUR 124,200 during the period as a result of share subscriptions based on Cityconâs
1999 option scheme. At the end of the reporting period, Cityconâs registered share capital stood at EUR 156,780,033.30 and the number of shares totalled 116,133,358. The par value of a share is EUR 1.35, each share conferring one vote. During the period, a total of 7,8 million Citycon shares were traded on the Helsinki Stock Exchange, providing a turnover of EUR 21,1 million.
Citycon and IFRS
Citycon Oyj applies for the first time IAS/IFRS standards (International Financial Reporting Standards) in its interim reports, financial statements for 2005 and comparable figures for 2004.