Citycon Oyj

Quarterly Report • Jul 17, 2024

January–June

Operational performance Q1–Q2/2024

+5.9% Like-for-like NRI growth in Q1–Q2/20241 (vs. Q1–Q2/2023)

Retail occupancy NRI growth in Q1–Q2/2024 +9.9%¹ (vs. Q1–Q2/2023)

+4.8% Avg. rent / sq.m. increase1 (vs. Q2/2023)

25.0 EUR Avg. rent / sq.m.

+69.3 MEUR Fair value change of investment properties in Q1–Q2/2024

(incl. Kista)

1 With comparable FX rates.

CEO Henrica Ginström:

Citycon's operational performance remained strong and in line with our expectations as total net rental income increased by 9.9% with comparable FX-rates and like-for-like net rental income by 5.9 % during the first half of the year. At the same time, we saw like-for-like sales growth of 2.6% compared to Q1–Q2/2023. It is notable that consumer spending across our centres has remained to be very robust reflecting the strength of our strategy to focus on everyday convenience with grocery and public service anchors. All our main retail segments continued to show strong sales growth.

Retail occupancy increased by 70 bps compared to Q2/2023, reaching 95.2% and reflecting the attractiveness of our locations. Collection rate remained high at 98% for Q1–Q2/2024 demonstrating again a full pass-through of indexations. Our tenants continue to benefit from increasing sales, and despite the higher rent levels, the occupancy cost ratio remains at a modest 9.4%. Strong operational performance is also supporting the development of the fair values of our properties. There were smaller upward yield revisions in a few of our prime assets, but these changes were more than offset by positive cash flow growth driven by rent indexations. We see a stabilization in the valuations in the market in general.

In the second quarter, we continued to take actions to strengthen our balance sheet. We extended our revolving credit facility and two term loans and executed an early redemption of our 2024 bond. These were important actions to improve our credit maturity profile and to secure a sufficient liquidity buffer for several years ahead. Most importantly, we successfully executed an exchange of our 2024 hybrid against a new hybrid and cash amount. This transaction underscores our commitment to maintaining an investment-grade credit rating and confirms Citycon's access to capital markets.

During the quarter, we also completed the divestment of Kongssenteret at a price close to book value. Furthermore, we are currently working on multiple transactions with three signed LOIs of which two are in advanced negotiations and one in early stages. Further strengthening our balance sheet remains a key priority for us and we are committed to our EUR 350 million divestment target by the end of this year.

Citycon results summary:

Strong operational performance in Q1–Q2/2024

• Total net rental income increased by 9.3% compared to the previous year.
• In comparable FX rates, total net rental income increased by 9.9%.
• Like-for-like net rental income increased by 5.9%.
• The weakening NOK and SEK FX-rates impacted on our results; the impact on total net rental income was EUR -0.6 million.
• Average rent per sq.m. increased by 4.8% with comparable FX to EUR 25.0 per sq.m (vs. Q2/2023).
• Retail occupancy 95.2% vs. 94.5% in Q2/2023, including Kista.
• Like-for-like footfall increased 0.8%.
• Like-for-like tenant sales increased 2.6%.
• Fair value change of investment properties in Q1–Q2/2024 EUR 69.3 million, including Kista.
• In Q2/2024 fair value change of investment properties was EUR 23.1 million.

The strengthening of the balance sheet as a priority

Q1/2024

• Citycon continued to improve its balance sheet by EUR 48.2 million share issue which was 4-times oversubscribed.
• Citycon placed a EUR 300 million green bond with an orderbook approximately seven times oversubscribed.
• Citycon executed approx. EUR 213 million tender of its bond maturing in October 2024.

Q2/2024

• Citycon successfully executed an EUR 266 million exchange for its 2024 hybrid for a new hybrid and cash amount.
• Citycon executed a make-whole for the remaining amount (EUR 97 million) of its bond maturing in October 2024.
• Citycon signed and closed the transaction to sell Kongssenteret in Kongsvinger, Norway. The sales price is close to the latest IFRS fair value of the asset.
• Citycon improved its credit maturity profile by extending its EUR 400 million revolving credit facility and EUR 250 million term loan by one year until 2027 and SEK 2,060 million term loan until 2029.

Key figures

										FX
Citycon Group		Q2/ 2024	Q2/ 2023	%	FX Adjusted Q2/2023	FX Adjusted %1	Q1–Q2/ 2024	Q1–Q2/ 2023	%	Adjusted Q1–Q2/ 2023	FX Adjusted %1	Q1-Q4/ 2023
Net rental income	MEUR	54.7	48.9	11.9%	49.0	11.6%	105.7	96.7	9.3%	96.2	9.9%	195.7
Like-for-like net rental income development	%	5.6%	4.5%	-	-	-	5.9%	6.9%	-	-	-	6.5%
Direct operating profit2	MEUR	49.0	42.2	16.1%	42.3	15.9%	88.6	80.4	10.2%	79.9	10.9%	164.8
IFRS Earnings per share (basic)3	EUR	0.11	0.18	-37.3%	0.18	-37.0%	0.44	0.50	-11.9%	0.49	-11.0%	-0.70
Fair value of investment properties	MEUR	3,867.5	3,979.0	-2.8%	-	-	3,867.5	3,979.0	-2.8%	-	-	3,858.2
Loan to Value (LTV)2	%	47.6	43.0	10.7%	-	-	47.6	43.0	10.7%	-	-	46.3
EPRA based key figures2
EPRA Earnings	MEUR	29.6	26.6	11.4%	26.6	11.4%	54.1	51.9	4.4%	51.4	5.4%	109.6
Adjusted EPRA Earnings4	MEUR	24.6	19.4	26.4%	19.4	26.5%	46.7	37.3	25.2%	36.8	26.9%	80.6
EPRA Earnings per share (basic)	EUR	0.161	0.158	1.7%	0.158	1.8%	0.300	0.309	-2.8%	0.306	-1.9%	0.651
Adjusted EPRA Earnings per share (basic)4	EUR	0.134	0.116	15.5%	0.116	15.5%	0.259	0.222	16.6%	0.219	18.2%	0.479
EPRA NRV per share5	EUR	9.21	10.71	-14.0%	-	-	9.21	10.71	-14.0%	-	-	9.30

¹ Change from previous year (comparable exchange rates). Change-% is calculated from exact figures.

² Citycon presents alternative performance measures according to the European Securities and Markets Authority (ESMA) guidelines. More information is presented in Basis of Preparation and Accounting Policies in the notes to the accounts.

³ The key figure includes hybrid bond coupons, amortized fees and gains/losses and expenses on hybrid bond repayments.

⁴ Starting from the beginning of 2024, Citycon excludes reorganisation and one-time costs (Q1-Q2/2024: EUR 6.8 million) from Adjusted EPRA Earnings. Due to this, Adjusted EPRA Earnings is not fully comparable with the previous year. The adjusted key figure includes hybrid bond coupons and amortized fees.

⁵ The effect of currency rates to EPRA NRV/share was EUR -0.08.

Outlook (specified)

		Current outlook	Previously
Direct operating profit	MEUR	185–195	185–203
EPRA Earnings per share (basic)	EUR	0.62–0.68	0.62–0.74
Adjusted EPRA Earnings per share (basic)	EUR	0.46–0.52	0.46–0.58

The outlook assumes that there are no major changes in macroeconomic factors and no major disruptions from the war in Ukraine. These estimates are based on the existing property portfolio, including Kista 100%, as well as year-end 2023 estimates of inflation, EUR–SEK and EUR–NOK exchange rates, and interest rates.

1. Net rental income

Total net rental income in Q1–Q2/2024 increased by 9.3% to EUR 105.7 million (Q1–Q2/2023: EUR 96.7 million) and with comparable FX rates by 9.9%. Kista Galleria increased the total net rental income by EUR 4.2 million. The like-for-like net rental income in Q1–Q2/2024 increased 5.9% compared to Q1–Q2/2023.

Like-for-like and total net rental income development, Q1–Q2/2024 vs. Q1–Q2/2023

Like-for-like NRI Development (at comparable exchange rates)

• Total NRI Development (at actual exchange rates)
• Total NRI Development (at comparable FX rates)

Like-for-like net rental income from the Finnish operations increased by 4.1% in Q1–Q2/2024. Like-for-like net rental income from Norwegian operations increased by 6.3%. Like-for-like net rental income from the Swedish operations increased by 10.7%. Like-for-like net rental income from the Danish & Estonian operations increased by 5.6%.

Net rental income and gross rental income breakdown

	Net rental income
MEUR	Finland	Norway	Sweden	Denmark & Estonia	Other	Total	Total
Q1–Q2/2023	37.2	31.4	13.2	15.0	-0.1	96.7	107.8
Acquisitions	-	-	4.2	-	-	4.2	6.3
(Re)development projects	1.7	-0.5	0.6	-0.3	-	1.4	1.4
Divestments	-	0.0	-	-	-	0.0	-0.1
Like-for-like properties1	1.3	1.6	1.1	0.5	-	4.5	2.7
Other (incl. exchange rate differences)	0.0	-0.9	-0.4	0.0	0.1	-1.2	-0.8
Q1–Q2/2024	40.2	31.8	18.6	15.2	0.0	105.7	117.4

¹ Like-for-like properties are properties held by Citycon throughout two full preceding periods and exclude properties under (re)development or extension.

2. Occupancy rate, sales and footfall

calculated using comparable exchange rates. Including Kista Galleria 100%.

The retail occupancy rate, including Kista, increased in Q2/2024 from the previous quarter at 95.2% (Q1/2024: 94.9%). The economic occupancy increased and was 94.2% (Q1/2024: 93.9%). Compared to the same period last year the retail occupancy rate, including Kista, increased 70 bps.

The average rent per sq.m. increased by 4.8% with comparable FX to 25.0 EUR (Q2/2023: 23.9 EUR) as we leased 79,000 sq.m. during the first half of the year.

In Q2/2024, like-for-like tenant sales increased 2.1% and in Q1–Q2/2024 2.6%. Notably, like-for-like tenant sales in Q1– Q2/2024 are up 16.1% compared to pre-pandemic Q1–Q2/2019.

Like-for-like footfall increased by 2.0% in Q2/2024 and increased 0.8% in Q1–Q2/2024 compared to the same period last year.

Lease portfolio summary1

		30 June 2024	30 June 2023	31 December 2023
Number of leases	pcs	4,033	4,005	4,153
Average rent2	EUR/sq.m./month	25.0	23.9	24.0
Average remaining length of lease portfolio	years	3.5	3.5	3.5
Occupancy cost ratio3	%	9.4%	9.2%	9.2%

¹ Kista Galleria 100% included.

² Comparison periods with comparable FX-rate.

3 The rolling twelve month occupancy cost ratio for like-for-like shopping centres.

Leasing activity1

		Q1–Q2/2024	Q1–Q2/2023	Q1–Q4/2023
Total area of leases started	sq.m.	125,641	130,882	258,414
Total area of leases ended	sq.m.	154,882	142,138	259,458

¹ Leases started and ended do not necessarily refer to the same premises. Kista Galleria 100% included.

3. Financial result

Operating profit (IFRS) was EUR 155.3 million (Q1–Q2/2023: EUR 148.0 million).

Administrative expenses were EUR 19.5 million (Q1–Q2/2023: EUR 16.6 million) and included EUR 6.8 million of reorganisation and one-time costs. At the end of the reporting period, Citycon Group employed a total of 201 full-time employees (FTEs) (30 June 2023: 252 FTE), of whom 39 worked in Finland, 63 in Norway, 38 in Sweden, 11 Denmark & Estonia and 50 in Group functions.

Net financial expenses (IFRS) increased to EUR 46.4 million (Q1–Q2/2023: EUR 21.4 million). The increase mainly relates to EUR 8.6 million higher cost of debt from refinancing and consolidation of Kista interest expenses starting from end of February. In addition, an amount of EUR 13.8 million indirect losses (Q1–Q2/2023: EUR 1.3 million loss) was booked related to fair value changes of derivatives not under hedge accounting, EUR 12.5 million more than during the comparison period. The company also recorded EUR 1.1 million gain on early redemption of debt (Q1–Q2/2023: EUR 4.9 million gain), EUR 3.8 million less than in the corresponding period.

Share of loss of joint ventures and associated companies totalled EUR -0.8 million (Q1–Q2/2023: EUR -22.0 million) mainly due to the completion of the transaction to acquire the remaining interest in Kista Galleria at the end of February after which Kista has no longer been treated as a joint venture.

Profit for the period was EUR 95.1 million (Q1–Q2/2023: EUR 81.4 million).

4. Property portfolio value development

The asset value of investment properties increased in Q1–Q2/2024 by EUR 9.3 million from year-end to EUR 3,867.5 million (31 December 2023: EUR 3,858.2 million). Net investments, including both acquisitions and disposals and development projects increased the value by EUR 299.4 million, fair value gains by EUR 69.3 million and changes in right-of-use –assets by EUR 1.0 million. These increases were offset by changes in FX rates, which decreased the value by EUR 29.2 million and by transfer into investment properties held for sale, which decreased the value by EUR 331.3 million.

Property portfolio summary

30 June 2024	No. of properties	Gross leasable area	Fair value, MEUR	Properties held for sale, MEUR	Portfolio, %
Shopping centres, Finland	9	336,939	1,710.1	-	41%
Other properties, Finland	1	2,191	4.4	-	0%
Finland, total	10	339,130	1,714.5	-	41%
Shopping centres, Norway	11	315,731	892.5	133.3	25%
Rented shopping centres, Norway1	1	14,411	-	-	-
Other properties, Norway	1	8,126	-	14.3	0%
Norway, total	13	338,268	892.5	147.6	25%
Shopping centres, Sweden	6	265,266	929.2	-	22%
Other properties, Sweden	1	-	-	6.8	0%
Sweden, total	7	265,266	929.2	6.8	22%
Shopping centres, Denmark & Estonia	4	141,343	293.1	145.3	11%
Other properties, Denmark & Estonia	-	-		-	-
Denmark & Estonia, total	4	141,343	293.1	145.3	11%
Shopping centres, total	31	1,073,690	3,824.9	278.6	98%
Other properties, total	3	10,317	4.4	21.0	1%
Investment properties, total	34	1,084,007	3,829.3	299.6	99%
Right-of-use assets classified as investment properties (IFRS 16)	-	-	38.2	-	1%
Investment properties in the statement of financial position, total	34	1,084,007	3,867.5	299.6	100%

¹ Value of rented properties is recognised within IFRS 16 investment properties based on IFRS rules.

The fair value change of investment properties in Q1–Q2/2024 amounted to EUR 69.3 million (Q1–Q2/2023: EUR 69.4 million) mainly due to acquisition of Kista Galleria and improved cash flows. The company recorded a total value increase of EUR 96.4 million (Q1–Q2/2023: EUR 104.1 million) and a total value decrease of EUR -23.7 million (Q1–Q2/2023: EUR -31.4 million). The application of IFRS 16 standard had an impact of EUR -3.4 million (Q1–Q2/2023: EUR -3.3 million) to the fair value change of investment properties during the January-June reporting period.

Fair value changes

MEUR	Q2/2024	Q2/2023	Q1–Q2/ 2024	Q1–Q2/ 2023	Q1–Q4/ 2023
Finland	17.2	16.7	22.0	20.3	-68.4
Norway	5.2	-3.4	6.2	20.2	-64.5
Sweden	1.7	9.7	44.9	13.3	-35.3
Denmark & Estonia	0.7	3.3	-0.4	18.8	-25.5
Investment properties, total	24.8	26.3	72.7	72.7	-193.7
Right-of-use assets classified as investment properties (IFRS 16)	-1.7	-1.7	-3.4	-3.3	-6.6
Investment properties in the statement of financial position, total	23.1	24.7	69.3	69.4	-200.3
Kista Galleria (50%)	-	-8.5	-	-23.4	-40.8
Investment properties and Kista Galleria (50%), total	23.1	16.1	69.3	46.0	-241.1

External appraisers, CBRE (in Denmark, Estonia and Norway) and JLL (in Finland and Sweden) measure the fair values for annual financial statements. Citycon measures the fair values of the properties internally in the Q1–Q3. All internal valuation periods are subject to yield and market commentary from Citycon's current external appraisers in its respective markets.

5. Recycling of capital

In Q1/2024, Citycon completed the transaction to acquire the remaining interest in Kista Galleria in Stockholm, Sweden. Citycon has managed the centre since 2012 and before the transaction owned 50% of the asset. After the transaction, Citycon has 100% ownership. Kista Galleria had approximately SEK 2,400 million of debt and following the transaction Citycon assumed seller's share of existing debt (approximately SEK 1,200 million) and made a cash payment (approx. EUR 2.5 million). The new loan is secured by additional two assets located in Sweden.

In Q2/2024, Citycon completed the transaction to divest Kongssenteret in Kongsvinger, Norway.

Strengthening the balance sheet remains a key priority for the company. In November 2022, Citycon announced its goal to sell EUR 500 million of non-core assets in the next 24 months. Following the transaction executed in May 2024 the remaining target is EUR 350 million. Citycon is committed to execute the previously disclosed divestment target by the end of 2024 and in February 2024 increased its target to EUR 950 million over the next 24 months.

Acquisitions and divestments Q1–Q2/2024

		Location	Gross leasable area, sq.m.	Date
Divestments
Kongssenteret	Shopping centre	Kongsvinger, Norway	18,000	31 May 2024
Divestments, total			18,000

6. (Re)development projects

Citycon has no significant ongoing development projects and capex requirements are expected to be significantly lower in 2024 compared to the previous years.

Further information on Citycon's completed, ongoing and planned (re)developments can be found in the company's Financial Review 2023.

(Re)development projects in progress on 30 June 2024

	Location	Area before/after, sq.m.	Expected gross – investment, MEUR	Actual gross investment by 30 June 2024, MEUR	Completion
Barkarby, residentials	Stockholm, Sweden	-/12,950	69.51	6.6 1	2024

¹ The transaction has been structured as a forward commitment, whereby Citycon made a deposit of EUR 6.6 million in April 2022 and will fund the remaining purchase price, pro-rata, at the completion of two construction phases approximately in August 2024. The closing of the transaction will be after the completion of each phase with no additional obligations from Citycon before construction of each phase is complete.

7. Shareholders' equity

Equity per share was EUR 11.16 (EUR 11.56 on 31 December 2023). Equity per share was impacted by the directed share issues in February and May, where a total of 12,090,000 new shares were carried out.

At period-end, shareholders' equity attributable to parent company's shareholders was EUR 1,464.0 million (31 December 2023: EUR 1,380.1 million).

8. Financing

Key financing figures

		30 June 2024	30 June 2023	31 December 2023
Nominal debt outstanding	MEUR	2,032.5	1,776.7	1,840.4
Interest bearing liabilities, carrying value1	MEUR	2,049.8	1,800.6	1,864.4
Available liquidity	MEUR	458.5	442.8	434.3
Average loan maturity	years	3.2	2.9	2.7
Loan to Value (LTV)2	%	47.6	43.0	46.3
Interest cover ratio (financial covenant > 1.8)	x	3.2	3.7	3.7
Net debt to total assets (financial covenant < 0.60)	x	0.45	0.40	0.44
Solvency ratio (financial covenant < 0.65)	x	0.46	0.42	0.45
Secured solvency ratio (financial covenant < 0.25)	x	0.12	0.06	0.08

¹ Including EUR 35.7 million (Q2/2023: EUR 38.7 million) IFRS 16 lease liabilities.

² Hybrid bond treated as equity as according to IFRS. Excluding both right-of-use assets recognized as part of investment properties, as well as lease liabilities pertaining to these right-of-use assets, which are based on IFRS 16 requirements.

In February, Citycon Oyj successfully completed a directed share issue of 11.9 million new shares, raising gross proceeds of approximately EUR 48.2 million. The subscription price for the shares offered in the placing was EUR 4.05 per share and the issue was four times oversubscribed, supported by both core shareholders G City and Ilmarinen. The proceeds from the placing are aimed at strengthening the company's balance sheet and improving its capital structure in the current market environment.

Following the share issue, Citycon Group placed a EUR 300 million green bond in order to refinance its October 2024 bond maturity of EUR 310.3 million. The 5-year senior unsecured fixed rate EUR-denominated bond matures on 8 March 2029 and pays a fixed coupon of 6.500%. The demand for the bond was very strong with an orderbook approximately seven times oversubscribed. With this issue Citycon's debt maturity profile is significantly improved and refinancing risk is further reduced.

Simultaneously with the bond issue, Citycon launched a tender offer for its EUR 310.3 million outstanding notes due in October 2024. As a result, the company successfully tendered EUR 213.3 million of the 2024 notes at a discount below par.

In April, the company exercised its one-year extension option on the EUR 650 million credit facility, including a EUR 400 million syndicated committed credit facility and a EUR 250 million term loan. The new maturity date for the facility is in April 2027.

In May, Citycon renegotiated the SEK 2,060 million term loan that was acquired with Kista Galleria and extended its tenor to five years. The term loan is now maturing in May 2029. Extending Citycon's revolving credit facility and term loans were important actions to improve the company credit maturity profile and demonstrate Citycon's access to bank financing.

In June, the company finalised a hybrid exchange offer to holders of the outstanding EUR 292 million green capital securities (hybrid bond) that what was coming to call in November 2024. An aggregate principal amount of EUR 265,721,000 was accepted in the exchange offer and thereby exchanged into a new non-call 5.25 year hybrid bond with a 7.875% coupon. The company also offered a 4.75% cash compensation paid on the nominal amount accepted for exchange, amounting to EUR 12.6 million. With exchange acceptance by over 90% of holders the successful execution of the transaction confirms Citycon's access to capital markets and marks a significant milestone in securing the company stable credit profile.

In addition, Citycon redeemed the remaining outstanding EUR 97 million of the October 2024 bond using funds from the EUR 300 million bond issued in March. The bond was redeemed in a make-whole executed at par.

The Annual General Meeting authorized the Board of Directors to decide quarterly in its discretion on the distribution of equity repayment with an annual maximum total amount of EUR 0.30 per share. The annual maximum distribution was thereby reduced by EUR 0.20 per share compared to last year. The equity repayment paid in March and in June was mainly financed by operative cash flow.

Interest-bearing debt

The outstanding amount of interest-bearing debt increased during the year by EUR 192.1 million to EUR 2,032.5 million, mainly following the consolidation of Kista bank debt of EUR 206.3 million (amounting to EUR 181.4 million in Q2) into the group balance sheet in Q1. The carrying amount of interest-bearing liabilities in the balance sheet was EUR 2,049.8 million including IFRS 16 liabilities of EUR 35.7 million.

The weighted average loan maturity increased to 3.2 years over the quarter following the executed extensions of the syndicated term loan and the Kista term loan.

LTV (IFRS) decreased during the quarter to 47.6% mainly as a result of increased asset values.

Breakdown of loans

%

Total 2,032.5 MEUR

Undrawn committed credit facilities 400.0

¹ Yearly amortizations on Kista term loan, approx. 5 MEUR per year

Financial expenses

Key figures

Bank loans 25.6 Bonds 70.8

Commercial paper 3.6

		Q2/2024	Q2/2023	Q1–Q2/2024		Q1–Q2/2023 Q1–Q4/2023
Financial expenses1	MEUR	-29.9	-15.5	-51.3	-30.3	-61.2
Financial income1	MEUR	1.5	6.2	4.9	8.9	13.5
Net financial expenses (IFRS)	MEUR	-28.4	-9.3	-46.4	-21.4	-47.7
Direct net financial expenses (EPRA)	MEUR	-18.9	-12.1	-33.2	-23.6	-47.7
Weighted average interest rate2	%	-	-	3.31	2.83	2.61
Weighted average interest rate excluding derivatives	%	-	-	3.88	3.00	3.13
Year-to-date weighted average interest rate2	%	-	-	3.04	2.52	2.57

Bonds 1,438.4

Debt maturities

¹ The foreign exchange differences are netted in the financial expenses.

² Including interest rate swaps, cross-currency swaps and interest rate options.

The direct net financial expenses (EPRA) Q1-Q2/2024 were EUR 9.6 million higher than last year, mainly following increased cost of debt by EUR 8.6 million from consolidation on Kista interest expenses starting from end of February, and from refinancing of the 2024 bond with a new Eurobond bearing a higher coupon.

Net financial expenses (IFRS) increased to EUR 46.4 million (Q1–Q2/2023: EUR 21.4 million). EUR 8.6 million increase relates to higher interest expenses on refinanced debt and consolidation on Kista interest expenses, which was partially offset by interest income on hedges. Furthermore, an amount of EUR 13.8 million indirect losses was booked related to fair value changes of cross-currency swaps not under hedge accounting, whereas the corresponding period Q1–Q2/2023 carried a EUR 1.3 million loss from fair value of swaps. In addition, EUR 1.1 million of gains related to redemption of debt was recorded, whereas the corresponding period recorded EUR 4.9 million of buy-back gains.

Financial income mainly consisted of interest income on a loan to Kista Galleria, gains on debt repurchased at a discount and interest income on cash balances held following the bond issue. The interest income on the shareholder loan to Kista Galleria ceased to be booked as external income as Kista was acquired and consolidated as a 100% subsidiary at the end of February 2024.

The period-end weighted average interest rate was 3.04%.

Financial risk management

Citycon uses interest rate swaps and caps to hedge the floating interest rate risk exposure. According to the company's treasury policy, the currency net transaction risk exposure with profit and loss impact is fully hedged through currency forwards and cross-currency swaps that convert EUR debt into SEK and NOK. During the quarter, the company also used currency forwards to hedge its SEK and NOK denominated equity.

		30 June 2024	30 June 2023	31 December 2023
Average interest-rate fixing period	years	2.5	2.5	2.6
Fixed interest rate ratio	%	81.3	88.3	73.8

9. Business environment

Business environment key figures

	Finland	Norway	Sweden	Denmark	Estonia	Euro area
GDP growth forecast 2024	-0.2%	1.7%	0.5%	2.5%	-0.5 %	0.6%
Inflation, forecast 2024	1.0%	3.6%	3.0%	1.4%	3.5 %	2.2%
Unemployment, 2024	7.7%	3.9%	8.5%	4.4%	7.5 %	6.7%
Retail sales growth, 5/20241	-0.8%	3.4%	1.5%	-0.3%	-4.0 %	0.6%

¹ % change compared with the same month of the previous year

Sources: IMF, SEB Nordic Outlook (May 2024), European Commission, Eurostat

The Nordic economies, like the rest of the global economy, are impacted by the increase in cost of living and the uncertain economic environment due to inflation, high interest rates, and geopolitical uncertainty. The common denominator for the Nordic countries is their strong financial position, thanks to high personal savings, strong public finances and robust job creation, which continue to persist. This provides these economies a buffer and some degree of resilience during this time of inflation, and rising interest rates.

While inflation is trending higher in all Nordic markets, this continues to benefit Citycon's operations due to the grocery and services-oriented tenant mix of Citycon's necessity-based urban hubs, which are less reliant on consumer discretionary spending. In addition, 94% of the Company's leases are tied to indexation.

(Sources: IMF, World Economic Outlook (April 2024), SEB Nordic Outlook (May 2024), European Commission, Eurostat)

10. Changes in corporate management

Henrica Ginström started as Citycon's CEO on April 1, 2024. Ginström replaced F. Scott Ball, who stepped down based on mutual agreement. Mr. Ball continues to serve as a board member of the company.

Sakari Järvelä started as Citycon's CFO on February 1, 2024. Bret D. McLeod, previous Chief Financial Officer of Citycon, announced in December 2023 his intention to resign from his position effective January 31, 2024, to pursue another opportunity back in his native United States.

In March 2024, Helen Metsvaht was appointed Citycon's new Chief Operating Officer and member of the Corporate Management Committee as of April 1, 2024. At the same time, Senior Vice President, Leasing, Jussi Vyyryläinen was appointed member of the Corporate Management Committee.

Kirsi Simola-Laaksonen, Citycon's Chief Information Officer and member of the Corporate Management Committee decided to leave the company to pursue new opportunities outside the company in February 2024.

11. Risks and uncertainties

The most significant near-term risks and uncertainties in Citycon's business operations are associated with the general development of the economy and consumer confidence in the Nordic countries and Estonia, and how this affects fair values, occupancy rates and rental levels of the shopping centres and, thereby, Citycon's financial results. Increased competition locally or from e-commerce might affect demand for retail premises, which could lead to lower rental levels or increased vacancy, especially outside capital city regions. Costs of development projects could increase due to rising construction costs or projects could be delayed due to unforeseeable challenges. Rising interest rates could also put pressure on investment yields, which could potentially impact fair values. The war in Ukraine continue to pose risks to economic health in Europe as well.

The main risks that can materially affect Citycon's business and financial results, along with the main risk management actions, are presented in detail on pages 34–35 in the Financial Statements 2023, in Note 3.5 A) as well as on Citycon's website in the Corporate Governance section.

12. General meeting

Citycon's Annual General Meeting 2024 (AGM) was held on 19 March 2024. The Annual General Meeting was held without a meeting venue using remote connection in real time, in accordance with Section 11 of the Articles of Association of the Company and Chapter 5, Section 16 Subsection 3 of the Finnish Limited Liability Companies Act. A total of 291 shareholders were presented in the meeting either having voted in advance or via remote connection in person, or by statutory representative or by proxy, representing 47.2% of shares and votes in the company.

The General Meeting approved all the proposals made by the Board of Directors to the General Meeting. The AGM adopted the company's Financial Statements and discharged the members of the Board of Directors and the CEO from liability for the financial year 2023 and decided to adopt the Remuneration Report for the governing bodies.

The General Meeting decided that no dividend is distributed by a resolution of the AGM and authorised the Board of Directors to decide in its discretion on the distribution of assets from the invested unrestricted equity fund. Based on the authorisation, the maximum amount of equity repayment to be distributed from the invested unrestricted equity fund shall not exceed EUR 0.30 per share. The authorisation is valid until the opening of the next AGM.

The AGM resolved the number of members of the Board of Directors to be nine. Chaim Katzman, Yehuda (Judah) L. Angster, F. Scott Ball, Zvi Gordon, Adi Jemini, Alexandre (Sandy) Koifman, David Lukes, Per-Anders Ovin and Ljudmila Popova were reelected to the Board of Directors.

Deloitte Oy, a firm of authorised public accountants, was elected as the auditor of the company for 2024.

The AGM decisions and the minutes of the AGM are available on the company's website at citycon.com/agm2024.

Extraordinary General Meeting 2024

Citycon's Extraordinary General Meeting (EMG) was held on 18 June 2024. The Annual Extraordinary General Meeting was held without a meeting venue using remote connection in real time, in accordance with Section 11 of the Articles of Association of the Company and Chapter 5, Section 16 Subsection 3 of the Finnish Limited Liability Companies Act. Based on the Board of Directors' proposal, the General Meeting resolved that the net amount of the annual fees of the members of the Board of Directors and the Chairmen of the Board of Directors' Committees after deduction of taxes and charges, resolved upon at the Annual General Meeting 2024, shall be paid in Citycon Oyj shares, which are either new shares or treasury shares held by the Company.

Further information available on the company´s website at citycon.com/egm2024.

13. Shares, share capital and shareholders

The company has a single series of shares, with each share entitling to one vote at a General Meeting of shareholders. At the end of June 2024, the total number of shares outstanding in the company was 184,084,204. The shares have no nominal value.

At the end of June 2024, Citycon had a total of 26,974 registered shareholders (30 June 2023: 28,417 shareholders), of which 10 were account managers of nominee-registered shares. Holders of the nominee-registered shares held approximately 128.3 million shares (30 June 2023:117.2), or 69.7% (30 June 2023: 69.8%) of shares and voting rights in the company. The most significant registered shareholders at period-end can be found on company's website citycon.com/major-shareholders.

Shares and share capital

		Q1–Q2/2024	Q1–Q2/2023	Q1–Q4/2023
Share capital at period-start	MEUR	259.6	259.6	259.6
Share capital at period-end	MEUR	259.6	259.6	259.6
Number of shares at period-start		171,994,204	168,008,940	168,008,940
Number of shares at period-end		184,084,204	168,008,940	171,994,204

Share price and trading

		Q1–Q2/2024	Q1–Q2/2023	%	Q1–Q4/2023
Low	EUR	3.70	5.77	-35.8%	4.89
High	EUR	5.22	7.01	-25.5%	7.01
Average	EUR	4.22	6.48	-34.8%	5.93
Latest	EUR	3.95	5.82	-32.1%	5.20
Market capitalisation at period-end	MEUR	727.1	977.8	-25.6%	894.4
Number of shares traded	million	42.1	31.7	32.8%	61.6
Value of shares traded	MEUR	176.2	205.0	-14.0%	365.2

Shareholders 30 June 2024

% of shares and voting rights

Nominee-registered shareholders 69.7% (128.3 million shares) Directly registered shareholdings 30.3% (55.8 million shares)

Dividend and equity repayment

Dividends and equity repayments paid on 30 June 20241

	Record date	Payment date	EUR / share
Equity repayment Q1	21 March 2024	28 March 2024	0.075
Equity repayment Q2	20 June 2024	28 June 2024	0.075
Total			0.15

Remaining Board authorisation for equity repayment2

	Preliminary record date	Preliminary payment date	EUR / share
Equity repayment Q3	23 September 2024	30 September 2024	0.075
Equity repayment Q4	20 December 2024	31 December 2024	0.075
Total			0.15

¹ Board decision based on the authorisation issued by the AGM 2024.

² The AGM 2024 authorised the Board of Directors to decide in its discretion on the distribution of assets from the invested unrestricted equity fund. Based on the authorisation the maximum amount of equity repayment distributed from the invested unrestricted equity fund shall not exceed EUR 0.30 per share. Unless the Board of Directors decides otherwise for a justified reason, the authorisation will be used to distribute equity repayment four times during the period of validity of the authorisation. In this case, the Board of Directors will make separate resolutions on each distribution of the equity repayment so that the preliminary record and payment dates will be as stated above. Citycon shall make separate announcements of such Board resolutions.

Board authorisations

In addition to the above explained asset distribution authorisation of the Board of Directors, the Board of Directors of the company had two valid authorisations at the period-end granted by the AGM held on 19 March 2024:

• The Board of Directors may decide on an issuance of a maximum of 16 million shares or special rights entitling to shares referred to in Chapter 10 Section 1 of the Finnish Companies Act, which corresponded to approximately 8.70% of all the shares in the company at the period-end. The authorisation is valid until the close of the next AGM, however, no longer than until 30 June 2025.
• The Board of Directors may decide on the repurchase and/or on the acceptance as pledge of the company's own shares in one or several tranches. The amount of own shares to be repurchased and/or accepted as pledge shall not exceed 30 million shares, which corresponded to approximately 16.31% of all the shares in the company at the period-end. The authorisation is valid until the close of the next AGM, however, no longer than until 30 June 2025.

During January – June 2024, the Board of Directors used three times its authorisation to repurchase its own shares and issue them by conveying repurchased shares. Additionally, the Board of Directors decided on issuance of new shares. The issuance, repurchases and conveyances were made for payment of rewards earned under the company's share plans in accordance with the terms and conditions of the plans:

Matching Share Plan 2022–2024

• On 25 March 2024, the company repurchased a total of 10,674 of its own shares and conveyed them on 27 March 2024 to two key persons of the company.

Restricted Share Plan 2020–2022

• On 2 April 2024, the company repurchased a total of 6,500 of its own shares and conveyed them on 4 April 2024 to six key persons of the company.

Performance Share Plan 2020–2022

• On 2 April 2024, the company repurchased a total of 15,000 of its own shares and conveyed them on 4 April 2024 to two key persons of the company.

CEO Restricted Share Plan 2021–2025

• On 21 May 2024, the company decided on issuance of 190,000 new shares to the former CEO for payment of reward shares in accordance with the terms and conditions of the CEO Restricted Share Plan 2021–2025.

Own shares

During the reporting period, the company held a total of 32,174 of the company's own shares, which were conveyed to implement payments of rewards earned under the company's share plans as described in the section Board authorisations. At the end of the period, the company or its subsidiaries held no shares in the company.

Flagging notices

In Q1/2024, Citycon received one flagging notification on 23 February 2024 according to which G City Ltd.'s holding of shares in Citycon has decreased below fifty (50) percent. Due to the dilutive effect of the directed share issue announced by Citycon Oyj on 22 February 2024 and completed on 23 February 2024, the aggregate total shareholding of G City Ltd. in Citycon Oyj decreased to approximately 49.64% following the registration of the new shares on 23 February 2024.

In Q2/2024, the company did not receive any notifications of changes in shareholding.

Incentive plans

Long-term Share-based Incentive Plans

Citycon has nine long-term share-based incentive plans for the Group key employees:

• CEO Restricted Share Plan 2024–2027
• Option Plan 2024 A-C (CEO)
• Option Plan 2024 (Corporate Management Committee)
• CFO Performance Share Plan 2024–2026
• Performance Share Plan 2020–2022 (Corporate Management Committee excl. the CEO)
• Performance Share Plan 2023–2025 (Corporate Management Committee excl. the CEO)
• Matching Share Plan 2022–2024 (Corporate Management Committee excl. the CEO)
• Restricted Share Plan 2020–2022 (Key employees, excl. Corporate Management Committee) and
• Restricted Share Plan 2023–2025 (Key employees, excl. Corporate Management Committee)

In February 2024, the Board of Directors established a new share-based incentive plan for the new CFO of the company. In March 2024, the Board of Directors launched a new stock option plan for four key employees and two new long-term sharebased incentive plans for the new CEO: Stock Option Plan 2024A-C and Restricted Share Plan 2024–2027.

Further information on Citycon's share-based incentive plans is available on the company's website at citycon.com/ remuneration.

14. Events after the reporting period

No material events after the reporting period.

For more investor information, please visit the company's website at www.citycon.com.

Helsinki, 17 July 2024 Citycon Oyj Board of Directors

For further information, please contact:

Sakari Järvelä Chief Financial Officer Tel. +358 50 387 8180 sakari.jarvela@citycon.com

Citycon is a leading owner, manager and developer of mixed-use real estate featuring modern, necessity-based retail with residential, office and municipal service spaces that enhance the communities in which they operate. Citycon is committed to sustainable property management in the Nordic region with assets that total approximately EUR 4.2 billion. Our centres are located in urban hubs in the heart of vibrant communities with direct connections to public transport and anchored by grocery, healthcare and other services that cater to the everyday needs of customers.

Citycon has investment-grade credit rating from Standard & Poor's (BBB-). Citycon's shares are listed on Nasdaq Helsinki Ltd.

www.citycon.com

EPRA performance measures

Citycon applies to the best practices policy recommendations of EPRA (European Public Real Estate Association) for financial reporting. More information about EPRA's performance measures is available in Citycon's Financial Statements 2023 in section "EPRA performance measures". These tables include actual FX rates.

EPRA performance measures

		Q2/2024	Q2/2023	%	Q1–Q2/ 2024	Q1–Q2/ 2023	%	Q1–Q4/ 2023
EPRA Earnings	MEUR	29.6	26.6	11.4%	54.1	51.9	4.4%	109.6
Adjusted EPRA Earnings1	MEUR	24.6	19.4	26.4%	46.7	37.3	25.2%	80.6
EPRA Earnings per share (basic)	EUR	0.161	0.158	1.7%	0.300	0.309	-2.8%	0.651
Adjusted EPRA Earnings per share (basic)1	EUR	0.134	0.116	15.5%	0.259	0.222	16.6%	0.479
EPRA NRV per share	EUR	9.21	10.71	-14.0%	9.21	10.71	-14.0%	9.30

¹ Starting from the beginning of 2024, Citycon excludes reorganisation and one-time costs (Q1–Q2/2024: EUR 6.8 million) from Adjusted EPRA Earnings. Due to this, Adjusted EPRA Earnings is not fully comparable with the the previous year. The adjusted key figure includes hybrid bond coupons and amortized fees.

The following tables present how EPRA performance measures are calculated.

1) EPRA earnings

MEUR	Q2/2024	Q2/2023	%	Q1–Q2/ 2024	Q1–Q2/ 2023	%	Q1–Q4/ 2023
Earnings in IFRS Consolidated Statement of Comprehensive Income	30.2	36.7	-17.7%	95.1	81.4	16.8%	-115.0
+/- Net fair value losses/gains on investment property	-23.1	-24.7	6.3%	-69.3	-69.4	0.1%	200.3
-/+ Net gains/losses on sale of investment property	3.0	1.6	87.6%	2.8	1.8	56.0%	2.3
+ Indirect other operating expenses	-0.1	0.0	-	-0.1	0.0	-	0.3
+/- Early close-out costs/gains of debt and financial instruments	0.4	-2.5	-	-0.3	-3.1	91.0%	-2.9
-/+ Fair value gains/losses of financial instruments	9.1	-0.2	-	13.5	0.9	-	2.8
+/- Indirect losses/gains of joint ventures and associated companies	0.0	4.1	-	0.0	18.8	-99.9%	32.0
-/+ Change in deferred taxes arising from the items above	10.2	11.6	-11.8%	12.4	21.4	-42.0%	-10.2
EPRA Earnings	29.6	26.6	11.4%	54.1	51.9	4.4%	109.6
-/+ Hybrid bond coupons and amortized fees	-7.6	-7.1	-5.7%	-14.2	-14.5	2.3%	-28.9
+ Reorganisation costs	2.5	-	-	6.8	-	-	-
Adjusted EPRA Earnings	24.6	19.4	26.4%	46.7	37.3	25.2%	80.6
Weighted average number of ordinary shares, million	184.0	168.0	9.5%	180.5	168.0	7.4%	168.3
EPRA Earnings per share (basic), EUR	0.161	0.158	1.7%	0.300	0.309	-2.8%	0.651
Adjusted EPRA Earnings per share (basic), EUR	0.134	0.116	15.5%	0.259	0.222	16.6%	0.479

The table below presents an alternative calculation of EPRA Earnings from the statement of comprehensive income from top to bottom.

MEUR	Q2/2024	Q2/2023	%	Q1–Q2/ 2024	Q1–Q2/ 2023	%	Q1–Q4/ 2023
Net rental income	54.7	48.9	11.9%	105.7	96.7	9.3%	195.7
Direct administrative expenses	-8.2	-6.9	-18.6%	-19.5	-16.6	-17.5%	-31.1
Direct other operating income and expenses	2.5	0.2	-	2.4	0.3	-	0.3
Direct operating profit	49.0	42.2	16.1%	88.6	80.4	10.2%	164.8
Direct net financial income and expenses	-18.9	-12.1	-56.7%	-33.2	-23.6	-40.5%	-47.7
Direct share of profit/loss of joint ventures and associated
companies	0.0	-2.2	-	-0.7	-3.2	77.1%	-4.7
Direct current taxes	-0.3	-1.2	73.1%	-0.8	-1.9	58.0%	-2.9
Direct deferred taxes	-0.1	0.0	-	0.2	0.2	9.9%	0.1
EPRA Earnings	29.6	26.6	11.4%	54.1	51.9	4.4%	109.6
-/+ Hybrid bond coupons and amortized fees	-7.6	-7.1	-5.7%	-14.2	-14.5	2.3%	-28.9
+ Reorganisation costs	2.5	-	-	6.8	-	-	-
Adjusted EPRA Earnings	24.6	19.4	26.4%	46.7	37.3	25.2%	80.6
EPRA Earnings per share (basic), EUR	0.161	0.158	1.7%	0.300	0.309	-2.8%	0.651
Adjusted EPRA Earnings per share (basic), EUR	0.134	0.116	15.5%	0.259	0.222	16.6%	0.479

2) EPRA NRV, NTA and NDV per share

The Best Practice Recommendations ('BPR') by The European Public Real Estate Association ('EPRA') include three measures of net asset value: EPRA Net Reinstatement Value (NRV), Net Tangible Assets (NTA), and Net Disposal Value (NDV).

Citycon considers EPRA NRV to be the most relevant measure for its business.

The EPRA NRV scenario, aims to represent the value required to rebuild the entity and assumes that no selling of assets takes place.

The EPRA NTA is focused on reflecting a company's tangible assets and assumes that entities buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax liability.

EPRA NDV aims to represent the shareholders' value under an orderly sale of business, where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability, net of any resulting tax.

The tables below present calculation of the new EPRA net asset value measures NRV, NTA and NDV.

	30 June 2024			30 June 2023		31 December 2023
	EPRA NRV	EPRA NTA	EPRA NDV	EPRA NRV	EPRA NTA	EPRA NDV	EPRA NRV	EPRA NTA	EPRA NDV
Equity attributable to parent company shareholders	1 464.0	1 464.0	1 464.0	1,554.8	1,554.8	1,554.8	1,380.1	1,380.1	1,380.1
Deferred taxes from the difference of fair value and fiscal value of investment properties3	254.6	127.3	-	271.0	135.5	-	246.3	123.1	-
Fair value of financial instruments	-0.1	-0.1	-	-2.5	-2.5	-	1.4	1.4	-
Goodwill as a result of deferred taxes	-58.3	-	-	-59.1	-	-	-61.5	-	-
Goodwill as per the consolidated balance sheet	-	-107.2	-107.2	-	-109.0	-109.0	-	-111.4	-111.4
Intangible assets as per the consolidated balance sheet	-	-9.1	-	-	-9.9	-	-	-10.7	-
The difference between the secondary market price and carrying value of bonds1	-	-	95.7	-	-	237.8	-	-	153.0
Real estate transfer taxes2	34.3	-	-	35.0	-	-	33.8	-	-
Total	1,694.5	1,474.8	1,452.5	1,799.1	1,568.7	1,683.5	1,600.1	1,382.7	1,421.8
Number of ordinary shares at

Net Asset Value per share	9.21	8.01	7.89	10.71	9.34	10.02	9.30	8.04	8.27
balance sheet date, million	184.1	184.1	184.1	168.0	168.0	168.0	172.0	172.0	172.0

¹ When calculating the EPRA NDV in accordance with EPRA's recommendations, the shareholders' equity is adjusted using EPRA's guidelines so that bonds are valued based on secondary market prices. The difference between the secondary market price and the carrying value of the bonds was EUR 95.7 million (secondary market price lower) as of 30 June 2024. In the comparison period 30 June 2023, the difference was EUR 237.8 million (secondary market price lower).

² The real estate transfer tax adjustment in EPRA NRV calculation is based on the transfer tax cost for the buyer for share deal in Finland. Share deals are not subject to

transfer tax in other group operating countries.

³ In the EPRA NTA formula, 50% of the deferred tax liability related to investment property fair value is added back, according to EPRA guidelines.

Condensed consolidated half-yearly report 1 January – 30 June 2024

Condensed consolidated statement of comprehensive income, IFRS

MEUR	Note	Q2/2024 Q2/2023		%	Q1–Q2/ 2024	Q1–Q2/ 2023	%	Q1–Q4/ 2023
Gross rental income	3	59.8	52.6	13.6%	117.4	107.8	8.9%	215.3
Service charge income	3, 4	20.8	17.4	19.6%	42.3	36.4	16.4%	74.7
Property operating expenses		-24.8	-20.9	-18.7%	-52.8	-46.4	-14.0%	-92.8
Other expenses from leasing operations		-1.0	-0.2	-	-1.1	-1.0	-9.4%	-1.6
Net rental income	3	54.7	48.9	11.9%	105.7	96.7	9.3%	195.7
Administrative expenses		-8.2	-6.9	-18.6%	-19.5	-16.6	-17.5%	-31.1
Other operating income and expenses		2.6	0.2	-	2.5	0.3	-	0.0
Net fair value gains/losses on investment property	3	23.1	24.7	-6.3%	69.3	69.4	-0.1%	-200.3
Net gains/losses on sale of investment properties and subsidiaries		-3.0	-1.6	-87.6%	-2.8	-1.8	-56.0%	-2.3
Operating profit	3	69.2	65.2	6.1%	155.3	148.0	4.9%	-38.0
Net financial income and expenses		-28.4	-9.3	-	-46.4	-21.4	-	-47.7
Share of profit/loss of joint ventures and associated companies		0.0	-6.4	-	-0.8	-22.0	96.5%	-36.7
Result before taxes		40.8	49.5	-17.6%	108.1	104.6	3.4%	-122.3
Current taxes		-0.3	-1.2	73.1%	-0.8	-1.9	58.0%	-2.9
Deferred taxes		-10.3	-11.6	11.4%	-12.2	-21.2	42.5%	10.3
Result for the period		30.2	36.7	-17.7%	95.1	81.4	16.8%	-115.0
Profit/loss attributable to
Parent company shareholders		30.2	36.7	-17.7%	95.1	81.4	16.8%	-115.0
Non-controlling interest		0.0	0.0	-	0.0	0.0	-	0.0
Earnings per share attributable to parent company shareholders
Earnings per share (basic), EUR1	5	0.11	0.18	-37.3%	0.44	0.50	-11.9%	-0.70
Earnings per share (diluted), EUR1	5	0.11	0.18	-37.7%	0.43	0.49	-12.0%	-0.70
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Net gains/losses on cash flow hedges		0.4	1.1	-59.1%	1.5	0.6	-	-3.4
Exchange gains/losses on translating foreign operations		23.9	-35.2	-	-13.1	-102.8	87.3%	-51.7
Net other comprehensive income to be reclassified to profit or loss in subsequent periods		24.3	-34.1	-	-11.6	-102.3	88.7%	-55.0
Other comprehensive income for the period, after taxes		24.3	-34.1	-	-11.6	-102.3	88.7%	-55.0
Total comprehensive profit/loss for the period		54.5	2.6	-	83.5	-20.8	-	-170.0
Total comprehensive profit/loss attributable to
Parent company shareholders		54.5	2.6	-	83.5	-20.8	-	-170.0
Non-controlling interest		0.0	0.0	-	0.0	0.0	-	0.0

¹ The key figure includes hybrid bond coupons, amortized fees and gains/losses and expenses on hybrid bond repayments.

Condensed consolidated statement of financial position, IFRS

MEUR	Note	30 June 2024	30 June 2023	31 December 2023
Assets
Non-current assets
Investment properties	6	3,867.5	3,979.0	3,858.2
Goodwill		107.2	109.0	111.4
Investments in joint ventures and associated companies		3.5	82.1	72.4
Intangible and tangible assets, and other non-current
assets		35.0	27.7	30.5
Derivative financial instruments	10, 11	33.1	36.6	37.2
Deferred tax assets		16.6	16.5	16.5
Total non-current assets		4,062.9	4,250.9	4,126.1
Investment properties held for sale	8	299.6	0.0	0.0
Current assets
Derivative financial instruments	10, 11	0.7	3.4	0.1
Trade receivables and other current assets		49.3	63.1	56.9
Cash and cash equivalents	9	49.1	32.9	25.2
Total current assets		99.1	99.4	82.3
Total assets	3	4,461.6	4,350.3	4,208.4
Shareholders' Equity and Liabilities
Equity attributable to parent company shareholders
Share capital		259.6	259.6	259.6
Share premium fund		131.1	131.1	131.1
Fair value reserve		0.1	2.5	-1.4
Invested unrestricted equity fund	12	616.5	618.2	596.8
Retained earnings	12	456.8	543.3	394.1
Total equity attributable to parent company shareholders		1,464.0	1,554.8	1,380.1
Hybrid bond		590.7	648.7	607.3
Non-controlling interest		0.0	0.0	0.0
Total shareholders' equity		2,054.7	2,203.4	1,987.5
Long-term liabilities
Loans		1,971.1	1,712.0	1,502.8
Derivative financial instruments and other non-interest bearing liabilities	10, 11	14.4	0.3	22.8
Deferred tax liabilities		260.4	272.1	247.8
Total long-term liabilities		2,245.8	1,984.5	1,773.4
Short-term liabilities
Loans Derivative financial instruments	10, 11	78.7 3.5	88.6 0.1	361.6 5.3
Trade and other payables		78.9	73.6	80.7
Total short-term liabilities		161.1	162.4	447.5
Total liabilities	3	2,406.9	2,146.8	2,220.9
Total liabilities and shareholders' equity		4,461.6	4,350.3	4,208.4

Condensed consolidated cash flow statement, IFRS

MEUR	Note	Q1–Q2/2024	Q1–Q2/2023	Q1–Q4/2023
Cash flow from operating activities
Profit before taxes		108.1	104.6	-122.3
Adjustments to profit before taxes		-20.1	-22.9	290.3
Cash flow before change in working capital		88.0	81.7	168.0
Change in working capital		0.6	-2.2	5.8
Cash generated from operations		88.6	79.5	173.8
Paid interest and other financial charges		-28.7	-20.3	-51.0
Interest income and other financial income received		2.5	0.2	1.7
Current taxes paid		-2.1	-0.6	2.4
Net cash from operating activities		60.3	58.8	126.8
Cash flow from investing activities
Acquisition of investment properties and subsidiaries, less cash acquired	6, 7, 8	-3.5	-	-
Capital expenditure on investment properties, investments in joint ventures, intangible assets and tangible assets	6, 7, 8	-23.8	-39.7	-96.7
Sale of investment properties and subsidiaries	6, 7, 8	23.3	-0.2	-0.4
Net cash used in investing activities		-4.0	-39.9	-97.1
Cash flow from financing activities
Proceeds from short-term loans		203.1	231.4	357.3
Repayments of short-term loans		-490.0	-268.6	-433.8
Proceeds from long-term loans		296.3	247.1	405.3
Repayments of long-term loans		-27.2	-183.5	-257.5
Hybrid bond repayments		-	-27.4	-39.2
Hybrid bond interest and expenses		-31.1	-15.9	-29.1
Proceeds from share issue		48.2	-	-
Dividends and return from the invested unrestricted equity fund	12	-27.6	-42.0	-84.4
Realized exchange rate gains/losses		-3.3	7.2	9.4
Net cash from financing activities		-31.6	-51.8	-72.0
Net change in cash and cash equivalents		24.7	-33.0	-42.3
Cash and cash equivalents at period-start	9	25.2	69.2	69.2
Effects of exchange rate changes		-0.9	-3.3	-1.6
Cash and cash equivalents at period-end	9	49.1	32.9	25.2

Condensed consolidated statement of changes in shareholders' equity, IFRS

MEUR	Share capital	Share premium fund	Fair value reserve	Invested unrestricted equity fund	Translation reserve	Retained earnings	Equity attributable to parent company shareholders	Hybrid bond	Non controlling interest	Share holders' equity, total
Balance at 1 January 2023	259.6	131.1	1.9	660.2	-188.3	754.3	1,618.8	691.5	0.0	2,310.3
Total comprehensive profit/loss for the period			0.6		-102.8	81.4	-20.8			-20.8
Hybrid bond repayments							0.0	-43.7		-43.7
Gains on hybrid bond repayments						16.3	16.3			16.3
Hybrid bond interest and expenses						-16.8	-16.8	0.9		-15.9
Dividends paid and equity return (Note 12)				-42.0			-42.0			-42.0
Share-based payments						-0.7	-0.7			-0.7
Other changes						0.0	0.0			0.0
Balance at 30 June 2023	259.6	131.1	2.5	618.2	-291.2	834.5	1,554.8	648.7	0.0	2,203.4
Balance at 1 January 2024	259.6	131.1	-1.4	596.8	-240.0	634.1	1,380.1	607.3	0.0	1,987.5
Total comprehensive profit/loss for the period			1.5		-13.1	95.1	83.5			83.5
Share issues				47.3			47.3			47.3
Gains/losses on hybrid bond repayments						-2.2	-2.2			-2.2
Hybrid bond interest and expenses						-15.9	-15.9	-16.6		-32.5
Dividends paid and equity return (Note 12)				-27.6			-27.6			-27.6
Share-based payments						-1.2	-1.2			-1.2
Other changes						0.0	0.0			0.0
Balance at 30 June 2024	259.6	131.1	0.1	616.5	-253.1	709.9	1,464.0	590.7	0.0	2,054.7

Notes to the consolidated half-yearly report

1. Basic company data

Citycon is a leading owner, manager and developer of mixed-use centres for urban living including retail, office space and housing. Citycon operates in the business units Finland, Norway, Sweden and Denmark & Estonia. Citycon is a Finnish public limited liability company established under the Finnish law and domiciled in Helsinki. The Board of Directors has approved the half-yearly report on the 17th of July 2024.

2. Basis of preparation and accounting policies

Citycon prepares its consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS). Additional information on the accounting policies are available in Citycon's annual financial statements 2023. Citycon's interim report for the reporting period has been prepared in accordance with the same accounting policies as in annual financial statements 2023 and in accordance with IAS 34 Interim Financial Reporting standard excluding write-down of goodwill related to disposed units, for which the accounting policy was changed starting from the beginning of 2024. If part of the CGU, to which goodwill has been allocated, is disposed, goodwill that has been allocated to that disposed part is written down and presented as part of Net gains/losses on sale of investment properties and subsidiaries instead of Other operating income and expenses. The figures are unaudited.

Citycon also presents alternative performance measures according to the European Securities and Markets Authority (ESMA) guidelines. These alternative performance measures, such as EPRA performance measures and loan to value, are used to present the underlying business performance and to enhance comparability between financial periods. Alternative performance measures presented in this report should not be considered as a substitute for measures of performance in accordance with the IFRS.

3. Segment information

Citycon changed its operating segments and segment reporting starting from 1.1.2023. The new segments are Finland, Norway, Sweden and Denmark & Estonia. Previously the segments were Finland & Estonia, Norway and Sweden & Denmark.

Citycon completed the transaction to acquire the remaining interest in Kista Galleria at the end of February and since then Kista Galleria has been consolidated to Citycon group numbers and is part of the segment Sweden. Until the completion of the transaction, Kista Galleria was treated as a joint venture. The comparison period numbers have not been updated following the acquisition of Kista Galleria. In Q1–Q2/2023, Kista Galleria contributed to the IFRS based profit by EUR -23.4 million.

Q1–Q2/2024 net fair value gains/losses on segment Sweden were mainly due to positive fair value change of EUR 42.0 million related to acquisition of remaining 50% interest in Kista Galleria.

Gross rental income Finland 20.8 19.8 5.4% 42.3 40.0 5.7% 81.6 Norway 17.1 16.2 5.9% 34.6 34.2 1.1% 67.7 Sweden 13.6 8.5 59.0% 24.2 17.4 38.7% 33.8 Denmark & Estonia 8.3 8.2 1.2% 16.4 16.1 1.4% 32.2 Total Segments 59.8 52.6 13.6% 117.4 107.8 8.9% 215.3 Kista Galleria (50%) - 2.5 - - 4.8 - 9.3 Service charge income Finland 7.8 6.9 12.3% 15.9 14.0 13.7% 28.6 Norway 5.8 4.9 18.1% 13.2 11.2 17.3% 25.1 Sweden 5.3 3.2 64.0% 9.2 5.9 55.6% 10.2 Denmark & Estonia 1.9 2.3 -17.1% 4.1 5.3 -22.4% 10.8 Total Segments 20.8 17.4 19.6% 42.3 36.4 16.4% 74.7 Kista Galleria (50%) - 1.0 - - 1.9 - 3.3 Net rental income Finland 20.4 19.0 7.4% 40.2 37.2 8.0% 76.4 Norway 15.4 14.9 3.9% 31.8 31.4 1.1% 62.5 Sweden 11.2 7.4 52.1% 18.6 13.2 41.2% 27.8 Denmark & Estonia 7.7 7.7 -0.3% 15.2 15.0 0.9% 29.3 Other 0.0 0.0 -87.1% 0.0 -0.1 - -0.4 Total Segments 54.7 48.9 11.9% 105.7 96.7 9.3% 195.7 Kista Galleria (50%) - 1.6 - - 3.2 - 6.6 Direct operating profit Finland 22.0 18.3 20.2% 41.0 35.9 14.5% 74.0 Norway 14.6 14.2 2.5% 29.2 29.5 -0.9% 58.8 Sweden 10.0 6.4 54.8% 16.5 11.3 45.7% 23.5 Denmark & Estonia 7.8 7.7 1.7% 15.2 14.8 2.5% 28.9 Other -5.4 -4.5 -20.3% -13.4 -11.1 -20.3% -20.3 Total Segments 49.0 42.2 16.1% 88.6 80.4 10.2% 164.8 Kista Galleria (50%) - 1.6 - - 3.1 - 6.5 Net fair value gains/losses on investment property Finland 17.0 16.5 3.2% 21.5 19.8 8.7% -69.4 Norway 4.1 -4.4 - 4.0 18.1 -77.9 % -68.8 Sweden 1.3 9.4 -85.8% 44.2 12.7 - -36.6 Denmark & Estonia 0.7 3.3 -79.9% -0.4 18.8 - -25.5 Total Segments 23.1 24.7 -6.3% 69.3 69.4 -0.1% -200.3 Kista Galleria (50%) - -8.5 - - -23.4 - -40.8 Operating profit/loss Finland 39.2 34.7 12.9% 63.0 55.3 13.8% 4.3 Norway 16.0 8.3 92.7% 30.5 46.1 -33.9% -11.7 Sweden 11.2 15.8 -29.1% 60.7 24.0 - -13.4 Denmark & Estonia 8.4 10.9 -22.6% 14.8 33.6 -56.1% 3.1 Other -5.6 -4.5 -24.8% -13.6 -11.1 -22.1% -20.3 Total Segments 69.2 65.2 6.1% 155.3 148.0 4.9% -38.0	MEUR	Q2/2024	Q2/2023	%	Q1–Q2/2024	Q1–Q2/2023	%	Q1–Q4/2023
Kista Galleria (50%) - -6.9 - - -20.3 - -34.3

MEUR	30 June 2024	30 June 2023	%	31 December 2023
Assets
Finland	1,735.7	1,765.4	-1.7%	1,706.9
Norway	1,139.4	1,211.6	-6.0%	1,179.5
Sweden	961.5	642.4	49.7%	640.4
Denmark & Estonia	454.1	486.7	-6.7%	450.1
Other	170.9	244.1	-30.0%	231.4
Total Segments	4,461.6	4,350.3	2.6%	4,208.4
Kista Galleria (50%)	-	186.9	-	187.0
Liabilities
Finland	15.5	11.4	36.9%	13.7
Norway	11.4	13.0	-12.4%	16.4
Sweden	11.9	8.5	40.7%	14.8
Denmark & Estonia	7.7	7.7	0.4%	9.3
Other	2,360.4	2,106.3	12.1%	2,166.6
Total Segments	2,406.9	2,146.8	12.1%	2,220.9
Kista Galleria (50%)	-	213.6	-	229.5

The change in segment assets was mainly due to acquisitions and disposals of investment properties and the fair value changes in investment properties as well as investments.

4. Revenue from contracts with customers

MEUR	Q2/2024	Q2/2023	%	Q1–Q2/ 2024	Q1–Q2/ 2023	%	Q1–Q4/ 2023
Service charges1	16.5	13.1	26.0%	33.8	28.1	20.2%	57.3
Utility charges1	2.6	2.6	0.3%	5.1	5.1	0.3%	9.9
Other service income1	1.7	1.7	-0.1%	3.5	3.2	8.3%	7.5
Management fees2	0.1	0.1	-62.4%	0.1	0.2	-47.0%	0.4
Revenue from contracts with customers	20.8	17.5	18.9%	42.4	36.6	16.1%	75.1

¹ Is included in the line item 'Service charge income' in the Consolidated statement of comprehensive income.

² Is included in the line item 'Other operating income and expenses' in the Consolidated statement of comprehensive income.

5. Earnings per share

Earnings per share, basic		Q2/2024	Q2/2023	%	Q1–Q2/ 2024	Q1–Q2/ 2023	%	Q1–Q4/ 2023
Profit attributable to parent company shareholders	MEUR	30.2	36.7	-17.7%	95.1	81.4	16.8%	-115.0
Hybrid bond interests and expenses	MEUR	-7.6	-7.1	-5.7%	-14.2	-14.5	2.3%	-28.9
Gains/losses and expenses on hybrid bond repayments	MEUR	-2.2	0.3	-	-2.2	16.3	-	25.8
Weighted average number of ordinary shares	million	184.0	168.0	9.5%	180.5	168.0	7.4%	168.3
Earnings per share (basic)1	EUR	0.11	0.18	-37.3%	0.44	0.50	-11.9%	-0.70

Earnings per share, diluted		Q2/2024	Q2/2023	%	Q1–Q2/ 2024	Q1–Q2/ 2023	%	Q1–Q4/ 2023
Profit attributable to parent company shareholders	MEUR	30.2	36.7	-17.7%	95.1	81.4	16.8%	-115.0
Hybrid bond interests and expenses	MEUR	-7.6	-7.1	-5.7%	-14.2	-14.5	2.3%	-28.9
Gains/losses and expenses on hybrid bond repayments	MEUR	-2.2	0.3	-	-2.2	16.3	-	25.8
Weighted average number of ordinary shares	million	184.0	168.0	9.5%	180.5	168.0	7.4%	168.3
Adjustment for share-based incentive plans	million	3.1	1.7	80.6%	2.4	2.1	14.1%	1.9
Weighted average number of ordinary shares, diluted	million	187.0	169.7	10.2%	182.8	170.1	7.5%	170.1
Earnings per share (diluted)1	EUR	0.11	0.18	-37.7%	0.43	0.49	-12.0%	-0.70

¹ The key figure includes hybrid bond coupons (both paid and accrued not yet recognized) and amortized fees and gains/losses and expenses on hybrid bond repayments.

6. Investment properties

Citycon divides its investment properties into two categories: Investment Properties Under Construction (IPUC) and Operative Investment Properties. On reporting date, there were no properties in the first mentioned category. On comparable period 30 June 2023, this category included Barkarby residentials in Sweden.

IPUC-category includes the fair value of the whole property even though only part of the property may be under construction.

30 June 2024

MEUR	Investment properties under construction (IPUC)	Operative investment properties	Investment properties, total
Balance at 1 January 2024	6.7	3,851.5	3,858.2
Acquisitions	-	284.2	284.2
Investments	0.2	14.8	15.0
Capitalized interest	-	0.1	0.1
Fair value gains on investment property	-	96.4	96.4
Fair value losses on investment property	-	-23.7	-23.7
Valuation gains and losses from Right-of-Use-Assets	-	-3.4	-3.4
Exchange differences	-0.2	-29.0	-29.2
Transfer into investment properties held for sale	-6.8	-324.6	-331.3
Changes in right-of-use assets classified as investment properties (IFRS 16)	-	1.0	1.0
Balance at 30 June 2024	0.0	3,867.5	3,867.5

30 June 2023

MEUR	Investment properties under construction (IPUC)	Operative investment properties	Investment properties, total
Balance at 1 January 2023	435.4	3,604.7	4,040.1
Investments	0.1	28.5	28.6
Capitalized interest	-	0.3	0.3
Fair value gains on investment property	-	104.1	104.1
Fair value losses on investment property	-	-31.4	-31.4
Valuation gains and losses from Right-of-Use-Assets	-	-3.3	-3.3
Exchange differences	-0.4	-158.5	-158.9
Transfer between investment properties under construction and operative investment properties	-429.2	429.2	0.0
Changes in right-of-use assets classified as investment properties (IFRS 16)	-	-0.4	-0.4
Balance at 30 June 2023	6.0	3,973.0	3,979.0

31 December 2023

MEUR	Investment properties under construction (IPUC)	Operative investment properties	Investment properties, total
Balance at 1 January 2023	435.4	3,604.7	4,040.1
Investments	0.5	91.8	92.3
Capitalized interest	-	0.5	0.5
Fair value gains on investment property	-	22.8	22.8
Fair value losses on investment property	-	-216.5	-216.5
Valuation gains and losses from Right-of-Use-Assets	-	-6.6	-6.6
Exchange differences	0.0	-76.2	-76.2
Transfer between investment properties under construction and operative investment properties	-429.2	429.2	0.0
Changes in right-of-use assets classified as investment properties (IFRS 16)	-	1.8	1.8
Balance at 31 December 2023	6.7	3,851.5	3,858.2

The fair value of Citycon's investment properties for the Q2/2024 reporting has been measured internally. The fair value of Citycon's investment properties has been measured by CBRE (Norway, Denmark, Estonia) and JLL (Finland, Sweden) for the Financial statement 2023.

The fair value is calculated by a net rental income based cash flow analysis. Market rents, the yield requirement, the occupancy rate and operating expenses form the key variables used in the cash flow analysis. The segments' yield requirements and market rents used in the cash flow analysis were as follows:

		Weighted average yield requirement, %			Weighted average market rents, EUR/sq.m./mo
	30 June 2024	30 June 2023	31 December 2023	30 June 2024	30 June 2023	31 December 2023
Finland	5.7	5.1	5.5	30.5	28.5	28.1
Norway	6.1	5.7	6.2	21.9	20.0	20.6
Sweden	5.9	5.5	5.8	26.3	22.6	25.1
Denmark & Estonia	7.2	6.8	7.2	23.0	23.4	22.7
Investment properties, average	6.0	5.5	6.0	25.8	23.7	24.2
Investment properties and Kista Galleria (50%), average	-	5.5	5.9	-	23.8	24.3

7. Capital expenditure

MEUR	Q1–Q2/2024	Q1–Q2/2023	Q1–Q4/2023
Acquisitions of properties1	284.2	-	-
Acquisitions of and investments in joint ventures	-	-	-
Property development	15.2	28.9	92.8
Other investments	0.6	0.9	3.1
Total capital expenditure incl. acquisitions	300.0	29.8	95.9
Capital expenditure by segment
Finland	4.2	18.2	46.6
Norway	3.5	5.9	21.2
Sweden	287.9	3.1	15.1
Denmark & Estonia	4.1	2.0	11.0
Group administration	0.4	0.7	2.0
Total capital expenditure incl. acquisitions	300.0	29.8	95.9
Divestments2	31.8	-	-

1 Capital expenditure takes into account deduction in the purchase price calculations and FX rate changes.

2 Divestments in 2024 comprise of sale of one non-core centre in Norway.

8. Investment properties held for sale

The Held for Sale Investment Properties consisted of two properties in Norway segment, one property in Denmark & Estonia segment and one property in Sweden on 30 June 2024. One property in Norway segment was sold during Q2 2024.

Transfer from investment properties includes also fair value changes of properties in Investment properties held for sale.

MEUR	30 June 2024	30 June 2023	31 December 2023
At period-start	0.0	0.0	0.0
Disposals	-31.8	-	-
Exchange differences	-	-	-
Investments	0.1	-	-
Transfer from investment properties	331.3	-	-
At period-end	299.6	0.0	0.0

9. Cash and cash equivalents

MEUR	30 June 2024	30 June 2023	31 December 2023
Cash in hand and at bank	43.5	27.8	19.3
Restricted cash	5.5	5.0	6.0
Total cash	49.1	32.9	25.2

Cash and cash equivalents in the cash flow statement comprise of Total cash presented above. Restricted cash mainly relates to gift cards, tax and rental deposits.

10. Fair values of financial assets and liabilities

Classification of financial instruments and their carrying amounts and fair values

	30 June 2024 30 June 2023			31 December 2023
MEUR	Carrying amount	Fair value	Carrying amount	Fair value	Carrying amount	Fair value
Financial assets
I Financial assets at fair value through profit and loss
Derivative financial instruments	33.7	33.7	37.5	37.5	37.3	37.3
II Derivative contracts under hedge accounting
Derivative financial instruments	0.1	0.1	2.5	2.5	-	-
Financial liabilities
I Financial liabilities amortised at cost
Loans	513.5	521.2	246.8	250.0	336.5	341.9
Commercial paper	72.0	73.0	14.4	14.5	46.5	47.0
Bonds	1,428.6	1,438.4	1,500.8	1,263.1	1,442.6	1,289.6
Lease liabilities (IFRS 16)	35.7	35.7	38.7	38.7	38.8	38.8
II Financial liabilities at fair value through profit and loss
Derivative financial instruments	17.7	17.7	0.1	0.1	26.4	26.4
III Derivative contracts under hedge accounting
Derivative financial instruments	-	-	-	-	1.4	1.4

11. Derivative financial instruments

		30 June 2024		30 June 2023		31 December 2023
MEUR	Nominal amount	Fair value	Nominal amount	Fair value	Nominal amount	Fair value
Interest rate swaps
Maturity:
less than 1 year	-	-	68.4	1.1	-	-
1–5 years	125.0	0.1	125.0	1.5	125.0	-1.4
over 5 years	-	-	-	-	-	-
Subtotal	125.0	0.1	193.4	2.5	125.0	-1.4
Cross-currency swaps
Maturity:
less than 1 year	-	-	-	-	-	-
1–5 years	278.3	13.8	314.8	34.5	278.3	16.0
over 5 years	-	-	-	-	-	-
Subtotal	278.3	13.8	314.8	34.5	278.3	16.0
Foreign exchange forward agreements
Maturity:
less than 1 year	228.3	-2.8	94.1	2.2	102.1	-5.2
Interest rate options
less than 1 year	-	-	-	-	-	-
1–5 years	306.4	5.0	125.0	0.6	125.0	0.1
over 5 years	-	-	-	-	-	-
Subtotal	306.4	5.0	-	-	125.0	0.1
Total	937.9	16.1	727.2	39.9	630.4	9.5

Derivative financial instruments are used in hedging the interest rate and foreign currency risk.

Hedge accounting is applied for interest swaps which have a nominal amount of EUR 125.0 million (Q2/2023: EUR 193,4 million). The change in fair values of these derivatives is recognised under other comprehensive income.

Citycon also has cross-currency swaps and currency forwards to convert EUR debt into SEK and NOK debt and interest rate caps hedging the floating interest of the syndicated term loan and the Kista loan. In Q2/2024 the company also hedged its currency denominated equity with currency forwards. Changes in fair values of these aforementioned derivatives are reported in the profit and loss statement as hedge accounting is not applied.

12. Dividend and equity repayment

Citycon's AGM 2024 decided that no dividend is distributed by a resolution of the AGM and authorised the Board of Directors to decide in its discretion on the distribution of assets from the invested unrestricted equity fund. Based on the authorisation the maximum amount of equity repayment to be distributed from the invested unrestricted equity fund shall not exceed EUR 0.30 per share. The authorisation is valid until the opening of the next AGM.

On the basis of the authorisation mentioned above the Board of Directors decided in March and May to distribute equity repayment of EUR 0.15 per share, or EUR 27.6 million. Following the equity repayment paid on 28 March 2024 and 28 June 2024, the remaining authorisation for equity repayment is EUR 0.15 per share.

Preliminary payment dates for equity repayments to be distributed on basis of the authorization are 30 September 2024 and 31 December 2024. The Board of Directors will make separate resolutions on each distribution of the equity repayment and the company shall make separate announcements of such Board resolutions.

Total amount of equity repayment EUR 84.4 million were distributed during the financial year 2023, of which EUR 42.0 million equity repayment were distributed during the first half of 2023.

13. Contingent liabilities

MEUR	30 June 2024	30 June 2023	31 December 2023
Mortgages on land and buildings	1,024.4	650.0	741.9
Bank guarantees and parent company guarantees	226.9	63.2	63.6
Capital commitments	79.7	76.1	72.4

The mortgages relate to three separate credit facilities; SEK 1,020 million (EUR 89.8 million) mortgage loan, SEK 2.060 million (EUR 181.4 million) mortgage loan and EUR 650 million credit facility, of which the EUR 400 million revolving credit facility tranche is currently fully undrawn, and the term loan tranche of EUR 250 million is drawn. Citycon has also pledged the shares in the mortgaged properties for the term loan in Kista and for the credit facility. At period-end, Citycon had capital commitments of EUR 79.7 million (Q2/2023: EUR 76.1 million) relating mainly to on-going (re)development projects.

14. Related party transactions

Citycon Group's related parties comprise the parent company Citycon Oyj and its subsidiaries, associated companies, joint ventures, Board members, the CEO and other Corporate Management Committee members and the company's largest shareholder G City Ltd. In total, G City and wholly-owned subsidiary Gazit Europe Netherlands BV own 49.57% (52.12%) of the total shares and votes in the company.

Over the reporting period and in the comparable period, Citycon paid no expenses to G City Ltd and its subsidiaries. Citycon invoiced EUR 0.0 million expenses forward to G City Ltd and its subsidiaries (Q1–Q2/2023: EUR 0.0 million).

Report on Review of Citycon Oyj's Interim Financial Information for the period 1.1.–30.6.2024 (Translation)

To the Board of Directors of Citycon Oyj

Introduction

We have reviewed the condensed interim financial information for Citycon Oyj, comprising the consolidated condensed balance sheet as of 30.6.2024, consolidated condensed statement of comprehensive income, condensed statement of changes in shareholders' equity, condensed cash flow statement and explanatory notes for the three-month period then ended.

The Board of Directors and the Managing Director are responsible for the preparation and fair presentation of the interim financial information in accordance with International Accounting Standard 34 Interim Financial Reporting. Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements ISRE 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim financial information of Citycon Oyj has not been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting.

In Helsinki 17 July 2024

Deloitte Oy Audit Firm

Anu Servo APA (Authorized Public Accountant)