Citycon Oyj

Capital/Financing Update • May 13, 2025

Citycon publishes strong operational performance for Q1/2025 as well as intention to launch a bond tender offer and considers repurchasing its own shares

Citycon publishes strong operational performance for Q1/2025 as well as intention to launch a bond tender offer and considers repurchasing its own shares

CITYCON OYJ   Interim Report   13 May 2025 at 21:20 hrs

Citycon announces the following:

-          Interim report for Q1/2025 published

-          Citycon considers launch of a EUR 100 million tender offer for the
outstanding notes of Citycon Treasury B.V. due 2027

-          Citycon considers repurchasing its own shares

Strong operational performance in Q1/2025

-          Like-for-like net rental income increased by EUR 1.4 million or 3.5%.

-          Total net rental income decreased by EUR 0.9 million or 1.8% compared
to the previous year, mainly due to divestments executed during 2024 that
impacted EUR -5.2 million to total net rental income. The negative impact of
divestments was partly offset by consolidation of Kista, which increased net
rental income by EUR 2.2 million.

· In comparable FX rates, total net rental income decreased by 1.3%.

-          Average rent per sq.m. increased by 1.5% with comparable FX to EUR
25.3 per sq.m (vs. Q1/2024).

-          Retail occupancy rate 94.8% vs. 94.9% in Q1/2024.

-          Like-for-like footfall increased 2.4%.

-          Like-for-like tenant sales increased 1.2%.

-          Fair value change of investment properties in Q1/2025 was positive
EUR 0.7 million.

The strengthening of the balance sheet remains a key priority

Q1/2025

-          In January Citycon redeemed the remaining amounts (approximately EUR
4 million) of its NOK bonds maturing in September 2025.

-          In February Citycon prepaid EUR 150 million of its outstanding Term
Loan maturing in April 2027.

-          In March Citycon executed EUR 100 million tender of its bond maturing
in September 2026 (remaining amount after the bond tender is approximately EUR
250 million).

-          LTV decreased -40 basis points during Q1/2025 to 46.9% (Q4/2024:
47.3%).

Events post Q1/2025

-          In April Citycon placed a 6.25-year EUR 450 million green bond with
an orderbook more than six times oversubscribed with funds being used to repay
debt.

-          In April Citycon executed an additional EUR 100 million tender of its
bond maturing in September 2026 (remaining amount after the bond tender is
approximately EUR 150 million).

-          In April Citycon prepaid the remaining EUR 100 million of its
outstanding Term Loan maturing in April 2027.

-          On 14 May 2025 Citycon is going to prepay its EUR 186 million secured
loan maturing in May 2029.

KEY FIGURES

Citycon Group Q1/2025 Q1/2024 % FX FX
Adjusted Adjusted
Q1/2024 % 1)
Net rental MEUR 50.1 51.0 -1.8 50.7 -1.3 %
income %
Like-for-like % 3.5 % 6.5 % - - -
net rental
income
development
Direct operating MEUR 42.7 39.7 7.7 39.4 8.5 %
profit 2) %
IFRS Earnings EUR -0.03 0.33 - 0.34 -
per share
(basic)
3)
Fair value of MEUR 3,715.7 4,082.4 -9.0 - -
investment %
properties
Loan to Value % 46.9 48.3 -2.9 - -
(LTV) 2) %

EPRA based key Q1/2025 Q1/2024 % FX FX
figures 2) Adjusted Adjusted
Q1/2024 % 1)
EPRA Earnings 4) MEUR 19.4 22.4 -13.4 22.2 -12.5 %
%
EPRA Earnings MEUR 28.0 28.8 -2.6 28.5 -1.8 %
excl. hybrid %
bond
interests 5)
EPRA Earnings EUR 0.105 0.127 -16.8 0.125 -15.9 %
per share %
(basic)
4)
EPRA Earnings EUR 0.152 0.163 -6.5 0.161 -5.7 %
per share excl. %
hybrid bond
interests
(basic)
5)
EPRA NRV per EUR 8.13 8.96 -9.2 - -
share 6) %

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.
Citycon follows
updated EPRA
Best Practices
Recommendations
(BPR) in its
reporting
starting from
the
beginning of
2025. More
information is
presented in
section EPRA
performance
measures.
3) The key
figure includes
hybrid bond
interests,
amortized fees
and gains/losses
and expenses on
hybrid bond
repayments.
4)  From the
beginning of
2025
the key figure
includes hybrid
bond interests
and excludes
reorganisation
and one-time
costs. The
information for
the
comparison
periods has been
restated to
correspond to
the
new reporting
recommendations.
5) A new key
figure
introduced
at the beginning
of 2025. The
key figure
excludes hybrid
bond
interests, and
reorganisation
and one-time
costs.
6) The
development of
currency
rates improved
EPRA NRV/share
by EUR 0.16.

CEO OLEG ZASLAVSKY:

First, I want to say that I am thrilled to step in as the CEO of Citycon. Over
the last couple of months, I have had the chance to spend time with our people
and visit our assets. I am truly impressed both by the quality of the real
estate and commitment of our staff.

Operational highlights

Our operational performance in January-March 2025 was robust:

-          Like-for-like net rental income increased by 3.5% supported by
indexation, lower operating expenses and improved recovery rate.

-          Like-for-like footfall increased 2.4% compared with Q1/2024.

-          Like-for-like tenant sales increased 1.2% compared with Q1/2024.

-          There was a -50 basis point decline in the retail occupancy rate over
the prior quarter due to normal seasonal variation.

-          FX adjusted direct operating profit growth was 8.5% compared with
Q1/2024.

Debt management

During Q1/2025 we continued to repay debt with proceeds from the bond issued in
December 2024 and divestments closed in Q4/2024. In February we prepaid EUR 150
million of the RCF Term Loan maturing in April 2027 and in March we completed a
EUR 100 million bond tender of the September 2026 bond, which is our nearest
maturity debt.

In March, S&P Global Rating downgraded Citycon Oyj's issuer credit rating from
BBB- (negative) to BB+ (stable) while maintaining the issue rating on Citycon's
unsecured notes (bonds) at the investment grade rating of BBB-.

Post Q1/2025, we issued a new EUR 450 million bond in April which was more than
six times oversubscribed, demonstrating our strong access to the capital market.
Proceeds from the new bond will be fully used for repaying outstanding debt. In
April we prepaid the remaining EUR 100 million of the RCF Term Loan and
completed an additional EUR 100 million bond tender of the September 2026 bond.
The remaining amount of the September 2026 bond is now approx. EUR 150 million.

Divestments

Our liquidity position is good and as the transaction markets are gradually
improving, we are currently not under pressure to accelerate divestments. We
will continue to divest non-core assets; however, we will prioritize making the
right deals over fast deals - even if this results in a slower pace of
divestments than previously anticipated. We are committed to value creation, not
just transaction volume.

Guidance 2025

Operational performance for year 2025 is in line with our expectations and we do
not anticipate any significant change in the operations during the year.
However, due to the successful new bond issuance in April, our financial
expenses for year 2025 are higher than originally forecasted. As a result of the
increased financial expenses, we specify our guidance for 2025 by tightening the
upper end of the guidance. The specified guidance is EPRA Earnings per share of
EUR 0.41-0.50 and EPRA Earnings per share excluding hybrid bond interests of EUR
0.60-0.69.

Looking ahead

Citycon's strategy will continue to rely on necessity-based assets in strong,
growing, urban locations across the Nordic region. Our focus remains on managing
our debt, improving operational performance and strengthening our balance sheet
through strategic divestments and prudent financial management.

I would like to conclude by thanking our people for the hard work completed
during this and the past quarters. Together we will continue to create value for
all our stakeholders.

OUTLOOK (Specified 13 May 2025)

                                  Current outlook  Previous outlook

EPRA Earnings per share (basic) EUR 0.41-0.50 0.41-0.53
EPRA Earnings per share EUR 0.60-0.69 0.60-0.72
excluding hybrid bond interests
(basic)

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 as well as on the prevailing level of inflation, the
EUR-SEK and EUR-NOK exchange rates, and current interest rates.

EPRA Earnings per share (basic) and EPRA Earnings per share excluding hybrid
bond interests (basic) for 2025 are based on updated EPRA Best Practices
Recommendations (BPR) Guidelines published on the 1st of October 2024 and are
not fully comparable with previously reported EPRA EPS key figures.

AUDIOCAST

Citycon's investor, analyst and press conference call and live audiocast will be
held on Wednesday, 14 May 2025 at 10:00 a.m. EET. The audiocast can be
participated by calling in and following live on the following
website:  https://citycon.events.inderes.com/q1
-2025 (https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fcitycon.
events.inderes.com%2Fq1
-2025&data=05%7C02%7Canni.torkko%40citycon.com%7C04049b6698974962908a08dd78ef8cce
%7Cb8ce972b3da445f6994995d1668226c6%7C0%7C0%7C638799692477446066%7CUnknown%7CTWFp
bGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpb
CIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=kudc2ImsYBZaSzNstLhaDxECF6vvP8CM6Vo%2FTiwp
Fik%3D&reserved=0)

Questions for the management can be presented by phone. To ask questions, join
the teleconference by registering on the following
link: https://events.inderes.com/citycon/q1-2025/dial
-in (https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fevents.ind
eres.com%2Fcitycon%2Fq1-2025%2Fdial
-in&data=05%7C02%7Canni.torkko%40citycon.com%7C04049b6698974962908a08dd78ef8cce%7
Cb8ce972b3da445f6994995d1668226c6%7C0%7C0%7C638799692477468214%7CUnknown%7CTWFpbG
Zsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCI
sIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=WhW7hRb6xAiX1I6Zhbo0auinxzVcNSE7OpLbg87zWCc%
3D&reserved=0)

After the registration you will be provided with phone numbers and a conference
ID to access the conference. To ask a question, press *5 on your telephone
keypad to enter the queue.

The audiocast will be recorded and it will be available afterwards on Citycon's
website.

Citycon considers launch of a tender offer for the outstanding notes of Citycon
Treasury B.V. due 2027

Citycon Oyj (“Citycon”) is considering the launch of a tender offer for the
outstanding EUR 242,471,000 2.375 per cent Guaranteed Notes due 2027 of Citycon
Treasury B.V. guaranteed by Citycon (ISIN: XS1822791619) issued on 3 September
2018 (the “Securities”). Securities are intended to be purchased up to EUR 100
million in aggregate principal amount.

If Citycon decides to proceed with the tender offer, the pricing and terms of
the offer will be published in connection with the launch. The tender offer is
subject to market conditions.

Citycon considers repurchasing its own shares

On 13 May 2025 Citycon published a stock exchange release where it announced
that it considers repurchasing its own shares.

CITYCON OYJ

For further information, please contact:
Eero Sihvonen
Chief Financial Officer

Contact requests through:
Anni Torkko
Investor Relations Manager
Tel. +358 45 358 0570
anni.torkko@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 3.8 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's shares are listed on Nasdaq Helsinki Ltd.

www.citycon.com