Citycon Oyj

Mohamed, everybody, good morning. Happy to have you here on this Friday to summarize our CityCon first quarter of 2026. Next to me is Chirik, and after I will give you the management review, the operational, I will leave the floor to Chirik. We had a solid first quarter. And the operational results are the following. We have like-for-like growth in NRI, 4.5%. Our retail occupancy is almost 95, 94.8. The rent per square meter grew by 0.9% to 28.4 euro per square meter. The footfall growth... grow by 2.1%, and the tenant sales growth by 3.5%, which is a good indicator. Our valuation grow by 2.2 million euro, and the NRI margin is almost 90%, 89.9. The key achievement in the quarter, we focus on the general mall leasing, and we achieve growth of 25% between the years. and we will keep focus on that. This is what we call here money on the floor. We signed at least 18.7 thousand square meter of retail and we decrease our administrative cost by 17.5%. We have signed two loans for almost 500 million euro, 490. And we have additionally accordion of 250 million euros. So it's a good backup to our facility. The cash flow is continued to be strong. The like-for-like growth, as I mentioned before, is 4.5%. Norway donate 4.8%. And Sweden, Denmark, Finland, and Estonia, each one of them 4.5%. And on the right side, you can see the growth of the price per square meter during the quarters. In general, more leasing, as I mentioned, we focus in this year and we have a growth of 25%. A new long-term specialty leasing deals signed and opened during the first quarter. New media and advertising agreement with the providers has been signed. New possibilities to create and reshaping centers in order to have more GMLs. An energy project which will generate new revenue in the coming soon. We have significant income growth potential in the general more leasing and we'll focus also in having better results in the leasing. Looking forward, we continue to work on optimizing our asset portfolio by identifying and carrying out potential assets divestment. During the quarter, we have been approached by several potential buyers related to selected assets in Finland, Sweden, and Norway. These days, post-Quarter 1, we start negotiating the NDA with some potential buyers. We will focus on increasing the general more leasing income and on improving of the leasing activity. We are well positioned to deliver strong operational results for 2026. So for now, I will leave the floor to Hilig in order to review the financial overview. Please, Hilig.

Thank you all. Thank you, Eshel. In financials for Q1, 2026, NRI landed at 51.8 million euros versus 50.1. That's a 3.5% uplift and 1.8% FX adjusted. The direct operating profit 45.8 versus 42.7, 7.2% uplift and 5.3 FX adjusted. This is thanks to the GNA savings of 1.3. compared to the corresponding quarter in 2025. APRA earnings 19 million euros versus 19.4. We will go through the APRA bridge in the next slide. APRA per share of 10 cents versus 11 cents in the corresponding quarter in 2025 and 15 cents excluding the hybrids versus 15 cents. APRA NRV 7.61 versus 8.13. And in the next slide, you can see in the bridge, the remaining assets gave us 1.5 million. This is a good growth. On the other hand, we lost NRI from the Lipo-Liva residential divestments. GNA is mentioned, savings 1.3 million. And on the other hand, financials, expenses, this is coming from increased costs, mainly the 2031 bond we issued in 2025 April. On the other hand, we bought 35 million euros of hybrids that gave us back 600,000 euros for this quarter, as you can see. Overall, after FX impact, we landed on 19 million euros. And this is a strong results and a solid results for the quarter one. With respect to financing actions, we are pleased that we have done a lot of actions in Q1 and the subsequent event. We've managed to sign and draw 270 million euro loan within accordion option of another 250. We bought back some bonds. And then we... Distribute dividends of an aggregate amount of 202 million euros. And in April, we did early redemption of the 2026 bond, 124 million euros. We signed another secured loan, 220 million euros with attractive terms. That was already drawn in the beginning of May, and we announced for an early redemption of the 2027 bond. So following all of that actions, we are in a much better position, and there's no near-term maturities. The next one would be March 2028. bond and this is something that we would like to emphasize significantly de-risking the balance sheets as of today. With respect to the Debt maturity, so after the subsequent event, the pro forma of the average debt maturity is 3.7 years. We are experiencing a gradually higher interest rate. This is coming from external interest rate, base interest rate. But on the other hand, we're kind of trying to offset it. by entering into a secured loan with relatively attractive terms and potentially buying back bonds in the future. Liquidity as of March, 2026, 153 million euros. We have, this is something that after that we have did the May call of 2026. On the other hand, got the area loan. And so we are well positioned currently as well. In the maturity schedule, this is for March. So 2026, 2027 would be cleared. 2027 will be cleared in the next month. And so you can see that next in line would be only March, 2028, which is just less than two years from now. E-credit metrics is loan to value below 50%, 49.4%. The upper loan to value is coming from the dividend distribution mainly. Net debt to EBITDA 9.9, interest coverage at 2.3 and weighted average interest rate as mentioned 4.22.

Thank you, and now we are open for questions.

Thank you for the presentations. So now we will go over to the questions. If someone from the audience has any questions they would like to present, please use the Q&A function, which you can access from the toolbar at the bottom. Currently, we have no open questions on the line, but in case you would like to ask a question from the management, Please use the Q&A function. Now we have a question coming. There is a question where you have been asked. Can you please provide an update on negotiations related to disposals? What is the strategic plan with regard to the hybrids? You say focus on de-risking the balance sheet, but LTV is up. Are you prepared for further dividends or loans to G-City? How do you want to retain access to capital markets?

Okay, so I see here three questions. And I will start with the investment. As I said, last year, when we summarized 2025, our target for this year is to start to optimize our portfolio. We have, as I said, approached by few good potential buyers for asset here in Finland, Norway and Sweden. Nothing is premature yet that I can report specifically. But as I said, we signed a few NDAs already and we are negotiating now NDA about asset here in Finland. I believe that when we summarize the six months, we'll be able to be more specific at the moment. I cannot expose more than that. But we are definitely in the direction that we want.

Yeah, and I would say for the hybrids, so the decision-making would be close to the reset period, which is September 2026. As mentioned, we bought 35 million euros hybrids. We can do in the open market and try to get benefits of the fact that it's traded below par. And regarding the LTV, 49% is still something that is well monitored and we keep monitoring it. And of course, we're in compliance with every covenant that we have and we'll continue to do so. With respect to dividends, again, looking at our dividend policy, any excess of cash would be considered as a dividend. And of course, in compliance with all of our covenants at any given time.

Thank you. And then we have our next question coming. Do you expect any negative rating action from S&P from increased secure debt? And how does that impact your plans, if any, to come back to bond market in future?

Well, from S&P, we are expecting the unexpected. And to be honest, it's not affecting our activity.

The rating for Silicon, given S&P methodology that once GCD crossed the 50%, it is viewed as in a group level and not as a standalone level. By the way, if you look at the report itself, it does emphasize that the performance is stable and improving on a standalone basis. But once the rating is as such, and clearly from that point of time of the rating decrease, GCD had increased their stake to 86.4%. So I don't think that our actions here are something that would be just for the sake of the rating. The secured financing is something that we're looking at because the terms are very favorable. The market here was frozen and there was no transaction regarding that material. for years and now there's a lot of interest. It's also echoes our quality of assets. And I think that when it's hot, I think one of our responsibility is to try to take and close secured financing to support our P&L.

Then we have an additional question coming. Congratulations for the results and the various efficiencies you are working on. Now that you have cleared away till March 28th, what is the next with the capital structure once you raise more cash via secure debt or disposals?

We are considering few channels. The money just arrived, still hot, warm. For the next few days, we secure it, we put it in a closed account, and we will think what to do with it. But basically, we feel better that the money is in our bank account and we will see how to leverage it to have the best benefit for our shareholders.

Then an additional question. You disclosed you bought 5 million of the 2029 bonds in open market. Do you have similar plans for your hybrids?

Well, we are right now, again, we're having the cash. We're trying to do the conservative and responsible actions, which would be to clean the death maturities that are coming due, 2027 as mentioned. And I think that if we'll have access of cash and this is the reason why we will pursue more secured financing in the future, we would consider every option, including buyback of hybrids, again, trying to be more opportunistic and supporting the P&L. So I think this is something yet to be seen, but it's an option on the table.

Thank you for the answers. There are no further open questions on the lines. I hand over back to you for the closing words.

Again, I thank you for joining us. I'm happy to deliver good results for the first quarter. This is just the beginning. I believe that in the next quarter we will have more details to tell you about the operational results. I hope that I will be able to come with more, I would say, strong stories regarding divestment. By the way, all what we are negotiating regarding divestment is in book value. We got some proposals which are under the book value and we reject them. So we are negotiating at the moment only what is a book value and we have potential buyers. And I wish you all happy weekend and thank you.