Citycon (Sell, TP: EUR3.50) - Dividend decision hard to understand
With its Q4 results (15 February), Citycon surprised us by proposing a EUR0.3/share dividend. However, the following week, it issued 11.7m new shares at a steep NAV discount, and yesterday it issued a 5-year bond with a 6.5% fixed coupon. With current market interest rates, we are concerned the ICR may now fall below IG levels. We continue to expect asset sales but believe they could be below book values and involve some of the higher-yielding assets in the portfolio. We reiterate our SELL and have cut our target price to EUR3.5 (4).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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.