Citycon Oyj

Eshel and Hilik will now present the results of Silicon and you can submit questions throughout the presentation and we will address them in the end and you can use the Q&A function at the bottom. Next I will give the speech to Eshel and Hilik.

Thank you for coming. We will start the results of the six months. We had a very good Opening of the 2026. Our like-for-like growth is 5.6%. Our occupancy rate is 94.4. We lost around 0.9%. Retail average rent increased by 1% to 28.5 euro per square meter. Footfall growth like-for-like growth by 3.1% and the like-for-like tenant sales increased by 2.6%. The fair value grow by 2.7 million and NRI margin is 94.2. The key achievement in the first half, we signed leases for about 20,000.700 square meter. The leasing spread is 9.9%, which is impressive. The like-for-like general mall leasing increased by 26%, which is extraordinary. The operating expenses we cut for 5.5%. And we actually... buy back our bond for 26 and 27 in an amount of 252 million. We took a loan of 214 in order to stabilize our financial situation. The like for like NRI growth for the first After the year, you can see that Sweden donates almost 8%, Norway 5.8%, and Finland 4.1%. In total, the average is 5.6%, while the European average growth for this year is 3.5%. And this is actually the, I would say, third quarter, including the last quarter of last year. that we are actually beating the European average and we can see that it's not a coincidence, this is a trend. Go ahead. Regarding divestment, we signed a LOI for three assets in Finland, Murmanik, Rosikeskus and Trio. The deal is a conditional deal. On the day of the closing, the buyer which is Noga Finland will issue an IPO in the stock exchange in Tel Aviv and based on them success IPO we will do the transaction as I mentioned we signed an LOI and we believe that between today to 45 days we are expecting the closing We are in discussion with a few potential buyers regarding assets in Sweden and in Norway, but nothing is mature yet. And now I'll give the floor to Hilik to do the financial overview.

Thank you, Eshel. So, as Eshel mentioned, strong results in the performance. NRI for the quarter, 57.5 versus 53.3. That's a 7.8% growth, 5.9 with the FX adjustment. And you can see it for the half year, 5.7% growth and 3.9% with FX adjustment. And of course, taking into account the Lipo-Lavarese divestment, NRI loss, that 3.9% would grow to around 5%. Direct operating profit against, here we show 4.6% increase from 47.7% to 50.8%. Also in the half year, 4.9% increase, 96.6 million euros versus 19.4%. On the upper earnings, 17.6% resembled to the Q2 2025 earnings. and also they have here the same trend 36.6 versus 36.9 uh the emperor earnings excluding hybrids 27 25.7 sorry versus 26.3 and they have here 52.8 versus 54.3 that's 10 cents per share uh in the quarter and 20 cents uh for the half year the epra nrv landed at 7.64 and uh and versus 8.29 in Q2 2025. In the bridge you can see that our solid results in the NRI growth and the GNA reduction that is a consistent effort for management to try to cut expenses. We're subsidizing the increased cost The main driver here is the higher interest rate environment in the refinancing process and is reflected by the interest expenses, somewhat offsetted by the buyback of hybrid bonds. You can see 1.3 million euros. On the recent financing actions, we accomplished a lot of actions in the first half here, de-risking the balance sheet while extending maturities. We've done early redemptions of 2026 and 2027 bonds. On the one hand, we drew a secured loan with favorable terms, $214 million. On the other hand, the interest-bearing liabilities went down by 38 million euros quarter to quarter. And we also entered into 200 million related party credit facility where we gave a loan 70 million to GCD with 6.5% interest on length. In the amortization schedule, you can see average debt maturity was going up to 3.5 years from 3.2. Weighted average interest rate, 4.72%. That's an increase. We tried to offset it by entering into secured financing, which has favorable terms. But again, the interest environment is still higher than the current coupons. And on the key credit metrics, you can see that we're still in a very good place. Loan-to-value 51.4%. Net debt to EBITDA 10.1%. Interest coverage ratio at 2.2%. and of course Citicon is in compliance with all of its covenants.

That was about the presentation and next we will go into the Q&A session. If you would like to submit a question to the management, please use the Q&A function available in the toolbar at the bottom. We will collect your questions and address them here in the call. We have a few questions coming in on the line. The first one is related to divestments. How do you plan to use the proceeds from divestment of the three shopping centers in Finland?

In case we will execute the transaction, then I believe that We'll buy the next bonds that we have on the line is 2028 and some hybrids.

Then we have another question, which is partly related to the same. So also asking about the divestments, what the net proceeds from this portfolio would be? Maybe we can take, there are different parts to the question. So this is the first, what the next proceeds would be. I can take the second after your answer.

I think that we've mentioned that we're talking about book value. latest appraisal which is 422.6 and of course customer adjustments would be made but this is what we're experiencing and this is still all under negotiation and conditional deal.

Then the second one coming from the same is the related to the vendor financing, if that will be in addition to the mutual loan agreement together with G-City?

No, maybe people are confused. There is nothing to do with G-City apart of the, let's say, one minute that Noga will go for the IPO. Once Noga is a public company, there is no more G-City. And the vendor loan will be to Noga, Finland, which will be a public company that GCT will hold, if I remember, not more than 25%. So it will be a real public company and we will give vendor loan as we gave vendor loan before when we do divestment in the year before, not more than 20%.

Then an additional question. Do you plan any dividends during the second half year in 26?

We didn't plan it yet.

Then an additional question coming from the line related to the credit facility with J-City. How do you think about buying back hybrids instead even they have higher coupons and trade well below par?

I think that we have demonstrated that we can do buybacks of hybrids we've done in Q3 2025 35 million euros buybacks and this is of course part of our toolkit and we'll consider it of course

Then an additional question related to hybrids. What is your plan for the 321 million hybrid where coupon reset date is in third quarter?

As I mentioned, I believe that if we will do the transaction, we will use the money for both bond as we have the next on the line, the 2028 and partially for the hybrids.

And then one more question related to the divestment, partly already discussed. But the question is, will the asset sale be done at book value or premium slash discount? And about when the timing would be for this divestment?

Noga?

Yeah.

Well, as I mentioned before, the... The price is the book value price with the last appraisal that we make lately. And as I said, it will be on a book value. And we will actually bring, we will give them a loan or vendor loan of up to 20%. and it all depends of course on the results of the IPO that's why I'm saying that I'm not 100% sure that we will do it it depends on the results I hope we will do it because it's a very good deal for us to sell first time after many many years to sell some asset in a book value and on the other hand we will keep manage this asset so and we will get management fee So for Citicon, I believe it is a very good transaction. There was a part that they missed.

Oh, the timing of the diversity.

As I mentioned, we expect to do the closing between, I believe, today to 45, maximum two months.

Wow. Thank you, Eshel and Helik. For now, it's the last question we had on the line. And there are no more open questions.

So I want to take one more minute from your time. I know that there are some city corners on the line. So I want to tell all of you guys that you did a very great job and keep going. Thank you very much. And I wish all of us a good weekend.