Citycon (Hold, TP: EUR8.00) - Positive trends emerging
Profit from property management was in line with our forecast, and Citycon reported a positive value gain on assets, as yields are stabilising and LFL growth is slowly returning. The vacancy rate fell to 5.8% (-50bp QOQ). KPIs appear to be improving, and the EPRA NTA rose by a solid 10% YOY in 2021 (including dividends) on the share buybacks. However, we would expect to see a stronger likelihood of FFO growth before the gaps to NAVs close. We reiterate our HOLD, but have raised our target price to EUR8 (7.7) on our updated forecasts.Citycon is an active owner, operator and developer of shopping centers. Co. aims to increase its net yield from shopping centers over the long term through active retail property management and systematic redevelopment efforts. Co. is involved in the day-to-day operations of its shopping centers. As of Dec. 31, 2011, Co. owned a total of 36 shoppings centers: 23 in Finland, 9 in Sweden, 3 in Estonia, and one in Lithuania. Co. also owns 43 other retail properties: 36 in Finland and 7 in Sweden and one undeveloped lot in Finland. Co. manages two commercial shopping centers in Finland.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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