Report
Simen Mortensen
EUR 456.39 For Business Accounts Only

Citycon (Sell, TP: EUR4.00) - Many measures – but no solution

Despite its high leverage and upcoming hybrid bond call date and refinancing needs, Citycon proposed a DPS of EUR0.3 for 2024. Addressing its debt situation, it hiked its asset divestment target to EUR950m by end- 2025 (despite not yet reaching the target for 2024 yet). In addition, the company said it had agreed to buy the remaining 50% stake in Kista Galleria, albeit at a discount. We reiterate our SELL and have cut our target price to EUR4 (4.5).
Underlying
Citycon Oyj

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.

Provider
DnB Markets
DnB Markets

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.

 

Analysts
Simen Mortensen

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