Citycon Oyj

Financial

Review 2024

Contents

About this report

Accounting policies and key estimates and

assumptions regarding business activities

are presented together with the relevant note.

The aim is to improve the presentation of how

operating result was formed, what assets were

used to achieve the business profits and how

business and asset transactions were financed.

The accounting policies have been marked with

a grey background.

Information on the key estimates and assumptions

have been marked with a beige background.

CFO Eero Sihvonen comments on significant

items during the reporting period.

Information to shareholders ..........................................................3

Citycon in brief ..................................................................................... 4

CEO’s interview .................................................................................... 5

Key figures ............................................................................................. 7

How we create value .........................................................................8

Report by the Board of Directors ................................................9

EPRA performance measures ................................................... 21

Operational key figures ................................................................. 28

(Re)development projects in progress .................................. 33

Risk and risk management ......................................................... 34

Shares and shareholders ............................................................. 36

Key figures and financial development for five years ...38

Formulas for key figures and ratios ........................................ 39

Citycon Oyj’s consolidated financial statements ��41

Consolidated income statement, IFRS ................................. 41

Consolidated statement of other comprehensive

income, IFRS ...................................................................................... 41

Consolidated statement of financial position, IFRS ...... 42

Consolidated cash flow statement, IFRS ...........................43

Consolidated statement of changes in

shareholders’ equity, IFRS .......................................................... 44

Notes to the consolidated financial statements �� 45

1. Operating performance �� 47

1.1. Segment information ..............................................................47

1.2. Gross rental income ...............................................................49

1.3. Revenue from contracts with customers ....................50

1.4. Property operating expenses ............................................ 51

1.5. Administrative expenses ......................................................52

1.6. Employee benefits and personnel expenses .............52

1.7. Other operating income and expenses ........................ 55

1.8. Earnings per share ................................................................. 55

2. Property portfolio and assets ��55

2.1. Investment properties and related liabilities .............. 55

2.2. Assets held for sale ................................................................ 59

2.3. Right-of-use assets .............................................................. 60

2.4. Investments in joint ventures and associates .......... 61

3. Financing ��63

3.1. Equity ............................................................................................ 63

3.2. Net financial income and expenses ..............................64

3.3. Classification of financial instruments ........................65

3.4. Loans ............................................................................................67

3.5. Financial risk management ...............................................67

3.6. Derivative financial instruments ..................................... 71

3.7. Commitments and contingent liabilities ......................73

3.8. Cash and cash equivalents ................................................73

3.9. Other non-current assets ....................................................73

4. Other notes to the accounts �� 73

4.1. Income taxes ..............................................................................73

4.2. Deferred tax assets and liabilities ................................. 74

4.3. Intangible assets .....................................................................75

4.4. Trade and other receivables ..............................................75

4.5. Trade and other payables .................................................. 76

5. Consolidation �� 77

5.1. Acquisitions and disposals ..................................................78

5.2. Goodwill ....................................................................................... 79

5.3. Acquisition of non-controlling interests ..................... 80

5.4. Related party transactions and changes in

group structure ................................................................................. 81

5.5. Changes in IFRS and accounting policies .................. 82

5.6. Events after the reporting date ........................................ 82

Parent company financial statements, FAS ��83

Notes to the parent company’s financial

statements, FAS ............................................................................... 86

Signatures to the financial statements ................................90

Auditor’s report .................................................................................. 91

Financial statementsFinancial review Financial Review 2024

Information to shareholders

Listing of Citycon’s shares

Citycon Oyj’s shares are listed on the Nasdaq Helsinki Ltd.

Large Cap list until 31 December 2024 and on the Mid Cap

list from 1 January 2025 onwards under the trading code

CTY1S. Citycon has one series of shares, and each share

entitles its holder to one vote at the General Meeting of

shareholders and to an equal dividend.

Annual General Meeting

Citycon Oyj’s Annual General Meeting will be held on

3 April 2025 at 12:00 noon. The notice, topics discussed

in the meeting, proposals made for the Annual General

Meeting, as well as the instructions on how to register

will be found on Citycon’s website.

Changes of address

Shareholders are requested to notify their book-entry

account operator or Euroclear Finland Ltd., whichever

holds the shareholder’s book-entry account, of any

changes to their name or address.

Publication of financial information

Citycon publishes financial information in English and

Finnish. All materials are available on Citycon’s website.

Subscription to publications

Citycon’s financial reports, stock exchange releases and

press releases can be ordered by registering an e-mail

address on Citycon’s website at citycon.com/newsroom.

Investor relations contacts

Citycon’s Investor Relations function assists in all

investor relations related questions. The primary contact

is the Investor Relations Manager, Anni Torkko

(ir@citycon.com).

Asset distribution

The Board of Directors proposes to the Annual General

Meeting that the Board of Directors will be authorized

to decide on the distribution of assets from the invested

unrestricted equity fund.

Based on this authorization, the maximum total amount

of equity repayment distributed from the invested

unrestricted equity fund shall not exceed EUR 0.30

per share. Based on the current total number of issued

shares in the company (184,231,295), the authorization

would equal to a maximum of EUR 55,269,389 in equity

repayment.

The authorization is valid until the opening of the next

Annual General Meeting.

As disclosed on 15 November 2024, the Board of

Directors of Citycon Oyj has unanimously decided that

it will not use its authorization and no dividend or equity

repayment will be distributed until year end 2025. The

decision has been made to further increase the long-

term financial stability, and to strengthen the balance

sheet and the credit profile of the company.

Financial calendar 2025

Financial Statements Bulletin

and Financial Statements 2024 26 February

Interim Report

January–March 2025 13 May

Half-yearly Report

January–June 2025 6 August

Interim Report

January–September 2025 5 November

AGM 3 April

Financial statementsFinancial review Financial Review 2024

Citycon in brief

We create cities full of life�

For people� For communities�

For development� For growth�

Citycon is the leading owner and developer of urban hubs in

the Nordics and Baltics. Our 28 mixed-use, necessity-based centres

are located in the major cities in Finland, Sweden, Norway, Denmark

and Estonia. We transform unique locations into sustainable

communities and cities full of life, serving 125 million people each

year and delivering long-term share value.

Tot a l

3.6

Billion

Balanced Nordic portfolio

% of total value

Finland

Norway

Sweden

Denmark & Estonia

23%

25%

44%

urban hubs

in 5 countries

serving 125 million

people each year�

Shopping centre

Bergen

Stockholm

Oslo

Gothenburg

Copenhagen

Helsinki

Tallinn

Denmark

& Estonia

urban hubs

Finland

urban hubs

Norway

urban hubs

Sweden

urban hubs

Financial statementsFinancial review Financial Review 2024

CEO’s interview

How would you summarize

the year 2024?

In 2024, we continued to demonstrate the strength

and stability of Citycon’s necessity-based strategy as

our assets continued to perform very well. The positive

operating results reflect the quality of our grocery-

anchored properties, which have a high proportion

of municipal and necessity tenants, connected to

transportation situated in convenient locations in

the largest Nordic cities. Our long-stated strategy of

creating mixed-use urban hubs is paying operational

dividends and driving traffic to our centres.

Citycon enjoyed strong growth in its operational

business in 2024 posting EUR 184 million in direct

operating profit. On the back of this strong performance,

total direct operating profit grew by +12.0% for Q1–

Q4/2024, adjusted EPRA Earnings by +12.1% and

total net rental income by +10.3% (all measured with

comparable FX) compared to the same period in 2023.

Excluding e.g. divested assets and acquisitions like-for-

like net rental income grew +4.6% compared to year

2023 (in comparable FX).

2024 was also the year in which we continued our

progress in solidifying the balance sheet. On the

transaction front, we continued to demonstrate the

inherent value and liquidity of Citycon’s portfolio.

Additionally, we actively managed the balance sheet

through multiple credit- and equity-related transactions

throughout the year.

How would you describe Citycon’s

operational performance in this past year?

The retail occupancy rate increased +20 bps over the

prior quarter to 95.3% and average rents increased

4.6% to 25.0 EUR/sq.m. The company signed over

175,000 sq.m. of leases during 2024, with new tenant

openings including a 7,300 sq.m. Prisma hypermarket in

Myyrmanni, a 3,200 sq.m. Selver grocery store in Rocca

al Mare, an over 1,800 sq.m. gym at Rocca al Mare and

the first Nike concept store in Helsinki suburban area

in Iso Omena. In December, Citycon announced that it

has signed a lease agreement with Terveystalo for an

over 4,000 sq.m. medical centre-hospital in Trio. The

strong leasing results reflect the quality of our grocery/

municipality anchored urban hubs and resulted in a rent

collection rate of 99%.

In 2024, Citycon completed important measures to

restructure its operations, reduce expenses, and improve

its balance sheet. Actions to reduce costs included

the outsourcing of accounting, and decentralization of

day-to-day decision making to the country level. These

actions completed in 2024 provide for a reduction in

G&A overhead to approximately EUR 23 million for

Financial statementsFinancial review Financial Review 2024

2025 onwards. In addition, the company significantly

reduced capital expenditures for 2024 and planned

further reductions in capital expenditures for 2025 to

approximately EUR 21 million.

What measures were taken in 2024 to

strengthen the balance sheet?

Additional measures were taken in 2024 to strengthen

the balance sheet, including asset disposals of EUR

354 million with proceeds used to repay debt. Total

divestments as of year-end 2024 reached EUR 475

million since the publication of our EUR 950 million

divestment target by 2026 which is 50% of our stated

goal. We anticipate another approximately 250 million

divestments through 2025 and intend to meet our full

divestment target in 2026.

The company also made the decision to suspend

dividend payments and repay short-term debt to push

out the average maturity schedule. In addition, Citycon

issued two new bonds during the year with outsized

demand from the market as the bonds were seven

and ten times oversubscribed and further improved

the debt maturity profile. These steps led S&P to

reaffirm our investment grade rating on November

19. The expansion in yields impacted the valuation

of the portfolio during 2024, which was partially

offset by realized rent growth occurring in our assets

resulting in an increase in the market rents used in the

valuation models within all of our main markets. For

the year, the book value of our assets decreased by

EUR -74.6 million. As interest rates continue to decline,

spreads should tighten which should positively impact

valuations for 2025.

What are Citycon’s areas of focus 2025?

As we begin 2025, the new operating model is up and

functioning, with country teams that now have full local

P&L accountability as well as separate Board oversight

for each country. While the company’s operational

results are among some of the best within the peer

group, Citycon still has room to further accelerate rent

growth. The company’s occupancy cost ratio is one

of the lowest in the industry at 9.4% and our tenants

continue to experience sales growth (like-for-like

+2.5% for 2024), which provides Citycon with ample

headroom for compounding rent growth. Taken together,

these factors give us confidence that 2025 results will

continue to build on the strong performance in 2024 and

our guidance reflects the ongoing belief in our unique

necessity-based urban hubs. As a result, the outlook for

2025 EPRA EPS is in the range of EUR 0.41–0.53 and

EPRA EPS excluding hybrid interests EUR 0.60–0.72.

Lastly, I want to welcome Mr. Oleg Zaslavsky to Citycon

as the new CEO starting on the first of March. As a

professional with over 20 years of experience in the real

estate sector, I am confident that he will bring valuable

expertise to Citycon and lead the company towards

even greater financial and operational results. I along

with the rest of the Board of Directors will be supporting

Mr. Zaslavsky during the transition period and moving

forward.

F� Scott Ball

Vice Chairman

and Interim Chief Executive Officer

We will continue to focus on

delivering on our strategy

of creating and operating

necessity-based retail hubs

in top Nordic locations�

Financial statementsFinancial review Financial Review 2024

Key figures

Key figures 2024 2023

Net rental income, MEUR 214.7 195.7

Like-for-like net rental income growth 4.6% 6.5%

EPRA Earnings per share (basic) 0.620 0.651

EPRA NRV per share 7.87 9.30

Average interest rate 3.60% 2.61%

Tot a l

214.7

MEUR

Net rental income by segments

MEUR

Finland

Norway

Sweden

Denmark & Estonia

Other

80.9

30.9

60.5

42.4

2024

2024 2024

Rent collection rate

98%

99%

2022 2023 2024

Tenant sales development

Like-for-like

Total

Sales figures include estimates. Sales figures exclude VAT and the change

has been calculated using comparable exchange rates. Including Kista

Galleria 100% in 2024. Kista Galleria 50% not included in 2022–2023

numbers.

5.2

3.4

-0.4

-1.1

2.5

0.0

2022 2023 2024

Net rental income development

MEUR

214.7

203.6

195.7

2023 Q3 2024 Q4 2024

Retail occupancy rate

95.3

95.1

95.4

Including Kista Galleria 100%.

Financial statementsFinancial review Financial Review 2024

How we create value

How we create value?

Focusing on prime assets that we...

Assets in Nordic

prime locations

• Top 2 cities in each

country with strong

urbanisation

• Connection to public

transportation

Necessity-

based tenant mix

• Grocery anchored centres,

a large share of necessity

tenants

• Mixed-use hubs with

growing share of

municipalities

Proven asset

management

• Long lasting relationship

with municipalities

• Continued dialogue with

surrounding communities

• Sustainability embedded

in the operating model

Active capital

recycling

• Proceeds used to

repay debt

• Strengthen investment

grade balance sheet

Citycon – urban

convenience in the

heart of communities

…own,

• Strong portfolio of 28

convenience based centres

• Located in growing urban areas

in Nordic and Baltic cities

• Long-term investor

…manage,

• In-house real estate expertise

throughout the centre value chain

• Retail experts in 5 countries

• Pan-Nordic approach with

synergies and a cross-border

leasing team

…develop.

• Area development – creating

attractive places for living,

working and socializing

• Improved commercial

attractiveness and

competitiveness and better

places for our tenants to operate

We bring value to communities by developing urban hubs for

living, working, socialising and shopping. We have extensive

experience as an urban developer and use our expertise

when we create mixed-use centres that include retail, offices,

hotels, housing, food & beverage as well as healthcare,

culture and leisure services.

A stable core

business with

attractive

opportunities for

value creation

Financial statementsFinancial review Financial Review 2024

Report by the Board of Directors

Citycon continued to demonstrate the strength and

stability of its Nordic portfolio. Citycon’s operational

performance showed continued improvement

throughout the year as like-for-like net rental income

increased by 4.6%. The overall financial performance

remained solid in 2024 and reported Direct Operating

Profit, EPRA Earnings per share, and Adjusted EPRA

Earnings per share were EUR 183.6 million, EUR 0.620,

and EUR 0.491, respectively. Rent collection rate was

high at 99% for 2024 and reflects the high quality

and creditworthiness of Citycon’s tenants. Combined

with Citycon’s low occupancy cost ratio (9.4%) and

increasing tenant sales, there is ample headroom for

rent indexations also in 2025. Like-for-like tenant sales

increased 2.5% and like-for-like footfall 1.1% compared

to the previous year.

During year 2024, Citycon continued its active capital

management and further improved its balance sheet.

Actions included issuing equity, issuing two new bonds,

repaying debt and divesting assets. Bond issues further

improved the debt maturity profile as shorter term debt

was repaid with the funds. Both the EUR 300 million

bond issued in March and the EUR 350 million bond

issued in December had outsized market demand being

seven and ten times oversubscribed. Also funds from

the divestments will be used for repaying debt.

Main events in 2024

General:

• Citycon continued to demonstrate strong operational

performance.

• Citycon divested EUR 354 million of assets, funds

from divestments will be used to repay debt.

• Citycon was selected as one of Europe’s Climate

Leaders for the fourth consecutive year according to

the list drafted by the Financial Times and German

research company Statista. Citycon is the only Finnish

real estate company included in the list.

Operational performance:

• Q1–Q4/2024 like-for-like tenant sales 2.5%.

• Q1–Q4/2024 LFL footfall 1.1%

• Q4/2024 retail occupancy 95.3%, +20 bps vs.

Q3/2024

• Q1–Q4/2024 collection was 99%

• Q1–Q4/2024 average rent per sqm increased EUR 1.1

to EUR 25.0 (comparable FX)

• Q1–Q4/2024 positive leasing spread of 0.8%

• Q4/2024 9.4% LFL occupancy cost ratio

Key Figures

Citycon Group 2024 2023 % FX Adjusted %

Net rental income MEUR 214.7 195.7 9.7% 10.3%

Like-for-like net rental income development % 4.6% 6.5% - -

Direct operating profit

MEUR 183.6 164.8 11.4% 12.0%

IFRS Earnings per share (basic)

EUR -0.40 -0.70 42.8% 42.9%

Fair value of investment properties MEUR 3,627.8 3,858.2 -6.0% -

Loan to Value (LTV)

% 47.3 46.3 2.2% -

EPRA based key figures

EPRA Earnings MEUR 113.0 109.6 3.1% 3.8%

Adjusted EPRA Earnings

MEUR 89.5 80.6 11.0% 12.1%

EPRA Earnings per share (basic) EUR 0.620 0.651 -4.8% -4.1%

Adjusted EPRA Earnings per share (basic)

EUR 0.491 0.479 2.5% 3.4%

EPRA NRV per share

EUR 7.87 9.30 -15.4% -

Change from previous year (comparable exchange rates). Change-% is calculated from exact figures.

Citycon presents alternative performance measures according to the European Securities and Markets Authority (ESMA) guidelines. More information is

presented in Basis of Preparation and Accounting Policies in the notes to the accounts.

The key figure includes hybrid bond coupons, amortized fees and gains/losses and expenses on hybrid bond repayments.

Starting from the beginning of 2024, Citycon excludes reorganisation and one-time costs (Q1–Q4/2024: EUR 9.6 million) from Adjusted EPRA Earnings. Due to

this, Adjusted EPRA Earnings is not fully comparable with the previous year. The adjusted key figure includes hybrid bond coupons and amortized fees.

The effect of currency rates to EPRA NRV/share was EUR -0.16.

Outlook for 2025

EPRA Earnings per share (basic) EUR 0.41–0.53

EPRA Earnings per share excluding hybrid interests (basic) EUR 0.60–0.72

The outlook assumes that there are no major changes in macroeconomic factors and no major disruptions from the war in Ukraine. These

estimates are based on the existing property portfolio as well as on the prevailing level of inflation, the EUR–SEK and EUR–NOK exchange

rates, and current interest rates.

EPRA Earnings per share (basic) and EPRA Earnings per share excluding hybrid interests (basic) for 2025 are based on updated EPRA Best

Practices Recommendations (BPR) Guidelines published on the 1st of October 2024 and are not fully comparable with 2024 EPRA EPS key figures.

Financial statementsFinancial review Financial Review 2024

Business environment

The Nordic economies, like the rest of the global

economy, are impacted by the uncertainty related

mainly to politics and structural forces challenging the

economies. The common denominator for the Nordic

countries is their strong financial position, thanks to high

personal savings, strong public finances and robust job

creation, which continue to persist. This provides these

economies a buffer and some degree of resilience.

The tenant mix of Citycon’s assets, consisting mainly

of grocery and service-oriented tenants, is less reliant

on consumer discretionary spending and the strategy

has already demonstrated its strength and resilience

throughout a variety of market conditions. In addition,

95% of the Company’s leases are tied to indexation.

(Source: SEB Nordic Outlook)

Balance sheet:

• In February, Citycon completed a directed share

issue of approximately EUR 48.2 million to

strengthen its balance sheet.

• In March, Citycon issued a 5-year EUR 300 million

green bond with a fixed coupon of 6.5% to refinance

its October 2024 bond maturity of EUR 310.3 million.

With this issue Citycon’s debt maturity profile was

significantly improved and refinancing risk was

further reduced.

• In June, Citycon finalised a hybrid exchange offer to

holders of the outstanding EUR 292 million green

capital securities (hybrid bond) that what was

coming to call in November 2024. An aggregate

principal amount of EUR 265,721,000 was accepted

in the exchange offer and thereby exchanged into a

new non-call 5.25-year hybrid bond with a 7.875%

coupon.

• In December, Citycon issued a 5.25-year EUR 350

million green bond with a fixed coupon of 5.0% to

repay its existing short-term debt. With this issue

Citycon’s debt maturity profile is significantly

improved and refinancing risk is further reduced.

• In December, Citycon tendered almost all its NOK

1,000 million and NOK 1,300 million outstanding

notes due in September 2025. The rest of the two

2025 NOK bonds were prepaid in a make-whole

exercise during January 2025.

Financial performance:

• Like-for-like net rental income in Q1–Q4/2024

increased 4.6%

• Total net rental income was EUR 214.7 million (Q1–

Q4/2023: EUR 195.7 million).

• EPRA Earnings were EUR 113.0 million (Q1–Q4/2023:

EUR 109.6 million). EPRA Earnings per share (basic)

was EUR 0.620 (Q1–Q4/2023: EUR 0.651)

• Adjusted EPRA earnings were EUR 89.5 million

(Q1–Q4/2023: EUR 80.6 million)

• IFRS earnings per share was EUR -0.40

(Q1–Q4/2023: EUR -0.70).

• The Board of Directors proposes to the Annual

General Meeting that the Board of Directors will be

authorized to decide on the distribution of assets from

the invested unrestricted equity fund. Based on this

authorization, the maximum total amount of equity

repayment distributed from the invested unrestricted

equity fund shall not exceed EUR 0.30 per share.

Based on the current total number of issued shares in

the company (184,231,295), the authorization would

equal to a maximum of EUR 55,269,389 in equity

repayment. The authorization is valid until the opening

of the next Annual General Meeting. As disclosed on

15 November 2024, the Board of Directors of Citycon

Oyj has unanimously decided that it will not use its

authorization and no dividend or equity repayment will

be distributed until year end 2025. The decision has

been made to further increase the long-term financial

stability, and to strengthen the balance sheet and the

credit profile of the company.

Business environment key figures

Finland Norway Sweden Denmark Estonia Euro area

GDP growth, 2024 -0.3% 2.3% 0.5% 2.8% -0.9% 0.8%

Unemployment, 2024 8.4% 4.0% 8.4% 5.9% 7.5% 6.4%

Inflation, 2024 1.0% 3.7% 1.9% 1.4% 3.7% 2.8%

Retail sales growth, 12/2024

2.3% 0.7% 5.3% 0.5% 1.1% 1.9%

% change compared with the same month of the previous year

Sources: SEB Nordic Outlook (February 2025)

Financial statementsFinancial review Financial Review 2024

Net rental income

Total net rental income for Q1–Q4/2024 grew by +9.7%

and was EUR 214.7 million (Q1–Q4/2023: EUR 195.7

million). Kista Galleria increased the total net rental income

by EUR 12.2 million.

Like-for-like net rental income in Q4 increased 3.1%

compared to Q4/2023.

Like-for-like net rental income in Q1–Q4/2024 increased

by 4.6%.

Like-for-like net rental income from the Finnish operations

increased by 2.8% in Q1–Q4/2024. Like-for-like net rental

income from Norwegian operations increased by 4.8%

in Q1–Q4/2024. Like-for-like net rental income from the

Swedish operations increased by 9.1% in Q1–Q4/2024.

Like-for-like net rental income from the Danish & Estonian

operations increased by 4.8% in Q1–Q4/2024.

Occupancy, Sales and Footfall

The retail occupancy rate was 95.3% in Q4/2024 and was

10 bps lower versus the same time last year (Q4/2023:

95.4%). Economic occupancy for Q4/2024 was 94.1%

(Q4/2023: 94.3%). Furthermore, the average rent per

sq.m. increased by 1.0 EUR to 25.0 EUR (Q4/2023: 24.0

EUR). With comparable FX rates, average rent per sq.m

increased by 1.1 EUR. In Q1–Q4/2024 Citycon leased over

175,000 sq.m. with a positive leasing spread of 0.8%.

Like-for-like tenant sales increased 2.3% in Q4/2024 and

2.5% for Q1–Q4/2024 compared to the same time last

year.

Like-for-like footfall increased by 2.7% in Q4/2024 and

1.1% in Q1–Q4/2024 compared to the same period last

year.

Net rental income and gross rental income breakdown

Net rental income

Gross rental

income

MEUR Finland Norway Sweden

Denmark &

Estonia Other Total Total

2023 76.4 62.5 27.8 29.3 -0.4 195.7 215.3

Acquisitions - - 12.2 - - 12.2 16.7

(Re)development projects 2.7 -0.5 0.6 0.6 - 3.3 2.8

Divestments - -2.6 0.0 0.7 - -1.9 -2.3

Like-for-like properties

1.9 2.4 2.0 0.3 - 6.6 4.2

Other (incl. exchange rate differences) -0.1 -1.3 -0.1 0.0 0.3 -1.1 -1.2

2024 80.9 60.5 42.4 30.9 0.0 214.7 235.4

Like-for-like properties are properties held by Citycon throughout two full preceding periods and exclude properties under (re)development or extension.

Like-for-like and total net rental income development, 2024 vs. 2023

Like-for-like NRI Development

(at comparable exchange rates)

Total NRI Development

(at actual exchange rates)

Total NRI Development

(at comparable FX rates)

Finland Norway Sweden

Denmark &

Estonia Tot a l

4.6

9.7

10.3

2.8

9.1

52.5

52.0

5.9

4.8

5.4

4.8

-3.2

-1.4

Personnel key figures

2024 2023 2022

FTE at the end of the reporting

period 164 234 251

Wages and salaries, EUR million 19.3 19.1 18.9

Financial result Q1–Q4/2024 vs.

Q1–Q4/2023

Operating profit (IFRS) was EUR 29.8 million

(Q1–Q4/2023: EUR -38.0 million).

Administrative expenses were EUR 33.2 million

(Q1–Q4/2023: EUR 31.1 million) and included EUR 9.6

million of reorganisation and one-time costs. At the end

of the reporting period, Citycon Group employed a total

of 164 (31 December 2023: 234) full-time employees

(FTEs) of whom 36 worked in Finland, 45 in Norway,

30 in Sweden, 5 in Denmark & Estonia and 48 in Group

functions.

Net financial expenses (IFRS) increased to EUR 76.1

million (Q1–Q4/2023: EUR 47.7 million). EUR 20.3

million increase relates to higher interest expenses

on refinanced bond debt and consolidation on Kista

interest expenses, which was partially offset by FX

hedging gains and losses. In addition, an amount of

EUR 8.9 million indirect net losses (Q1–Q4/2023:

EUR 2.8 million loss) was booked related to fair value

changes of derivatives not under hedge accounting.

The company also recorded EUR 0.8 million gain on

early redemption of debt (Q1–Q4/2023: EUR 2.9 million

gain).

Share of loss of joint ventures and associated

companies totalled EUR -0.7 million (Q1–Q4/2023:

EUR -36.7 million) mainly due to the completion of the

transaction to acquire the remaining interest in Kista

Galleria at the end of February 2024 after which Kista

has no longer been treated as a joint venture.

Result for the period was EUR -37.9 million

(Q1–Q4/2023: EUR -115.0 million).

Financial statementsFinancial review Financial Review 2024

Tenant sales development, 2024 vs. 2023

Sales figures include estimates. Sales figures exclude VAT and the change has been calculated

using comparable exchange rates. Including Kista Galleria 100%.

Like-for-like sales

Total sales

(including impact of

divested assets)

4.0

2.8

1.4

0.0

2.5

-2.5

-3.4

1.3

11.3

-0.3

Finland Sweden

Denmark

& Estonia

Norway Tot a l

Footfall development, 2024 vs. 2023

Footfall figures include estimates. Including Kista Galleria 100%.

Like-for-like footfall

Total footfall

(including impact of

divested assets)

0.7

6.5

2.3

0.0

1.1

-8.5

3.1

-0.5

8.0

-2.4

Finland Sweden

Denmark

& Estonia

Norway Tot a l

Occupancy rate

Including Kista Galleria 100%.

31 December 2023

31 December 2024

Retail economic

Occupancy rate

31 December 2024

Finland Sweden

Denmark

& Estonia

Norway Tot a l

95.0

95.2

90.8

97.2

94.3

94.8

95.0

91.1

97.3

94.1

95.3

Occupancy Cost Ratio

The rolling twelve month occupancy cost ratio for like-for-like shopping centres. Including Kista Galleria 100%.

31 December 2023

31 December 2024

Occupancy Cost Ratio

without Groceries

31 December 2024

10.2

8.3

8.6

8.7

9.1

10.4

8.7

8.8

8.2

9.4

11.6

Finland Sweden

Denmark

& Estonia

Norway Tot a l

Financial statementsFinancial review Financial Review 2024

Property portfolio summary

31 December 2024

No� of

properties

Gross

leasable area

Fair value�

MEUR

Properties held

for sale� MEUR Portfolio� %

Shopping centres, Finland 9 335,805 1,574.5 67.4 44%

Other properties, Finland 1 2,191 3.6 - 0%

Finland, total 10 337,996 1,578.1 67.4 44%

Shopping centres, Norway 9 277,788 814.1 - 22%

Rented shopping centres, Norway

1 14,440 - - -

Other properties, Norway 1 8,126 - 13.7 0%

Norway, total 11 300,354 814.1 13.7 22%

Shopping centres, Sweden 6 264,888 902.2 - 24%

Sweden, total 6 264,888 902.2 - 24%

Shopping centres, Denmark & Estonia 3 96,259 292.9 - 8%

Other properties, Denmark & Estonia 1 - 3.1 - 0%

Denmark & Estonia, total 4 96,259 296.0 - 8%

Shopping centres, total 28 989,180 3,583.7 67.4 98%

Other properties, total 3 10,317 6.8 13.7 1%

Investment properties, total 31 999,497 3,590.5 81.1 99%

Right-of-use assets classified as

investment properties (IFRS 16) - - 37.3 - 1%

Investment properties in the statement of

financial position, total 31 999,497 3,627.8 81.1 100%

Value of rented properties is recognised within IFRS 16 investment properties based on IFRS rules.

Fair value changes

MEUR 2024 2023

Finland -58.0 -68.4

Norway -23.1 -64.5

Sweden 19.5 -35.3

Denmark & Estonia -5.7 -25.5

Investment properties, total -67.3 -193.7

Right-of-use assets classified as investment properties (IFRS 16) -7.4 -6.6

Investment properties in the statement of financial position, total -74.6 -200.3

Kista Galleria (50%) - -40.8

Investment properties and Kista Galleria (50%), total -74.6 -241.1

Lease portfolio summary

31 December

2024

31 December

2023

Number of leases pcs 3,831 4,153

Average rent

EUR/sq.m./

month 25.0 23.9

Average remaining

length of lease

portfolio years 3.3 3.5

Kista Galleria 100% included.

Comparison periods with comparable FX-rate.

At period-end, Citycon had a total of 3,831 (4,153)

leases, of which the average remaining length was 3.3

years (3.5).

Leasing activity

Q1–Q4/2024 Q1–Q4/2023

Total area of leases started sq.m. 200,342 258,414

Total area of leases ended sq.m. 293,406 259,458

Leases started and ended do not necessarily refer to the same premises.

Kista Galleria 100% included.

Property portfolio value development

From year-end, the fair value of investment properties

decreased by EUR 230.4 million to EUR 3,627.8

million (31 December 2023: EUR 3,858.2 million). Net

investments, including both acquisitions and disposals

and development projects increased the fair value by

EUR 321.3 million. In addition, changes in right-of-use

–assets increased the value of investment properties

by an additional EUR 4.2 million. Fair value losses

decreased the value of investment properties by EUR

74.6 million, exchange differences by EUR 70.2 million

and transfers into assets held for sale by EUR 411.1

million.

Q1–Q4/2024 fair value change of investment properties

amounted to EUR -74.6 million (Q1–Q4/2023:

EUR -200.3 million) mainly due to increase in yield

requirements in all segments. The application of IFRS

16 standard had an impact of EUR -7.4 million (Q1–

Q4/2023: EUR -6.6 million) to the fair value change of

investment properties during the January-December

reporting period.

External appraisers, CBRE (in Denmark, Estonia and

Norway) and JLL (in Finland and Sweden) measure the

fair values for annual financial statements. Citycon

measures the fair values of the properties internally in

the Q1–Q3. All internal valuation periods are subject to

yield and market commentary from Citycon’s current

external appraisers in its respective markets.

CBRE’s and JLL’s valuation statements are available on

Citycon’s website below Investors.

Financial statementsFinancial review Financial Review 2024

Capital recycling

In Q1/2024, Citycon completed the transaction to

acquire the remaining interest in Kista Galleria in

Stockholm, Sweden. Citycon has managed the centre

since 2012 and before the transaction owned 50%

of the asset. After the transaction, Citycon has 100%

ownership. Kista Galleria had approximately SEK 2,400

million of debt and following the transaction Citycon

assumed seller’s share of existing debt (approximately

SEK 1,200 million) and made a cash payment (approx.

Completed (re)development projects on 2024

Location Area before/ after, sq�m�

Actual gross investment

by 31 December 2024,

MEUR Completion

Barkarby,

residentials

Stockholm,

Sweden -/12,950 66.9 2024

Citycon divested the property in December 2024 simultaneously with the purchase of the property from the developer

Capital expenditure

MEUR 2024 2023

Acquisitions of properties

341.0 -

Property development 40.2 92.8

Other investments 1.0 3.1

Total capital expenditure incl� acquisitions 382.3 95.9

Capital expenditure by segment

Finland 15.1 46.6

Norway 5.6 21.2

Sweden 351.2 15.1

Denmark & Estonia 9.3 11.0

Group administration 1.0 2.0

Total capital expenditure incl� acquisitions 382.3 95.9

Divestments

2 3

389.9 -

Acquisition of properties in 2024 comprise of acquisition of the remaining 50% interest of Kista Galleria and residential property in Sweden. Acquisition of

properties takes into account deduction in the purchase price calculations and FX rate changes.

Divestments in 2024 comprise of sale of three non-core centres in Norway and one centre in Estonia as well sale of residential property in Sweden.

Excluding transfers into ‘Assets held for sale’ -category.

Acquisitions and divestments Q1–Q4/2024

Location Gross leasable area, sq�m� Date

Divestments

Kongssenteret Shopping centre Kongsvinger, Norway 18,000 31 May 2024

Trekanten Shopping centre Oslo, Norway 23,900 30 September 2024

Barkarby Residentials Stockholm, Sweden 13,200 12 December 2024

Stopp Tune Shopping centre Sarpsborg, Norway 13,400 16 December 2024

Kristiine keskus Shopping centre Tallinn, Estonia 45,300 19 December 2024

Divestments, total 113,800

Location Gross leasable area, sq�m� Date

Acquisitions

Kista Galleria

Shopping centre Stockholm, Sweden 46,250 28 February 2024

Citycon has managed the centre since 2012 and before the transaction owned 50% of the asset. After the transaction, Citycon has 100% ownership.

EUR 2.5 million). The new loan is secured by additional

two assets located in Sweden.

In Q2/2024, Citycon completed the transaction to divest

Kongssenteret shopping centre in Kongsvinger, Norway.

In Q3/2024, Citycon divested Trekanten shopping

centre in Oslo, Norway. In Q4/2024, Citycon divested

three properties, a residential property in Stockholm,

Sweden, Kristiine Keskus shopping centre in Tallinn,

Estonia and Stopp Tune shopping centre in Sarpsborg,

Norway.

Strengthening the balance sheet remains a key priority

for the company. During Q1–Q4/2024 Citycon sold

assets for EUR 354 million. Funds from divestments will

be used to repay debt.

(Re)development projects

Further information on the company’s completed,

ongoing and planned (re)developments can be found on

page 33 in the Financial Review 2024.

Shareholders’ equity

Equity per share was EUR 10.09 (31 December 2023:

EUR 11.56). Loss for the period, paid equity return

and translation losses decreased equity per share. In

addition, equity per share was impacted by the directed

share issues during 2024, where a total of 12.2 million

new shares were carried out.

At period-end, shareholders’ equity attributable to

parent company’s shareholders was EUR 1,265.7 million

(31 December 2023: EUR 1,380.1 million).

Financial statementsFinancial review Financial Review 2024

Key financing figures

MEUR 31 December 2024 31 December 2023

Nominal debt outstanding MEUR 2,116.3 1,840.4

Interest-bearing liabilities, carrying value

MEUR 2,131.5 1,864.4

Available liquidity MEUR 767.2 434.3

Average loan maturity years 3.4 2.7

Loan to Value (LTV)

% 47.3 46.3

Interest cover ratio (financial covenant > 1.8) x 2.7 3.7

Net debt to total assets (financial covenant < 0.60) x 0.41 0.44

Solvency ratio (financial covenant < 0.65) x 0.42 0.45

Secured solvency ratio (financial covenant < 0.25) x 0.12 0.08

Including EUR 35.3 million (Q4/2023: EUR 38.8 million) IFRS 16 lease liabilities

Hybrid bond treated as equity as according to IFRS. Excluding both right-of-use assets recognized as part of investment properties, as well as lease liabilities

pertaining to these right-of-use assets, which are based on IFRS 16 requirements.

Financing

In February, Citycon Oyj successfully completed a

directed share issue of 11.9 million new shares, raising

gross proceeds of approximately EUR 48.2 million. The

subscription price for the shares offered in the placing

was EUR 4.05 per share and the issue was four times

oversubscribed, supported by both core shareholders G

City and Ilmarinen. The proceeds from the placing were

aimed at strengthening the company’s balance sheet

and improving its capital structure in the current market

environment.

Following the share issue, Citycon Group placed a

EUR 300 million green bond in order to refinance its

October 2024 bond maturity of EUR 310.3 million. The

5-year senior unsecured fixed rate EUR-denominated

bond matures on 8 March 2029 and pays a fixed

coupon of 6.500%. The demand for the bond was very

strong with an orderbook approximately seven times

oversubscribed. With this issue Citycon’s debt maturity

profile is significantly improved and refinancing risk is

further reduced.

Simultaneously with the bond issue, Citycon launched

a tender offer for its EUR 310.3 million outstanding

notes due in October 2024. As a result, the company

successfully tendered EUR 213.3 million of the 2024

notes at a discount below par.

In April, the company exercised its one-year extension

option on the EUR 650 million credit facility, including

a EUR 400 million syndicated committed credit facility

and a EUR 250 million term loan. The new maturity date

for the facility is in April 2027.

In May, Citycon renegotiated the SEK 2,060 million term

loan that was acquired with Kista Galleria and extended

its tenor to five years. The term loan is now maturing in

May 2029. Extending Citycon’s revolving credit facility

and term loans were important actions to improve

the company credit maturity profile and demonstrate

Citycon’s access to bank financing.

In June, the company finalised a hybrid exchange offer

to holders of the outstanding EUR 292 million green

capital securities (hybrid bond) that what was coming to

call in November 2024. An aggregate principal amount

of EUR 265,721,000 was accepted in the exchange offer

and thereby exchanged into a new non-call 5.25 year

hybrid bond with a 7.875% coupon. The company also

offered a 4.75% cash compensation paid on the nominal

amount accepted for exchange, amounting to EUR

12.6 million. With exchange acceptance by over 90%

of holders the successful execution of the transaction

confirms Citycon’s access to capital markets and marks

a significant milestone in securing the company a stable

credit profile.

In addition, Citycon redeemed the remaining

outstanding EUR 97 million of the October 2024 bond

using funds from the EUR 300 million bond issued

in March. The bond was redeemed in a make-whole

executed at par.

In December, Citycon Group placed a EUR 350 million

green bond with use of proceeds to prepay its existing

debt. The 5.25-year senior unsecured fixed rate EUR-

denominated bond matures on 11 March 2030 and pays

a fixed coupon of 5.000%. The demand for the bond was

extremely strong with an orderbook approximately ten

times oversubscribed. With this issue Citycon continues

to improve its debt maturity profile and further reduce

refinancing risk.

Simultaneously, with the bond issue, Citycon launched

a tender offer for its NOK 1,000 million and NOK 1,300

million outstanding notes due in September 2025. As a

result, in December, the company successfully tendered

NOK 962 million and NOK 1,295 million of the 2025

notes respectively. With this, EUR 193.3 million of the

December bond issue funds were used to prepay short-

term debt. The rest of the two 2025 NOK bonds were

prepaid in a make-whole exercise during January 2025.

The Annual General Meeting authorized the Board

of Directors to decide quarterly in its discretion on

the distribution of equity repayment with an annual

maximum total amount of EUR 0.30 per share. The

annual maximum distribution was thereby reduced

by EUR 0.20 per share compared to last year. The

equity repayment paid in March, June, September and

December was mainly financed by operative cash flow.

Financial statementsFinancial review Financial Review 2024

Tot a l

2,116.3

MEUR

Breakdown of loans

Bank loans

Bonds

Commercial papers

75.1%

24.4%

0.5%

2025 2026 2027 2028 2029 2030 2031

250

242

350

400

345

300

177

350

Debt maturities

MEUR

Bank loans 516.1

Bonds 1,590.2

Commercial papers 10.0

Undrawn committed credit facilities 400.0

Yearly amortizations on Kista term loan, approx. 5 MEUR per year

Financial expenses key figures

MEUR 2024 2023

Financial expenses MEUR -100.6 -61.1

Financial income MEUR 25.3 13.5

Net gains/losses on foreign exchange -0.8 -0.1

Net financial expenses (IFRS) MEUR -76.1 -47.7

-/+ Early close-out gains/costs of debt and financial instruments 0.8 2.9

-/+ Fair value gains/losses of financial instruments -8.9 -2.8

Direct net financial expenses (EPRA) MEUR -68.0 -47.7

Weighted average interest rate

% 3.60 2.61

Weighted average interest rate excluding derivatives % 3.93 3.13

Year-to-date weighted average interest rate

% 3.17 2.57

Including interest rate swaps, cross-currency swaps and interest rate options

Interest-bearing debt

The outstanding amount of interest-bearing debt

increased in 2024 by EUR 275.9 million to EUR 2,116.3

million, mainly following the fact that approx. EUR 212.4

million of Kista bank debt was consolidated into the

group balance sheet when Citycon purchased 50% of

the Kista joint venture in Q1/2024. The carrying amount

of interest-bearing liabilities in the balance sheet was

EUR 2,131.5 million including IFRS 16 liabilities of EUR

35.3 million.

The weighted average loan maturity increased during

the quarter following the 5.25-year new bond issue and

prepayment of short-term debt and stands at 3.4 years.

LTV (IFRS) decreased slightly during the quarter to

47.3%, as a result of decreased property values and

lower net debt following asset divestments.

Financial expenses

Direct net financial expenses (EPRA) Q1–Q4/2024

were EUR 20.3 million higher than last year, mainly

following increased cost of debt by EUR 22.2 million

from consolidation on Kista interest expenses starting

from end of February and bond refinancing at higher

interest level. These were partially offset by EUR 2.7

million gains on close out of equity FX hedges and other

FX losses of EUR 0.6 million.

Net financial expenses (IFRS) increased to EUR 76.1

million (Q1–Q4/2023: EUR 47.7 million). EUR 20.3

million increase relates to higher interest expenses

on refinanced bond debt and consolidation on Kista

interest expenses, which was partially offset by FX

hedging gains and losses. In addition, an amount of EUR

8.9 million indirect net losses (Q1–Q4/2023: EUR 2.8

million loss) was booked related to fair value changes of

derivatives not under hedge accounting, EUR 6.1 million

more than during the comparison period. The company

also recorded EUR 0.8 million gain on early redemption

of debt (Q1–Q4/2023: EUR 2.9 million gain), EUR 2.1

million less than in the corresponding period.

Financial income mainly consisted of interest income

on cash held at bank, interest income on a loan to Kista

Galleria, fair value gains on hedging derivatives and

gains on debt repurchased at a discount. The interest

income on the shareholder loan to Kista Galleria ceased

to be booked as external income as Kista was acquired

and consolidated as a 100% subsidiary at the end of

February 2024.

The period-end weighted average interest rate was

3.6%.

Financial statementsFinancial review Financial Review 2024

In November 2024, Citycon announced that the

company’s Board of Directors has resolved to appoint

member of the company’s Board of Directors Eero

Sihvonen as Citycon’s Chief Financial Officer and

member of the Corporate Management Committee.

Mr. Sihvonen served as Citycon’s Chief Financial Officer

between years 2005-2021. Sakari Järvelä, Citycon’s

Chief Financial Officer and member of the Corporate

Management Committee departed the company

on December 31, 2024 to pursue new opportunities

outside the company. Mr. Järvelä started as Citycon’s

Chief Financial Officer on February 1, 2024 as Bret D.

McLeod, previous Chief Financial Officer of Citycon,

announced in December 2023 his intention to resign

from his position effective January 31, 2024, to pursue

another opportunity back in his native United States.

Additionally, Jussi Vyyryläinen, Citycon’s Senior Vice

President, Leasing, and member of the Corporate

Management Committee will depart the company on

May 15, 2025 to pursue new opportunities.

Mr Vyyryläinen will continue in his role until December

31, 2024 and thereafter, he will act as an advisor to

Citycon until May 15, 2025.

Sustainability

Citycon’s strategy is to be a forerunner in sustainable

shopping centre management. Citycon’s sustainability

strategy was updated in 2023 and Citycon has set

ambitious targets that extend to 2030.

In its sustainability reporting, Citycon applies the GRI

Standards, European Public Real Estate Association

(EPRA) Best Practice Recommendations on

Sustainability Reporting (3rd Edition) and Citycon’s

own internal reporting principles (Criteria). Citycon’s

sustainability strategy, targets and measures are

described in detail in the upcoming Sustainability

Accounts 2024.

Financial risk management

Citycon uses interest rate swaps to hedge the floating

interest rate risk exposure. According to the company’s

treasury policy, the currency net transaction risk

exposure with profit and loss impact is fully hedged

through currency forwards and cross-currency swaps

that convert EUR debt into SEK and NOK. During

H2/2024, the company also used currency forwards to

hedge its SEK and NOK denominated equity.

Changes in corporate management

In February 2024, Kirsi Simola-Laaksonen, Citycon’s

Chief Information Officer and member of the Corporate

Management Committee decided to leave the company

to pursue new opportunities outside the company.

In March 2024, Helen Metsvaht was appointed Citycon’s

new Chief Operating Officer and member of the

Corporate Management Committee as of April 1, 2024.

Henrica Ginström, the former Chief Operating Officer

was appointed the new Chief Executive Officer of

Citycon as of April 1, 2024.

In October 2024, Citycon announced that the

company’s Board of Directors has resolved to appoint

the Vice Chairman F. Scott Ball to become the interim

Chief Executive Officer, simultaneously Ms Ginström

will step down from her position as the Chief Executive

Officer and member of the Corporate Management

Committee of Citycon having served as Citycon’s Chief

Executive Officer since April 1, 2024. Mr Ball (who

previously served as the Chief Executive Officer in 2019-

2024) will serve as the interim Chief Executive Officer

of Citycon until the new Chief Executive Officer and

member of the Corporate Management Committee Oleg

Zaslavsky starts in his position in March 2025.

Citycon’s Annual and Sustainability Report 2023 was

awarded as one of the best within the industry. Citycon

received the EPRA Gold Award in the Sustainability Best

Practices series for the eleventh year in a row. Citycon

has received a rating of AA in the MSCI ESG Ratings

assessment. Citycon also has the ISS-Oekom “Prime”

rating, awarded to companies that achieve the best ESG

scores among their sector peers.

Key environmental indicators 2024:

• Citycon’s total energy consumption (incl. electricity

consumption in common areas, heating and cooling)

amounted to 178 gigawatt hours (Q1–Q4/2023: 185

GWh

). Shopping centre energy intensity (kWh/sq.m)

decreased by 2% compared to previous year.

• The carbon footprint totalled 4,051 thousand carbon

equivalent tonnes (Q1–Q4/2023: 5,425 tCO

e). The

carbon intensity of shopping centres is 2 kgCO

sq.m.

• The recycling rate in shopping centres remained at the

same level as the previous year and was 99%.

Citycon uses BREEAM In-Use to assess and develop the

sustainable management of its shopping centres. 83%

of Citycon’s shopping centres, measured by fair value,

had acquired the certification at period-end.

Disclosure according to the Taxonomy Regulation

Delegated Act:

Citycon’s sustainability and finance teams have

classified the company’s activities by mapping Citycon

group’s consolidated IFRS income statement accounts

based on whether they are covered by a NACE code

included in the Taxonomy. Based on this classification

98% of Citycon’s total turnover, 95% of capital

expenditure and 73% of operational expenditure is

derived from Taxonomy-eligible activities.

Citycon is not obliged to report information according

to the taxonomy regulation, and for that reason Citycon

does not report on the taxonomy alignment of the

company’s operations for the year 2024.

Risks and uncertainties

The most significant near-term risks and uncertainties

in Citycon’s business operations are associated with the

general development of the economy and consumer

confidence in the Nordic countries and Estonia, and

how this affects fair values, occupancy rates and rental

levels of the shopping centres and, thereby, Citycon’s

financial results. Increased competition locally or from

e-commerce might affect demand for retail premises,

which could lead to lower rental levels or increased

vacancy, especially outside capital city regions. Costs

of development projects could increase due to rising

construction costs or projects could be delayed due

to unforeseeable challenges. Rising interest rates

could also put pressure on investment yields, which

could potentially impact fair values. The war in Ukraine

continue to pose risks to economic health in Europe as

well.

The main risks that can materially affect Citycon’s

business and financial results, along with the main

risk management actions, are presented in detail on

pages 67-70 in the Financial Statements 2024, in Note

3.5 A) as well as on Citycon’s website in the Corporate

Governance section.

Legal proceedings

Certain lawsuits, claims and legal disputes based on

various grounds are pending against Citycon relating to

the company’s business operations. In the company’s

Number for comparison period has been corrected.

Financial statementsFinancial review Financial Review 2024

view, it is improbable that the outcome of these lawsuits,

claims and legal disputes will have a material impact on

the company’s financial position.

General meeting

Annual General Meeting 2024

Citycon’s Annual General Meeting 2024 (AGM) was

held virtually, without a meeting venue using remote

connection in real time on 19 March 2024. The General

Meeting approved all the proposals made by the Board

of Directors to the General Meeting. The AGM adopted

the company’s Financial Statements and discharged the

members of the Board of Directors and the CEO from

liability for the financial year 2023 and decided to adopt

the Remuneration Report for the governing bodies.

The General Meeting decided that no dividend is

distributed by a resolution of the AGM and authorised

the Board of Directors to decide in its discretion on the

distribution of assets from the invested unrestricted

equity fund. Based on the authorisation, the maximum

amount of equity repayment to be distributed from

the invested unrestricted equity fund shall not exceed

EUR 0.30 per share. The authorisation is valid until the

opening of the next AGM.

The AGM decisions and the minutes of the AGM are

available on the company’s website at

citycon.com/agm2024.

Extraordinary General Meetings 2024

Citycon’s Extraordinary General Meeting (EMG) held on

12 November 2024 decided to increase the number of

members of the board to ten (10) until the close of the

next Annual General Meeting. Further, Mr Eero Sihvonen

was elected as new member of the Board of Directors.

Shareholders 31 December 2024

% of shares and voting rights

Nominee-registered

shareholdings

(124.7 million shares)

Directly registered

shareholdings

(59.5 million shares)

67.7%

32.3%

Shares and share capital

MEUR 2024

Share capital at period-start MEUR 259.6

Share capital at period-end MEUR 259.6

Number of shares at period-start 171,994,204

Number of shares at period-end 184,231,295

Citycon’s Extraordinary General Meeting (EMG) held on

18 June 2024 resolved that the net amount of the annual

fees of the members of the Board of Directors and the

Chairmen of the Board of Directors’ Committees after

deduction of taxes and charges, resolved upon at the

Annual General Meeting 2024, shall be paid in Citycon

Oyj shares, which are either new shares or treasury

shares held by the Company.

Further information available on the company’s website

at citycon.com/EGM2024.

Board of Directors

Under the Articles of Association, the Board of Directors

of the company consists of a minimum of five and a

maximum of ten members, elected by the General

Meeting for a term of one year that will end at the close

of the following Annual General Meeting.

The AGM resolved the number of members of the Board

of Directors to be nine. Chaim Katzman, Yehuda (Judah)

L. Angster, F. Scott Ball, Zvi Gordon, Alexandre (Sandy)

Koifman, David Lukes, Per-Anders Ovin, Ljudmila

Popova and Adi Jemini were re-elected to the Board of

Directors.

Citycon’s EGM 2024 set the number of Board members

at ten. Mr Eero Sihvonen was elected as new member of

the Board of Directors.

Chaim Katzman was the Chairman of the Board of

Directors in 2024. Alexandre (Sandy) Koifman and F.

Scott Ball were Vice Chairmen of the Board of Directors.

Auditor

Since 2024, the company’s auditor has been Deloitte

Oy, a firm of authorised public accountants, which had

designated Authorized Public Accountant Anu Servo to

act as the responsible auditor of Citycon in 2024.

Chief Executive Officer (CEO)

From 8 October 2024 onwards, F. Scott Ball has been

the company’s interim CEO. Mr Ball’s personal details,

career histories and positions of trust can be found on

the company’s website at citycon.com/management.

Information on the CEO’s executive contract and its

terms and conditions are available on pages 52–54 of

the Financial Statements.

Corporate governance statement

Citycon has published Citycon Group’s Corporate

Governance Statement 2024 as a separate report,

distinct from the Report by the Board of Directors.

The statement is prepared in accordance with the

recommendations of the Finnish Corporate Governance

Code 2025 and is available on the company’s website at

citycon.com/corporate-governance.

Shares, share capital and shareholders

The company has a single series of shares, with each

share entitling to one vote at a General Meeting of

shareholders. At the end of reporting period, the total

number of shares outstanding in the company was

184,231,295. The shares have no nominal value.

In February 2024, Citycon completed directed share

issue of 11,900,000 new shares raising EUR 48.2

million. The subscription price was recorded in full to

the Company’s invested unrestricted equity reserve.

Additionally, during January–December, Citycon issued

and transferred a total of 147,091 new shares as part of

the remuneration of Board and a total of 190,000 shares

part of the company’s share-based incentive plans.

Financial statementsFinancial review Financial Review 2024

At the end of December 2024, Citycon had a total of

25,660 registered shareholders (Q4/2023: 27,738

shareholders), of which 10 were account managers of

nominee-registered shares. Holders of the nominee-

registered shares held approximately 124.7 million

(Q4/2023: 120.8 million) shares, or 67.7% of shares and

voting rights in the company (Q4/2023: 70.2%). The

most significant registered shareholders can be found

on company’s website citycon.com/major-shareholders.

Further information of the company’s stock listing,

trading volume, share price, market cap, share capital,

most significant registered shareholders, of the

distribution of ownership and of the issue-adjusted

average number of shares can be found on on pages

36–37 of the Financial Review.

Board authorisations

In addition to the above explained asset distribution

authorisation of the Board of Directors, the Board of

Directors of the company had two valid authorisations

at the period-end granted by the AGM held on 19 March

2024:

• The Board of Directors may decide on an issuance

of a maximum of 16 million shares or special rights

entitling to shares referred to in Chapter 10 Section 1

of the Finnish Companies Act, which corresponded to

approximately 8.70% of all the shares in the company

at the period-end. The authorisation is valid until the

close of the next AGM, however, no longer than until

30 June 2025.

• The Board of Directors may decide on the repurchase

and/or on the acceptance as pledge of the company’s

own shares in one or several tranches. The amount

of own shares to be repurchased and/or accepted

as pledge shall not exceed 30 million shares, which

corresponded to approximately 16.31% of all the

shares in the company at the period-end. The

authorisation is valid until the close of the next AGM,

however, no longer than until 30 June 2025.

During January – December 2024, the Board of

Directors used three times its authorisation to

repurchase its own shares and issue them by conveying

repurchased shares. Additionally, the Board of Directors

decided to issue new shares for LTI payments and Board

annual fees. During January–December, Citycon issued

and transferred a total of 147,091 new shares as part of

the remuneration of Board. The issuance, repurchases

and conveyances made for payment of rewards earned

under the company’s share plans in accordance with the

terms and conditions of the plans were made as follows:

Matching Share Plan 2022-2024

• On 25 March 2024, the company repurchased a total

of 10,674 of its own shares and conveyed them on 27

March 2024 to two key persons of the company.

Restricted Share Plan 2020–2022

• On 2 April 2024, the company repurchased a total of

6,500 of its own shares and conveyed them on 4 April

2024 to six key persons of the company.

Performance Share Plan 2020–2022

• On 2 April 2024, the company repurchased a total

of 15,000 of its own shares and conveyed them on 4

April 2024 to two key persons of the company.

CEO Restricted Share Plan 2021–2025

• On 21 May 2024, the company decided on issuance of

190,000 new shares to the former CEO for payment

of reward shares in accordance with the terms and

conditions of the CEO Restricted Share Plan 2021-

2025.

Dividends and equity repayments paid on 31 December 2024

MEUR Record date Payment date EUR / share

Equity repayment Q1 21 March 2024 28 March 2024 0.075

Equity repayment Q2 20 June 2024 28 June 2024 0.075

Equity repayment Q3 23 September 2024 30 September 2024 0.075

Equity repayment Q4 20 December 2024 31 December 2024 0.075

Total 0.30

Board decision based on the authorisation issued by the AGM 2024.

Financial statementsFinancial review Financial Review 2024

Additionally, the meeting of the Board of Directors of

the Company held on 22 February 2024 resolved to

issue 11,900,000 Shares in the Placing based on the

authorisation granted to the Board of Directors by the

Company’s Annual General Meeting held on 21 March

2023.

Own shares

During the reporting period, the company held a total

of 32,174 of the company’s own shares, which were

conveyed to implement payments of rewards earned

under the company’s share plans as described in the

section Board authorisations. At the end of the period,

the company or its subsidiaries held no shares in the

company.

Flagging notices

In Q1/2024, Citycon received one flagging notification

on 23 February 2024 according to which G City Ltd.’s

holding of shares in Citycon has decreased below fifty

(50) percent. Due to the dilutive effect of the directed

share issue announced by Citycon Oyj on 22 February

2024 and completed on 23 February 2024, the

aggregate total shareholding of G City Ltd. in Citycon

Oyj decreased to approximately 49.64% following the

registration of the new shares on 23 February 2024.

In Q2–Q4/2024, the company did not receive any

notifications of changes in shareholding.

Incentive plans

Long-term Share-based Incentive Plans

Citycon has nine long-term share-based incentive plans

for the Group key employees:

• CEO Restricted Share Plan 2024–2027

• Option Plan 2024 A-C (CEO)

• Option Plan 2024 (Corporate Management

Committee)

• CFO Performance Share Plan 2024–2026

• Performance Share Plan 2020–2022 (Corporate

Management Committee excl. the CEO)

• Performance Share Plan 2023–2025 (Corporate

Management Committee excl. the CEO)

• Matching Share Plan 2022–2024 (Corporate

Management Committee excl. the CEO)

• Restricted Share Plan 2020–2022 (Key employees,

excl. Corporate Management Committee) and

• Restricted Share Plan 2023–2025 (Key employees,

excl. Corporate Management Committee)

In February 2024, the Board of Directors established

a new share-based incentive plan for the new

CFO of the company. In March 2024, the Board of

Directors launched a new stock option plan for four

key employees and two new long-term share-based

incentive plans for the new CEO: Stock Option Plan

2024A-C and Restricted Share Plan 2024–2027.

The main terms of the long-term share-based incentive

plans are explained in the Note 1.6 on pages 52–54 of

the Financial Statements.

More information on the share-based incentive plans

is available on the company’s website at citycon.com/

remuneration.

Shares held by members of the board

of directors and by the company

management

The members of the Board of Directors of Citycon, the

CEO, the other Corporate Management Committee

members held a total of 772,732 company shares on

31 December 2024. These shareholdings represented

0.4% of the company’s total shares and total voting

rights.

Details of the shareholdings of the members of the

Board of Directors, the CEO and the other members of

the Corporate Management Committee are available on

the company’s website at

www.citycon.com/managers-holdings-shares.

Events after the reporting period

In Q1/2025, Citycon received one flagging notification

on 29 January 2025 according to which Phoenix

Financial Ltd.’s holding of shares in Citycon has

increased above five (5) percent.

On 26 February 2025 Citycon announced that Erik

Lennhammar, Chief Development Officer and member

of the Corporate Management Committee, will depart

Citycon to pursue new opportunities. Mr. Lennhammar

will step down from the corporate Management

Committee but works for the company until 31 May

2025.

Helsinki, 26 February 2025

Citycon Oyj

Board of Directors

Financial statementsFinancial review Financial Review 2024

EPRA performance measures

EPRA (European Public Real Estate Association) is a

common interest group for listed real estate companies

in Europe. Citycon is an active member of EPRA.

EPRA’s objective is to encourage greater investment

in European listed real estate companies and strive

for ‘best practices’ in accounting, financial reporting

and corporate governance in order to provide high-

quality information to investors and to increase the

comparability of different companies. The best practices

also create a framework for discussion and decision-

making on the issues that determine the future of the

sector. In addition, EPRA publishes the FTSE EPRA/

NAREIT index in association with FTSE, which tracks

the performance of the largest European and North-

American listed real estate companies. Citycon is

included in the FTSE EPRA index, which increases

international interest towards Citycon as an investment.

Citycon applies the best practices policy

recommendations of EPRA for financial reporting and

also for sustainability reporting. This section in Citycon’s

financial statements presents the EPRA performance

measures and their calculations. For more information

about EPRA and EPRA’s best practice policies please

visit EPRA’s web page: www.epra.com.

EPRA performance measures

Note 2024 2023 2022 2021 2020

EPRA Earnings, MEUR 1 113.0 109.6 122.6 124.4 136.6

Adjusted EPRA Earnings, MEUR

1 89.5 80.6 92.1 100.0 120.3

EPRA Earnings per share (basic), EUR 1 0.620 0.651 0.730 0.703 0.767

Adjusted EPRA Earnings per share (basic), EUR

1 0.491 0.479 0.548 0.565 0.676

EPRA NRV per share, EUR 2 7.87 9.30 11.01 12.15 11.48

EPRA NAV per share, EUR 2 - - - - 11.30

EPRA Cost Ratio (including direct vacancy costs), % 3 19.5 19.3 16.8 18.1 18.3

EPRA Cost Ratio (excluding direct vacancy costs), % 3 16.8 17.2 14.5 14.9 15.6

EPRA Net Initial Yield (NIY), % 4 5.5 5.3 5.3 5.2 5.4

EPRA 'topped-up' NIY, % 4 5.5 5.3 5.3 5.2 5.4

EPRA vacancy rate, % 5 5.9 5.1 5.5 6.6 6.1

EPRA Property related capex MEUR 6 381.2 95.2 175.7 193.7 341.3

EPRA LTV % 7 61.2 61.6 57.4 - -

EPRA Earnings for five years, MEUR 8 113.0 109.6 122.6 124.4 136.6

Starting from the beginning of 2024, Citycon excludes reorganisation and one-time costs (Q1–Q4/2024: EUR 9.6 million) from Adjusted EPRA Earnings. Due to

this, Adjusted EPRA Earnings is not fully comparable with the previous year. The adjusted key figure includes hybrid bond coupons and amortized fees.

2020 2021 2022 2023 2024

Development of EPRA NRV per share

during 2020–2024

EUR

11.48

12.15

11.01

9.30

7.87

2020 2021 2022 2023 2024

Development of EPRA Cost Ratio during

2020–2024

19.5

18.3

18.1

16.8

19.3

Financial statementsFinancial review Financial Review 2024

1. EPRA earnings and EPRA earnings per share (basic)

EPRA Earnings presents the underlying operating performance of a real estate company excluding all so called non-

recurring items such as net fair value gains/losses on investment properties, profit/loss on disposals and other non-

recurring items. EPRA Earnings is especially important for investors who want to assess the extent to which dividends

are supported by recurring income.

2024 2023

MEUR

Average

number

of shares

(1,000)

per share,

EUR MEUR

Average

number

of shares

(1,000)

per share,

EUR

Earnings in IFRS Consolidated Income Statement -37.9 182,316 -0.208 -115.0 168,285 -0.683

+/- Net fair value losses/gains on investment

property 74.6 182,316 0.409 200.3 168,285 1.190

-/+ Net gains/losses on disposal of investment

property 79.3 182,316 0.435 2.3 168,285 0.014

+/- Indirect other operating expenses -0.1 182,316 -0.001 0.3 168,285 0.002

+ Early close-out costs of debt and financial

instruments -0.8 182,316 -0.004 -2.9 168,285 -0.017

-/+ Fair value gains/losses of financial instruments 8.9 182,316 0.049 2.8 168,285 0.017

+/- Indirect losses/gains of joint ventures and

associated companies 0.0 182,316 0.000 32.0 168,285 0.190

-/+ Change in deferred taxes arising from the items

above -11.1 182,316 -0.061 -10.2 168,285 -0.060

EPRA Earnings (basic) 113.0 182,316 0.620 109.6 168,285 0.651

-/+ Hybrid bond coupons and amortized fees -33.1 182,316 -0.182 -28.9 168,285 -0.172

+ Reorganisation and one-time costs 9.6 182,316 0.053 - 168,285 -

Adjusted EPRA Earnings (basic) 89.5 182,316 0.491 80.6 168,285 0.479

EPRA Earnings can also be calculated from the statement of comprehensive income from top to bottom. The EPRA

Earnings calculation is presented in the next table with this different method, which also presents the Direct Operating

profit.

2024 2023

MEUR

Average

number

of shares

(1,000)

per share�

EUR MEUR

Average

number

of shares

(1,000)

per share�

EUR

Net rental income (NRI) 214.7 182,316 1.178 195.7 168,285 1.163

Direct administrative expenses -33.2 182,316 -0.182 -31.1 168,285 -0.185

Direct other operating income and expenses 2.2 182,316 0.012 0.3 168,285 0.002

Direct Operating profit 183.6 182,316 1.007 164.8 168,285 0.980

Direct net financial income and expenses -68.0 182,316 -0.373 -47.7 168,285 -0.284

Direct share of profit/loss of joint ventures and

associated companies -0.7 182,316 -0.004 -4.7 168,285 -0.028

Direct current taxes -2.1 182,316 -0.011 -2.9 168,285 -0.017

Change in direct deferred taxes 0.1 182,316 0.001 0.1 168,285 0.001

EPRA Earnings (basic) 113.0 182,316 0.620 109.6 168,285 0.651

Hybrid bond coupons and amortized fees -33.1 182,316 -0.182 -28.9 168,285 -0.172

+ Reorganisation and one-time costs 9.6 182,316 0.053 - 168,285 -

Adjusted EPRA Earnings (basic) 89.5 182,316 0.491 80.6 168,285 0.479

EPRA Earnings was EUR 113�0 million and EPRA EPS was EUR 0�620�

EPRA earnings increased mainly due to the acquisition of the remaining 50% interest of Kista Galleria shopping

centre in February 2024.

2023 1 2 3 4 5 6 7 8 9 2024

Change in EPRA earnings

MEUR

1.9

-2.1

-20.3

4.1

9.6

-33.1

19.0

0.8

113.0

89.5

109.6

1 Net rental income

2 Direct net financial income and expenses

3 Direct administrative expenses

4 Direct other operating income and expenses

5 Direct current and deferred taxes

6 Other direct items

7 EPRA Earnings 2024

8 Hybrid bond coupons and amortized fees

9 Reorganisation and one-time costs

Financial statementsFinancial review Financial Review 2024

2. EPRA net asset value metrics

EPRA NAV metrics present the fair value of net assets of

a real estate company.

The EPRA NRV scenario, aims to represent the value

required to rebuild the entity and assumes that no selling

of assets takes place. EPRA NRV intends to reflect the

fair value of a business on a going-concern basis, all

items arising from future disposals (e.g. deferred taxes

on disposals), the fair value of financial instruments

are excluded from EPRA NRV. The transfer tax cost to

rebuild the portfolio increases EPRA NRV.

The EPRA NTA is focused on reflecting a company’s

tangible assets and assumes that entities buy and

sell assets, thereby crystallising certain levels of

unavoidable deferred tax liability.

EPRA NDV aims to represent the shareholders’ value

under an orderly sale of business, where deferred tax,

financial instruments and certain other adjustments are

calculated to the full extent of their liability, net of any

resulting tax. EPRA NDV is a measure of the real estate

company’s “spot” fair value at the balance sheet date.

Spot fair value means that EPRA NDV reflects the fair

value of net assets of the company at a particular day

as opposed to EPRA NRV, which reflects the fair value

of net assets on a going-concern basis. However, EPRA

NDV is not a liquidation NAV as the fair values of assets

and liabilities are not based on a liquidation scenario.

Citycon considers EPRA NRV to be the most relevant

measure for its business and hence presents it as the

primary net asset metric.

Closing share price of Citycon was 3.22 EUR per share

on 31 December 2024.

The next tables present calculation of the three new

EPRA net asset value measures NRV, NTA and NDV.

EPRA NRV per share decreased by EUR 1�43 to

EUR 7�87 (9�30) mainly due to weaker NOK and

SEK currency rates, investment property fair

value losses and higher hybrid bond interests

that lowered equity� The impact of weaker

currency rates was EUR -0�16 per share�

EPRA Net Asset Value measures

31 December 2024 EPRA NRV EPRA NTA EPRA NDV

Equity attributable to parent company shareholders 1,265.7 1,265.7 1,265.7

Deferred taxes from the difference of fair value and fiscal value of investment properties

203.8 101.9 -

Fair value of financial instruments 1.3 1.3 -

Goodwill as a result of deferred taxes -44.7 - -

Goodwill as per the consolidated balance sheet - -89.9 -89.9

Intangible assets as per the consolidated balance sheet - -9.7 -

The difference between the secondary market price and carrying value of bonds

- - 22.2

Real estate transfer taxes

23.5 - -

TOTAL 1,449.6 1,269.3 1,198.0

Number of ordinary shares at balance sheet date, million 184.2 184.2 184.2

Net Asset Value per share 7.87 6.89 6.50

31 December 2023

Equity attributable to parent company shareholders 1,380.1 1,380.1 1,380.1

Deferred taxes from the difference of fair value and fiscal value of investment properties

246.3 123.1 -

Fair value of financial instruments 1.4 1.4 -

Goodwill as a result of deferred taxes -61.5 - -

Goodwill as per the consolidated balance sheet - -111.4 -111.4

Intangible assets as per the consolidated balance sheet - -10.7 -

The difference between the secondary market price and carrying value of bonds

- - 153.0

Real estate transfer taxes

33.8 - -

TOTAL 1,600.1 1,382.7 1,421.8

Number of ordinary shares at balance sheet date, million 172.0 172.0 172.0

Net Asset Value per share 9.30 8.04 8.27

When calculating the EPRA NDV in accordance with EPRA’s recommendations, the shareholders’ equity is adjusted using EPRA’s guidelines so that bonds

are valued based on secondary market prices. The difference between the secondary market price and the carrying value of the bonds was EUR 22.2 million

(secondary market price lower) as of 31 December 2024. In the comparison period 31 December 2023, the difference was EUR 153.0 million (secondary market

price lower).

The real estate transfer tax adjustment in EPRA NRV calculation is based on the transfer tax cost for the buyer for share deal in Finland. Share deals are not

subject to transfer tax in other group operating countries.

In the EPRA NTA formula, 50% of the deferred tax liability related to investment property fair value is added back, according to EPRA guidelines.

Financial statementsFinancial review Financial Review 2024

MEUR 2024 2023

Include:

Administrative expenses

33.2 31.1

Property operating expenses and other expenses from leasing operations less service charge

costs 74.8 68.0

Net service charge costs/fees 17.9 14.4

Management fees less actual/estimated profit element 0.4 -0.2

Other operating income/recharges intended to cover costs less any related profit -7.5 -7.5

Share of joint venture expenses 0.0 2.3

Exclude:

Ground rent costs -6.7 -6.1

Service charge costs recovered through rents but not separately invoiced -67.7 -57.3

Share of joint venture investment property depreciation, ground rent costs and service charge

costs recovered through rents but not separately invoiced 0.0 -2.6

EPRA Costs (including direct vacancy costs) (A) 44.6 42.3

Direct vacancy costs -6.1 -4.7

EPRA Costs (excluding direct vacancy costs) (B) 38.5 37.5

Gross rental income less ground rent costs 228.7 209.2

Add: share of joint ventures (Gross rental income less ground rent costs less service fees in GRI) 0.0 9.3

Gross Rental Income (C) 228.7 218.5

EPRA Cost Ratio (including direct vacancy costs) (A/C, %) 19.5 19.3

EPRA Cost Ratio (excluding direct vacancy costs) (B/C, %) 16.8 17.2

Administrative expenses are net of costs capitalised of EUR 1.5 million in 2024 and EUR 4.6 million in 2023. Citycon’s policy is to capitalise, for example,

expenses related to property development projects and major software development projects.

2023 1 2 3 4 5 2024

Change of net reinstatement value (EPRA NRV)

EUR

EPRA

NRV

EPRA

NRV

1 EPRA Earnings

2 Indirect result

3 Translation reserve

4 Dividends paid and equity return

5 Other

-0.30

-0.17

-1.02

0.62

-0.56

7.87

9.30

3. EPRA cost ratios

EPRA Cost Ratios reflect the relevant overhead

and operating costs of the business and provide a

recognized and understood reference point for analysis

of a company’s costs. The EPRA Cost Ratio (including

direct vacancy costs) includes all administrative and

operating expenses in the IFRS statements including

the share of joint ventures’ overheads and operating

expenses (net of any service fees). The EPRA Cost Ratio

(excluding direct vacancy costs) is calculated as above,

but with an adjustment to exclude vacancy costs. Both

EPRA Cost Ratios are calculated as a percentage of

Gross Rental Income less ground rent costs, including a

share of joint venture Gross Rental Income less ground

rent costs.

Financial statementsFinancial review Financial Review 2024

4. EPRA net initial yield (NIY), % and EPRA ‘topped-up’ NIY, %

EPRA initial yields present property portfolio’s ability to generate rent.

EPRA NIY, % is calculated by dividing the net rental income for the completed property portfolio, based on the valid

lease portfolio on the balance sheet date, by the gross market value of the completed property portfolio.

In EPRA ‘topped-up’ NIY, the net rental income is ‘topped-up’ to reflect rent after the expiry of lease incentives such as

rent free periods and rental discounts.

MEUR 31 December 2024 31 December 2023

Fair value of investment properties determined by the external appraiser 3,643.2 3,779.3

Less (re)development properties, unused building rights and properties which valuation is

based on the value of the building right -64.7 -83.5

Completed property portfolio 3,578.5 3,695.7

Plus the estimated purchasers' transaction costs 58.8 62.1

Gross value of completed property portfolio (A) 3,637.3 3,757.8

Annualised gross rents for completed property portfolio 278.9 272.1

Property portfolio's operating expenses -79.5 -73.4

Annualised net rents (B) 199.4 198.7

Plus the notional rent expiration of rent free periods or other lease incentives 2.2 0.8

Topped-up annualised net rents (C) 201.6 199.5

EPRA Net Initial Yield (NIY), % (B/A) 5.5 5.3

EPRA 'topped-up' NIY, % (C/A) 5.5 5.3

EPRA NIY and EPRA ‘TOPPED-UP’ NIY increased slightly

EPRA initial yields increased during the year mainly due to negative fair value development and changes in net

rental income.

5. EPRA vacancy rate, %

The EPRA vacancy rate presents how much out of the full potential rental income is not received because of vacancy.

The EPRA vacancy rate is calculated by dividing the estimated rental value of vacant premises by the estimated rental

value of the whole property portfolio if all premises were fully leased. The EPRA vacancy rate is calculated using the

same principles as the economic occupancy rate, which Citycon also discloses.

MEUR 31 December 2024 31 December 2023

Annualised potential rental value of vacant premises 16.5 13.6

÷ Annualised potential rental value for the whole property portfolio 278.4 264.7

EPRA vacancy rate, % 5.9 5.1

EPRA vacancy rate remained low but increased slightly from last year’s level

The EPRA vacancy rate at the end of 2024 for the entire property portfolio was 5.9%.

6. Property related capex

2024 2023

Group

(excl� Joint

ventures)

Joint ventures

(proportionate

share) Total

Group

(excl� Joint

ventures)

Joint ventures

(proportionate

share) Total

Acquisitions 341.0 341.0 - -

(Re)development 14.2 - 14.2 50.0 2.4 52.4

Investment properties

No incremental lettable space 1.5 1.5 15.3 15.3

Tenant incentives 24.1 24.1 27.0 27.0

Capitalised interest 0.4 0.4 0.5 0.5

Total capital expenditure

381.2 - 381.2 92.8 2.4 95.2

Conversion from accrual to cash basis -271.1 - -271.1 1.5 0.3 1.9

Total capital expenditure on cash basis

110.1 - 110.1 94.4 2.7 97.1

Include only investment properties and investment properties classified as held for sale related capex.

Investments include both income-producing and maintenance capex.

Financial statementsFinancial review Financial Review 2024

7. EPRA LTV

31 December 2024

MEUR

Citycon group as

reported MEUR

Share of Joint

Ventures MEUR

Share of Material

Associates MEUR

Non-controlling

Interests MEUR

Combined

MEUR

Include

Borrowings from Financial Institutions 509.5 - - - 509.5

Commercial paper 9.9 - - - 9.9

Hybrids 592.8 - - - 592.8

Bond loans 1,576.8 - - - 1,576.8

Foreign currency derivatives -18.0 - - - -18.0

Net payables -39.1 - - - -39.1

Exclude

Cash and cash equivalents 358.5 - - - 358.5

Net Debt (a) 2,273.5 - - - 2,273.5

Owner-occupied property 0.6 - - - 0.6

Investment properties at fair value 3,590.5 - - - 3,590.5

Properties held for sale 81.1 - - - 81.1

Intangibles 9.7 - - - 9.7

Financial assets 32.5 - - - 32.5

Total Property Value (b) 3,714.3 - - - 3,714.3

LTV (a/b) 61.2% 61.2%

31 December 2023

MEUR

Citycon group as

reported MEUR

Share of Joint

Ventures MEUR

Share of Material

Associates MEUR

Non-controlling

Interests MEUR

Combined

MEUR

Include

Borrowings from Financial Institutions 336.5 108.0 - - 444.5

Commercial paper 46.5 - - - 46.5

Hybrids 607.3 - - - 607.3

Bond loans 1,442.6 - - - 1,442.6

Foreign currency derivatives -10.9 - - - -10.9

Net payables 28.9 7.2 - - 36.1

Exclude

Cash and cash equivalents 25.2 3.7 - - 29.0

Net Debt (a) 2,425.8 111.5 - - 2,537.2

Owner-occupied property 2.4 - - - 2.4

Investment properties at fair value 3,817.7 172.9 - - 3,990.5

Properties held for sale - - - - 0.0

Intangibles 10.7 - - - 10.7

Financial assets 116.0 - - - 116.0

Total Property Value (b) 3,946.7 172.9 - - 4,119.6

LTV (a/b) 61.5% 64.5% 61.6%

Most significant difference between EPRA LTV and IFRS LTV is the classification of hybrid bonds. In EPRA LTV hybrid

bonds are presented as 100% debt whereas in IFRS LTV hybrid bonds are presented as 100% equity. Credit agencies

classify hybrid bonds as 50% debt and 50% equity.

In addition, EPRA LTV includes company’s share of joint venture’s selected assets and liabilities whereas IFRS LTV

excludes them.

Financial statementsFinancial review Financial Review 2024

8. EPRA earnings for five years

MEUR 2024 2023 2022 2021 2020

Earnings in IFRS Consolidated Income Statement -37.9 -115.0 5.1 121.0 -28.0

+/- Net fair value losses/gains on investment property 74.6 200.3 56.5 -48.6 146.9

-/+ Net gains/losses on disposal of investment property 79.3 2.3 4.3 6.5 -0.7

-/+ Indirect other operating expenses -0.1 0.3 26.7 0.4 -

-/+ Fair value gains/losses of financial instruments and early close-out

costs of debt and financial instruments 8.1 -0.1 1.0 8.2 5.8

+/- Indirect losses/gains of joint ventures and associated companies 0.0 32.0 21.0 2.3 27.2

-/+ Change in deferred taxes arising from the items above -11.1 -10.2 8.0 34.6 -14.7

+/- Non-controlling interest arising from the items above - - 0.0 - -

EPRA Earnings (basic) 113.0 109.6 122.6 124.4 136.6

-/+ Hybrid bond coupons and amortized fees -33.1 -28.9 -30.5 -24.3 -16.2

+ Reorganisation and one-time costs 9.6 - - - -

Adjusted EPRA Earnings (basic) 89.5 80.6 92.1 100.0 120.3

Issue-adjusted average number of shares, million 182,316 168,285 168,011 177,033 177,998

EPRA Earnings per share (basic), EUR 0.620 0.651 0.730 0.703 0.767

Adjusted EPRA Earnings per share (basic), EUR 0.491 0.479 0.548 0.565 0.676

EPRA Earnings can also be calculated from the consolidated income statement from top to bottom. The EPRA

Earnings calculation is presented in the next table with this different method, which also presents the Direct Operating

profit.

MEUR 2024 2023 2022 2021 2020

Net rental income 214.7 195.7 203.6 202.3 205.4

Direct administrative expenses -33.2 -31.1 -28.7 -26.1 -25.9

Direct other operating income and expenses 2.2 0.3 0.2 0.0 0.9

Direct operating profit 183.6 164.8 175.2 176.1 180.4

Direct net financial income and expenses -68.0 -47.7 -47.0 -46.8 -46.0

Direct share of profit/loss of joint ventures and associated companies -0.7 -4.7 -3.6 -4.0 -0.8

Direct current taxes -2.1 -2.9 -2.1 -3.3 -1.8

Change in direct deferred taxes 0.1 0.1 0.2 2.4 4.8

Direct non-controlling interest - - 0.0 0.0 -0.1

EPRA Earnings 113.0 109.6 122.6 124.4 136.6

Hybrid bond coupons and amortized fees -33.1 -28.9 -30.5 -24.3 -16.2

+ Reorganisation and one-time costs 9.6 - - - -

Adjusted EPRA Earnings 89.5 80.6 92.1 100.0 120.3

Issue-adjusted average number of shares, million 182,316 168,285 168,011 177,033 177,998

EPRA Earnings per share (basic), EUR 0.620 0.651 0.730 0.703 0.767

Adjusted EPRA Earnings per share (basic), EUR 0.491 0.479 0.548 0.565 0.676

Financial statementsFinancial review Financial Review 2024

Operational key figures

Shopping Centres

Location GLA, sq�m� Retail GLA, sq�m�

Economic

occupancy rate,

31 December 2024 Year of acquisition

Year built/latest

year of renovation

Finland

Shopping centres, Helsinki area

Heikintori Espoo 9,233 7,005 - 1998–2021 1968

Isomyyri Vantaa 11,536 8,204 - 1999 1987

Iso Omena Espoo 102,036 84,620 97% 2007, 2014 2001/2016, 2017

Lippulaiva Espoo 55,880 37,769 95% 2022–2023 2022–2023

Myyrmanni Vantaa 43,537 33,784 97% 1999, 2006 1994/2016

Shopping centres, other areas in Finland

IsoKarhu Pori 15,018 12,656 79% 1999 1972/2014

IsoKristiina Lappeenranta 17,016 12,701 96% 1999, 2005 1987, 1993/2015

Koskikeskus Tampere 35,215 30,128 93% 1999, 2003 1988/2012

Trio Lahti 46,335 27,501 87% 1999, 2007 1977, 1992/2010

Shopping centres, total - 335,805 254,367 95% - -

Other properties, total - 2,191 715 - - -

Finland, total - 337,996 255,082 95% - -

Norway

Shopping centres, Oslo area

Kolbotn Torg Kolbotn 18,835 16,655 100% 2015 2008

Liertoppen Kjøpesenter Lierskogen 26,504 24,486 98% 2015 1987/1990

Linderud Senter Oslo 21,148 16,395 99% 2015 1967/2009

Stovner Senter Oslo 42,703 31,611 94% 2020 1975/2016

Financial statementsFinancial review Financial Review 2024

Location GLA, sq�m� Retail GLA, sq�m�

Economic

occupancy rate,

31 December 2024 Year of acquisition

Year built/latest

year of renovation

Shopping centres, other areas in Norway

Herkules Skien 50,013 44,122 97% 2015 1969/2013

Kilden Kjøpesenter Stavanger 23,233 19,344 96% 2015 1989/2015

Kremmertorget Elverum 20,220 17,087 76% 2015 1979/2012

Oasen Kjøpesenter Fyllingsdalen 49,952 26,769 96% 2015 1971/2014

Solsiden

Trondheim 14,440 13,709 100% 2015 2000

Storbyen Sarpsborg 25,181 23,159 82% 2015 1999/2015

Shopping centres, total - 292,228 233,336 95% - -

Other properties, total - 8,126 7,006 - - -

Norway, total - 300,354 240,342 95% - -

Sweden

Shopping centres, Stockholm area

Jakobsbergs Centrum Järfalla 42,174 25,759 81% 2006 1959/1993

Kista Galleria, 100% Stockholm 91,766 58,360 89% 2013, 2024 1977,2002/ 2014

Liljeholmstorget Galleria Stockholm 41,306 27,199 98% 2006 1973/2009

Åkersberga Centrum Åkersberga 27,500 21,484 91% 2005, 2015 1985/2011

Shopping centres, Gothenburg area

Stenungstorg Centrum Stenungsund 35,806 22,425 88% 2006 1967/2016

Mölndals Galleria Mölndal 26,337 24,222 91% 2014/2018 2018

Shopping centres, total - 264,888 179,448 91% - -

Sweden, total - 264,888 179,448 91% - -

Shopping centres, Denmark

Albertslund Centrum Copenhagen 19,423 14,113 96% 2012 1965/2015

Strædet Køge 19,019 17,332 96% 2017, 2018 2017, 2018

Shopping centres, Estonia

Rocca al Mare Tallinn 57,817 56,498 98% 2005 1998/2009

Shopping centres, total - 96,259 87,942 97% - -

Other properties, total - - - - - -

Denmark & Estonia, total - 96,259 87,942 97% - -

Total - 999,497 762,814 94% - -

Including Kista Galleria 100%.

Rented property.

Financial statementsFinancial review Financial Review 2024

Fair value

No� of properties Fair value, EUR million

Fair value change,

EUR million Average yield requirement, %

Average market rent,

EUR/sq�m�/month

31 December 2024 31 December 2024 31 December 2023 2024 31 December 2024 31 December 2023 31 December 2024

Shopping centres, Finland 9 1,574.5 1,683.9 -57.2 - - -

Other properties, Finland 1 3.6 4.4 -0.8 - - -

Finland, total 10 1,578.1 1,688.3 -58.0 5.9 5.5 30.3

Shopping centres, Norway 9 814.1 1,077.1 -22.6 - - -

Rented shopping centres, Norway

1 - - - - - -

Other properties, Norway 1 - - -0.5 - - -

Norway, total 11 814.1 1,077.1 -23.1 6.7 6.2 21.1

Shopping centres, Sweden

6 902.2 610.8 19.5 - - -

Other properties, Sweden - - 6.7 0.0 - - -

Sweden, total 6 902.2 617.5 19.5 6.0 5.8 25.5

Shopping centres, Denmark & Estonia 3 292.9 434.8 -6.3 - - -

Other properties, Denmark & Estonia 1 3.1 - 0.6 - - -

Denmark & Estonia, total 4 296.0 434.8 -5.7 7.1 7.2 21.9

Shopping centres, total 28 3,583.7 3,806.6 -66.6 - - -

Other properties, total 3 6.8 11.1 -0.7 - - -

Investment properties, total 31 3,590.5 3,817.7 -67.3 6.2 6.0 25.4

Right-of-use assets classified as investment properties (IFRS 16) - 37.3 40.5 -7.4 - - -

Investment properties in the statement of financial position, total 31 3,627.8 3,858.2 -74.6 6.2 6.0 25.4

Kista Galleria, 50% - - 173.2 - - - -

Investment properties in the statement of financial position and Kista Galleria (50%), total 31 3,627.8 4,031.4 -74.6 6.2 5.9 25.4

Value of rented properties is recognised within IFRS 16 investment properties based on IFRS rules.

31 December 2024 includes Kista Galleria 100%

Financial statementsFinancial review Financial Review 2024

Like-for-like portfolio

No� of properties Fair value, EUR million

Fair value change,

EUR million Average yield requirement, %

Average market rent,

EUR/sq�m�/month

31 December 2024 31 December 2024 31 December 2023 2024 31 December 2024 31 December 2023 31 December 2024

Shopping centres, Finland 5 1,341.2 1,440.1 -45.9 - - -

Other properties, Finland - - - - - - -

Finland, total 5 1,341.2 1,440.1 -45.9 6.0 5.5 32.1

Shopping centres, Norway 8 794.9 842.8 -11.6 - - -

Rented shopping centres, Norway

1 - - - - - -

Norway, total 9 794.9 842.8 -11.6 6.6 6.1 21.7

Shopping centres, Sweden 3 452.6 461.4 1.0 - - -

Other properties, Sweden - - - - - - -

Sweden, total 3 452.6 461.4 1.0 5.7 5.6 30.5

Shopping centres, Denmark & Estonia 2 115.0 110.8 2.9 - - -

Other properties, Denmark & Estonia - - - - - - -

Denmark & Estonia, total 2 115.0 110.8 2.9 6.4 6.4 19.1

Shopping centres, total 19 2,703.7 2,855.2 -53.5 - - -

Other properties, total - - - - - - -

Like-for-like properties, total 19 2,703.7 2,855.2 -53.5 6.1 5.8 26.9

Right-of-use assets classified as like-for-like properties (IFRS 16) - 36.1 40.2 -6.7 - - -

Like-for-like properties in the statement of financial position, total 19 2,739.8 2,895.4 -60.2 6.1 5.8 26.9

Value of rented properties is recognised within IFRS 16 investment properties based on IFRS rules.

Citycon’s five largest properties

Average rent,

EUR/sq�m�/

month

Gross rental

income,

EUR million

Net rental

income,

EUR million

Fair

value,

EUR million

Fair value

change,

EUR million

31 December

2024 2024 2024

31 December

2024 2024

Iso Omena 39.3 37.6 36.9 788.6 -20.6

Kista Galleria 24.8 16.7 12.2 308.4 22.4

Liljeholmstorget Galleria 37.6 15.9 15.5 306.8 3.4

Lippulaiva 29.1 15.1 14.4 297.0 -8.9

Myyrmanni 27.5 10.7 10.9 204.0 -8.4

Five largest properties, total 32.0 95.9 89.8 1,904.8 -12.2

Including Kista Galleria 100% and IFRS 16 assets

Financial statementsFinancial review Financial Review 2024

Average rent

Average remaining

length of lease

agreements, years

Average remaining

length of lease

agreements, years

Average rent,

EUR/sq�m�/month

Average rent,

EUR/sq�m�/month

31 December 2024 31 December 2023 31 December 2024 31 December 2023

Finland 4.1 4.5 28.6 27.9

Norway 2.9 2.9 21.5 20.9

Sweden 2.4 2.5 25.1 23.7

Denmark & Estonia 3.4 3.4 23.1 23.1

Total 3.3 3.5 25.0 24.0

Including Kista Galleria 100%

Rental income by business units

Gross rental income, EUR million Net rental income, EUR million

2024 2023 2024 2023

Finland 84.5 81.6 80.9 76.4

Norway 65.4 67.7 60.5 62.5

Sweden 52.5 33.8 42.4 27.8

Denmark & Estonia 33.0 32.2 30.9 29.3

Other - - 0.0 -0.4

Investment properties, total 235.4 215.3 214.7 195.7

2024 Including Kista Galleria 100%

Top ten tenants

Proportion of rental income based on valid rent roll at 31 December 2024, %

S Group 5.5%

Kesko Group 5.1%

ICA Group 2.3%

Varner Group 2.3%

NorgesGruppen 1.7%

Coop 1.6%

Lindex Group 1.5%

SATS 1.4%

Normal 1.4%

Tryg Forsikring 1.3%

Total 24.2%

Including Kista Galleria 100%

Leasing activity, investment properties

Number of lease

agreements Leased area, sq�m�

Average rent, EUR/

sq�m�/month

31 December 2023 4,153 983,733 24.0

Leases started 1,222 200,342 20.2

Leases ended 1,544 293,406 23.4

Acquisitions - - 0.0

Other changes - 438 -

31 December 2024 3,831 891,107 25.0

Including Kista Galleria 100%

Rental Income by Category, %

Finland Norway Sweden

Denmark

& Estonia Total

Groceries 27.0 13.2 15.0 21.6 19.8

Fashion and Accessories 14.9 20.7 17.1 23.4 17.8

Home and Sporting Goods 10.8 24.0 11.1 21.3 15.4

Services and Offices 15.5 16.8 16.9 10.2 15.7

Cafes and Restaurants 11.9 8.1 13.3 7.7 10.8

Cosmetics and Pharmacies 6.8 10.4 10.4 7.1 8.7

Wellness 3.8 5.5 8.2 3.2 5.3

Specialty Stores 3.2 1.2 1.2 3.2 2.1

Residentials and Hotels 4.5 - 5.8 - 3.2

Leisure 1.6 0.2 0.8 2.4 1.1

Total 100.0 100.0 100.0 100.0 100.0

Including Kista Galleria 100%

Financial statementsFinancial review Financial Review 2024

(Re)development projects in progress

Completed (re)development projects on Q1–Q4/2024

Location Area before/after, sq�m�

Actual gross investment by

31 December 2024, MEUR Completion

Barkarby,

residentials

Stockholm,

Sweden -/12,950 66.9 2024

Citycon divested the property in December 2024 simultaneously with the purchase of the property from the developer.

Financial statementsFinancial review Financial Review 2024

Risk and risk management

The objective of Citycon’s risk management is to

ensure that the business targets are achieved by

identifying, assessing and monitoring key risks

which may threaten these targets, and to the extent

possible, avoid, transfer or mitigate these risks.

Risk management principles

Citycon is exposed to various risks through the normal

course of its activities. No business can be conducted

without accepting a certain risk level, and expected

gains are to be assessed against the involved risks.

Successful risk management implemented in the

business processes decreases the likelihood of risk

realization and mitigates the negative effects of

realised risk. Many of the risks and threats have not

only potential negative effects, but could also develop

in a favourable manner, or if effective proactive

measures are taken, be turned into opportunities for

Citycon.

The Board of Directors determines Citycon’s strategic

direction and is jointly with the Management

Committee responsible for the long term and overall

management of strategic risks. The operational risks,

financial risks and hazard risks are managed in the

various functions as a part of operational management.

Each function has a dedicated person who is the owner

of the risks in that area and also responsible for the

reporting of the risks, the mitigation plans and the

follow-up on their implementation.

Risk reporting

The risk management and reporting process involves

identifying, assessing, quantifying, mitigating and

monitoring risks in all main business operations and

processes. The process also includes evaluation of

existing, and the planning of new, risk mitigation plans

for the identified risks in order to continuously improve

risk management processes.

The risk reporting process gathers data on risks and

the respective mitigation plans into one group-wide

risk register. A Risk Steering Committee is responsible

for the risk reporting process and evaluates which risks

to present to Citycon’s Board of Directors to facilitate

discussion and inform about the major risks in the

company. This is done during the budgeting process so

that the risks are linked to the annual targets. In order

to evaluate the importance of each risk and to improve

the comparativeness, an estimate of the loss associated

with each risk is determined together with the

probability of risk realization. The realised risks during

the previous year are also estimated and reported.

Identify

Assess &

quantify

Create

mitigation

plans

Report risks

and mitigation

plans to the

board

Monitor

Insurances

To transfer certain operational and hazard risks, Citycon

maintains a comprehensive insurance coverage to cover

damages, claims and liabilities potentially arising from

the Group’s business. The properties are insured under

the property damage policy to their full reconstruction

value, including business interruption insurance and

third-party liability insurance. Citycon also have other

customary insurance policies.

Board of Directors

Risk Report

Risk management

as part of continuous operational management

in Management Committee

• Operations

• Leasing

• Business development

• Property transactions

• Property development

• Reporting and accounting

• Property valuations

Business operations and functions

• Tax

• Funding

• Financial risk management

• Communication and IR

• Legal

• IT

• HR

Internal auditInternal control

Financial statementsFinancial review Financial Review 2024

Risk and impact Risk management measures

Leasing • The economic development in Citycon’s operating countries impacts consumer confidence which could affect demand for

retail premises. This may lead to lower rental levels or increased vacancy. It could also increase the risks for credit losses or

decrease turnover based rental income.

• Continued high inflation environment and increased energy costs could affect negatively to consumer purchase power and

increase the risk of tenant bankruptcies and weaken tenant’s capability to pay rent which could increase Citycon’s vacancy and

weaken results.

• The growing online retailing that affects customer behavior, or increased local competition may affect demand for retail

premises and put pressure on rental levels or increase vacancy, especially in less urban locations.

• Citycon’s strategy to focus on grocery anchored, urban shopping centres connected to public transportation with necessity-driven

retail has proven its stability in various market conditions with steady cash flows, occupancy and low credit losses also during a

downturn. This strategy also decreases the negative effects of the increasing online retailing.

• The fact that most of the company’s assets are in AAA/AA+ rated countries decreases the risk of a major downturn affecting the

retail sector.

• Citycon is continuously following and analysing tenants to identify risk tenants, and requires a rent collateral.

• Tenant diversification has improved considerably through focused leasing efforts and through pan-Nordic strategy and the share

of risk tenants has actively been decreased.

Property

Development

& transactions

• The planned divestments of centers may be delayed due to the weak market conditions and the low liquidity of secondary

assets.

• Increased costs in development projects due to rising construction costs or delays due to unforeseeable challenges.

• Reduced demand for new retail space could result in a low occupancy rate or lower than planned rent levels in new premises.

• Maintaining relatively low level of development exposure and keeping no landbank.

• Construction costs are managed through competitive tendering, careful project monitoring of costs and by entering into contracts

with price caps when appropriate.

• Leasing risks are minimised by having strict pre-leasing requirements prior to project start, by signing agreements with key anchor

tenants at an early stage and by carrying out developments in proven retail locations with strong and growing demographics.

Operations • A major accident, system failure, or terrorist incident could threaten the safety of shoppers and retailers, leading to loss of

consumer confidence and thereby loss of income and extra costs.

• Risk of increased operating cost for e.g. maintenance, energy or security. In some lease agreements the rent paid by the

lessee is not affected by changed operating expenses, and a rise in operating expenses higher than inflation would decrease

the profitability. Also, when the higher costs can be passed to tenants, rising operating expenses may reduce tenants’ rental

payment capacity.

• Governmental restrictions due to new pandemic could threaten footfall and tenants’ ability to conduct business.

• Risk of accidents and incidents mitigated by adequate security plans and incident procedures supported by crisis case exercises

for personnel.

• Comprehensive insurance coverage.

• Citycon tries to minimize the impact of rising operating expenses by lease contracts with specified rent components when possible

and charging tenants based on actual operating costs.

• Efficient centralized procurement, frame contracts with service providers and suppliers, cost monitoring and cost benchmarking

between shopping centres.

• To mitigate the risk of energy price hikes, electricity prices are fixed according to a hedging policy, and energy efficiency actions

have been implemented.

Property

values

• The value of the properties can decrease for a number of reasons: a weaker economic environment impacting consumer

purchase power, changes in -competition and consumer behaviour towards internet shopping, reduced availability and higher

cost of financing and the relative attractiveness of other asset classes. The changes may lead to higher yield requirements,

decreased market rents and increased vacancy rates.

• While many of the factors affecting property values cannot be influenced, Citycon seeks to impact the fair market value through

active shopping centre management and optimising the profitability of its centres.

• Citycon’s strategy to focus on urban mixed-use centres with necessity-driven retail and services in strong and growing locations

results in relatively stable property valuations throughout the economic cycle.

• Citycon’s presence in five highly rated countries gives country risk diversification and decreases the volatility of the total property

values.

Environment • Environmental concerns, customer expectations or legislation might restrict or impact Citycon’s business, land use and

construction.

• Risks associated with e.g. climate change might affect Citycon’s business environment. For example, extreme weather

conditions and regulation implemented to mitigate and adapt to climate change can increase energy, maintenance and

construction costs.

• Environmental impact assessments are conducted in connection with major projects.

• Ensuring the environmental compliance of our buildings through energy investments, internal management practices, green

energy purchase and production as well as external standards and certifications.

• A sustainability strategy with clear short-term and long-term goals.

People • An expert organisation of Citycon’s nature relies heavily on its personnel for success, and therefore it is crucial to attract and

retain the right people, develop competencies and ensure clear roles and targets.

• Citycon sees good leadership as essential to reduce personnel related risks and places great emphasis on target-setting and

performance management, competence development, career advancement, and commitment of key employees.

Financing • Both bank and bond financing have been available for Citycon, but willingness to lend at competitive terms could decline due to

credit rating downgrades, turmoil in financial markets, tightening regulation or other reasons, which could affect the availability

or cost of debt financing.

• If interest rates continue to be at high level, it will inevitably increase Citycon’s financial expenses over time.

• Citycon has a conservative but active financing policy, with a focus on long-term financing, a solid balance sheet and keeping

70–90% of debt tied to fixed interest rates to reduce the effects of increased interest rates.

• Investment grade credit rating by Standard & Poor’s (BBB-) supports the availability and cost of financing. Several long-term bond

issues have reduced the refinancing risk and dependency on bank financing.

Financial statementsFinancial review Financial Review 2024

Shares and shareholders

Listing

Market place Nasdaq Helsinki

Listed since 1988

Trading currency euro

Segment Large Cap

Sector Financials

Sub-industry Real Estate Operating Companies

Trading code CTY1S

ISIN code FI4000369947

Shares and share capital

Citycon Oyj’s shares are listed on Nasdaq Helsinki.

Citycon has one series of shares and each share entitles

its holder to one vote at the General Meeting and to an

equal dividend. The shares have no nominal value.

At year-end 2024, Citycon’s total number of shares was

184,231,295. The market capitalisation of Citycon at

the end of 2024 was EUR 0.6 billion based on the stock

price of EUR 3.22.

In 2024, approximately 75.5 million Citycon shares

were traded on the Helsinki Stock Exchange. The

daily average trading volume was 300,778 shares,

representing a daily average turnover of approximately

EUR 1.2 million.

Shareholders

The number of registered shareholders at year-end

2024 was 25,660 (27,738). Shares owned by nominee-

registered parties equaled 67.7% at year-end 2023

(70.2%). Citycon is one of the companies on the Helsinki

Stock Exchange with the most international ownership

base.

Largest shareholders

Citycon’s largest shareholders according to Euroclear

Finland are listed in the table below.

In total, G City Ltd. and its wholly-owned subsidiary

Gazit Europe Netherlands own 49.54% of the total

shares and votes in the company (91,259,016 shares

as of 31 December 2024). Their shareholdings are

mostly nominee-registered. The above-mentioned

shareholdings include their direct ownership mentioned

on the table above.

Dividend payout

The Board of Directors proposes to the Annual General

Meeting that the Board of Directors will be authorized

to decide on the distribution of assets from the invested

unrestricted equity fund.

Based on this authorization, the maximum total amount

of equity repayment distributed from the invested

unrestricted equity fund shall not exceed EUR 0.30

per share. Based on the current total number of issued

shares in the company (184,231,295), the authorization

Share price and trading

2024 2023 2022 2021 2020

Number of shares traded

1,000 x 75,495 61,626 84,382 94,293 68,046

Stock turnover % 41.0 35.8 50.2 56.0 38.2

Share price, high

EUR 5.21 7.01 7.57 8.18 9.99

Share price, low

EUR 3.13 4.89 5.96 6.67 5.22

Share price, average

EUR 4.03 5.93 6.81 7.37 7.19

Share price, closing

EUR 3.22 5.20 6.26 7.00 7.93

Market capitalisation, period-end MEUR 592.9 894.4 1,050.9 1,179.5 1,411.5

Number of shares, period-end 1,000 x 184,231 171,994 168,009 168,499 177,999

Comparative figures adjusted to reflect the reverse split on March 18, 2019.

Share price and volume

Number of shares, thousands

Citycon share price

Citycon share volume

2,500

2,000

1,500

1,000

500

January 2024 December 2024

EUR

Financial statementsFinancial review Financial Review 2024

would equal to a maximum of EUR 55,269,389 in equity

repayment.

The authorization is valid until the opening of the next

Annual General Meeting.

As disclosed on 15 November 2024, the Board of

Directors of Citycon Oyj has unanimously decided that

it will not use its authorization and no dividend or equity

repayment will be distributed until year end 2025. The

decision has been made to further increase the long-

term financial stability, and to strengthen the balance

sheet and the credit profile of the company.

Major shareholders 31 December 2024

In total, G City Ltd. (former Gazit-Globe Ltd.) and its

wholly-owned subsidiary Gazit Europe Netherlands

own 49.54% of the total shares and votes in the

company (91,259,016 shares as of 31 December 2024).

Their shareholdings are mostly nominee-registered.

The above-mentioned shareholdings include their

direct ownership mentioned on the list below. More

information on ownership of G City Ltd and Gazit Europe

Netherlands BV is available on company’s website:

citycon.com/investors/major-shareholders

Major shareholders 31 December 2024

Shares %

Ilmarinen Mutual Pension Insurance Company 13,299,139 7%

G City Ltd

4,882,174 3%

The State Pension Fund 1,400,000 1%

Elo Mutual Pension Insurance Company 1,340,000 1%

OP-Henkivakuutus Ltd. 836,686 0%

Zeroman Oy 816,666 0%

Nordea Life Assurance Finland Ltd. 623,867 0%

Pakkanen Mikko Pertti Juhani 500,000 0%

eQ Nordic Small Cap Mutual Fund 493,624 0%

Rantalainen-Yhtiöt Oy 450,000 0%

10 largets shareholders, total 24,642,156 13%

Nominee-registered shares 124,692,914 68%

Others 34,896,225 19%

Total 184,231,295 100%

Includes non-nominee-registered ownership. In total, G City Ltd. and its wholly-owned subsidiary Gazit Europe Netherlands own 49.54% of the total shares and

votes in the company (91,259,016 shares as of 31 December 2024).

Shareholders by ownergroup 31 December 2024

Number of shareholders % Number of shares %

Financial and insurance corporations 33 0% 119,994,319 65%

Corporations 1,074 4% 7,509,024 4%

Households 24,343 95% 25,631,149 14%

General government 5 0% 16,110,647 9%

Foreign 66 0% 13,083,273 7%

Non-profit institutions 129 1% 1,902,883 1%

Total 25,650 100% 184,231,295 100%

Shareholdings by number of shares 31 December 2024

Number of shares Number of shareholders % Number of shares %

1–100 8,378 33% 365,835 0%

101–1,000 12,262 48% 4,883,243 3%

1,001–10,000 4,489 17% 12,818,912 7%

10,001–100,000 487 2% 12,101,367 7%

100,001–1,000,000 36 0% 10,625,624 6%

1,000,001 + 8 0% 143,436,314 78%

Total 25,660 100% 184,231,295 100%

Financial statementsFinancial review Financial Review 2024

Key figures and financial development for five years

Formula 2024 2023 2022 2021 2020

Income statement data

Gross rental income 235.4 215.3 222.3 222.2 224.3

Net rental income

Finland 80.9 76.4 68.6 66.5 66.2

Norway 60.5 62.5 78.9 77.8 74.1

Sweden 42.4 27.8 30.4 32.0 39.0

Denmark & Estonia 30.9 29.3 26.0 26.0 26.0

Other 0.0 -0.4 -0.3 0.0 0.1

Net rental income total 214.7 195.7 203.6 202.3 205.4

Other operating income and expense 2.3 0.0 -26.5 -0.4 0.9

Operating profit/loss 29.8 -38.0 87.7 217.8 34.1

Result before taxes -47.0 -122.3 15.1 156.5 -45.7

Result for the period attributable to parent company shareholders -37.9 -115.0 5.3 121.0 -28.0

Statement of financial position data

Investment properties 3,627.8 3,858.2 4,040.1 4,189.2 4,152.2

Current assets

411.3 99.4 135.9 145.0 77.8

Total equity 1,858.5 1,987.5 2,310.3 2,489.5 2,166.0

Equity attributable to parent company shareholders 1,265.7 1,380.1 1,618.8 1,800.1 1,818.6

Non-controlling interest 0.0 0.0 0.0 0.3 0.2

Interest-bearing liabilities 2,131.5 1,864.4 1,807.7 1,878.5 2,121.2

Total liabilities 2,444.6 2,220.9 2,150.5 2,313.5 2,514.0

Total liabilities and shareholders’ equity 4,303.1 4,208.4 4,460.7 4,803.0 4,680.0

Number of properties

31 34 34 37 41

Current assets for 31 December 2023 has been revised by reclassifying a deferred payment of EUR 17.1 million related to asset divested in December 2022 from

long-term receivables to short-term receivables due to payment being due for payment at the end of December 2024. Previously reported amount was EUR

82.3 million.

Kista Galleria 50% not included in 2020-2023 numbers.

LTV 2021 changed due to correction related to presentation of IFRS 16 assets. Previously reported LTV for 2021 was 40.7.

The Board of Directors proposes to the Annual General Meeting that the Board of Directors will be authorized to decide on the distribution of assets from the

invested unrestricted equity fund. Based on this authorization, the maximum total amount of equity repayment distributed from the invested unrestricted equity

fund shall not exceed EUR 0.30 per share. Based on the current total number of issued shares in the company (184,231,295), the authorization would equal to a

maximum of EUR 55,269,389 in equity repayment. The authorization is valid until the opening of the next Annual General Meeting. As disclosed on 15 November

2024, the Board of Directors of Citycon Oyj has unanimously decided that it will not use its authorization and no dividend or equity repayment will be distributed

until year end 2025. The decision has been made to further increase the long-term financial stability, and to strengthen the balance sheet and the credit profile

of the company.

Formula 2024 2023 2022 2021 2020

Key performance ratios

Equity ratio, % 1 43.3 47.4 51.8 52.0 46.4

Loan to value (LTV), %

2 47.3 46.3 41.4 40.3 46.9

Return on equity, % (ROE) 3 -2.7 -7.5 0.3 6.6 0.0

Return on investment, % (ROI) 4 0.7 -1.9 1.5 4.8 2.8

Quick ratio 5 4.8 0.2 0.7 2.6 0.7

Gross capital expenditure, MEUR 382.3 95.9 177.0 224.1 344.4

% of gross rental income 162.4 44.5 79.6 100.9 153.5

Per-share figures and ratios

Earnings per share, EUR 6 -0.40 -0.70 -0.15 0.55 -0.25

Earnings per share, diluted, EUR 7 -0.40 -0.70 -0.15 0.54 -0.25

Net cash from operating activities per share, EUR 8 0.71 0.75 0.59 0.72 0.71

Equity per share, EUR 9 10.09 11.56 13.75 14.80 12.17

P/E (price/earnings) ratio 10 - - - - -

Return from invested unrestricted equity fund per share,

EUR

0.30 0.50 0.50 0.45 0.49

Dividend per share, EUR

- - - 0.05 0.05

Dividend and return from invested unrestricted equity fund

per share total, EUR

0.30 0.50 0.50 0.50 0.54

Dividend and return of equity per earnings, % 11 - - - 91.6 -

Effective dividend and return of equity yield, % 12 9.3 9.6 8.0 7.1 6.8

Issue-adjusted average number of shares (1,000)

182,316 168,285 168,011 177,033 177,998

Issue-adjusted number of shares at the end of financial

year (1,000)

184,231 171,994 168,009 168,202 177,999

Operative key ratios

Occupancy rate (economic), %

13 94.1 94.9 94.5 93.4 93.9

Citycon's GLA, sq.m.

999,497 1,011,490 1,013,390 1,059,090 1,136,390

Personnel (at the end of the period) 164 234 251 251 246

Issue-adjusted number of shares excluding Treasury shares held by the company.

Formulas are presented on section Formulas for key figures and ratios.

Financial statementsFinancial review Financial Review 2024

Formulas for key figures and ratios

1) Equity ratio, % Total Equity

X 100

Balance sheet total - advances received

2) Loan to value (LTV), % Interest bearing liabilities – lease liabilities (IFRS 16) – cash and cash equivalents

X 100

Fair value of investment properties + assets held for sale + investments in joint ventures -

right-of-use assets classified as investment properties (IFRS 16)

3) Return on equity (ROE), % Result for the period

X 100

Total Equity attributable to parent company shareholders (weighted average)

4) Return on investment (ROI), % Result before taxes + interest and other financial expenses

X 100

Balance sheet total (average) - non-interest-bearing liabilities (average)

5) Quick ratio Current assets

Short-term liabilities

6) Earnings per share (EPS), EUR

Result for the period attributable to parent company shareholders

X 100

Average number of shares for the period

7) Earnings per share, diluted, EUR

Result for the period attributable to parent company shareholders

X 100

Diluted average number of shares for the period

8) Net cash from operating activities

per share, EUR

Net cash from operating activities

X 100

Average number of shares for the period

9) Equity per share, EUR Total equity

Number of shares on the balance sheet date

10) P/E ratio (price/earnings) Closing price at year-end

EPS

11) Dividend and return of equity

per earnings, %

Dividend and return of equity per share

X 100

EPS

12) Effective dividend and

return of equity yield, %

Dividend and return of equity per share

X 100

Closing price at year-end

13) Occupancy rate (economic), % Gross rental income as per leases

X 100

Estimated market rent of vacant premises + gross rental income as per leases

Transaction costs and coupons on hybrid bond are deducted from the result for the period attributable to parent company shareholders, despite the recognition

date (coupons are recorded based on the commitment to the payment). In addition, gains/losses and expenses on hybrid bond repayments are included in the

calculation.

Financial statementsFinancial review Financial Review 2024

Financial

statements

Citycon Oyj’s consolidated financial statements �� 41

Consolidated income statement, IFRS ..............................41

Consolidated statement of

other comprehensive income, IFRS .....................................41

Consolidated statement of financial position, IFRS ....42

Consolidated cash flow statement, IFRS ..........................43

Consolidated statement of changes

in shareholders’ equity, IFRS .................................................... 44

Notes to the consolidated financial statements �� 45

Parent company financial statements, FAS �� 83

Notes to the parent company‘s financial

statements, FAS ............................................................................. 86

Signatures to the financial statements ..............................90

Auditor’s report ...............................................................................91

Financial statementsFinancial review Financial Review 2024

Citycon Oyj’s consolidated financial statements

Consolidated income statement, IFRS

MEUR Note 2024 2023

Gross rental income 1.2. 235.4 215.3

Service charge income 1.3. 85.9 74.7

Property operating expenses 1.4. -104.5 -92.8

Other expenses from leasing operations -2.1 -1.6

Net rental income 1.1. 214.7 195.7

Administrative expenses 1.5. -33.2 -31.1

Other operating income and expenses 1.3, 1.7. 2.3 0.0

Net fair value gains/losses on investment property 2.1. -74.6 -200.3

Net gains/losses on sale of investment property 1.1., 5.1. -79.3 -2.3

Operating profit/loss 29.8 -38.0

Financial income 76.5 87.7

Financial expenses -152.7 -135.3

Net financial income and expenses 3.2. -76.1 -47.7

Share of profit/loss of associated companies and joint ventures 2.4. -0.7 -36.7

Result before taxes -47.0 -122.3

Current taxes 4.1. -2.1 -2.9

Change in deferred taxes 4.2. 11.2 10.3

Income taxes 9.2 7.4

Result for the period -37.9 -115.0

Result attributable to

Parent company shareholders -37.9 -115.0

Non-controlling interest 0.0 0.0

Earnings per share attributable to parent company shareholders:

Earnings per share (basic), EUR 1.8. -0.40 -0.70

Earnings per share (diluted), EUR 1.8. -0.40 -0.70

The key figure includes hybrid bond coupons (both paid and accrued not yet recognized), amortized fees and gains/losses and expenses on hybrid bond

repayments.

Consolidated statement of other comprehensive income, IFRS

MEUR Note 2024 2023

Result for the period -37.9 -115.0

Other comprehensive income/expenses

Items that may be reclassified to profit or loss in subsequent periods

Net gains/losses on cash flow hedges 3.2. 0.2 -3.4

Share of other comprehensive income of associated companies and

joint ventures 0.0 0.0

Exchange gains/losses on translating foreign operations -31.1 -51.7

Net other comprehensive income that may be reclassified to profit

or loss in subsequent periods -30.9 -55.0

Other comprehensive income/expenses for the period, net of tax -30.9 -55.0

Total comprehensive profit/loss for the period -68.8 -170.0

Total comprehensive profit/loss attributable to

Parent company shareholders -68.8 -170.0

Non-controlling interest 0.0 0.0

Operational performance increased in 2024

Net rental income increased in 2024 mainly due

to acquisition of the remaining 50% interest of

Kista Galleria shopping centre in February 2024.

Operating profit was EUR 29.8 million positive.

Result for the period in 2024 was impacted by

higher financial expenses

Overall financial performance was negatively

impacted by the net fair value loss from

investment properties of EUR 74.6 million and

the disposals made during 2024 together with

increased financial expenses.

2023 1 2 3 4 5 2024

Change in operating profit

MEUR

1 Change in net rental income

2 Change in administrative expenses

3 Change in other operating income and expenses

4 Change in fair value gains/losses

5 Change in gains/losses on sale

125.6

2.3

-2.1

19.0

-38.0

-77.0

29.8

Financial statementsFinancial review Financial Review 2024

Consolidated statement of financial position, IFRS

MEUR Note 31 December 2024 31 December 2023

ASSETS

Non-current assets

Investment properties 2.1. 3,627.8 3,858.2

Goodwill 5.2. 89.9 111.4

Investments in associated companies and joint ventures 2.4. 3.4 72.4

Intangible assets 4.3. 9.7 10.7

Property, plant and equipment 0.6 2.4

Deferred tax assets 4.2. 16.4 16.5

Derivative financial instruments 3.6. 30.0 37.2

Other non-current assets

3.9. 32.9 0.4

Total non-current assets

3,810.7 4,109.0

Assets held for sale 2.2. 81.1 0.0

Current assets

Derivative financial instruments 3.6. 6.5 0.1

Current tax receivables 4.1. 0.3 0.6

Trade and other receivables

3.3., 4.4. 46.1 73.4

Cash and cash equivalents 3.8. 358.5 25.2

Total current assets

411.3 99.4

Total assets 4,303.1 4,208.4

Consolidated statement of financial position for 31 December 2023 has been revised by reclassifying a deferred payment of EUR 17.1 million related to asset

divested in December 2022 from long-term receivables to short-term receivables due to payment being due for payment at the end of December 2024.

MEUR Note 31 December 2024 31 December 2023

EQUITY AND LIABILITIES

Equity 3.1.

Share capital 259.6 259.6

Share premium fund 131.1 131.1

Fair value reserve -1.3 -1.4

Invested unrestricted equity fund 589.4 596.8

Translation reserve -271.1 -240.0

Retained earnings 558.0 634.1

Total equity attributable to parent company shareholders 1,265.7 1,380.1

Hybrid bond 3.1. 592.8 607.3

Non-controlling interest 0.0 0.0

Total equity 1,858.5 1,987.5

Long-term liabilities

Loans 3.3., 3.4. 2,110.7 1,502.8

Derivative financial instruments 3.3., 3.6. 12.7 22.6

Deferred tax liabilities 4.2. 208.4 247.8

Other liabilities 3.3. 0.2 0.2

Total long-term liabilities 2,331.9 1,773.4

Short-term liabilities

Loans 3.3., 3.4. 20.8 361.6

Derivative financial instruments 3.3., 3.6. 3.9 5.3

Current tax liabilities 4.1. 1.8 2.4

Trade and other payables 3.3., 4.5. 86.2 78.3

Total short-term liabilities 112.6 447.5

Total liabilities 2,444.6 2,220.9

Total liabilities and equity 4,303.1 4,208.4

Investment property values decreased

Fair value of investment properties decreased due to fair value losses of EUR 74.6 million, changes in exchange

rates EUR 70.2 million and transfers into held for sale assets EUR 411.1 million, investments and acquisitions

increased the value of investment properties by EUR 321.3 million. Citycon acquired the remaining 50% interest

of Kista Galleria shopping centre in February 2024, after which Kista Galleria has been consolidated to Citycon

Group increasing both total assets and total liabilities.

2024 2023

Assets

MEUR

5,000

4,000

3,000

2,000

1,000

Other current assets

Cash and cash equivalents

Assets held for sale

Other non-current assets

Goodwill

Investment in associated

companies and joint ventures

Investment properties

2024 2023

Equity and liabilities

MEUR

5,000

4,000

3,000

2,000

1,000

Other short-term liabilities

Other long-term liabilities

Deferred tax liabilities

Loans

Total equity

Financial statementsFinancial review Financial Review 2024

Consolidated cash flow statement, IFRS

MEUR Note 2024 2023

Cash flow from operating activities

Result before taxes -47.0 -122.3

Adjustments 233.1 290.3

Cash flow before change in working capital 186.1 168.0

Change in trade and other receivables 4.4. 13.0 0.1

Change in trade and other payables 4.5. -10.1 5.7

Change in working capital 2.9 5.8

Cash generated from operations 189.0 173.8

Interest expenses and other financial expenses paid -63.0 -51.0

Interest income and other financial income received 5.8 1.7

Taxes paid -2.2 2.4

Net cash from operating activities 129.6 126.8

Cash flow from investing activities

Acquisition of investment properties and subsidiaries,

less cash acquired 2.1., 2.2., 5.1. -62.7 -

Capital expenditure on investment properties 2.1., 2.2. -48.1 -94.4

Capital expenditure on investments in joint ventures, intangible

assets and PP&E 2.4., 4.3. -1.0 -2.3

Sale of investment properties and subsidiaries 2.2., 5.1. 299.9 -0.4

Net cash from/used in investing activities 188.1 -97.1

Cash flow from financing activities

Proceeds from short-term loans 3.4. 256.1 357.3

Repayments of short-term loans 3.4. -800.5 -433.8

Proceeds from long-term loans 3.4. 641.6 405.3

Repayments of long-term loans 3.4. -29.9 -257.5

Hybrid bond repayments 3.1. - -39.2

Hybrid bond interest and expenses 3.1. -48.7 -29.1

Proceeds and costs from share issue 3.1. 46.6 -

Dividends and return from the invested unrestricted equity fund 3.1. -55.2 -84.4

Realised exchange rate gains and losses 7.7 9.4

Net cash from/used in investing activities 17.7 -72.0

Net change in cash and cash equivalents 335.4 -42.3

Cash and cash equivalents at period-start 3.8. 25.2 69.2

Effects of exchange rate changes -2.2 -1.6

Cash and cash equivalents at period-end 3.8. 358.5 25.2

MEUR Note 2024 2023

Adjustments:

Depreciation and amortisation 1.5., 4.3. 2.9 3.0

Net fair value gains/losses on investment property 2.1. 74.6 200.3

Gains/losses on disposal of investment property 1.1., 5.1. 79.3 2.3

Financial income 3.2. -76.5 -87.7

Financial expenses 3.2. 152.7 135.3

Share of profit/loss of associated companies and joint ventures 2.4. 0.7 36.7

Share-based payments 1.6. -0.6 1.7

Other adjustments 0.1 -1.3

Total 233.1 290.3

MEUR Note 2024 2023

Net cash from operating activities 129.6 126.8

Average number of shares (1,000) 182,316 168,285

Net cash from operating activities per share 0.71 0.75

Net cash from operating activities increased slightly to EUR 129�6 million from previous year

During 2024 Citycon invested EUR 110.8 million in acquisitions and investment properties, including the

acquisition of Kista and acquisition cost of residential property in Sweden, which was divested on the same day.

Investments were financed by cash generated from operations and divestments. Net cash from operations per

share decreased to EUR 0.71 due to directed share issues during 2024, where a total of 12.2 million new shares

were carried out. During 2024, Citycon issued two bonds total of EUR 750 million, the proceeds were used to

repay short-term Eurobonds of EUR 310 million and NOK bonds of EUR 193 million.

2023 1 2 3 4 5 6 7 8 2024

Cash needs and cash proceeds

MEUR

299.9

-48.7

46.6

-55.2

67.3

-111.8

129.6

25.2

5.6

358.5

1 Cash from operations

2 Acquisitions and investments

3 Sale of properties

4 Net of proceeds and repayments of loans

5 Hybrid bond interest and expenses

6 Proceeds and costs from share issue

7 Dividends and equity returns

8 Other

Financial statementsFinancial review Financial Review 2024

Consolidated statement of changes in shareholders’ equity, IFRS

Equity attributable to parent company shareholders

MEUR

capital

premium

fund

Fair

value

reserve

Invested

unrestricted

equity fund

Translation

reserve

Retained

earnings Total Hybrid bond

Non-

controlling

interest Total equity

Balance at 1 January 2023 259.6 131.1 1.9 660.2 -188.3 754.3 1,618.8 691.5 0.0 2,310.3

Result for the period 2023 -115.0 -115.0 -115.0

Net gains on cash flow hedges (Note 3.2.) -3.4 -3.4 -3.4

Exchange gains/losses on translating foreign operations -51.7 -51.7 -51.7

Total other comprehensive income/expenses for the period,

net of tax -3.4 -51.7 -55.0 -55.0

Total comprehensive profit/loss for the period -3.4 -51.7 -115.0 -170.0 -170.0

Hybrid bond repayments (Note 3.1.) 0.0 -85.9 -85.9

Gains on hybrid bond repayments (Note 3.1.) 25.8 25.8 25.8

Hybrid bond interest and expenses (Note 3.1.) -30.7 -30.7 1.8 -28.9

Share issue and costs (Note 3.1.) 20.9 20.9 20.9

Dividends paid and equity return (Note 3.1.) -84.4 -84.4 -84.4

Share-based payments (Note 1.6.) -0.3 -0.3 -0.3

Other changes 0.0 0.0 0.0

Balance at 31 December 2023 259.6 131.1 -1.4 596.8 -240.0 634.1 1,380.1 607.3 0.0 1,987.5

Result for the period 2024 -37.9 -37.9 -37.9

Net gains on cash flow hedges (Note 3.2.) 0.2 0.2 0.2

Exchange gains/losses on translating foreign operations -31.1 -31.1 -31.1

Total other comprehensive income/expenses for the period,

net of tax 0.2 -31.1 -30.9 -30.9

Total comprehensive profit/loss for the period 0.2 -31.1 -37.9 -68.8 -68.8

Gains/losses on hybrid bond repayments (Note 3.1.) -2.2 -2.2 -2.2

Hybrid bond interest and expenses (Note 3.1.) -34.7 -34.7 -14.5 -49.2

Share issue and costs (Note 3.1.) 47.8 47.8 47.8

Dividends paid and equity return (Note 3.1.) -55.2 -55.2 -55.2

Share-based payments (Note 1.6.) -1.3 -1.3 -1.3

Other changes 0.0 0.0 0.0

Balance at 31 December 2024 259.6 131.1 -1.3 589.4 -271.1 558.0 1,265.7 592.8 0.0 1,858.5

Result for the period and hybrid bond interest

and expenses decreased equity

Result for the period was EUR -37.9 million. A total

of EUR -49.2 million of hybrid bond interest and

expenses were recognized in total equity. During

2024, Citycon paid an equity return of EUR 0.30

per share from the invested unrestricted equity

fund. Distributed equity return in total was EUR

55.2 million. Translation losses were EUR -31.1

million. During 2024, Citycon also completed one

directed share issue to Finnish and international

institutional and other qualified investors and in

total three directed share issues for the payment

of the company’s share-based incentive plans and

remuneration to the Board of Directors.

1 4 72023

2024

2 5 83 6

Development of equity per share

MEUR

-0.01

-0.77

-0.01

-0.30

0.26

-0.21

-0.17

-0.27

10.09

11.56

Result for the period

Translation differences

Share issue and costs

Dividends and equity return

Gains on hybrid bond

repayments

6 Hybrid bond interest and

expenses

7 Effect of share issue on share

amount

8 Other changes

Equity/shareEquity/share

Financial statementsFinancial review Financial Review 2024

Notes to the consolidated financial statements

This table presents the Notes to the Financial Statements of Citycon Group and the accounting principles related to the Notes.

In addition, the table presents the IFRS standards in which the accounting principles are based on.

Accounting Policy Note Number IFRS

Segment information Segment information 1.1. IFRS8

Revenue recognition, other income and trade

and other receivables

Gross rental income, Revenue from contracts

with customers, Other operating income and

expenses, Trade and other receivables

1.2., 1.3., 1.7., 4.4. IFRS16, IFRS15, IFRS9

Employee benefits and share-based payments Employee benefits and personnel expenses 1.6. IAS19, IFRS2

Earnings per share Earnings per share 1.8. IAS33

Investment property Investment properties and related liabilities,

Right-of-use assets

2.1., 2.3. IAS40, IFRS13, IFRS16

Assets held for sale Assets held for sale 2.2. IAS40, IFRS5

Investments in associates and joint ventures Investments in joint ventures, Investments in

associates

2.4. IAS28, IFRS11, IFRS12

Financial Instruments: Disclosures, Presentation,

Recognition and Measurement

Equity, Net financial income and expenses,

Classification of financial instruments, Loans,

Financial risk management, Derivative financial

instruments, Cash and cash equivalents,

Other non-current assets, Trade and other

receivables, Trade and other payables

3.1., 3.2., 3.3., 3.4., 3.5., 3.6., 3.8., 3.9., 4.4., 4.5. IAS32, IFRS7, IFRS9, IFRS16

Provisions, Contingent Liabilities, Contingent Assets Commitments and contingent liabilities 2.1., 3.7. IAS37

Consolidated Financial Statements, Business Combination Acquisitions and disposals, Goodwill,

Acquisition of non-controlling interests

5.1., 5.2., 5.3. IAS40, IFRS10, IFRS3

Related Party Disclosures Related party transactions and changes in

group structure

5.4. IAS24

Impairment of Assets Goodwill, Intangible assets, Trade and other

receivables

4.3., 4.4., 5.2. IAS36, IFRS9

Income taxes Income taxes, Deferred tax assets and liabilities 4.1., 4.2. IAS12

Intangible assets Intangible assets 4.3. IAS38

Events after the Reporting Period Post balance sheet date events 5.6. IAS10

Contingent liabilities Capital Commitments, VAT refund liabilities,

Securities and Pledges

2.1., 3.7. -

Financial statementsFinancial review Financial Review 2024

Basic company data

As a real estate investment company specialising in

retail properties, Citycon operates in Finland, Norway,

Sweden, Estonia and Denmark. Citycon is a Finnish

public limited liability company established under

Finnish law and domiciled in Helsinki, the address of its

registered office being Piispansilta 9 A 1, 02230 Espoo.

The official name of the company is Citycon Oyj.

The Board of Directors has approved the financial

statements of the company on 26th February 2025. In

accordance with the Finnish Limited Liability Companies

Act, Annual General Meeting has the right to not

approve the financial statements approved by the Board

of Directors and return the financial statements back to

the Board of Directors for a correction.

A copy of Citycon’s consolidated financial statements is

available on the corporate website at www.citycon.com

and from the Group’s headquarters at the address

Piispansilta 9 A FI-02230 Espoo, Finland.

Basis of preparation

Citycon has prepared its consolidated financial

statements in accordance with the International

Financial Reporting Standards (IFRS) and applied the

International Accounting Standards (IAS) and IFRS

as well as Standing Interpretations Committee (SIC)

and International Financial Reporting Interpretations

Committee (IFRIC) interpretations effective as of 31

December 2024. International financial reporting

standards refer to the approved applicable standards

and their interpretations under Finnish accounting

legislation and the following rules on European Union

Regulation No. 1606/2002. Notes to the consolidated

financial statements are also in compliance with Finnish

accounting legislation and community legislation.

Financial assets and liabilities are classified either

as financial assets or liabilities at amortised cost or

financial assets or liabilities at fair value through profit

or loss. Financial assets held at amortised cost include

rent and trade receivables, interest receivables and cash

and cash equivalents. Financial liabilities at amortised

cost include loans, trade payables and interest payables.

Financial assets and liabilities at fair value through profit

or loss include foreign exchange derivative contracts,

cross currency swaps and interest rate options. In

addition, investment properties are measured at fair

value following their initial recognition. In other respects,

the consolidated financial statements are prepared at

historical cost.

XBRL tags in the ESEF financial statement are audited.

The financial statements are shown in millions of euros

and rounded in hundred thousands of euros.

Key estimates and assumptions and

accounting policies requiring judgment

Preparing the financial statements under IFRS

requires that the company’s management make

certain accounting estimates and assumptions,

which have an effect on the application of the

accounting policies and the reported amounts of

assets, liabilities, income and expenses, as well

as notes to the accounts. These estimates and

associated assumptions are based on historical

experience and various other factors deemed

reasonable under the circumstances, the results of

which form the basis of management judgements

about the carrying values of assets and liabilities

that are not readily apparent from other sources.

Although these estimates are based on the best

knowledge and current information available, the

actual results may differ from the estimates due

to uncertainty related to these assumptions and

estimates.

The estimates and underlying assumptions

are reviewed on an ongoing basis. Revisions to

accounting estimates are recognised for the

period in which the estimate is revised if the

revision affects only that period, or in the current

and future periods if the revision affects both

current and future periods.

Key estimates and assumptions and accounting

policies requiring judgment regarding business

activities are presented together with the relevant

note.

Note Key estimates and assumptions2.1. Investment properties Measuring the fair value of and related liabilitiesinvestment properties2.2. Assets held for sale Classification of investment properties2.3. Right-of-use assets Assessing the probability of exercising extension options4.1. Income Taxes Estimates and assumptions related to tax calculations4.2. Deferred tax assets Recoverability of deferred tax and liabilitiesassets4.4. Trade and other Estimation of expected credit receivableslosses5.1. Acquisitions and Classification of business and disposalsasset acquisitions5.2. Goodwill Impairment testing of goodwill

Financial statementsFinancial review Financial Review 2024

1. Operating performance

1.1. Segment information

The geographical segments of Citycon are Finland,

Norway, Sweden and Denmark & Estonia. The segment

Other mainly includes administrative expenses arising

from the Group’s functions. Citycon changed its

operating segments and segment reporting starting

from 1.1.2023. Previously the segments were Finland &

Estonia, Norway and Sweden & Denmark.

The Board of Directors follows IFRS segment results.

The Board of Directors followed Kista Galleria’s result

and financial position based on a 50% share until

the acquisition of the remaining 50% interest of the

shopping centre on 29 February 2024, and therefore

segment information includes both IFRS segment

results and Kista Galleria result for 2023.

Citycon’s Board of directors assess the business units’

performance on the basis of Net Rental Income and

Direct Operating Profit. Fair value changes are also

reported to Citycon’s Board of directors by business unit.

Segment assets and liabilities consist of operating

items which the segment uses in its operations or which

can be allocated to the segment on a reasonable basis.

Unallocated items include tax and financial items, as well

as corporate items. No internal sales take place between

segments.

Capital expenditure includes additions to the investment

properties, associated companies , joint ventures,

property, plant and equipment and intangible assets in

the statement of financial position.

1 January–31 December 2024

Denmark Total IFRS Kista Galleria 1MEUR Finland Norway Sweden& EstoniaOthersegments(50%) Gross rental income 84.5 65.4 52.5 33.0 0.0 235.4 -Service charge income 31.7 26.0 19.6 8.6 0.0 85.9 -Property operating expenses -34.9 -30.3 -28.5 -10.8 0.0 -104.5 -Other expenses from leasing operations -0.3 -0.7 -1.2 0.1 0.0 -2.1 -Net rental income 80.9 60.5 42.4 30.9 0.0 214.7 -Direct administrative expenses -2.3 -4.1 -3.5 -0.5 -22.7 -33.2 -Direct other operating income and expenses 2.2 -0.3 0.1 0.3 -0.1 2.2 -Direct operating profit 80.7 56.1 39.0 30.7 -22.8 183.6 -Indirect other operating income and expenses 0.2 0.0 -0.1 0.0 0.0 0.1 -Net fair value gains/losses on investment property -59.4 -27.5 17.9 -5.7 - -74.6 -Gains/losses on disposal of investment property 0.2 -50.2 -9.2 -19.8 -0.2 -79.3 -Operating profit/loss 21.7 -21.6 47.5 5.2 -23.1 29.8 -Allocated assetsInvestment properties 1,584.6 836.1 911.1 296.0 - 3,627.8 -Assets held for sale 67.4 13.7 0.0 0.0 - 81.1 -Other allocated assets 10.7 84.7 9.2 13.5 423.1 541.2 -Unallocated assetsDeferred tax assets 16.4 16.4 -Derivative financial instruments 36.5 36.5Assets 1,662.7 934.6 920.3 309.5 476.0 4,303.1 -Allocated liabilitiesTrade and other payables 11.4 10.9 16.1 7.9 39.8 86.2 -Unallocated liabilitiesInterest-bearing liabilities 2,131.5 2,131.5 -Deferred tax liabilities 208.4 208.4 -Derivative financial instruments 16.6 16.6 -Other unallocated liabilities 2.0 2.0 -Liabilities 11.4 10.9 16.1 7.9 2,398.3 2,444.6 -Capital expenditure 15.1 5.6 351.2 9.3 1.0 382.3 -Number of shopping centres 9 11 6 4 - 30 -Number of other properties 1 - - - - 1 -1 Direct Operating Profit for Estonia is EUR 24.0 million, Gross rental income and Service charge income in total are EUR 32.9 million, Property operating expenses and Administrative expenses in total are EUR 9.0 million and Assets are EUR 193.4 million.

Financial statementsFinancial review Financial Review 2024

None of the tenants’ proportion of Citycon’s gross rental

income exceeded 10% during financial years 2024

and 2023, and the management does not manage

operations according to customer segments.

1 January–31 December 2023

Denmark Total IFRS Kista Galleria 1MEUR Finland Norway Sweden& EstoniaOthersegments(50%) Gross rental income 81.6 67.7 33.8 32.2 0.0 215.3 9.3Service charge income 28.6 25.1 10.2 10.8 0.0 74.7 3.3Property operating expenses -33.1 -29.9 -16.3 -13.1 -0.4 -92.8 -6.0Other expenses from leasing operations -0.6 -0.5 0.1 -0.6 0.0 -1.6 0.0Net rental income 76.4 62.5 27.8 29.3 -0.4 195.7 6.6Direct administrative expenses -2.2 -4.1 -4.3 -0.5 -20.0 -31.1 0.0Direct other operating income and expenses -0.3 0.4 0.0 0.1 0.1 0.3 0.0Direct operating profit 74.0 58.8 23.5 28.9 -20.3 164.8 6.5Indirect other operating income and expenses 0.0 -0.1 0.0 -0.2 - -0.3 0.0Net fair value gains/losses on investment property -69.4 -68.8 -36.6 -25.5 - -200.3 -40.8Gains/losses on disposal of investment property -0.3 -1.6 -0.3 -0.1 - -2.3 -Operating profit/loss 4.3 -11.7 -13.4 3.1 -20.3 -38.0 -34.3Allocated assetsInvestment properties 1,693.1 1,103.9 626.5 434.8 - 3,858.2 173.2Assets held for sale 0.0 0.0 0.0 0.0 - 0.0 -Other allocated assets 13.8 75.7 14.0 15.3 177.6 296.4 9.6Unallocated assetsDeferred tax assets 16.5 16.5 4.2Derivative financial instruments 37.3 37.3Assets 1,706.9 1,179.5 640.4 450.1 231.4 4,208.4 187.0Allocated liabilitiesTrade and other payables 13.7 16.4 14.8 9.3 24.0 78.3 9.9Unallocated liabilitiesInterest-bearing liabilities 1,864.4 1,864.4 219.7Deferred tax liabilities 247.8 247.8 -Derivative financial instruments 27.9 27.9 -Other unallocated liabilities 2.5 2.5 -Liabilities 13.7 16.4 14.8 9.3 2,166.6 2,220.9 229.5Capital expenditure 46.6 21.2 15.1 11.0 2.0 95.9 2.4Number of shopping centres 9 14 5 4 - 32 1Number of other properties 1 - 1 - - 2 -1 Direct Operating Profit for Estonia is EUR 22.8 million, Gross rental income and Service charge income in total are EUR 34.3 million, Property operating expenses and Administrative expenses in total are EUR 11.4 million and Assets are EUR 336.4 million.

Financial statementsFinancial review Financial Review 2024

1.2. Gross rental income

Breakdown of gross rental income

MEUR 2024 2023Straight-lining of lease incentives 0.2 0.1Temporary and contractual rental discounts -4.2 -4.1Gross rental income (excl. items above) 239.4 219.3Total 235.4 215.3

General description of Citycon’s lease agreements

In the majority, i.e. in 88% (90) of Citycon’s lease

agreements the rent is divided into base rent and

maintenance rent. Base rent is typically tied to a yearly

rent revision which is based on an index, such as

cost-of-living index, or percentual minimum increase.

Maintenance rent, charged separately from the lessee,

are used for covering operating expenses incurred by

the property owner due to property maintenance.

Part of Citycon’s lease agreements also contain a

turnover-linked component in addition to base rent.

In addition, Citycon also has some lease agreements

which are fully tied to tenant’s turnover. At the end of

2024 approximately 62% (62) of lease agreements

in Citycon’s lease portfolio had turnover based

components.

Because the majority of the lease portfolio is tied to

indexation, a predetermined minimum rent increase

and/or the tenant’s turnover, Citycon’s leases are mainly

leases with contingent rent payments in accordance

with IFRS 16.

In accordance with the below table, Citycon had 3,831

(3,371) lease agreements on 31 December 2024. The

decrease in the number of lease agreements was mainly

due to divestment assets.

31 December 31 December Number of leases20242023Finland 1,329 1,327Norway 862 1,050Sweden 1,384 631Denmark & Estonia 256 363Total 3,831 3,371

In accordance with the table presented below, the

average remaining length of Citycon’s lease portfolio

was 3.3 (3.6) years on 31 December 2024. The duration

of a new lease depends on the type of premises to

be leased and the tenant. With larger anchor tenants,

Citycon typically concludes long-term leases of 10-15

or even 20 years while leases for smaller retail premises

are mainly agreed for a term of 3 to 5 years.

Average remaining length of 31 December 31 December lease portfolio, years20242023Finland 4.2 4.5Norway 2.9 2.9Sweden 2.4 2.7Denmark & Estonia 3.3 3.4Average 3.3 3.6

Citycon mainly seeks to sign fixed-term leases with the

exception of apartment, storage and individual parking

space leases. At the year end 2024, fixed-term leases

represented around 90% (90), initially fixed-term leases

4% (6) and leases in effect until further notice 6% (4) of

Citycon’s lease portfolio.

The table below presents the future minimum lease

payments by first possible termination dates based on

the valid rent roll at the end of the year 2024 and 2023.

Future minimum lease payments receivable under

non-cancellable leases

31 December 31 December EUR million20242023Not later than 1 year 76.0 63.81–5 years 140.0 143.2Over 5 years 51.2 40.3Total 267.2 260.41 Non-cancellable leases include fixed-term and initially fixed-term leases until the end of their terms. Leases in effect until further notice are assumed as non-cancellable leases for the equivalent of their notice period.

Accounting policy

The Investment properties leases, in which Citycon

is a lessor, are classified under operating leases,

since Citycon retains a significant share of risks and

rewards of ownership. Rental income from operating

leases is spread evenly over the lease term.

Lease incentives, such as rent-free periods or rental

discounts, that have been agreed at the start of

the lease agreement are recognised on a straight-

line basis over the lease term. The accounting

treatment for lease incentives given during the lease

agreement are recognized differently depending

whether the lease incentive is based on the original

lease agreement or not. If the discounts given during

the lease term are not based on the original lease

agreement but, the leaseholder has requested a

rental discount due to the market situation or the

property’s (re)development project, the discounts will

be, according to IFRS 16, considered to form a new

lease agreement, which means that the discounts are

to be recognized on a straight-line basis during the

remaining lease term. However, if the discounts given

during the lease term are based on original lease

agreement, then they are not lease modification.

Therefore, they are treated as variable lease

payments under operating leases and the impacts are

recognised in the period when they are granted.

On behalf of the lessee, Citycon may perform

alteration work on the premises rented by the lessee

and charge the lessee for the resulting costs, in

the form of a rent increase. Citycon recognises

the alteration-related rent increase as rental

income over the lease term. The rent increase and

expenses arising from the alteration work are taken

into account when measuring the fair value of the

investment property.

Financial statementsFinancial review Financial Review 2024

1.3. Revenue from contracts with

customers

Contacts with customers

In the business operations of Citycon Group, the

guidance provided in the IFRS 15 Revenue from

Contracts with Customers standard applies to the

following sales revenues: Service charges, utility

charges, other service income as well as management

fees.

Service charges

The sales revenues linked to service charges consist of

the repair, maintenance and administration services for

the business premises and common areas of Citycon’s

shopping centre properties that Citycon provides for its

customers on the basis of the contracts made with the

customers (lease agreement).

Utility charges

The sales revenues linked to utility charges comprise

fees charged from customers to cover, e.g. the costs

arising from the energy consumption, heating and waste

management of the business premises of the shopping

centre properties in accordance with the customer

contract (lease agreement).

Other service income

The sales revenues linked to other service income

consist mainly of fees charged from customers to cover

the costs arising from the planning and implementation

of the marketing of Citycon Group’s shopping centres.

Managements fees

Sales revenues related to management fees consists of

the administrative services provided by Citycon Group

to shopping centres owned by joint ventures or third

parties.

Breakdown of revenues 1 January–31 December 2024

Denmark MEUR Finland Norway Sweden & Estonia Other Total1Service charges25.9 19.4 17.8 4.6 0.0 67.71Utility charges4.4 3.0 0.5 2.9 0.0 10.81Other service income1.3 3.6 1.3 1.2 0.0 7.5Total 31.7 26.0 19.6 8.6 0.0 85.92Management fees0.2 0.0 0.0 0.0 0.0 0.2Total 0.2 0.0 0.0 0.0 0.0 0.2Revenue from contracts with customers 31.9 26.0 19.6 8.6 0.0 86.11 Is included in the line item Service charge income in the Consolidated income statement. 2 Is included in the line item Other operating income and expenses in the Consolidated income statement.

Breakdown of revenues 1 January–31 December 2023

Denmark MEUR Finland Norway Sweden & Estonia Other Total1Service charges23.4 20.0 8.8 5.1 0.0 57.31Utility charges3.8 1.3 0.5 4.4 0.0 9.91Other service income1.3 3.8 1.0 1.3 0.0 7.5Total 28.6 25.1 10.2 10.8 0.0 74.72Management fees0.2 0.1 0.1 0.0 0.0 0.4Total 0.2 0.1 0.1 0.0 0.0 0.4Revenue from contracts with customers 28.8 25.2 10.3 10.8 0.0 75.11 Is included in the line item Service charge income in the Consolidated income statement. 2 Is included in the line item Other operating income and expenses in the Consolidated income statement.

Financial statementsFinancial review Financial Review 2024

Tot a l

XXX,X

Meur

Operating expenses 2024

MEUR

Heating and electricity -29.2

Maintenance expenses -34.9

Property personnel expenses -9.6

Administrative and management fees -1.9

Marketing expenses -7.0

Property insurances -1.8

Property taxes -10.0

Repair expenses -6.2

Other property operating expenses -4.0

Tot a l

-104.5

MEUR

Accounting policy - revenue from

contracts with customers

Citycon Group’s lease agreements and management

contracts typically include a clear description of the

obligations of the service provider and the customer

purchasing the service as well as a break down of the

price of the service provided. As a result, the service

obligations as well as the basis for the transaction

prices of each performance obligation in accordance

with the IFRS 15 standard connected to Citycon

Group’s customer contracts have been clearly defined.

The transaction prices of all sales revenue groups

primarily consist of variable considerations based

on, e.g. the amount of services used by the customer

or the changing prices of goods. Hence, Citycon

estimates the amount of sales revenues recorded from

the contracts on the basis of the expected value of

sales revenues from the reporting period.

With regard to all customer contracts, the sales

revenues are recorded over time, as the customer

simultaneously receives and uses the financial

benefit resulting from the maintenance and service

operations related to the business premises owned by

Citycon Group or the management service provided

for shopping centres owned by joint ventures or third

parties when Citycon provides the customer with the

service.

The service charges are presented in Citycon’s

reporting as gross because in its view, Citycon acts

as the principal in accordance with the definition

in the IFRS 15 standard when providing services.

For example, Citycon selects the maintenance and

cleaning service providers for its properties, makes a

contract with the providers and carries the credit risk

pertaining to the provision of the service. This being

the case, the customer may not choose the service

provider or influence the service provider’s pricing.

The services provided by Citycon Group do not

include a significant financial component because

the payments based on customer contracts typically

become due before the start of the lease period or

immediately upon its beginning. Citycon Group will

not become subject to costs of obtaining a contract

in accordance with the IFRS 15 standard. When it

comes to the leases for business premises included

in Citycon’s core business, the accounting treatment

of costs resulting from obtaining the contract and the

expenses treated in accordance with the instructions

in the IAS 40 standard, such as alteration works or

commissions of the leased property, is described in

detail in Note 1.2.

Contract balances

MEUR 2024 2023Contract assets 2.1 3.0Contract liabilities 2.2 2.2

Accounting policy - contract balances

The contract assets on customer contracts are

open sales receivables related to service charges,

and the contract liabilities based on the contract

are advance payments received for service

charges. The contract assets based on customer

contracts are expected to be received within three

(3) months and the contract liabilities based on

the contract are expected to be recognised as

income within the next twelve (12) months.

1.4. Property operating expenses

MEUR 2024 2023Heating and electricity -29.2 -24.2Maintenance expenses -34.9 -31.3Property personnel expenses -9.6 -9.5Administrative and management fees -1.9 -2.1Marketing expenses -7.0 -6.8Property insurances -1.8 -1.5Property taxes -10.0 -8.7Repair expenses -6.2 -4.6Other property operating expenses -4.0 -4.0Total -104.5 -92.8

Accounting policy - property

operating expenses

Property operating expenses are recognized on

an accrual basis for the period for which those are

subject to. Property operating expenses are costs

caused by e.g. property maintenance, energy

consumption and marketing.

Financial statementsFinancial review Financial Review 2024

1.5. Administrative expenses

MEUR 2024 2023Personnel expenses -14.4 -16.0Total -33.2 -31.1Expenses related to management 1and organizational changes-7.1 -0.7Consultancy and advisory fees as well as external services -5.1 -5.7Office and other administrative expenses -3.7 -5.6Depreciation and amortisation -2.9 -3.01 Expenses related to management and organizational changes EUR 7.1 million in 2024 relate mainly to changes in management during the year. EUR 0.7 million in 2023 include mainly expenses related organizational changes.

Depreciation and amortisation

Depreciation and amortisation are booked from

intangible and tangible assets.

Audit fees

The following audit fees and services from the

audit firms Deloitte and Ernst & Young are included

in the line consulting and advisory fees within the

administrative expenses and in the line administrative

and management fees within the property operating

expenses.

2024 2024 MEURGroupParent companyAudit fees -1.4 -0.4Deloitte Oy -0.7 -0.4Ernst & Young Oy -0.3 0.0Other EY offices -0.4 -Other advisory services 0.0 -0.1Deloitte Oy 0.0 0.0Ernst & Young Oy - -0.1Other EY offices 0.0 -Total -1.4 -0.5

2023 2023 MEURGroupParent companyAudit fees -1.0 -0.4Ernst & Young Oy -0.6 -0.4Other EY offices -0.4 -Other advisory services -0.2 -0.2Ernst & Young Oy -0.2 -0.2Other EY offices - -Total -1.2 -0.6

1.6. Employee benefits

and personnel expenses

MEUR Note 2024 2023Wages and salaries of managementCEO A -0.9 -1.3Management committee B -1.1 -1.6Board C -0.8 -0.6Other wages and salaries -16.5 -15.5Pension charges: defined contribution plans -2.2 -2.4Social charges -2.8 -4.1Expense of share based payments D -0.3 -1.7Total -24.6 -27.3

Personnel expenses of EUR 14.4 million (EUR 16.0

million) are included in administrative expenses, EUR 9.7

million (EUR 10.7 million) in property operating expenses

and EUR 0.6 million (EUR 0.6 million) in other operating

income and expenses.

Accounting policy - pensions

The Group’s employee pension cover is based on

statutory pension insurance. Pension schemes are

classified into two categories: defined contribution

plans and defined benefit plans. At Citycon, all

pension covers are classified as contribution

plans, which are recognised in the consolidated

income statement for the period during which

such contributions are made.

Group full-time equivalent (FTE) by Business Units as at 31 December 2024 2023Finland 36 43Norway 45 75Sweden 30 39Denmark & Estonia 5 14Group functions 48 64Total 164 234

A) CEO wages and salaries

EUR 2024 2023Base salary including benefits 516,170 741,180Short-term incentives 370,590 600,000Long-term incentives and other one-time payments 1,153,291 1,511,851Total 2,040,051 2,853,031

F. Scott Ball served as the company’s CEO until March

31, 2024, and as the interim CEO starting October

8, 2024. Henrica Ginström served as the company’s

CEO from April 1 to October 8, 2024. In 2024, the total

combined remuneration of Citycon’s respective CEOs

was EUR 2,040,051 (in 2023 EUR 2 853 031). 75% of the

CEO’s total remuneration was in the form of variable pay.

The variable remuneration components include the

short-term and long-term incentive plans in addition to

the potential other financial benefits such as dividend

equivalent, stock options or one-time payments. A pay-

for-performance principle is based on the concept that

the CEO’s compensation reflects the performance of the

company. Citycon’s Board will evaluate the achievement

of the CEO’s performance targets and decide on the

CEO’s performance bonus amount payable for each

financial year during the first quarter of the following

calendar year.

The CEO had performance-based short-term incentive

plan in place for 2024. With respect to long-term

incentive schemes, the F. Scott Ball was included in the

CEO Restricted Share Plan 2021–2025 and in the CEO

Stock Option Plan 2022–2025 and Henrica Ginström

was included in the CEO Restricted Share Plan 2024 –

2027 and Stock Option Plan 2024 A-C.

Financial statementsFinancial review Financial Review 2024

B) Personnel expenses for the Corporate

Management Committee (excl. CEO)

MEUR 2024 2023Wages and salaries -1.1 -1.6Pensions: defined contribution plans -0.2 -0.2Social charges -0.2 -0.4Total -1.5 -2.2

C) Remuneration of the members of

the Board of Directors

EUR 2024 2023Chaim Katzman 165,000 165,000Yehuda (Judah) L. Angster 74,000 65,600Zvi Gordon 76,800 64,701Alexandre (Sandy) Koifman 92,800 86,185David Lukes 74,400 66,600Per-Anders Ovin 72,800 61,400F. Scott Ball 83,200 -Ljudmila Popova 72,800 61,400Adi Jemini 78,600 35,545Eero Sihvonen (since 12 November 2024) 8,649 -1Total799,049 606,4311 Transactions with The Board Members are presented in Note 5.4.B Related party transactions.

During 2024, the travel expenses of the Board members

amounted to EUR 0.3 million (EUR 0.0 million).

Board members do not participate in the company’s

share-based incentive schemes.

D) Long-term share-based incentive plans

In 2024, Citycon have had in total nine valid long-

term share-based incentive plans. Seven of these are

directed to the members of the Corporate Management

Committee;

• CEO Restricted Share 2024–2027

(decided on 15 April 2024),

• Option Plan 2024 A–C (CEO)

(decided on 15 April 2024),

• Option Plan 2024 (Corporate Management

Committee) (decided on 19 March 2024),

• CFO Performance Share Plan 2024–2026

(decided on 15 February 2024),

• Performance Share Plan 2023–2025

(decided on 16.2.2023),

• Performance Share Plan 2020–2022

(decided on 17 March 2020) and

• Matching Share Plan 2022–2024

(decided on 22 March 2022)

and two to key employees of the group;

• Restricted Share Plan 2023–2025

(decided on 16.2.2023) and

• Restricted Share Plan 2020–2022

(decided on 11 December 2019).

The aim of the share-based incentive plans is to

combine the objectives of the shareholders and the

key employees to increase the value of the company

in the long-term, to retain the key employees in the

service of the company, and to offer them competitive

reward plans based on earning and accumulating the

company’s shares.

In 2024, expenses from long-term share-based

incentive plans recognised in consolidated financial

statements amounted to EUR 0.3 million (1.7).

CEO Restricted Share 2024–2027

The CEO Restricted Share Plan 2024–2027 is directed

to the CEO.

The value of the rewards to be paid on the basis of the

plan corresponds to a maximum total of 75,000 shares

of Citycon Oyj, including also the proportion to be paid

in cash.

The rewards will be paid in three instalments in April

2025, April 2026 and April 2027. The reward is based on

a valid director contract and on the continuity of service.

The reward will be paid partly in Citycon’s shares and

partly in cash. The cash proportion of the reward is

intended to cover taxes and statutory social security

contributions arising from the reward. As a rule, no

reward will be paid if the director’s contract terminates

before the reward payment.

CEO Stock Option Plan 2024 A–C

The maximum total number of stock options to be

issued is 1,591,848 and they entitle their owners to

subscribe for up to an equivalent number of new shares

in total in the company or existing shares held by the

company. The stock options are issued gratuitously. Of

the stock options, 530,616 are marked with the symbol

2024A, 530,616 are marked with the symbol 2024B and

530,616 are marked with the symbol 2024C.

The shares subscribed for with the stock options to

be issued will account for a total maximum of 0,85

per cent of all the company’s shares and votes after

possible share subscriptions if new shares are issued in

the subscription. As a result of the share subscriptions

made with the stock options, the number of shares in the

company may increase by a total maximum of 1,591,848

shares if new shares are issued in the subscription

The share subscription price for stock options 2024A-

C is 4.05 euros per share. The share subscription price

will be credited to the company’s reserve for invested

unrestricted equity.

The share subscription period for stock options is,

for stock options 2024A, 1 April 2024–1 April 2027

for stock options 2024B, 1 April 2025–1 April 2027

for stock options 2024C, 1 April 2026–1 April 2027

The theoretical market value of one stock option 2024A-

C is approximately 0.19 euros. The theoretical market

value of the stock options 2024A-C is approximately

EUR 300,000 in total. The theoretical market value of

a stock option has been calculated by using the Black

& Scholes model taking into account the subscription

price of the stock option and the following input factors:

share price EUR 3.83, risk-free interest rate 2.79%,

validity of stock options approximately 3 years, volatility

approximately 21.02% and dividend yield approximately

8.68%.

Option Plan 2024

(Corporate Management Committee)

Option Plan 2024 is directed to the members of the

Corporate Management Committee. The maximum

total number of stock options to be issued is 350,000

and they entitle their owners to subscribe for up to

an equivalent number of new shares in total in the

company or existing shares held by the company. The

stock options are issued gratuitously. Stock options are

marked with the symbol 2024. The Board resolved on

15 April 2024 to increase the maximum number of stock

options distributed from the plan with 150,000 stock

options, so the total maximum number of stock options

will be 500,000 stock options.

Financial statementsFinancial review Financial Review 2024

The share subscription price for stock options 2024

is 4,05 euros per share. The share subscription price

will be credited to the company’s reserve for invested

unrestricted equity. The share subscription period for

stock options 2024 is from 1 March 2027 to 29 February

2028.

The theoretical market value of one stock option 2024 is

approximately 0.27 euros. The theoretical market value

of the stock options 2024 is approximately EUR 93,000

in total. The theoretical market value of a stock option

has been calculated by using the Black & Scholes model

taking into account the subscription price of the stock

option and the following input factors: share price EUR

3.83, risk-free interest rate 2.7%, validity of stock options

approximately 4 years, volatility approximately 25.2%

and dividend yield approximately 8.7%.

CFO Performance Share Plan 2024–2026

The CFO Performance Share Plan 2024–2026 is

directed to the CFO.

The CFO Performance Share Plan 2024–2026 consists

of three performance periods, covering the financial

years 2024, 2024–2025 and 2024–2026 respectively.

In the plan, the CFO has an opportunity to earn Citycon

Oyj’s shares based on performance. The performance

criteria of the plan are tied to the participant achieving

the strategic individual criteria. The potential rewards

from the plan will be paid after the end of each

performance period. The value of the rewards to be paid

on the basis of the plan corresponds to a maximum

total of 30,000 shares of Citycon Oyj, including also the

proportion to be paid in cash.

The potential reward will be paid partly in Citycon

Oyj’s shares and partly in cash. The cash proportion

of the reward is intended to cover taxes and statutory

social security contributions arising from the reward to

the CFO. As a rule, no reward will be paid if the CFO’s

employment contract terminates before the reward

payment.

Performance Share Plan 2023–2025

The Performance Share Plan 2023–2025 is directed to

the members of the Corporate Management Committee,

excluding the CEO.

The plan includes three performance periods, each

three years, spanning from March 2023, 2024 and

2025 until the end of February 2026, 2027 and 2028,

respectively. The rewards payable are based on the

participants achieving the strategic individual criteria set

for each performance period and a valid employment or

service contract. The rewards to be paid correspond to

a maximum total value of 180,000 shares including any

cash proportion for taxes and tax-related costs.

Performance Share Plan 2020–2022

The Performance Share Plan 2020–2022 is directed to

the members of the Corporate Management Committee,

excluding the CEO.

The plan includes three performance periods, each

three years, spanning from March 2020, 2021 and

2022 until the end of February 2023, 2024 and 2025,

respectively. The rewards payable are based on the

participants achieving the strategic individual criteria set

for each performance period and a valid employment or

service contract. The rewards to be paid correspond to

a maximum total value of 150,000 shares including any

cash proportion for taxes and tax-related costs.

The rewards paid under the plan in 2024 corresponded

to the total value of 30,000 shares, including a cash

proportion to cover taxes and tax-related costs.

Matching Share Plan 2022–2024

The Matching Share Plan 2022–2024 is directed to the

members of the Corporate Management Committee

(excluding the CEO).

The plan includes three matching periods, financial

years 2022–2023, 2023–2024, 2024–2025. The

prerequisite for participation in this plan and for reward

payment is that a key employee invests in the company’s

shares a pre-determined percentage of the bonus

earned from the company’s performance bonus scheme

during the calendar year preceding a matching period.

If a key employee’s Share Ownership Prerequisite is

fulfilled and his or her employment or service is in force

with a Citycon group company upon reward payment,

he or she will receive free matching shares for shares

subject to the share ownership prerequisite.

The rewards paid under the plan in 2024 corresponded

to the total value of 10,674 shares, including a cash

proportion to cover taxes and tax-related costs.

Restricted Share Plan 2023–2025

The Restricted Share Plan 2023–2025 is directed to

selected key employees, excluding the CEO and other

members of the Corporate Management Committee.

The rewards from the plan may be allocated in 2023–

2025. The reward will be based on a valid employment

or service contract of a key employee upon the reward

payment, and it may be paid partly in the company’s

shares and partly in cash, to be used for taxes and tax-

related costs, after the end of a vesting period of 24 to 36

months.

The rewards to be paid on the basis of the plan in total

correspond to a maximum total value of 60,000 shares,

including any cash proportion for taxes and tax-related

costs.

The rewards allocated in 2024 correspond to the total

value of 10,000 shares, including any cash proportion to

cover taxes and tax-related costs.

Restricted Share Plan 2020–2022

The Restricted Share Plan 2020–2022 is directed to

selected key employees, excluding the CEO and other

members of the Corporate Management Committee.

The rewards from the plan may be allocated in 2020–

2022. The reward will be based on a valid employment

or service contract of a key employee upon the reward

payment, and it may be paid partly in the company’s

shares and partly in cash, to be used for taxes and tax-

related costs, after the end of a vesting period of 24 to 36

months.

The rewards to be paid on the basis of the plan in total

correspond to a maximum total value of 60,000 shares,

including any cash proportion for taxes and tax-related

costs.

The rewards paid under the plan in 2024 corresponded

to the total value of 13,000 shares, including a cash

proportion to cover taxes and tax-related costs.

Further information

Further information on the long-term share-based

incentive plans is available on the company’s website at

citycon.com/remuneration.

Financial statementsFinancial review Financial Review 2024

1.7. Other operating income and expenses

MEUR 2024 2023Management fees 0.2 0.4Management fee related expenses -0.4 -0.2Other operating income and expenses 2.5 -0.2Total 2.3 0.0

Accounting policy - management fees

Citycon manages some of the shopping centres

owned by joint ventures and third parties and

recognizes management fees over the contract

period.

1.8. Earnings per share

Earnings per share (basic) is calculated by dividing

the net profit/loss attributable to parent company

shareholders by the share issue adjusted weighted

average number of shares.

Earnings per share, basic

Earnings per share, diluted

2024 2023Result for the period attributable to parent company shareholders (MEUR) -37.9 -115.0Hybrid bond interests and expenses (MEUR) -33.1 -28.9Gains/losses and expenses on hybrid bond repayments (MEUR) -2.2 25.8Weighted average number of ordinary shares (1,000) 182,316 168,285Adjustment for share-based incentive plans (1,000) 1,694 1,864Weighted average number of ordinary shares, diluted (1,000) 184,009 170,1491Earnings per share (diluted) (EUR)-0.40 -0.701 The key figure includes hybrid bond coupons (both paid and accrued not yet recognized), amortized fees and gains/losses and expenses on hybrid bond repayments.

Weighted average number of ordinary shares

used in the calculation of Earnings per share

(diluted)

Number of DayssharesWeighted average (daily) number of shares 365 184,009,321

Accounting policy - earnings per share (diluted)

Diluted Earnings per share is calculated by

adjusting the weighted average number of shares

to assume the conversion of all dilutive potential

shares. The number of shares is increased by

dilutive shares arising from stock options and

long-term share-based incentive plans.

The share-based incentive scheme has a dilutive

effect during the earning period when the

performance conditions for the bonus have been

fulfilled, and the shares have not yet been granted.

2. Property portfolio and assets

2.1. Investment properties and related liabilities

Accounting policy - investment properties

in the financial statement

Investment property refers to land or a building,

or part of a building, held to earn rental income

or capital appreciation, or both. Under IAS 40,

investment property is measured at fair value, with

gains and losses resulting from fair value changes

for investment properties are netted and stated as a

separate item in the consolidated income statement.

The investment properties are measured initially

at cost, including transaction costs such as

consultant fees and transfer taxes. After their initial

measurement investment properties are valued

at fair value at the end of the quarter following the

acquisition.

The fair valuation of the company’s properties is

conducted annually by an independent external

appraiser according to the International Valuation

Standards (IVS) while on the first, second and third

quarter of the year Citycon conducts the fair value

measurement internally except for new acquired

properties which are valuated externally. When

measuring the values internally, Citycon has based

the valuations on market indications received from

the external appraiser.

(Re)development projects are classified as

investment properties and determined at fair value

after an investment decision has been made and

the external appraiser considers that sufficient

information is available for a reliable valuation.In the

fair value valuation on 31 December 2024 0 property

(1) was classified as (re)development project. Capital

expenditure on potential development projects

relates to planning and zoning costs. Potential

development projects are projects whose realization

is uncertain. Therefore they have been left out of the

valuation conducted by the external appraiser.

The fair value of Citycon’s investment properties

in the consolidated statement of financial position

consists of the property portfolio’s total value

determined by the external appraiser, less transfers

into investment properties held for sale, added

by capital expenditure on potential development

projects that are not taken into account by the

external appraiser, as well as the value of new

properties acquired during the reporting quarter if not

possible measure at fair value, in regard to timing and

reliable information available.

Financial statementsFinancial review Financial Review 2024

The fair value of Citycon’s properties was measured

by CBRE (Norway, Denmark, Estonia) and JLL

(Finland, Sweden) for the financial statements for

2024 and 2023. The resulting fixed fees based on

the 2024 valuations totaled EUR 0.2 million (0.2). The

reconciliation between the fair value determined by

the external appraiser and the fair value of investment

properties in Citycon’s balance sheet, is presented

below:

31 December 31 December MEUR20242023Fair value of investment properties determined by the external appraiser per 31 December 3,643.2 3,779.3Capital expenditure on potential 1development projects28.4 38.4Right-of-use assets classified as investment properties (IFRS 16) 37.3 40.5Transfer into assets held for sale -81.1 -Acquisition cost of properties acquired during the last quarter of the year - -Fair value of investment properties per 31 December 3,627.8 3,858.21 Includes a deposit made by Citycon for the purchase of a residential property in Barkarbystaden.

Accounting policy - fair value definition

and hierarchy

In accordance with IFRS 13, the fair value is

defined as the price that would be received from

the sale of an asset in an orderly transaction

between market participants at the measurement

date.

Citycon uses valuation techniques that are

appropriate under the existing circumstances,

and for which sufficient data is available to

measure fair value, maximising the use of relevant

observable inputs and minimising the use of

unobservable inputs. Input data used in valuation

method to determine the fair value is categorized

into three fair value hierarchy levels in accordance

with IFRS 13. Investment property measured at

fair value is categorised to the same fair value

hierarchy level as the lowest level input, which

is significant to the fair value measurement as a

whole.

Yield requirement is an important input parameter

in the valuation measurement and it is derived from

comparable market transactions. Citycon has decided

to categorise all property fair valuations as level 3,

because properties and especially shopping centres are

usually heterogeneous and transactions are infrequent.

Transfers between levels in the hierarchy did not occur

during the year.

Fair value measurement of investment properties,

fair value measurement hierarchy

31 December 31 December MEUR20242023Quoted prices (Level 1) - -Observable inputs (Level 2) - -Unobservable inputs (Level 3) 3,643.2 3,779.3Total 3,643.2 3,779.3

Key estimates and assumptions

- fair value of investment properties

Measuring the fair value of investment properties

is a key accounting policy that is based on

assessments and assumptions about future

uncertainties. Yield requirement, market rents,

vacancy rate and operating expenses form the

key variables used in an investment property’s

fair value measurement. The evaluation of

these variables involves Citycon management’s

judgment and assumptions. Also, the evaluation of

the fair value of (re)development projects requires

management’s judgment and assumptions

regarding investments, rental levels and the

timetable of the project.

Accounting policy - fair value measurement

The fair value measurement of Citycon’s

investment properties is based on 10-year cash

flow analysis, conducted separately for each

property. The basic cash flow is determined by

the lease agreements valid at the valuation date.

Upon a lease’s expiry, the market rent assessed

by an external appraiser replace the contract

rent. Potential gross rental income less vacancy

assumption, operating expenses and investments

equals cash flow, which is then discounted at the

property-specific discount rate. The total value of

the property equals to the value of the discounted

cash flow, residual value and the value of the

unused building rights. The total value of the

property portfolio is calculated as the sum of the

individual properties’ fair values.

The valuation of on-going (re)development

projects is based on a cash flow analysis, in which

the capital expenditure on the (re)development

project and the property’s future cash flows

are taken into account according to the (re)

development project’s schedule.

Financial statementsFinancial review Financial Review 2024

Inputs

Denmark 31 December 2024 Finland Norway Sweden & Estonia AverageYield requirement (%) 5.9 6.7 6.0 7.1 6.2Market rents (EUR/sq.m./month) 30.3 21.1 25.5 21.9 25.4Operating expenses (EUR/sq.m./month) 7.8 5.4 8.7 3.8 6.9Vacancy during the cash flow period (%) 4.3 3.9 5.3 4.8 4.5Market rent growth assumption (%) 2.7 2.4 1.9 2.0 -Operating expense growth assumption (%) 2.0 2.0 1.9 2.0 -

Denmark 31 December 2023 Finland Norway Sweden & Estonia AverageYield requirement (%) 5.5 6.2 5.8 7.2 6.0Market rents (EUR/sq.m./month) 28.1 20.6 25.1 22.7 24.2Operating expenses (EUR/sq.m./month) 7.4 5.3 8.1 4.3 6.4Vacancy during the cash flow period (%) 4.1 3.6 4.4 5.0 4.1Market rent growth assumption (%) 2.7 2.2 2.2 2.1 -Operating expense growth assumption (%) 2.0 2.1 2.1 2.1 -

Sensitivity analysis

31 December 2024 Fair value (EUR million)Change % -10% -5% ±0% +5% +10%Market rents 3,161.2 3,402.2 3,643.2 3,884.2 4,125.2Operating expenses 3,785.8 3,714.5 3,643.2 3,571.9 3,500.6Change, basis points -50 -25 ±0 +25 +50Vacancy 3,667.3 3,655.3 3,643.2 3,631.2 3,619.1Yield requirement 3,995.9 3,811.3 3,643.2 3,489.6 3,348.6

31 December 2023 Fair value (EUR million)Change % -10% -5% ±0% +5% +10%Market rents 3,286.6 3,532.9 3,779.3 4,025.7 4,272.0Operating expenses 3,915.9 3,847.6 3,779.3 3,711.0 3,642.7Change, basis points -50 -25 ±0 +25 +50Vacancy 3,803.9 3,791.6 3,779.3 3,767.0 3,754.7Yield requirement 4,158.3 3,959.5 3,779.3 3,615.1 3,464.8

Inputs

The segments’ inputs used by the external appraisers

in the cash flow analysis per 31 December 2024 and 31

December 2023 are presented in the following tables.

Sensitivity analysis

Sensitivity to change in the properties’ fair value, or

the risk associated with fair value, can be tested by

altering the key parameters. The sensitivity analysis

below uses the investment properties’ fair value

defined by the external appraiser as the starting value.

Sensitivity analysis indicates that the market value is

most sensitive to changes in market rents and yield

requirement. A 10% increase in market rents increases

the market value of the investment properties by

approximately 13%. Correspondingly, a 50 bps decrease

in the yield requirement results in an approximately 10%

increase in market value.

The market value reacts to changes in vacancy and

operating expenses, but their relative effect is not as

great as changes to market rent and yield requirement.

In sensitivity analyses one parameter is changed at a

time. In reality, changes in different parameters often

occur simultaneously. For example, a change in vacancy

may connect to a change in market rents and yield

requirement when they impact fair value simultaneously.

Financial statementsFinancial review Financial Review 2024

2023 1 2 3 4 5 6 7 8 2024

Investment properties 2024

MEUR

3,858.2

3,627.8

1 Acquisitions

2 Investments and capitalised interest

3 Fair value gains

4 Fair value losses

5 Valuation gains and losses

from Right-of-Use-Assets

6 Exchange differences

7 Changes in right-of-use assets classified as

investment properties (IFRS 16)

8 Transfers between items

4.2

51.0

-70.2

39.6

-7.4

281.8

-118.3

-411.1

2022 1 2 3 4 5 6 2023

Investment properties 2023

MEUR

4,040.1

3,858.2

1 Investments and capitalised interest

2 Fair value gains

3 Fair value losses

4 Valuation gains and losses

from Right-of-Use-Assets

5 Exchange differences

6 Changes in right-of-use assets classified

as investment properties (IFRS 16)

-6.6

-216.5

22.8

1.8

92.8

-76.2

Investment property changes and classification

31 December 2024 Investment properties Operative Investment EUR millionunder construction investment propertiesproperties totalBalance at 1 January 2024 6.7 3,851.5 3,858.2Acquisitions - 281.8 281.8Investments 0.4 38.8 39.2Capitalised interest - 0.4 0.4Fair value gains on investment property - 51.0 51.0Fair value losses on investment property - -118.3 -118.3Valuation gains and losses from Right-of-Use-Assets - -7.4 -7.4Exchange differences -0.2 -70.0 -70.2Transfer into assets held for sale -6.9 -404.2 -411.1Changes in right-of-use assets classified as investment properties (IFRS 16) - 4.2 4.2Balance at 31 December 2024 - 3,627.8 3,627.8

31 December 2023 Investment properties Operative Investment EUR millionunder construction investment propertiesproperties totalBalance at 1 January 2023 435.4 3,604.7 4,040.1Acquisitions - - -Investments 0.5 91.8 92.3Capitalised interest - 0.5 0.5Fair value gains on investment property - 22.8 22.8Fair value losses on investment property - -216.5 -216.5Valuation gains and losses from Right-of-Use-Assets - -6.6 -6.6Exchange differences 0.0 -76.2 -76.2Transfer between investment properties under construction and operative investment properties -429.2 429.2 0.0Changes in right-of-use assets classified as investment properties (IFRS 16) - 1.8 1.8Balance at 31 December 2023 6.7 3,851.5 3,858.2

Financial statementsFinancial review Financial Review 2024

Citycon divides its investment properties into two

categories: Investment Properties Under Construction

(IPUC) and Operative Investment Properties. On

reporting date, there were no properties in the first

mentioned category. On comparable period 31 December

2023, this category included Barkarby residentials in

Sweden.

IPUC-category includes the fair value of the whole

property even though only part of the property may be

under construction.

Contractual obligations to purchase, construct or

develop investment properties are presented below.

Please see note 3.7. for information on pledges on

investment properties.

Contingent liabilities related to

investment properties

EUR million 2024 2023Capital commitments 20.1 72.4VAT refund liabilities 67.8 84.8

Capital commitments

Capital commitments relate mainly to on-going (re)

development projects.

VAT refund liability

There are value-added tax refund liabilities arising from

capitalised renovations and new investments in Citycon’s

investment properties. The VAT refund liabilities will

realise if the investment property is transferred for non-

VAT-liability use within 10 years.

2.2. Assets held for sale

Key estimates and assumptions

- assets held for sale

Classifying properties into investment properties

or assets held for sale requires management’s

judgement.

MEUR 2024 2023Acquisition cost January 1 0.0 0.0Acquisitions 59.3 -Investments 0.6 -Disposals -389.9 -Transfers from investment properties 411.1 -Accumulated acquisition cost December 31 81.1 0.0

On 31 December 2024, assets held for sale consisted

of one investment property in Norway segment and

one investment property in Finland segment. One

investment property in Norway segment was sold during

Q2 2024, one during Q3 2024 and one during Q4 2024.

In addition, one property in Denmark & Estonia segment

and one residential property in Sweden segment were

sold during Q4 2024. On 31 December 2023 Citycon

had no property classified as assets held for sale.

Transfer from investment properties includes also fair

value changes of investment properties in assets held

for sale.

Citycon had no material liabilities directly associated

with assets classified as held for sale or other assets

than investment properties.

Accounting policy - assets held for sale

Non-current assets or a disposal group are

classified as held for sale if their carrying amount

will be recovered principally through the disposal

of the assets and the sale is highly probable.

A sale is deemed highly probable when

• the management is committed to a plan to

sell the property and an active programme to

locate a buyer and complete the plan has been

initiated

• the property is actively marketed for sale at a

price that is reasonable in relation to it’s current

fair value,

• the sale is being expected to qualify for

recognition as a completed sale within one year.

Non-current assets or a disposal group are

recognized at fair value less costs to sell.

Assets held for sale and and material liabilities

directly associated with the assets held for sale are

presented as separate line items in the statement

of financial position as held for sale items until the

sale.

Financial statementsFinancial review Financial Review 2024

2.3. Right-of-use assets

Accounting policy - right-of-use assets

Citycon Group has recognized right-of-use assets

from the leases subject to the scope of the standard

as part of the ‘Investment properties’ and ‘Tangible

assets’ balance sheet items. The right-of-use assets

recognized as part of investment properties consist of

leases subject to Citycon Group’s core business, such

as the leases of shopping centres, shopping centre

land areas and shopping centre machinery. The right-

of-use assets recognized as tangible assets, on the

other hand, have primarily been recognized for leases

included in administrative expenses, such as office

leases, IT assets and leased cars. The lease liability

of Citycon Group has been valued by discounting

the lease payment liabilities of the leases subject to

the scope of the IFRS 16 standard to their present

value using as the discounting factor the view of the

company’s management on the incremental borrowing

rate at the starting time of the lease.

The majority of the leased right-of-use assets

of Citycon Group are fixedly linked to Citycon’s

investment properties. As a result, Citycon measures

right-of-use assets that qualify as investment property

using the fair value model in IAS 40. Consequently,

fair value changes rather than depreciations are

recognised. Lease payments are allocated between

principal and interest expenses according to IFRS 16.

The impacts on profit pertaining to the right-of-use

assets classified as ’Tangible assets’ are disclosed in

the profit and loss account as interest expenses and as

depreciations included in the line item ’Administrative

expenses’.

Citycon applies the recognition exemptions permitted

by the standard and, hence, does not apply the

standard to short-term leases with a duration of less

than a year or leases of a low value, such as leases

applicable to specific office equipment.

Right-of-Use assets

MEUR 2024 20231 January 42.3 46.5Acquisitions & Additions 5.7 4.9Depreciations & Impact of terminated contracts -5.1 -4.8Disposals -3.5 -2.3Exhange rate differences -1.6 -2.031 December 37.8 42.3

Lease Liabilities

MEUR 2024 20231 January 38.8 42.8Acquisitions & Additions 5.0 4.6Lease liability amortization payments -7.0 -6.9Exhange rate differences -1.4 -1.731 December 35.3 38.8

MEUR 2024 2023Depreciation in administrative expenses -0.5 -0.7Fair value change (IFRS 16) -7.4 -6.6Interest expense -1.2 -1.2Deferred tax 0.1 0.1Total amount recognised in IFRS profit or loss -8.9 -8.4

Key estimates and assumptions

- right-of-use-assets

Assessing the propability of exercising extension

options included in lease agreements requires

judgement. At the commencement date, Citycon

assesses whether it is reasonably certain that the

entity will exercise an extension option included

in the lease agreement. Citycon considers all

relevant facts and circumstances that create an

economic incentive for the entity to exercise, or not

to exercise, the option.

The effect of IFRS 16

to calculation of key figures

When calculating loan to value (LTV), both the right-of-

use assets classified as part of investment properties,

as well as lease liabilities pertaining to these right-of-

use assets, have not been taken into account. The LTV

formula is presented in section Formulas for key figures

and ratios.

Maturity profile of liabilities related to

right-of-use assets

MEUR 2024 2023Less than 1 month 0.6 0.61 to 12 months 6.7 6.21–5 years 22.7 23.3over 5 years 5.2 8.8Total 35.3 38.8

Financial statementsFinancial review Financial Review 2024

2.4. Investments in joint ventures and associates

Following table represents the Citycon Group’s interest in the assets and liabilities, revenues and expenses of the joint ventures. The financial information presented in the table is

based on the financial statements of the joint venture entities prepared in accordance with IFRS.

A) Investments in joint ventures 2024 2023Kista Norwegian joint Joint Kista Norwegian joint Joint MEURGalleria Groupventuresventures totalGalleria Groupventuresventures totalInvestment property - - - 346.4 0.0 346.4Deferred tax assets - - - 8.5 - 8.5Other non-current assets - 1.8 1.8 6.5 2.2 8.6Cash and cash equivalents - 5.1 5.1 7.4 6.5 13.9Other current assets - 0.0 0.0 5.3 0.0 5.3Long-term loans - - - 259.9 0.0 259.9Deferred tax liabilities - - - - 0.0 0.0Short-term loans - - - 179.4 - 179.4Other short-term liabilities - 0.1 0.1 19.7 1.5 21.2Equity - 6.8 6.8 -84.9 7.1 -77.8Portion of the Group's ownership, % - 50% 50% 50%Share of joint venture's equity - 3.4 3.4 -42.5 3.6 -38.9Share of loans of joint ventures - - - 111.3 - 111.3Investments in joint ventures - 3.4 3.4 68.9 3.6 72.4Gross rental income 3.1 - 3.1 18.6 - 18.6Net rental income 2.1 - 2.1 13.1 - 13.1Administrative expenses 0.0 0.0 0.0 -0.1 0.0 -0.1Other operating income/expenses - 0.0 0.0 -0.1 2.5 2.5Net fair value gains/losses on investment property 0.0 - 0.0 -81.6 0.0 -81.6Operating profit/loss 2.1 0.0 2.0 -68.7 2.5 -66.2Financial income 0.0 0.2 0.2 0.1 0.3 0.4Financial expenses -3.6 0.0 -3.6 -25.8 0.0 -25.8Taxes 0.0 0.0 0.0 20.5 -0.6 19.9Result for the period -1.5 0.1 -1.4 -73.9 2.2 -71.61Other items in Share of profit/loss of joint ventures- - - -0.8 - -0.8Share of profit/loss of joint ventures -0.8 0.1 -0.7 -37.8 1.1 -36.7Other comprehensive income for the period, net of tax - 0.0 0.0 0.0 0.0 0.0Exchange gains/losses on translating foreign operations 0.0 0.0 0.0 2.2 0.0 2.2Share of other comprehensive income of associated companies and joint ventures 0.0 0.0 0.0 1.1 0.0 1.1Total comprehensive profit/loss for the period -1.5 0.1 -1.4 -72.5 2.2 -70.21 Other items in Share of profit/loss of joint ventures in 2023 comprise of cumulative adjustment related to Investments in joint ventures.

Accounting policy - investments

in Associates and Joint Ventures

Citycon recognises its investment in joint ventures

and associated companies using the equity

method in the consolidated financial statements.

Joint ventures owned by Citycon are treated

according to the IFRS 11 Joint Arrangements.

In joint ventures, venturers have a contractual

arrangement that establishes joint control over

the economic activities of the entity. The most

significant business and financing decisions

regarding the joint ventures are made jointly

among the owners.

An associated company is an entity over which

the Group has significant influence. Significant

influence is created usually when the Group owns

over 20% of the voting rights of the company or

when the Group has otherwise significant power

over company, but not the control.

The Group presents the aggregated share of

profit or loss from the associated companies and

joint ventures on its statement of comprehensive

income in line “Share of profit/loss of associated

companies and joint ventures” and “Share of other

comprehensive income of associated companies

and joint ventures”.

Financial statementsFinancial review Financial Review 2024

Kista Galleria shopping centre

On 29 February 2024 Citycon acquired 50% interest of

Kista Galleria shopping centre located in Sweden from

a Canadian partner (CPPIB). Citycon has managed the

centre since 2012 and before the transaction owned

50% of the asset. After the acquisition, Citycon owns

100% of the Kista Galleria shopping centre.

Joint ventures in Norway

Citycon owns 50% of the shares of the residential real

estate development company Klosterfoss Utvikling

AS in Norway. Sandstranda Bolig AS, of which Citycon

had 50% ownership, was liquidated in December 2024.

Company was not included in the group balance sheet

on 31.12.2024.

B) Investments in associated companies

MEUR 2024 2023Investment properties 0.0 0.0Current assets 0.2 0.5Non-current assets 0.0 0.0Short-term liabilities 0.1 0.5Long-term liabilities 0.0 0.0Total shareholders' equity 0.1 0.1Portion of the Group's ownership, % 38% 38%Share of associated companies' equity 0.0 0.0Share of loans of associated companies 0.0 0.0Investments in associated companies 0.0 0.0Gross rental income 0.8 1.8Net rental income 0.0 0.1Administrative expenses 0.0 0.0Net financial income and expenses 0.0 0.0Taxes 0.0 0.0Result for the period 0.0 0.0Share of profit/loss of associated companies 0.0 0.0Share of other comprehensive income of associated companies and joint ventures 0.0 0.0Total comprehensive profit/loss for the period 0.0 0.0

Associated company in Norway

On the reporting date 31.12.2024 and the comparison

period 31.12.2023 Citycon has only one associated

company, Torvbyen Drift AS in Norway, from which the

group owns 38%.

The table presents summarised financial information of

the Citycon’s investments in associated company.

Financial statementsFinancial review Financial Review 2024

3. Financing

3.1. Equity

A) Description of funds and reserves included

in the equity

Share capital

The company has single series of shares, each share

entitling to one vote at General Meeting of shareholders.

The shares have no nominal value and the share capital

has no maximum value.

Share premium fund

Since the 2006 entry into force of the current Finnish

Limited Liability Companies Act, no new items are

recognised in the share premium fund. The share

premium fund accumulated before 2007 due to option

schemes and share issues.

Invested unrestricted equity fund

The invested unrestricted equity fund is credited, for

instance, with that part of the subscription price of

the shares that, according to the Memorandum of

Association or the share issue decision, is not to be

credited to the share capital. Incremental transaction

costs (net of taxes) directly attributable to the issue of

new shares or options are deducted from the proceeds.

Fair value reserve

The fair value reserve contains fair value changes of

derivative instruments used to hedge cash flows.

Translation reserve

The translation reserve contains translation differences

arising from the currency translation of foreign

subsidiaries’ financial statements.

Hybrid bond

Citycon has three hybrid bonds, issued in November

2019 (NC2025), June 2021 (NC2026) and in June

2024 (NC2029). During 2024 Citycon executed an

exchange of the NC2025 hybrid bond in to a new EUR

265.7 million NC2029 hybrid bond. The exchange

concerned only existing hybrid bond holders in the

NC2024 and therefore the exchanged nominals were

not paid in cash. As at 31.12.2024 the hybrid nominals

stand at NC2025: EUR 26.1 million, NC2026: EUR 321.0

million and NC2029: EUR 265.7 million. The hybrid

bonds are treated as a part of shareholder’s equity in

the IFRS financial statements as the coupon payment

of the hybrids are at the discretion of the issuer.

Citycon has the right to postpone interest payment

if it does not distribute dividend or any other equity

to its shareholders. The hybrid bonds are unsecured,

subordinated to all debt and senior only to ordinary

share capital. A holder of hybrid bond notes has

no shareholder rights. The hybrid bonds have fixed

coupons until the first reset dates. The NC2025 bears

a coupon of 4.496% until 22 February 2025 when it

resets at the 5 year swap rate plus 4.711% margin, the

NC2026 bears a coupon of 3.625% until 10 September

2026 when it resets at the 5 year swap rate plus 4.179%

margin and the NC2026 bears a coupon of 7.875%

until 10 September 2029 when it resets at the 5 year

swap rate plus 4.955% margin. Thereafter, coupons are

reset five years after the first reset date with applicable

5 year swap rate plus an additional 25 bps to the first

reset margin. There is a similar second coupon step-

up twenty years after the the first reset date with

applicable 5 year swap rate plus an additional 100 bps

to the first reset margin. The bonds have no set maturity

date, but the company has the right to redeem them

after five years from the issue date and thereafter on

every yearly interest payment date. Fees related to the

hybrids are amortised in retained earnings and interest

is recorded in retained earnings upon payment or when

the commitment to payment arises. Earnings per share

includes the hybrid interests cost on accrual basis.

During the financial period, hybrid bonds accrued EUR

30.7 million in interest. Expenses from the issuance

of the new hybrid in 2024 were EUR 15.2 million. EUR

34.7 million of the interest and the expenses for the

issuance have been recognized as a reduction of

retained earnings. EUR 33.6 million has been paid in

interest on hybrid bonds. The hybrid loans have an off

balance sheet accrued interest of EUR 11.0 million as of

31 December 2024 (EUR 14.8 million as of 31 December

2023).

Hybrid bonds nominals outstanding

MEUR 2024 2023January 1 612.8 700.0Repayment of hybrid bonds -265.7 -87.2Issuance of hybrid bonds 265.7 -December 31 612.8 612.8

Treasury Shares

Where any group company purchases the company’s

equity share capital (treasury shares), the consideration

paid, including any directly attributable incremental

costs (net of income taxes) is deducted from equity

attributable to the company’s equity holders until the

shares are reissued. Where such ordinary shares are

subsequently reissued, any consideration received,

net of any directly attributable incremental transaction

costs and the related income tax effects, is included in

equity attributable to the company’s equity holders.

During the reporting period, the company held a total

of 32,174 of the company’s own shares, which were

conveyed to implement payments of rewards earned

under the company’s share plans as described in the

section Board authorisations. At the end of the period,

the company or its subsidiaries held no shares in the

company.

B) Board proposal for dividend and return from

the invested unrestricted equity fund

The Board of Directors proposes to the Annual General

Meeting that the Board of Directors will be authorized

to decide on the distribution of assets from the invested

unrestricted equity fund.

Based on this authorization, the maximum total amount

of equity repayment distributed from the invested

unrestricted equity fund shall not exceed EUR 0.30

per share. Based on the current total number of issued

shares in the company (184,231,295), the authorization

would equal to a maximum of EUR 55,269,389 in equity

repayment.

The authorization is valid until the opening of the next

Annual General Meeting.

As disclosed on 15 November 2024, the Board of

Directors of Citycon Oyj has unanimously decided that

it will not use its authorization and no dividend or equity

repayment will be distributed until year end 2025. The

decision has been made to further increase the long-

term financial stability, and to strengthen the balance

sheet and the credit profile of the company.

Financial statementsFinancial review Financial Review 2024

3.2. Net financial income and expenses

A) Recognised in the consolidated income

statement

MEUR 2024 2023Interest income on loans 1.5 6.2Interest income on derivatives and other items 6.2 1.7Foreign exchange gains 51.3 74.1Fair value gain from derivatives - -Other financial income 17.6 5.6Financial income, total 76.5 87.7Interest expenses on loans -75.8 -51.8Interest expenses on derivatives and other items 6.7 4.5Foreign exchange losses -52.1 -74.3Fair value loss from derivatives -21.0 -3.4Development interest capitalised 0.4 0.5Other financial expenses -9.7 -9.6Interest expenses on IFRS 16 lease liabilities -1.2 -1.2Financial expenses, total -152.7 -135.3Net financial income and expenses -76.1 -47.7Of which attributable to financial instrument categories:Interest-bearing loans and receivables -74.6 -34.3Lease liabilities (IFRS 16) -1.2 -1.2Derivative financial instruments -20.4 -18.0Other liabilities and receivables 20.0 5.9Net financial income and expenses -76.1 -47.7

Net financial expenses increased to EUR 76.1 million

(Q1–Q4/2023: EUR 47.7 million). EUR 20.3 million

increase relates to higher interest expenses on

refinanced bond debt and consolidation on Kista interest

expenses, which was partially offset by FX hedging gains

and losses. In addition, an amount of EUR 8.9 million

indirect net losses (Q1–Q4/2023: EUR 2.8 million loss)

was booked related to fair value changes of derivatives

not under hedge accounting, EUR 6.1 million more

than during the comparison period. The company also

recorded EUR 0.8 million gain on early redemption of

debt (Q1–Q4/2023: EUR 2.9 million gain), EUR 2.1 million

less than in the corresponding period.

Citycon’s weighted average interest rate was 3.60%

(2.61%) and the weighted average interest excluding

derivatives was 3.93% (3.13%) as at 31 December 2024.

Interest on development expenditure is capitalised at a

rate of 3.58% (2.99%) as at 31 December 2024.

Citycon’s interest expenses in the consolidated

income statement contain interest expenses from

interest-bearing debt as well as all interest expenses

arising from derivative financial instruments used for

hedging purposes. Additional information on Citycon’s

derivative financial instruments, their fair values and

hedge accounting treatment can be found in Note 3.6.

Derivative Financial Instruments.

Fair value gains and losses of derivatives relate to

cross-currency swaps and interest rate options not

under hedge accounting. Other financial expenses

mainly consist of amortisations and write-downs of

arrangement fees, costs related to bond repurchases,

paid commitment fees and other bank fees.

B) Recognised in the other consolidated

comprehensive income

MEUR 2024 2023Gains/losses arising during the period from cash flow hedges 0.2 -3.4Added (Less): interest income (expenses) recognised in the consolidated income statement on cash flow hedges 0.3 2.0Net gains/losses on cash flow hedges 0.5 -1.4

Interest income

Interest income is recognised according to the time

that has elapsed, using the effective interest method.

Dividend income

Dividend income is recognised when the right to

receive a dividend is established.

Borrowing costs

Borrowing costs are usually expensed as incurred.

However, borrowing costs, such as interest expenses

and arrangement fees, directly attributable to the

acquisition, construction or production of a qualifying

asset are capitalised as part of the cost of that asset.

A qualifying asset is an asset that necessarily takes a

substantial period of time to be ready for its intended

use or sale. Capitalisation commences when the

refurbishment of a property, or the construction

of a new building or extension, begins and ceases

once the building is ready for lease. Capitalisable

borrowing costs include costs of funds borrowed

for a construction project or costs attributable to a

construction project multiplied by the capitalisation

rate. The capitalisation rate is the weighted average

cost of Citycon’s borrowings for the financial year.

Borrowing costs arising from the purchase cost of

land are also capitalised on the development project,

but only when activities necessary to preparing

the asset for development are in progress on the

purchased land.

Loan-related transaction expenses clearly associated

with a specific loan are included in the loan’s cost

on an accrual basis and recognised as financial

expenses, using the effective interest method.

Expenses related to hybrid bonds are recognised in

retained earnings, see note 3.1.

Financial statementsFinancial review Financial Review 2024

3.3. Classification of financial instruments

A) Classification of financial instruments and their carrying amounts and fair values

Carrying Carrying amount Fair valueamount Fair valueMEUR Note 2024 2024 2023 2023Financial assetsI Financial assets amortised at costFinancial assets within Rent, trade and other receivables 4.4. 18.0 18.0 20.8 20.8Cash and cash equivalents 3.8. 358.5 358.5 25.2 25.2II Financial assets at fair value through profit and lossDerivative financial instruments 3.6. 36.5 36.5 37.3 37.3III Derivative contracts under hedge accountingDerivative financial instruments 3.6. - - - -Financial liabilitiesI Financial liabilities amortised at costI.I LoansLoans from financial institutions 3.4. 509.5 516.1 336.5 341.9Commercial paper 3.4. 9.9 10.0 46.5 47.01Bonds3.4. 1,576.8 1,554.6 1,442.6 1,289.6Lease liabilities (IFRS 16) 2.3. 35.3 35.3 38.8 38.8I.II Other liabilitiesFinancial liabilities within Trade and other payables 4.5. 44.6 44.6 39.3 39.3II Financial liabilities at fair value through profit and lossDerivative financial instruments 3.6. 15.3 15.3 26.4 26.4III Derivative contracts under hedge accountingDerivative financial instruments 3.6. 1.3 1.3 1.4 1.41 Starting 1.1.2023 the company no longer defines the fair value of debt as the nominal outstanding, instead market value of debt is used as definition of fair value of debt. Corresponding periods have been updated retrospectively.

Financial assets and liabilities

Recognition and measurement

Financial assets are classified into the following

categories for measurement purposes according to

IFRS 9

1. financial assets at amortised cost or

2. financial assets at fair value through profit or loss.

The classification of a financial asset is determined

based on the entity’s business model for managing

the asset and whether the assets’ contractual cash

flows represent ‘solely payments of principal and

interest’ on the principal amount outstanding.

Assets classified at amortised cost include financial

assets which the company has created by providing

money, goods or services directly to the debtor.

Initially recognised at fair value these assets under

current and non-current assets are carried at

amortised cost. Their balance sheet value is impaired

by the amount of any credit loss. In the company’s

consolidated statements of financial position as at

31 December 2024 and 31 December 2023, financial

assets held at amortised cost include rent and

trade receivables, interest receivables and cash and

cash equivalents, which are reported in the balance

sheet within the following items ”Trade and other

receivables” and ”Cash and cash equivalents”.

Citycon concludes derivative contracts for hedging

purposes only. Derivative contracts not fulfilling the

criteria set for hedge accounting, or for which Citycon

has decided not to apply hedge accounting, are

classified as financial assets or liabilities at fair value

through profit or loss.

Financial liabilities are classified as

1. financial liabilities at fair value through profit or loss

2. financial liabilities at amortised costs

Financial liabilities are initially recognised at fair

value. Afterwards, financial liabilities excluding

derivative debt are recognised at amortised cost

using the effective interest method. In the company’s

consolidated statement of financial position, on 31

December 2024 and 31 December 2023, financial

liabilities at amortised cost include loans, trade

payables and interest payables which are reported

in the balance sheet under the items ”Loans”

and ”Trade payables and other payables”. On 31

December 2024 Citycon had foreign exchange

derivative contracts, cross currency swaps and

interest rate options classified as financial assets and

liabilities at fair value through profit or loss. Financial

assets and liabilities are recognised in the statement

of financial position on the basis of the settlement

date.

Financial statementsFinancial review Financial Review 2024

B) The principles for determining the fair values of

financial instruments

Citycon applies IFRS valuation principles when

determing the fair values of financial instruments. The

following presents the principles for determining the fair

values of all financial assets and liabilities.

Cash and cash equivalents, investments, trade

and other receivables, trade payables and other

payables

Due to their short maturity, the fair value of cash and

cash equivalents, trade payables and receivables and

other short-term receivables and payables is regarded

as corresponding to their carrying amount.

Derivative financial instruments

Derivative financial instruments are initially measured

at fair value in the statement of financial position and

subsequently re-measured at their fair value on each

balance-sheet date. The fair value of interest rate swaps

is calculated using the present value of estimated future

cash flows. The fair value of Citycon’s interest rate

derivatives is determined based on customary valuation

techniques used by market participants in the OTC

derivative market. An interest rate curve is determined

based on observable market rates. The curve is used

to determine future interest payments, which are then

discounted to present value.

The fair value of a currency forward agreement is based

on the difference between the exchange rate of the

agreement and the prevailing exchange rate fixing on

each balance-sheet date as well as the currency basis

spreads between the respective currencies. The fair

value of derivative financial instruments is the estimated

amount that Citycon would receive or pay to settle the

related agreements. The fair value of foreign exchange

derivative contracts is based on quoted market prices.

The fair value of cross-currency swaps consists of the

fair value due to the interest rate change and the fair

value due to the currency rate. The interest rate fair

value is determined by the counterparty banks in the

same way as in interest rate swaps mentioned above

and the reported values are based on the valuations

of the counterparty banks. The currency fair value is

determined in a similar way as in currency forward

agreements.

The fair value of both interest rate and foreign exchange

derivative financial instruments corresponds to level 2 of

the fair value hierarchy according to IFRS13.72-90. For

financial instruments that are recognised at fair value on

a recurring basis, Citycon determines whether transfers

have occurred between levels in the hierarchy by re-

assessing categorisation (based on the lowest level

input that is significant to the fair value measurement as

a whole) at the end of each reporting period. During the

period there was no transfers between the levels of the

fair value hierarchy.

Loans from financial institutions

Citycon’s loans from financial institutions are floating

and fixed rate loans which have a fair value equal to the

nominal amount of the loan. The difference between

the fair value and carrying amount is the unamortised

capitalised arrangement fees of the loans. The fair value

of loans from financial institutions corresponds to level 2

according to IFRS13.72-90.

Bonds

All bonds are loans which have fair values equal to

the secondary market price of the bonds. The fair

value of the bonds corresponds to level 1 according to

IFRS13.72-90. All Citycon bonds are actively traded

on secondary markets and therefore prices quoted on

secondary markets can be considered accordance with

level 1 of IFRS13.72-90.

As of 31 December 2024 the secondary market price

was EUR 22.2 million lower (Q1–Q4/2023: EUR 153.0

million lower) than the carrying value of the bonds.

Financial statementsFinancial review Financial Review 2024

3.4. Loans

All Citycon loans were interest-bearing liabilities on 31 December 2024 and 31 December 2023. These interest-bearing

loans are explained here in detail.

Breakdown of interest-bearing liabilities

Effective interest rate Carrying amount Carrying amount Maturity(%)20242023Long-term interest-bearing liabilitiesBondsNOK Bond 2/2015 9/2025 3.90 - 115.5Eurobond 1/2016 9/2026 1.26 349.1 348.8NOK Bond 1/2017 9/2025 2.77 - 88.7Eurobond 1/2018 1/2027 2.50 241.4 241.0Eurobond 1/2021 3/2028 1.79 341.4 340.5Eurobond 1/2024 3/2029 6.63 296.3 -Eurobond 2/2024 3/2030 5.15 344.9 -Syndicated term loans1EUR 250 million secured term loan facility 4/2027 3M Euribor + 2.30247.4 247.3SEK 2,045 million secured term loan 5/2029 3M Stibor + 2,50 175.4 -SEK 1,020 million secured term loan facility 11/2030 5.57 86.7 89.2Syndicated revolving credit facilities1EUR 400 million secured revolving credit facility 4/2026 Reference rate + 2.15- -Lease liabilities (IFRS 16) - - 28.1 31.8Total long-term interest-bearing liabilities 2,110.7 1,502.8Short-term interest-bearing liabilitiesEurobond 1/2014 10/2024 2.64 - 197.2Eurobond 1/2020 (1/2014 bond tap) 10/2024 4.50 - 110.9NOK Bond 2/2015 9/2025 3.90 0.4 -NOK Bond 1/2017 9/2025 2.77 3.2 -Commercial paper 1/2025 Reference rate + 0,5–0,8 9.9 46.5Lease liabilities (IFRS 16) - - 7.2 7.0Total short-term interest-bearing liabilities 20.8 361.61 Margin is linked to the group's credit rating and sustainability targets.

The carrying amounts of syndicated loans and bonds

are stated at amortised cost, using the effective yield

method. The fair values of liabilities are shown in Note

3.3. Classification of Financial Instruments.

Maturity of long-term interest-bearing debt

(excl. IFRS16 liabilities)

MEUR 2024 20231–2 years 349.1 204.22–3 years 488.9 596.13–4 years 341.4 241.04–5 years 471.7 340.5over 5 years 431.6 89.2Total 2,082.7 1,471.0

Long-term interest-bearing liabilities by currency

MEUR 2024 2023EUR 1,420.4 878.2NOK 110.2 204.2SEK 552.0 388.7Total 2,082.7 1,471.0

Short-term interest-bearing liabilities by currency

MEUR 2024 2023EUR 9.9 354.6NOK 3.6 -SEK - -Total 13.6 354.6

Currency split is including cross-currency swaps.

Maturity of liabilities related to IFRS 16 right-of-use

assets is presented in note 2.3.

3.5. Financial risk management

A) Financial risk management

The objective of financial risk management is to ensure

that Citycon will reach its targets in financing and cost

of finance and to identify and mitigate key risks which

may threaten its ability to meet these targets before they

realise.

The Board of Directors has approved a Treasury

Policy which defines the objectives, responsibilities

and risk management targets, responsibilities and

indicators. The execution and controlling of financial

risk management is performed by the Group Treasurer,

under the supervision of the CFO. Group Treasurer

reports compliance with the objectives, in conjunction

with the interim and annual report, to the CFO,

who reports to the Board’s Audit and Governance

Committee.

Financial risks have been identified as business critical

risks for Citycon. Financial risk arises for Citycon in the

form of financial instruments, which are mainly used to

raise financing for operations. The Group uses interest

rate and foreign exchange derivatives to manage

interest rate and currency risks arising from operations

and financing sources.

Citycon’s identified, key financial risks include interest

rate risk, liquidity risk, credit risk and foreign currency

risk. These risks are summarised below.

Interest rate risk

One of Citycon’s key financial risks is the interest rate

risk of its interest bearing liabilities, whereby changes

in money market interest rates lead to fluctuations in

future interest cash flows on floating rate borrowings.

Interest rate risk management aims to reduce or

Financial statementsFinancial review Financial Review 2024

eliminate the adverse effect of interest rate fluctuations

on the company’s profit and cash flow. The company

aims at a loan portfolio with the right balance of fixed

and variable rate debt.

The majority of Citycon’s debt portfolio consist of

fixed rate debt. Citycon has mainly raised funding

from the bond markets but during 2023 the company

has entered into mortgage debt financing. Part of the

mortgage debt is floating rate which has been partially

converted to fixed rate using interest rate swaps. Under

the company’s interest rate risk management policy, the

target debt portfolio is one in which a minimum of 70%

and a maximum of 90% of interest bearing liabilities are

based on fixed interest rates over time. At year-end the

ratio of fixed rate debt was 85.1% (73.8%).

The interest sensitivity of Citycon’s loan portfolio at

the end of 2024 is described by the fact that a one-

percentage point rise in money market interest rates

would increase its interest expenses by EUR 1.4 million

on a yearly basis, while a fall of one-percentage point in

such rates would decrease them by EUR 2.9 million.

Interest rate sensitivity

The following table shows interest expenses’ sensitivity

to a 100 basis point change in short term interest rates,

assuming that all other variables remain constant.

The impact is shown as a change in interest expenses

resulting from changes in the interest rate related to

floating rate debt.

Effect on interest expenses of an increase

of 100 basis points

MEUR 2024 2023Euro 1.4 1.0Norwegian crown - -Swedish crown - -Total 1.4 1.0

The following table shows the consolidated

shareholders’ equity’s sensitivity to a 100 basis point

change in short term interest rates, assuming that all

other variables remain constant. The impact is shown as

a change in shareholders’ equity resulting from changes

in interest rates, which relate to interest rate derivatives

under hedge accounting treatment.

Effect on shareholders equity of an increase of

100 basis points

MEUR 2024 2023Euro 0.3 0.3Norwegian crown - -Swedish crown - -Total 0.3 0.3

Liquidity risk

As a real estate company with a large balance sheet,

Citycon needs both equity capital and debt financing.

The Group uses cash-flow forecasts to continuously

assess and monitor financing required for its business.

Here, the goal is to arrange financing on a long term

basis and avoid any large concentration of due dates

for the loan agreements in the near term. Citycon aims

to guarantee the availability and flexibility of financing,

through sufficient committed unused credit limits

and by using several banks and financing sources as

sources of finance.

Citycon’s financing policy states that all maturing

debt, committed capital expenditures and committed

acquisitions for the coming rolling 12 months period,

not covered by Operating cash flow in approved budget

or forecast or by committed disposals of assets must

be covered by available liquidity consisting of cash

and long-term committed credit limit facilities. On

31 December 2024, unused committed credit limits

amounted to EUR 400.0 million, in addition Citycon

had unused cash pool limits of EUR 15.0 million and

unrestricted cash and cash equivalents of EUR 352.2

million.

In 2024 Citycon executed several financing transactions

in order to strengthen the balance sheet and improve

the maturity profile. During the first quarter, Citycon

exectued a EUR 48.2 share issue which was 4-times

oversubscribed, placed a EUR 300 million green

bond with an orderbook approximately seven times

oversubscribed and simultanously executed approx.

EUR 213 million tender of its bond maturing in October

2024. During the second quarter, the company

successfully executed a EUR 266 million exchange for

its 2024 hybrid for a new hybrid and cash amount and

executed a make-whole for the remaining amount (EUR

97 million) of its bond maturing in October 2024. The

company also improved its credit maturity profile by

extending its EUR 400 million revolving credit facility

and EUR 250 million term loan by one year until 2027

and SEK 2,060 million term loan with five years until

2029. During the fourth qaurter, Citycon reached EUR

354 million of total divestments for year 2024. Funds

from the divestments will be used to repay debt. The

company also placed a 5.25-year EUR 350 million

green bond with an orderbook approximately ten times

oversubscribed with funds being used to repay debt.

Simultaneously, Citycon executed approx. EUR 193

million tender of its short-term NOK bonds maturing in

September 2025.

The next table summarises the maturity profile of

the Group’s financial liabilities, based on contractual

payments. The table includes both principal and interest

flows of loans and payments arising from derivative

financial instruments. Future interest payments of

floating rate loans have been determined based on

the interest rate applicable on the balance sheet date,

and are not discounted. Future interest payments

for derivative financial instruments are based on

discounted net present values and future interest rates

are obtained through interpolation based on the yield

curve prevailing on the balance sheet date.

Financial statementsFinancial review Financial Review 2024

Maturity profile of financial liabilities including interest flows

MEUR Less than 1 month 1 to 12 months 1–5 years Over 5 years Total31 December 2024Commercial paper 10.0 - - - 10.0Bonds 9.5 33.8 1,417.2 367.5 1,828.0Derivative financial instruments 0.3 2.5 1.3 0.5 4.6Financial liabilities within Trade and other payables 15.4 27.1 2.1 - 44.631 December 2023Commercial paper 23.0 24.0 - - 47.0Bonds 5.8 340.8 1,190.8 - 1,537.3Derivative financial instruments 0.4 4.7 1.4 - 6.6Financial liabilities within Trade and other payables 26.7 12.6 - - 39.3

Citycon’s rent revision procedures, long leases and high occupancy ratio generate a stable long-term cash flow profile.

Citycon expects to meet its short-term liabilities shown in the table above from this stable cash flow and undrawn

committed credit facilities. In the long term, loan refinancings, new bond issues, or disposals of investment properties

will be done. The table below shows the maturity profile of the undrawn committed credit facilities.

MEUR Less than 1 month 1 to 12 months 1–5 years Over 5 years Total31 December 2024Undrawn committed credit facilities - - 400.0 - 400.031 December 2023Undrawn committed credit facilities - - 400.0 - 400.0

The above mentioned credit facilities are freely available to Citycon based on the group’s financing needs.

Changes in liabilities from financing activities

Foreign 1 January exchange Change in Amortized Other 31 December MEUR2024 Cash flowmovementfair valuesfeeschanges2024Long term interest bearing liabilities 1,471.0 611.7 -9.9 1.8 -8.4 16.4 2,082.7Short-term interest bearing liabilities 354.6 -537.2 0.2 - - 196.0 13.6Derivatives 27.9 -1.1 - -10.2 - - 16.6Total in liabilities from financing activities 1,853.5 73.4 -9.7 -8.4 -8.4 212.4 2,112.8

Foreign 1 January exchange Change in Amortized Other 31 December MEUR2023 Cash flowmovementfair valuesfeeschanges2023Long term interest bearing liabilities 1,639.7 147.8 -12.0 -4.9 8.6 -308.1 1,471.0Short-term interest bearing liabilities 125.2 -70.9 -7.9 - 0.1 308.1 354.6Derivatives 0.6 0.0 26.2 1.1 - - 27.9Total in liabilities from financing activities 1,765.5 76.8 6.2 -3.8 8.7 0.0 1,853.5

Credit risk

Citycon controls its receivables within the framework

of the given credit limits and has not so far identified

any major credit risk associated with them. Credit risk

management caters for customer risk management,

which is aimed at minimising the adverse effect of

unexpected changes in the customers’ financial

standing on Citycon’s business and financial results.

Customer risk management is primarily based on

the knowledge of the customers’ business and

active monitoring of customer data. Citycon’s lease

agreements include lease deposit provisions used to

contribute to managing customers’ risks. The maximum

exposure from trade receivables is the carrying amount

as disclosed in Note 4.4. Trade and other receivables.

Credit risk arising from cash and cash equivalents and

certain derivative agreements relate to the default of

a counterparty with a maximum exposure equal to the

carrying amount of these instruments. Citycon invests

its liquidity in a manner which minimizes the risk and

does not, for example, invest in equity markets. Citycon’s

cash and cash equivalents are primarily placed on

bank accounts and in short term deposits, in which the

counterparties are commercial banks participating in

Citycon’s credit agreements. Citycon’s financing policy

also sets forth approved financial instruments in which

the company can invest, and includes counterparty limits

for those investments.

Exchange rate risk

Citycon’s presence in countries outside the eurozone

exposes the company to exchange rate risk. Exchange

rate risk stems from transaction risks resulting from the

conversion of foreign currency denominated transactions

into local currency, as well as from translation risks in the

balance sheet and profit and loss statement associated

with investments in foreign subsidiaries. The company

Financial statementsFinancial review Financial Review 2024

B) Capital management and financial covenants

Capital management

The objective of the company’s capital management

is to support the strategy, maximise shareholder value,

uses foreign exchange derivatives to manage the

transaction risk on committed transactions. The company

manages its exchange rate risk in the balance sheet by

aiming to finance its foreign investments mainly in the

local currency. Currently, the company’s exchange rate risk

relates to fluctuations in the Euro/Swedish crown and the

Euro/Norwegian crown exchange rates.

In 2024 Citycon started hedging the translation risk related

to equity investments made in Norwegia and Swedish

crown. The company uses foreign exchange derivatives

to hedge the translation impact on group equity in order

to mitigate the impact of foregin exchange on its rating

related financial metrics.

Foreign exchange sensitivity

The following table shows the sensitivity in the net

financial expenses of the consolidated income statement

to a 5% change in foreign exchange rates, assuming that

all other variables remain constant. This impact is mainly

attributable to the change in the fair value of financial

instruments and the change in interest expenses paid in

other currencies as the principals are fully hedged.

Effect of a five percent strengthening in foreign

exchange rates on net financial expenses

MEUR 2024 2023Swedish crown 0.2 0.2Norwegian crown -0.4 -0.4Total -0.2 -0.2

comply with loan agreement provisions and ensure

the company’s ability to pay dividend. Citycon’s capital

structure is managed in an active manner and capital

structure requirements are taken into account when

considering various financing alternatives. The company

can adjust the capital structure by deciding on the

issuance of new shares, raising debt financing, raising

hybrid financing, divesting investment properties or

making adjustments to the dividend.

Citycon monitors its capital structure based on equity

ratio and loan-to-value (LTV). The company’s long term

LTV target is 40–45%.

Equity ratio

MEUR 2024 2023Total shareholders’ equity (A) 1,858.5 1,987.5Total assets 4,303.1 4,208.4Less advances received 9.3 11.7./. (Total assets - advances received) (B) 4,293.8 4,196.7Equity ratio, % (A/B) 43.3% 47.4%

LTV (Loan to value) -%

MEUR 2024 2023Interest-bearing debt total (Note 3.4.) 2,131.5 1,864.4Less lease liabilities (IFRS 16, Note 2.3) 35.3 38.8Less cash and cash equivalents (Note 3.8.) 358.5 25.2Interest-bearing net debt (A) 1,737.8 1,800.3Fair value of investment properties including properties held for sale and investments in joint ventures (Notes 2.1 and 2.2) 3,712.3 3,930.6Less right-of-use assets classified as investment properties (IFRS 16, Note 2.3) -37.3 -40.5Fair value of investment properties (B) 3,675.0 3,890.1LTV, % (A/B) 47.3% 46.3%

LTV increased in 2023 mainly as a result of decreased property values and slightly higher net debt. Loan to value is

calculated excluding both hybrid debt and IFRS16 lease liabilities.

Financial covenants

Under a commitment given in the terms of the revolving

credit facilities, the Group undertakes to maintain

its net debt to total assets ratio under 0.60 and its

interest coverage ratio at a minimum of 1.8. The net

debt to total assets ratio is calculated by dividing

the Group’s consolidated net debt with total assets

excluding advances received. The interest coverage

ratio is calculated by dividing the EBITDA adjusted by

extraordinary gains/losses, provisions and non-cash

items, by net financial expenses. In addition, the loan-

to-value in loan drawn under the secured RCF shall not

exceed 55 per cent. These covenants are measured

quarterly and carrying amount of the loan was EUR

247.4 million at 31 December 2024..

Accordingly, net debt to total asset ratio on 31 December

2024 stood at 0.41 (Q1–Q4/2023: 0.44) and interest

coverage ratio stood at 2.74 (Q1–Q4/2023: 3.7).

Under a commitment given in the terms of the Trust

Deeds regarding all issued bonds Citycon undertakes

to maintain the group’s solvency ratio at under 0.65 and

its secured solvency ratio at under of 0.25. The solvency

ratio is calculated by dividing the Group’s consolidated

net debt with total assets excluding intangible assets.

The secured solvency ratio is calculated by dividing the

Group’s consolidated secured debt with total assets

excluding intangible assets. These covenants are

measured bi-annually and total carrying amount of the

bonds was EUR 1,576.8 million at 31 December 2024.

Accordingly, the solvency ratio on 31 December 2024

stood at 0.42 (Q1–Q4/2023: 0.45) and the secured

solvency ratio at 0.12 (Q1–Q4/2023: 0.08).

In addition, the financing agreement of subsidiary level

mortgage loan in Liljeholmstorget Galleria includes

financial covenants related to the interest coverage ratio

which should not be equal to or less than 1.75, and loan-

to-value which should not be equal to or exceed 50 per

cent. The interest coverage ratio is calculated by dividing

projected net rental income by projected finance costs.

As of 31.12.2024 loan-to-value stood at 36 (36) per cent

and interest coverage ratio stood at 2.83 (2.64). These

covenants are measured quarterly and the carrying

amount of the loan was EUR 86.7 million at 31 December

2024.

Financial statementsFinancial review Financial Review 2024

3.6. Derivative financial instruments

Derivative contracts and hedge accounting

Derivative financial instruments are used in accordance

with Citycon’s Treasury Policy to hedge the interest rate

risk of interest bearing liabilities and foreign currency

risk. Derivatives are initially measured at fair value and

re-measured at fair value on each statement of financial

position date.

Citycon uses interest rate swaps to hedge the interest

rate cash flow risk. These interest rate swaps hedge

against volatility in future interest payment cash

flows (cash flow hedging) resulting from interest rate

fluctuations, and the resulting profit fluctuations.

Hedged instruments consist of long term floating

rate debt, which is expected to be refinanced upon

maturity on similar terms. Citycon applies hedge

accounting according to IFRS 9 to its interest rate

swaps. Subsequently, the fair value change of the

effective part of the derivative hedge is recognised in

the fair value reserve in equity and correspondingly

under other comprehensive income. Any significant fair

value change resulting from an ineffective part of the

derivative hedge is recognised financial income and

expenses. If the criteria for hedge accounting are not

met, changes in fair value are recognised in full through

profit or loss. At the moment Citycon has two interest

rate swaps under hedge accounting with a nominal of

EUR 125 million.

Interest payments based on interest rate swaps are

included in interest expenses. Fair value changes that

are booked through profit or loss are recognised as

financial expenses or income, if hedge accounting is not

applied. The fair value of interest rate swaps is shown in

current or non-current receivables or current and non-

current liabilities in the statement of financial position.

As of 31 December 2024 Citycon’s interest rate swaps

were under hedge accounting.

In addition Citycon has interest rate caps to hedge the

floating interest of the term loan. Changes in fair values

of these options are reported in the profit and loss

statement as hedge accounting is not applied.

The company uses foreign exchange derivatives like

forwards and cross-currency swaps to hedge against

exchange rate risk relating to financial assets and

liabilities denominated in foreign currency. Fair value

changes related to foreign exchange derivatives

are recognised in the statement of consolidated

comprehensive income, since fair value changes related

to financial assets and liabilities denominated in foreign

currencies are also recognised therein. The interest

payments of cross-currency swaps and forward points

of currency forwards are included in interest expenses.

As at 31 December 2024 Citycon does not apply hedge

accounting to any of its cross-currency swaps.

During 2024 the company also started using foreign

exchange forwards and swaps to hedge the currency

impact from NOK and SEK denominated line items on

equity. These derivatives are accounted for in the same

way as metioned above and no hedge accounting is

applied.

A) Nominal amounts and fair values of derivative financial instruments

Nominal amount Fair value Nominal amount Fair valueMEUR 2024 2024 2023 2023Interest rate swaps Maturity:less than 1 year - - - -1–5 years 125.0 -1.3 125.0 -1.4over 5 years - - - -Subtotal 125.0 -1.3 125.0 -1.4Cross-currency swapsMaturity:less than 1 years - - - -1–5 years 388.8 14.9 278.3 16.0over 5 years - - - -Subtotal 388.8 14.9 278.3 16.0Foreign exchange forward agreementsMaturity:less than 1 year 924.5 2.6 102.1 -5.2Interest rate optionsless than 1 year - - - -1–5 years 302.1 3.2 125.0 0.1over 5 years - - - -Subtotal 302.1 3.2 125.0 0.1Total 1,740.4 19.4 630.4 9.5

The fair value of a derivative financial instrument represents the market value of the instrument at the prices prevailing

on the balance sheet date. See also note 3.3. Classification of financial instuments part B) for principles on determining

fair values of derivatives.

The average fixed interest rate of the interest rate swaps and cross-currency swaps as at 31 December 2024 was

1.48% (0.00%).

Financial statementsFinancial review Financial Review 2024

B) Derivatives under hedge accounting

Interest rate swaps Assets Liabilities Assets LiabilitiesMEUR 2024 2024 2023 2023Interest rate swaps, fair value - 1.3 - 1.4

The Group applies hedge accounting in accordance

with IFRS 9 to all of its interest rate swaps valid as at

31 December 2024, according to which the amount of

financial instruments’ fair value change from effective

hedging is recognised under other consolidated

comprehensive income. Fair value gains and losses are

transferred to the statement of consolidated income

when the forecasted cash flows realize and affect the

statement of consolidated income. Citycon also has

cross-currency swaps to effectively convert EUR debt

into SEK and NOK debt, for these, hedge accounting is

currently not applied as of 31 December 2024.

Hedge accounting is applied to interest derivatives

which has a nominal amount of EUR 125.0 million (Q1–

Q4/2023: 125.0). The average fixed interest rate in these

derivatives is 3.054%.

Hedge effectiveness requirements are assessed and

documented in accordance with IFRS 9. There is an

economic relationship between the hedged item and

the hedging instrument since the critical terms of

the interest rate derivatives have been negotiated to

match the respective terms of the variable rate loans.

Furthermore, credit risk does not dominate the value

changes in the hedge according to Citycon’s credit risk

assessment and the hedge ratio is 1:1, meaning that the

nominal of the hedge and the underlying are closely

aligned. A possible source of ineffectiveness would be

if reference rates are negative, whereas there could

be a gap between fair value changes in the hedging

instrument, which has no interest flooring, and the

hedged item which has 0% interest floor.

The cash flow from all hedged liabilities over time is the

basis for determining the gain and loss on the effective

portions of derivatives designated as cash flow hedges.

At 31 December 2024 and at 31 December 2023,

derivatives under hedge accounting were assessed

as highly effective. The fair values of these derivatives

were EUR -1,3 million (Q1–Q4/2023: EUR -1.4 million)

and the change of these fair values EUR 0,2 million (Q1–

Q4/2023: EUR -3.4 million) is recognised under other

consolidated comprehensive income.

C) Impact of hedging instruments on the financial statements

Impact of hedging instruments under hedge accounting on the statement of financial position

Change in fair value used Line item in for measuring statement of effectiveness for MEUR Nominal amount Carrying amountfinancial positionthe periodAs at 31 December 2024Non-current assets and short-term liabilitites, Derivative financial Interest rate swaps 125.0 -1.3instruments 0.2As at 31 December 2023Current assets, Derivative financial Interest rate swaps 125.0 -1.4instruments -3.4

Effect of cash flow hedges on the statement of profit or loss and other comprehensive income

Total hedging Ineffectiveness Line item in Amount recycled Line item in gain/loss recognised in statement of from OCI to profit statement of MEURrecognised in OCIprofit or lossprofit and lossor lossprofit and lossYear ended 31 December 2024Interest rate swaps -1.3 - - - -Year ended 31 December 2023Interest rate swaps -1.4 - - - -

Financial statementsFinancial review Financial Review 2024

3.7. Commitments and contingent

liabilities

Pledges and other contingent liabilities

MEUR 2024 2023Loans, for which mortgages are given in security and shares pledgedLoans from financial institutions 516.1 341.9Pledges for loansMortgages on land and buildings 1,021.2 741.9Fair value of properties pledged in mortgages 2,091.3 1,684.9Bank guarantees and parent company guarantees 224.7 63.6

Mortgages on land and buildings

Mortgages relate to the credit facilities where the group

has given securities on the loans via mortgages and

pledged shares from certain subsidiaries.

Bank guarantees and parent company guarantees

Guarantees are mainly related to parent company

guarantees on behalf of subsidiaries for third parties, or

alternatively third party bank guarantees.

Capital commitments related to (re)development

projects are presented in note 2.1.

3.8. Cash and cash equivalents

MEUR 2024 2023Cash in hand and at bank 352.2 19.3Restricted cash 6.2 6.0Total cash 358.5 25.2

Cash and cash equivalents in the cash flow statement

comprise the items presented above. Restricted cash

mainly relates to gift cards, tax and rental deposits.

Cash and cash equivalents

Cash and cash equivalents consist of cash and

bank deposits withdrawable on call. A maximum

maturity of three months from the date of

acquisition applies to cash and cash equivalents.

3.9. Other non-current assets

MEUR 2024 2023Loan receivables 32.5 -Other receivables 0.4 0.4Total 32.9 0.4

Loan receivables consists of vendor notes given to third

parties in property asset divestments.

4. Other notes to the accounts

4.1. Income taxes

MEUR 2024 2023Current taxes -1.5 -1.9Taxes for prior periods -0.6 -1.0Deferred taxes 11.2 10.3Income tax 9.2 7.4

Citycon did not recognise any current taxes directly in

the equity during 2024 and 2023.

Reconciliation between tax charge and Group tax

at the Finnish tax rate (20.0%):

MEUR 2024 2023Profit before taxes -47.0 -122.3Taxes at Finnish tax rate 9.4 24.5Share of result of joint-ventures -0.1 -7.3Difference in foreign subsidiaries’ tax rate 2.4 1.0Utilisation of not previously recognized tax losses 1.0 6.3Not recognized tax losses from financial year -3.1 -6.8Not recognized non-deductible interest expenses -7.8 -6.6Investment property tax value adjustments -0.5 -1.6Goodwill write-down related to disposals -3.8 0.0Tax impact of deferred tax change booked to gain/loss on sale of investment properties 5.3 0.0Hybrid bond interests 6.6 5.8Gain/Loss on hybrid bond buybacks 0.4 -5.2Tax free income deducted by non-deductible expenses 0.0 -0.1Taxes from previous years -0.6 -1.0Other items -0.2 -1.4Income taxes 9.2 7.4

Accounting policy - income taxes

Income taxes include taxes based on the taxable

income of Group companies for the financial

period, adjustments for previous periods’ taxes and

changes in deferred taxes. Tax based on taxable

income for the period is calculated in accordance

with the tax legislation enacted in each country. If

the recognition of deferred taxes is attributable to

an item recognised in shareholders’ equity, such as

a change in the fair value of a derivative instrument

used for hedging purposes, deferred taxes will also

be recognised in shareholders’ equity.

Key estimates and assumptions - income taxes

Citycon is subject to income taxation in several

countries. The complexity of tax legislation,

as well as constant changes in it and in the

operating environment, require Citycon to use

estimates and assumptions when preparing its tax

calculations. Tax legislation specifically related to

tax deductibility of interest expenses has changed

and is changing in the countries Citycon operates

in. Citycon monitors and analyses the impact of

these changes as part of its normal operations.

Future taxable income is uncertain, and the final

amount of taxes may deviate from the originally

recorded amount. If final tax deviates from

originally recorded amounts, such differences may

affect the period’s taxable profit, tax receivables or

liabilities as well as deferred tax assets or liabilities.

Financial statementsFinancial review Financial Review 2024

4.2. Deferred tax assets and liabilities

Changes in deferred tax assets and liabilities in 2024:

Recognised in income statement in gain/loss on Recognised in sale of investment Items recognised Exchange rate MEUR 1 January 2024income statementpropertiesin equitydifferences Other changes 31 December 2024Deferred tax assetsTax losses 15.9 0.0 - - - - 16.0Other items 0.6 0.0 - - - - 0.5Deferred tax assets, total 16.5 0.0 - - - - 16.4Deferred tax liabilities1Measurement of investment property at fair value246.3 -10.4 -26.7 - -5.3 - 203.8Contract values of managed and rented centre 0.5 -0.1 - - - - 0.4Temporary difference in financial expenses 1.0 -0.7 - 2.6 - 1.3 4.2Deferred tax liabilities, total 247.8 -11.2 -26.7 2.6 -5.3 1.3 208.41 Deferred tax liabilities are net of EUR 11.4 million of deferred tax assets arising from confirmed tax losses.

Changes in deferred tax assets and liabilities in 2023:

Recognised in income statement in gain/loss on Recognised in sale of investment Items recognised Exchange rate MEUR 1 January 2023income statementpropertiesin equitydifferences Other changes 31 December 2023Deferred tax assetsTax losses 15.9 - - - - - 15.9Other items 0.5 0.1 - - - - 0.6Deferred tax assets, total 16.4 0.1 - - - - 16.5Deferred tax liabilities1Measurement of investment property at fair value264.9 -10.7 - - -7.9 - 246.3Contract values of managed and rented centers 0.7 -0.1 - - - - 0.5Temporary difference in financial expenses 0.8 0.5 - -0.3 - - 1.0Deferred tax liabilities, total 266.4 -10.3 - -0.3 -7.9 - 247.81 Deferred tax liabilities are net of EUR 12.0 million of deferred tax assets arising from confirmed tax losses.

Accounting policy - deferred tax assets

and liabilities

Deferred tax assets and liabilities are calculated

on temporary differences arising between the tax

bases of assets and liabilities, and their carrying

amounts. A major temporary difference arises

between the fair value and taxable value of

investment properties. In such a case, taxes are

calculated on the difference between the property’s

fair value and residual tax value of the underlying

asset. This rule applies even if the property is

disposed by selling the shares of the property

company and includes no assessment of likelihood

of such tax consequences.

Other main temporary differences relate to among

other things unused tax losses and financial

instruments. Deferred tax assets are recognised

to the extent that it appears probable that future

taxable profit will be available, against which the

temporary differences can be utilised.

On 31 December 2024, Group companies had confirmed

losses of EUR 64.8 million for which deferred tax assets

of EUR 13.0 million were not recognised, since these

Group companies are unlikely to record a taxable profit,

before the expiration of carry forwards of these losses,

against which loss carry forwards can be utilised.

Key estimates and assumptions

- deferred tax assets

When tax receivables are recognised for tax losses

that have been confirmed in taxation, the company

must evaluate whether it is probable that such tax

losses can be used against a taxable profit arising

in the future.

Financial statementsFinancial review Financial Review 2024

4.3. Intangible assets

MEUR 2024 2023Acquisition cost January 1� 36.2 30.2Additions during the period 1.0 2.5Disposals during the period - 0.0Transfers between items -1.0 4.5Exchange rate differences -0.5 -1.1Accumulated acquisition cost December 31. 35.8 36.2Accumulated depreciation and impairment losses, January 1. -25.5 -19.2Amortization during the period -2.1 -1.9Transfers between items 1.0 -5.5Exchange rate differences 0.6 1.1Accumulated depreciation and impairment losses, Dec 31. -26.1 -25.5Net carrying amount January 1. 10.7 11.0Net carrying amount December 31. 9.7 10.7

Intangible assets consist of computer software and

licenses. The contract values of rented centers are

presented in Right-of-use assets according to IFRS 16.

Accounting policy

Intangible assets

An intangible asset is recognised in the statement

of financial position, provided its historical cost

can be measured reliably and it is probable that

expected economic benefits will flow to the

company.

Intangible assets are measured at cost less

amortisation and any impairment losses.

The following depreciation periods apply:

• Software is amortised over their useful life on a

straight-line basis over three to ten years.

Impairment of intangible assets

On each balance-sheet date, property, plant and

equipment and intangible assets are assessed

to determine whether there is any indication of

impairment. If any indication of an impaired asset

exists, the asset’s recoverable amount must be

estimated. Should the asset’s carrying amount

exceed its recoverable amount, it is impaired, and

the resulting impairment loss is recognised in the

consolidated income statement.

4.4. Trade and other receivables

MEUR 2024 2023Rent and trade receivables 15.1 20.5Expected credit losses -5.0 -5.0Rent and trade receivables (net) 10.1 15.4Interest receivables 7.8 5.4Financial assets total 18.0 20.8Accrued income and prepaid expenses 17.6 12.7VAT-receivables 7.3 16.1Other receivables 3.2 23.8Total 46.1 73.4

Ageing structure of rent and trade receivables:

Expected credit loss Expected MEUR 2024ratecredit lossNot past due 2.7 0.2% 0.0Past due, less than 1 month 2.0 2.1% 0.0Past due, 1–3 months 1.0 14.9% 0.1Past due, 3–6 months 1.5 15.7% 0.2Past due, 6–12 months 2.4 60.2% 1.5Past due, 1–5 years 5.6 55.2% 3.1Total 15.1 5.0

Ageing structure of rent and trade receivables:

Expected credit loss Expected MEUR 2023ratecredit lossNOT past due 6.5 0.8% 0.1Past due, less than 1 month 2.4 12.4% 0.3Past due, 1–3 months 1.5 40.2% 0.6Past due, 3–6 months 1.2 46.8% 0.5Past due, 6–12 months 2.1 39.2% 0.8Past due, 1–5 years 6.7 40.3% 2.7Total 20.5 5.0

Movement in expected credit loss

MEUR 2024 2023At the beginning of the year -5.0 -7.0Exchange rate differences 0.1 0.0Acquisitions -1.3 -Charge for the year -2.3 -3.3Utilised 2.9 3.5Unused amounts reversed 0.6 1.7Expected credit loss at the end of the year -5.0 -5.0

Rent and Trade receivables are non-interest bearing and

their payment terms vary between 2–20 days. The rent

guarantee is equal to between 2–6 months of rent and

other payments.

Accounting policy

Financial assets

Financial assets include trade receivables and other

receivables not held for trading, which the company

has created by providing money, goods or services

directly to the debtor. Initially recognised at fair value

these assets under current and non-current assets

are carried at amortised cost. Their balance sheet

value is impaired by the amount of any credit loss.

Impairment of financial assets

A financial asset is impaired if its carrying amount

exceeds its estimated recoverable amount. If

there is objective evidence that a financial asset

measured at amortized cost is impaired, the

resulting impairment loss must be recognized in

the consolidated income statement. If the amount

of impairment loss decreases during a subsequent

financial period and this fall can be regarded as

relating to an event after the date of impairment

recognition, the asset’s impairment will be reversed.

Financial statementsFinancial review Financial Review 2024

Key estimates and assumptions

- expected credit losses

IFRS 9 Financial Instruments standard includes

guidelines pertaining to impairment losses

recognised in financial assets. From Citycon Group’s

point of view, the key effect of the standard is that

the credit risk applicable to rent and sales receivables

should be taken into account in the valuation of

receivables at the time of reporting for the full lifetime

of the receivables.

In Citycon’s view, the credit risk pertaining to the

Group’s receivables is for the material part already

included in the carrying amount of the Group’s rent

and sales receivables as a result of the receivable-

specific review of the rent and sales receivables

carried out by the Group. However, according to

IFRS 9 standard, Citycon Group also takes into

account in its reporting the expected credit losses in

its receivables base for the full lifetime, which does

affect especially the valuation of receivables that are

still unmatured.

Citycon will estimate the amount of expected credit

losses in its receivables base on the basis of the

available historic data pertaining to the Group’s

accrued credit losses and expectations regarding

the development of the economic situation. The

expectations regarding the development of the

economic situation are primarily based on statistics

that provide references to the development of

Citycon Group’s operations and customers’ financial

situation.

When it comes to the estimation of expected credit

losses, Citycon has applied the simplified method

allowed by the standard. Due to the nature of the

Group’s business, the rent and sales receivables of

Citycon Group do not include the significant financial

component referred to in the IFRS 15 standard.

4.5. Trade and other payables

Trade and other payables

MEUR 2024 2023Trade payables 10.3 22.8Interest liabilities 34.2 16.5Financial liabilities total 44.6 39.3Short-term advances received 9.2 11.6VAT-liabilities 9.3 7.1Accrued expenses and other short-term payables 23.2 20.3Non-interest bearing short-term liabilities total 41.6 39.0Total 86.2 78.3

Due dates of future payments of trade and other

payables:

MEUR 2024 2023Due in less than 1 month 41.0 46.8Due in 1–3 months 35.7 14.4Due in 3–6 months 2.5 1.4Due in 6–12 months 4.4 10.4Due in 1–2 years 2.5 5.3Total 86.2 78.3

Accounting policy - financial liabilities

Financial liabilities include trade and interest

liabilities, which are initially recognised at

fair value. Afterwards, financial liabilities are

recognised at amortised cost using the effective

interest method.

Financial statementsFinancial review Financial Review 2024

5. Consolidation

Group accounting policies

The consolidated financial statements include Citycon

Oyj and its subsidiaries, holdings in its associated, joint

venture and joint operations companies.

Subsidiaries

Subsidiaries refer to companies in which the Group

has control. The Group controls an investee if the

Group has: power over the investee (i.e. existing rights

that give it the current ability to direct the relevant

activities of the investee), exposure, or rights, to

variable returns from its involvement with the investee,

and the ability to use its power over the investee to

affect its returns.

When the Group has less than a majority of the

voting or similar rights of an investee, the Group

considers all relevant facts and circumstances in

assessing whether it has power over an investee,

including contractual agreements with the other

vote holders of the investee. The Group re-assesses

whether or not it controls an investee if facts and

circumstances indicate that there are changes to one

or more of the three elements of control. Subsidiaries

are consolidated from the date on which control is

transferred to the Group, until the date on which said

control ceases.

Intra-Group transactions and profit allocation are

eliminated in the consolidated financial statements.

Joint operations

Mutual real estate companies in Finland, in which the

ownership of Citycon is less than 100%, are treated

as joint operations in accordance with IFRS 11 Joint

Arrangements. The Group recognizes its assets and

liabilities in relation to its joint operations, including its

share of any assets held and liabilities incurred jointly.

In addition, the Group recognizes its revenue and

expenses in relation to its joint operations, including its

share of revenue of the joint operation and expenses

incurred jointly. The consolidation method described

above applies to all joint operations of this kind.

Mutual real estate companies, in which the ownership

is less than 50%, are treated as joint operations, as

described above.

Foreign currency transactions

Transactions denominated in foreign currencies

are measured at the exchange rate quoted on the

transaction date. Any exchange rate differences

resulting from currency translation are entered under

financial expenses and income in the statement of

comprehensive income.

Monetary assets and liabilities denominated in foreign

currencies on the statement of financial position

date are measured at the exchange rate quoted

on the statement of financial position date. Non-

monetary items denominated in foreign currencies

and measured at fair value are translated into euros

using the exchange rates quoted on the valuation date,

while other non-monetary items are measured at the

exchange rate quoted on the transaction date.

Foreign subsidiaries’ statement of comprehensive

income have been translated into euros using average

exchange rates quoted for the financial period and

statement of financial positions using the exchange

rate quoted on the statement of financial position

date. Any resulting exchange rate difference is

recognised as a translation difference under other

comprehensive income. Translation differences

resulting from the elimination of the historical cost

of foreign subsidiaries and from items included in

shareholders’ equity following their acquisition, are

recognised under shareholders’ equity.

Financial statementsFinancial review Financial Review 2024

5.1. Acquisitions and disposals

Acquisitions

In Q1/2024, Citycon completed the transaction to

acquire the remaining interest in Kista Galleria in

Stockholm, Sweden. Citycon has managed the centre

since 2012 and before the transaction owned 50%

of the asset. After the transaction, Citycon has 100%

ownership.

Kista Galleria acquisition has been treated as an asset

acquisition according to IAS 40 Investment Property,

rather than a business acquisition. Judgement is made

based on the fact that related asset management

activities are already performed by Citycon prior to

the acquistion. The acquistion cost and allocation

to individual identifiable assets and liabilities are

presented in the next tables. Cost allocation is on

the basis of their relative fair values at the date of

purchase [IFRS 3:2(b)]. Subsequent fair value change

of investment property is presented in the net fair

value gains/losses on investment property. Translation

differences accumulated prior to acquisition have been

reclassified through P&L. Deferred tax asset/liability

is not recognized with initial recognition of the asset.

Net cash outflow (EUR 3.5 million, including the total

consideration paid and net cash at acquisition date)

is presented in the consolidated cash flow statement

on row acquisition of investment properties and

subsidiaries, less cash acquired.

In Q4/2024, Citycon completed back-to-back

transaction related to upcoming residential property in

Barkarbystaden, Stockholm, Sweden. Citycon signed

a forward commitment agreement to acquire the

property in 2022. Divestment of the asset was executed

in December 2024 back-to-back, simultaneously with

Citycon’s purchase of the asset from the developer. Total

consideration paid in cash for the asset acquisition was

EUR 59.3 million and it is presented in the consolidated

cash flow statement on row acquisition of investment

properties and subsidiaries, less cash acquired.

There were no acquisitions during the financial year

2023.

Kista Galleria acquisition cost and allocation to

identifiable assets and liabilities

Acquisition cost

MEUR

Investment in joint venture before the acquisition 73.8

Consideration paid for the shares 2.5

Consideration paid for the agreed cash balance 2.7

Transaction costs 0.2

Total 79.1

Asset acquisition

MEUR

Investment property 284.9

Cash 1.7

Other assets 10.9

Liabilities -218.5

Total 79.1

Cash flow impact (consideration paid, less cash

acquired) 3.5

Disposals

In Q2/2024, Citycon completed the transaction to divest

Kongssenteret shopping center in Kongsvinger, Norway.

In Q3/2024, Citycon divested Trekanten shopping

center in Oslo, Norway. In Q4/2024, Citycon divested

three properties, a residential property in Stockholm,

Sweden, Kristiine keskus shopping center in Tallinn,

Estonia and Stopp Tune shopping center in Sarpsborg,

Norway.

Norwegian disposals have been booked as sale of

subsidiary according to IFRS 10 Consolidated Financial

Statements. Total consideration received in cash from

the sale of subsidiaries was EUR 100.6 million and it is

presented in the consolidated cash flow statement on

row sale of investment properties and subsidiaries. A

total amount of EUR 32.5 million of vendor notes given

to third parties related to Norwegian asset disposals are

recognized in other non-current assets.

Sale of Kristiine Keskus in Estonia and sale of the

residential property in Sweden have been booked as

sale of investment properties according to IAS 40

Investment properties. Total consideration received in

cash from the sale of investment properties was EUR

182.0 million and it is presented in the consolidated cash

flow statement on sale of investment properties and

subsidiaries.

There were no disposals during the financial year 2023,

but Citycon booked gain/loss adjustments related to

divestments executed in previous years. In December

2024, Citycon received in cash deferred payment of EUR

17.0 million related to Down Town, which was divested in

December 2022. This is presented in the consolidated

cash flow statement on sale of investment properties

and subsidiaries.

Net gains/losses on sale of investment

properties and subsidiaries

MEUR 2024 2023

Investment properties disposed -389.9 -

Deferred tax liability disposed 26.7 -

Net of other items related to disposed assets -2.7 -

Reduction of goodwill allocated to disposed

assets -18.8 -

Translation differences reclassified to income

statement -8.2 -

Transaction costs -2.3 -

Consideration received 315.2 -

Adjustments to gains/losses related to sales

in previous years 0.7 -2.3

Net gains/losses on sales total -79.3 -2.3

Deferred payment (vendor notes given) 32.5 -

Cash received from current year disposal 282.6 -

Cash received from prior years disposals 17.3 -0.4

Total cash flow impact 299.9 -0.4

Accounting policy

Business and asset acquisitions

Citycon applies IFRS 3 Business Combinations

to business acquisitions, whereby the acquisition

cost is allocated to the acquired assets, liabilities

and contingent liabilities at their fair value.

Goodwill arises when the given consideration

exceeds the fair value of the acquired net assets.

Deferred tax liability or deferred tax asset is

recognized according to IAS 12 when acquisition is

business acquistion.

Financial statementsFinancial review Financial Review 2024

Citycon applies IAS 40 Investment Property

to asset acquisitions. According to IAS 40 no

deferred tax asset or liability is booked on the

initial recognition of the asset.

Business and asset disposals

An investment property is reclassified in

the financial statement in cases where the

investment property is divested. For Citycon, the

characteristics of a sale of a business include, for

example, the sale of a major line of business or

geographical area of operations that also involves

the transfer of activities, staff and/or management

essential to the business.

In the case of the sale of a business, IFRS 10

Consolidated Financial Statements standard

based accounting treatment is applied.

Investment property disposals are usually

structured so that Citycon sells the shares of the

subsidiary, that owns the property. Hence, disposal

is booked according to IFRS 10 Consolidated

Financial Statements standard as a sale of

subsidiary. If Citycon disposes an investment

property, instead of subsidiary, the disposal

is accounted according to IAS 40 Investment

Property standard.

When investment property is disposed, translation

differences that were recorded in equity are

recognised in the income statement as part of the

gain or loss on sale. Accordingly, if impairment

of goodwill is booked related to disposal, the

impairment is booked as part of gains/losses of

investment properties and subsidiaries.

5.2. Goodwill

Accounting policy - goodwill

Goodwill arises when the given consideration

exceeds the fair value of the acquired net assets.

Goodwill has been allocated to cash generating

units (CGUs). Goodwill is recognised at cost less

any accumulated impairment losses.

Deferred tax liabilities are valued at nominal value

(not fair value). On the acquisition of business

deferred tax liabilities generate goodwill, if the

nominal value of deferred tax liabilities is higher

than their fair value at the time of acquisition.

To the extent that the deferred tax liabilities’

difference between nominal value and fair value

reduces later, for example, through a change in

the tax circumstances, such as decrease in tax

rate of the Group, the goodwill arising from the

initial recognition of the deferred tax provision may

become reduced.

In order to remove the tax effects where the

goodwill arises solely from the recognition of

deferred tax, at the point of acquisition, the

goodwill is reduced by the deferred tax liability

arising from fair value adjustments in a business

combination when measuring any impairment. At

future impairment testing dates, any remaining

deferred tax liability at the impairment testing

date that resulted in an increase in goodwill at the

acquisition date is reduced from goodwill when

determining the carrying value of the CGU.

If part of the CGU, to which goodwill has been

allocated, is disposed, goodwill that has been

allocated to that disposed part is booked in gains/

losses on sale of investment properties and

subsidiaries. Goodwill is allocated to the disposed

part based on the relative values of the disposed

operations and the portion of the retained part.

A) Business combinations and goodwill

MEUR 2024 2023Acquisition cost January 1.1. 111.4 115.4Change from exchange rate -2.8 -4.1Reduction in goodwill resulting from sales of assets in Norway -18.7 -Accumulated acquisition cost December 31.12. 89.9 111.4

Goodwill at the end of 2024 results fully from the

acquisition of Norwegian business unit on 14.7.2015.

The goodwill is allocated to the Norway business unit as

a whole. During the financial year 2024 three shopping

centres were sold from the business unit. In 2023, no

shopping centers were sold from the Norway business

unit.

Citycon did not acquire any businesses during financial

years 2024 and 2023.

B) Impairment testing of goodwill

Accounting policy - impairment

testing of goodwill

Goodwill is tested for impairment at least annually

and when circumstances indicate that the

carrying value may be impaired. Goodwill is not

amortized. Impairment is determined for goodwill

by assessing the recoverable amount of each CGU

(or group of CGUs) to which the goodwill relates.

When the recoverable amount of the CGU is less

than its carrying amount, an impairment loss is

recognised. Impairment losses relating to goodwill

cannot be reversed in future periods.

Citycon determines recoverable amounts using

value in use cash flows based on cash flows used

in investment property fair value evaluation over

10 year period prepared by external appraiser as

presented in notes 2.1 and administrative expenses

as well as other operating income and expenses

according to budget approved by Board of

Directors. Cash flows do not include restructuring

activities that Citycon is not yet committed to or

significant future uncommitted investments that

will enhance the assets’ performance of the cash

generating unit being tested. The recoverable

amount is sensitive especially to assumption of

discount rate and net rental income.

Impairment testing is performed to the net amount

of goodwill, the difference between nominal and

fair value of deferred tax liabilities determined at

the time of acquisition is reduced from goodwill.

Financial statementsFinancial review Financial Review 2024

MEUR 2024 2023Total goodwill 89.9 111.4Residual balance of deferred tax liability, in excess of the fair value, initially provided on acquisition -44.7 -61.5Goodwill tested for impairment 45.2 49.9

Key estimates and assumptions

- impairment testing of goodwill

Testing of goodwill for impairment involves the

management’s judgement and assumptions

especially in determing the recoverable amount,

which is sensitive for instance to assumption of

discount rate and net rental income.

Total carrying value including goodwill to be tested was

approximately EUR 850.5 million (EUR 1,086.4 million).

The pre-tax discount rate applied to the cash flow

projections was 5.31% (6.18%). The recoverable amount

of Norway amounted to EUR 939.6 million (EUR 1,126.4

million) with an impairment cushion of EUR 89.1 million

(EUR 40.0 million) to balance value, hence there is no

need for goodwill impairment.

Key assumptions used in value in use calculations

The calculation of value in use is most sensitive to

discount rate and assumptions used in net rental income

projections. Net rental income is based on external

appraiser’s 10 year cash flow analysis to determine fair

value of investment properties. The assumption related

to aforementioned cash flows are presented in Note 2.1.

Discount rate represents the current market assessment

of the risks specific to Norway, taking into consideration

the time value of money and individual risks of Norway.

The discount rate calculation is based on weighted

average cost of capital (WACC). Terminal value is

capitalized with external appraiser’s yield assumption

6.67% (6.16%) which reflects property specific risks and

market risks.

Sensitivity to changes in assumptions

The implications of the key assumptions for the

recoverable amount are net rental income and yield

requirement as presented in Note 2.1. Sensitivity has

been analysed regarding net rental income and yield

assumptions seperately. Asset’s total recoverable

amount would fall below total carrying value if net

rental income decreased more than 8.52% (3.19%) from

current level. If both WACC determined by the company

5.31% (6.18%) and yield assumption determined by

external appraiser 6.67% (6.16%) would increase more

than 0.61% points (0.20%), then total recoverable

amount of asset would fall below total carrying value.

5.3. Acquisition of non-controlling

interests

Citycon acquired no minority shares during 2024 and on

comparable period 2023.

Financial statementsFinancial review Financial Review 2024

5.4. Related party transactions and

changes in group structure

A) Related parties

Citycon Group’s related parties comprise the parent

company Citycon Oyj and its subsidiaries, associated

companies and joint ventures; Board members; CEO and

other Corporate Management Committee members; and

the company’s largest shareholder G City Ltd.

In total, G City and its wholly owned subsidiaries own

49.54% (31 December 2023: 50.91%) of the total shares

and votes in the company (91,259,016 shares as of 31

December 2024).

Group companies and changes in group structure

Group Parent company Group companies on 31 December 2024 Countryholding, %holding, %Parent company: Citycon Oyj FinlandAlbertslund Centrum ApS Denmark 100Kiinteistö Oy Asematie 3 Finland 100Asunto Oy Espoon Huukkari Finland 100Asunto Oy Espoon Jolla Finland 100Asunto Oy Lippulaivan Loiste Finland 100Asunto Oy Lippulaivan Luoto Finland 100Asunto Oy Lippulaivan Lysti Finland 100Big Apple Top Oy Finland 100Citycon AB Sweden 100 100Citycon Denmark ApS Denmark 100 100Citycon Development AB Sweden 100Citycon Finland Oy Finland 100 100Citycon Herkules Eiendom AS Norway 100Citycon Holding AS Norway 100 100Citycon Jakobsbergs Centrum AB Sweden 100Citycon Kilden Eiendom AS Norway 100Citycon Kolbotn Torg Eiendom AS Norway 100Citycon Kolbotn Torg Næring AS Norway 100Citycon Kremmertorget Eiendom AS Norway 100Citycon Liertoppen Eiendom AS Norway 100CityconLiljeholmen Bostad AB Sweden 100Citycon Liljeholmstorget Galleria AB Sweden 100Citycon Linderud Eiendom AS Norway 100Citycon Norway AS Norway 100Citycon Oasen Eiendom AS Norway 100Citycon Residentials Finland Oy Finland 100Citycon Residentials Oy Finland 100 100Citycon Residentials Norway AS Norway 100Citycon Senterdrift AS Norway 100Citycon Shopping Centers AB Sweden 100Citycon Solsiden Eiendom AS Norway 100Citycon Storbyen Eiendom AS Norway 100Citycon Strædet Pedestrian Street ApS Denmark 100

Group Parent company Group companies on 31 December 2024 Countryholding, %holding, %Citycon Treasury B.V. The Netherlands 100 100Kauppakeskus Isokarhu Oy Finland 100Kristiina Management Oy Finland 100Kristiine Keskus Oü Estonia 100Kiint. Oy Lahden Hansa Finland 100Kiinteistö Oy Lippulaiva Finland 100Kiinteistö Oy Lippulaivan Palvelutilat Finland 100Manhattan Acquisition Oy Finland 100Montalbas B.V. The Netherlands 100Kiinteistö Oy Myyrmanni Finland 100Mölndals Galleria AB Sweden 100Mölndals Galleria Fastighets AB Sweden 100Riddarplatsen Fastigheter HB Sweden 100Rocca al Mare Kaubanduskeskuse AS Estonia 100Citycon Stovner Eiendom AS Norway 100Citycon Torvbyen Eiendom AS Norway 100Stenungs Torg Fastighets AB Sweden 100Kiinteistö Oy Tampereen Koskikeskus Finland 100Torvbyen Drift AS Norway 38Torvbyen Utvikling AS Norway 100Åkersberga Centrum AB Sweden 100Kiinteistö Oy Lahden Trio Finland 89,5Kiinteistö Oy Myyrmäen Kauppakeskus Finland 78,8Heikintori Oy Finland 100Myyrmäen Autopaikoitus Oy Finland 62,7Lappeenrannan Villimiehen Vitonen Oy Finland 50Kista Galleria JV AB Sweden 100Kista Galleria Kommanditbolag Sweden 100Kista Galleria Holding AB Sweden 100Kista Galleria LP AB Sweden 100Klosterfoss Utvikling AS Norway 50Asunto Oy Tikkurilan Kassatalo Finland 39Kiinteistö Oy Hansaparkki Finland 36Liesikujan Autopaikat Oy Finland 50,5

Financial statementsFinancial review Financial Review 2024

Group Parent company Group companies on 31 December 2024 Countryholding, %holding, %Branch offices:Citycon Oyj filial SwedenDivestments:Citycon Stopp Eiendom AS NorwayCitycon Kongssenteret Eiendom AS NorwayCitycon Trekanten Eiendom AS NorwayAcquisitionKista Galleria JV AB SwedenLiquidatedCitycon Services AB SwedenHolding Big Apple Housing Oy FinlandCitycon Innovation Sweden AB SwedenSandstranda Bolig AS NorwayCitycon Eiendomsmegling AS Norway

B) Related party transactions

Group companies

Group companies have paid each other fees such as

maintenance and financial charges, interest expenses,

loan repayments and other administrative service charges.

Such income and expenses have been eliminated from

the consolidated financial statements. There have been

no other related party transactions between Group

companies.

Management remuneration

Information on management remuneration is presented

in notes 1.6. employee benefits and personnel expenses.

Transactions with G City Ltd�

Purchases of services and expenses charged forward

Over the reporting period and in the comparable

period, Citycon paid no expenses to G City Ltd and

its subsidiaries. Citycon invoiced EUR 0.0 million

expenses forward to G City Ltd and its subsidiaries

(EUR 0.0 million).

Reporting to G City Ltd�

The company’s main shareholder is G City Ltd. In total,

G City and its wholly owned subsidiaries own 49.54% of

the shares in the company. G City has announced that it

has been applying IFRS in its financial reporting starting

from 2007. G City Ltd. holds the view that it exercises a

controlling interest, as defined in IFRS, in Citycon Oyj based

on the fact that it has been able to exercise controlling

interest in Citycon’s shareholders’ meetings pursuant to its

shareholding. In accordance with an agreement concluded

between the companies, Citycon will provide G City Ltd.

with a more detailed breakdown of the accounting

information it discloses in its interim and full-year reports,

so that G City Ltd. can consolidate Citycon Group figures

into its own IFRS financial statements.

5.5. Changes in IFRS and accounting

policies

New IFRS standards as well as interpretations and

amendments applied in 2024

Amendments to IAS 1, IFRS 16 and IAS 7 became

effective from 1 January 2024. These amendments did

not have any material impact to Citycon’s consolidated

financial statements or disclosures.

IFRS 18 - Presentation and Disclosure in Financial

Statements, which replaces IAS 1 standard, will become

effective from beginning of January 2027. Citycon is

evaluating the impact of IFRS 18 and expects that it will

have a material impact on its financial statements and

disclosures.

Citycon changed its accounting policy regarding

goodwill impairments made related to disposed units

from the beginning of 2024. Citycon presents the

goodwill write-down related to divestments as part of

the net gains/losses on sale of investment properties

and subsidiaries row. Previously Citycon presented the

goodwill write-downs in other operating income and

expenses row.

No other changes in accounting policies during 2024.

New standards as well as interpretations and

amendments applied in 2023

No relevant new IFRS standards or interpretations

issued. No changes in accounting policies during 2023.

5.6. Events after the reporting date

In Q1/2025, Citycon received one flagging notification

on 29 January 2025 according to which Phoenix

Financial Ltd.’s holding of shares in Citycon has

increased above five (5) percent.

On 26 February 2025 Citycon announced that Erik

Lennhammar, Chief Development Officer and member

of the Corporate Management Committee, will depart

Citycon to pursue new opportunities. Mr. Lennhammar

will step down from the corporate Management

Committee but works for the company until 31 May

2025.

Financial statementsFinancial review Financial Review 2024

Parent company financial statements, FAS

Parent company income statement, FAS

MEUR Note

1 January –

31 December 2024

1 January –

31 December 2023

Service charge income 6.3 5.8

Turnover 2 6.3 5.8

Administrative expenses 3,4 -92.0 -20.0

Other operating income and expenses 5 0.0 -0.2

Operating profit -85.7 -14.3

Financial income 153.5 183.0

Financial expenses -151.4 -143.3

Net financial income and expenses 6 2.1 39.7

Profit/loss before appropriations and taxes -83.6 25.3

Group contributions 12.0 6.0

Income tax expense 7 -0.1 0.0

Profit/loss for the period -71.8 31.3

Financial statementsFinancial review Financial Review 2024

Parent company balance sheet, FAS

MEUR Note 31 December 2024 31 December 2023

ASSETS

Non-current assets

Intangible assets 8 8.6 9.7

Tangible assets 9 0.2 0.3

Investments

Shares in subsidiaries 10 1,132.6 1,286.3

Loan receivables and derivative contracts 11 958.8 1,544.1

Total investments 2,091.5 2,830.4

Total non-current assets 2,100.3 2,840.4

Current assets

Short-term receivables 13 1,366.2 586.0

Cash and cash equivalents 180.1 0.1

Total current assets 1,546.3 586.1

Total assets 3,646.6 3,426.4

MEUR Note 31 December 2024 31 December 2023

LIABILITIES AND SHAREHOLDERS’ EQUITY

Shareholders’ equity 14

Share capital 259.6 259.6

Share premium fund 133.1 133.1

Invested unrestricted equity fund 607.1 612.8

Retained earnings -34.5 -65.9

Profit for the period -71.8 31.3

Total shareholders’ equity 893.4 970.8

Liabilities 15

Long-term liabilities

Hybrid bond 595.9 607.8

Other long-term liabilities 1,852.3 1,301.9

Total long-term liabilities 2,448.2 1,909.7

Short-term liabilities

Short-term liabilities 305.0 545.9

Total short-term liabilities 305.0 545.9

Total liabilities 2,753.2 2,455.6

Total liabilities and shareholders’ equity 3,646.6 3,426.4

Financial statementsFinancial review Financial Review 2024

Parent company cash flow statement, FAS

MEUR

1 January –

31 December 2024

1 January –

31 December 2023

Cash flow from operating activities

Profit before taxes -83.6 25.3

Adjustments:

Depreciation and impairment loss 70.2 2.1

Net financial income and expenses -2.1 -39.7

Cash flow before change in working capital -15.5 -12.2

Change in working capital -13.2 -0.7

Cash generated from operations -28.7 -13.0

Interest expense and other financial expenses paid -101.8 -85.8

Interest income and other financial income received 122.1 105.4

Realised exchange rate gains and losses 7.5 9.4

Net cash flow from operating activities -0.8 16.0

Cash flow used in investing activities

Investment in tangible and intangible assets -1.0 -2.0

Loans granted

-636.7 -156.3

Repayments of loans receivable

411.3 92.1

Received equity return from subsidiaries 85.6 -

Net cash from investing activities

-140.8 -66.2

Cash flow from financing activities

Proceeds from share issue 48.2 -

Proceeds from short-term loans

254.5 365.6

Repayments of short-term loans

-290.7 -366.3

Proceeds from long-term loans 646.2 317.5

Repayments of long-term loans

-391.4 -258.6

Proceeds from hybrid bond 265.7 -

Repayments of hybrid bond -265.7 -39.2

Received group contributions 6.0 0.8

Dividends paid and return from the invested unrestricted equity fund -55.2 -84.4

Net cash used in financing activities

217.5 -64.5

Net change in cash and cash equivalents 75.9 -114.6

Cash and cash equivalents at period-start -120.6 -6.0

Cash and cash equivalents at period-end

-44.8 -120.6

The presentation of the cash flow statement has been changed. Intra-group loans are now presented under financing activities instead of investing activities.

The comparative figures for 2023 have been changed accordingly.

Cash and cash equivalents of Citycon Oyj EUR -44.8 million consist of EUR 180.1 million cash and bank receivables in the balance sheet and Group cash pool

account EUR -224.9 million. Cash pool balance of EUR -224.9 million has been recognised in the parent company’s balance sheet under short-term liabilities.

Financial statementsFinancial review Financial Review 2024

Notes to the parent company’s financial statements, FAS

1. Accounting policies

The parent company’s financial statements are

prepared in accordance with the Finnish law.

Income statement format

The income statement is presented in accordance with

the function-based format.

Non-current assets

Non-current assets are recognised in the balance

sheet at acquisition cost less impairment losses and

depreciation/amortisation.

Intangible assets

Intangible assets include IT software and other non-

current assets, including office improvement expenses.

IT software is depreciated over 3–10 years as straight

line basis and office improvement expenses are

depreciated over the term of the lease agreement.

Tangible assets

Tangible assets include machinery and equipment and

construction in progress. Machinery and equipment is

depreciated at over 3–7 years as straight line basis.

Pension schemes

The company’s employee pension cover is based on

statutory pension insurance.

Foreign currency receivables and payables

Receivables and payables denominated in foreign

currencies as well as forward rate agreements are

measured at the exchange rate quoted on the balance

sheet date. Any exchange rate differences resulting from

currency translations are recognised as exchange rate

differences in the income statement.

Income taxes

Current taxes are recognised on an accrual basis.

Deferred taxes arising from temporary differences

between the book and fiscal values have been

recognised separately in the income statement and the

balance sheet.

Derivatives

All derivatives are valued according to the Finnish

bookkeeping act KPL 5.2a at fair value.

Important note

Individual figures and sum totals presented in the

financial statements have been rounded to the nearest

hundreds thousands of euros; this may cause minor

discrepancies between the sum totals and the sums of

individual figures as given.

2. Turnover

MEUR 2024 2023

Turnover by country:

Finland 1.7 2.1

Other countries 4.6 3.7

Total 6.3 5.8

Parent company turnover includes the following

administrative fees received from Group

companies:

MEUR 2024 2023

Administrative fees from Group

companies 6.3 5.8

3. Personnel expenses

MEUR 2024 2023

Average number of employees during

period 39 51

Personnel expenses

Wages and salaries -9.8 -9.7

Pension charges -1.4 -1.3

Other social charges -1.5 -2.0

Total -12.7 -12.9

The items presented above include previous CEO’s

statutory pension payments, EUR 0.0 million in

2024(0.0).

Personnel expenses include the following

management wages and salaries:

MEUR 2024 2023

CEO’s wages and salaries -0.9 -1.3

Board remuneration -1.1 -0.6

Total -2.0 -2.0

The wages and salaries of the CEO includes the gross

base salary and a yearly performance bonus. In addition,

the CEO is included in the Restricted Share Plan and has

been rewarded under the plan during the year 1.2 million

(2023 EUR 1.5 million).

F. Scott Ball served as the company’s CEO until March

31, 2024, and as the interim CEO starting October 8,

2024. Henrica Ginström served as the company’s CEO

from April 1 to October 8, 2024.

4. Depreciation and amortisation

and impairments

The following depreciation and amortisation

as well as impairments are included in the

administrative expenses:

MEUR 2024 2023

Amortisation on intangible assets -2.0 -1.9

Impairments of shares -68.1 -

Depreciation on machinery and

equipment -0.1 -0.2

Total -70.2 -2.1

Financial statementsFinancial review Financial Review 2024

5. Other operating income and expenses

MEUR 2024 2023

Other operating income 0.0 -0.2

Total 0.0 -0.2

6. Net financial income and expenses

MEUR 2024 2023

Interest and other financial income

From Group companies 117.2 113.8

Foreign exchange gains 16.7 41.3

Other interest and financial income 19.6 27.8

Total 153.5 183.0

Total financial income 153.5 183.0

Interest and other financial expenses

To Group companies 52.7 41.2

Foreign exchange losses 28.8 53.3

Interest and other financial expenses 69.9 48.8

Total financial expenses 151.4 143.3

Net financial income and expenses 2.1 39.7

7. Income tax expense

MEUR 2024 2023

Income tax expense -0.1 0.0

Total -0.1 0.0

Income taxes for the financial year consist of the income

tax of the Swedish branch of Citycon Oyj.

The parent company has taxable losses (including not

yet confirmed year 2024) of EUR 98.2 million from which

the parent company has not recognized deferred tax

asset of EUR 19.6 million.

8. Intangible assets

MEUR 2024 2023

Intangible rights

Acquisition cost 1 January 20.9 18.9

Additions during the period 0.9 2.0

Accumulated acquisition costs 31

December 21.9 20.9

Accumulated depreciation 1 January -11.7 -10.0

Depreciation for the period -1.9 -1.8

Accumulated depreciation 31 December -13.6 -11.7

Net carrying amount 31 December 8.2 9.2

Other non-current assets

Acquisition cost 1 January 2.7 2.7

Additions during the period 0.0 0.0

Accumulated acquisition costs 31

December 2.7 2.7

Accumulated depreciation 1 January -2.1 -2.0

Depreciation for the period -0.2 -0.2

Accumulated depreciation 31 December -2.3 -2.1

Net carrying amount 31 December 0.4 0.6

Total intangible assets 31 December 8.6 9.7

9. Tangible assets

MEUR 2024 2023

Machinery and equipment

Acquisition cost 1 January 2.4 2.3

Additions during the period 0.1 0.0

Accumulated acquisition costs 31

December 2.4 2.4

Accumulated depreciation 1 January -2.2 -2.0

Depreciation for the period -0.1 -0.2

Accumulated depreciation 31 December -2.3 -2.2

Net carrying amount 31 December 0.2 0.3

Total tangible assets 31 December 0.2 0.3

10. Shares in subsidiaries

MEUR 2024 2023

Acquisition cost 1 January 1,286.3 1,275.0

Additions during the period - 11.2

Decreases -85.6 -

Impairments -68.1 -

Net carrying amount 31 December 1,132.6 1,286.3

11. Long-term loan receivables and

derivative contracts

MEUR 2024 2023

Loan receivables from Group companies 932.0 1,506.9

Derivative financial instruments, from

outside the Group 26.8 37.2

Total other investments 31 December 958.8 1,544.1

Total investments 31 December 2,091.5 2,830.4

12. Subsidiaries and associated

companies

Parent company’s subsidiaries and associated

companies are presented in the Note 5.4. Related Party

Transactions in the Notes to the Consolidated Financial

Statements.

Financial statementsFinancial review Financial Review 2024

13. Short-term receivables and cash and

cash equivalents

MEUR 2024 2023

Receivables from outside the Group

Trade receivables 0.1 0.1

Derivative financial instruments 6.5 0.1

Other receivables 0.0 0.0

Interest receivables 7.4 -

Cash and cash equivalents 180.1 0.1

Accrued income and prepaid

expenses 2.6 4.8

Total 196.7 5.1

Receivables from Group companies

Trade receivables 0.4 0.6

Loan receivables 1,323.2 555.1

Other receivables 1.4 1.5

Total other receivables 1,324.6 556.6

Interest receivables 12.7 17.7

Group contributions receivables 12.0 6.0

Total 1,349.6 580.9

Total short-term receivables 1,546.3 586.1

14. Shareholders’ equity

MEUR 2024 2023

Share capital at 1 January 259.6 259.6

Share capital at 31 December 259.6 259.6

Share premium fund at 1 January 133.1 133.1

Share premium fund at 31 December 133.1 133.1

Invested unrestricted equity fund

at 1 January 612.8 676.0

Equity return from the invested

unrestricted equity fund -55.2 -84.4

Share issue 49.6 21.1

Invested unrestricted equity fund

at 31 December 607.1 612.8

Retained earnings at 1 January -34.5 -65.9

Profit for the period -71.8 31.3

Retained earnings at 31 December -106.3 -34.5

Total shareholders’ equity at 31

December 893.4 970.8

The company has a single series of shares, with each share

entitling to one vote at a General Meeting of shareholders. During

the reporting period, Citycon completed one directed share

issue to Finnish and international institutional and other qualified

investors and in total three directed share issues for the payment

of the company’s share-based incentive plans and remuneration

to the Board of Directors. At the end of reporting period, the total

number of shares outstanding in the company was 184,231,295.

Calculation of distributable unrestricted equity

MEUR 2024 2023

Invested unrestricted equity fund 607.1 612.8

Retained earnings -34.5 -65.9

Profit for the period -71.8 31.3

Total distributable unrestricted equity

31 December 500.8 578.2

15. Liabilities

A) Long-term liabilities

MEUR 2024 2023

Long-term interest-bearing liabilities

Loans from financial institutions 247.4 247.3

Hybrid bond 595.9 607.8

Loans from Group companies 1,592.2 1,031.9

Total 2,435.5 1,887.1

Derivative financial instruments 12.7 22.6

Total long-term liabilities 2,448.2 1,909.7

Loans maturing later than 5 years 350.0 -

B) Short-term liabilities

MEUR 2024 2023

Short-term interest-bearing liabilities

Commercial paper 9.9 46.5

Loans from Group companies 234.6 437.2

Total 244.6 483.6

Short-term non-interest-bearing

liabilities

Payables to outside the Group

Accounts payable 1.3 1.2

Derivative financial instruments 2.7 5.2

Total other payables 2.7 5.2

Interest liability 15.7 15.4

Other accrued expenses and

deferred income 7.2 7.2

Total accrued expenses and

deferred income 22.9 22.6

Total 26.9 29.0

Payables to Group companies

Accounts payable 0.5 0.5

Other payables 0.8 16.0

Interest liability 32.3 16.8

Total accrued expenses and

deferred income 32.3 16.8

Total 33.6 33.3

Total short-term liabilities 305.0 545.9

Total liabilities 2,753.2 2,455.6

Financial statementsFinancial review Financial Review 2024

The company has a syndicated revolving credit facility,

which matures in 2027. In addition, the company has

three hybrid bonds issued in November 2019, June 2021

and June 2024, which are reported under long term

liabilities. The hybrid bond is unsecured, subordinated

to all debt and senior only to ordinary share capital. A

holder of hybrid bond notes has no shareholder rights.

Citycon has the right to postpone interest payment on

its hybrid bonds if it does not distribute dividend or any

other equity to its shareholders. The hybrids has no set

maturity date, but the company has the right to redeem

it after five years from the issue date and thereafter on

every yearly interest payment date.

Derivative financial instruments are used in Citycon

group in accordance with the Treasury Policy to hedge

the interest rate risk of interest bearing liabilities and

foreign currency risk. All Group external derivative

financial instruments in Citycon are executed by the

parent company Citycon Oyj. Citycon Oyj values

derivatives according to the Finnish bookkeeping

act KPL 5.2a fair value model and fair value changes

are booked through profit and loss. The fair value

definition of derivatives are presented in note 3.6 of the

consolidated Financial Statements.

16. Contingent liabilities

A) Lease liabilities

MEUR 2024 2023

Payables on lease commitments

Maturing next financial year 0.5 0.4

Maturing later 0.7 1.3

Total 1.1 1.7

Citycon’s finance leases mainly apply to computer

hardware, machinery and equipment and cars.

B) Guarantees given

MEUR 2024 2023

Guarantees 1,832.3 1,518.8

Of which on behalf of Group

companies 1,832.3 1,518.8

Guarantees in 2024 and in 2023 mainly relate to issued

bonds of subsidiaries which Citycon Oyj has guaranteed

via parent guarantee or alternatively other parent

company guarantees.

Financial statementsFinancial review Financial Review 2024

Signatures to the report by the Board of Directors

and Financial Statements

Signatures to the Report by the Board of Directors and Financial Statements 1 January–31 December 2024

The financial statements, prepared in accordance with applicable accounting regulations, give a true and fair view of the assets, liabilities, financial position, and profit or loss of

both the company and the group of companies included in its consolidated financial statements.

The report of the Board of Directors contains a fair review of the development and performance of the business operations of both the company and the group of companies

included in its consolidated financial statements, as well as a description of the most significant risks and uncertainties and other aspects of the company’s condition.

Helsinki, 26 February 2025

Chaim Katzman Alexandre Koifman

Chairman Deputy Chairman of the Board

Judah Angster Zvi Gordon

Member Member

Adi Jemini David Lukes

Member Member

Per-Anders Ovin Ljudmila Popova

Member Member

Eero Sihvonen F� Scott Ball

Member Interim CEO, deputy Chairman of the Board

We have today submitted the report

on the conducted audit.

Helsinki, 26 February 2025

Deloitte Oy

Authorized Public Accountant Firm

Anu Servo

Authorized Public Accountant

Financial statementsFinancial review Financial Review 2024

Auditor’s report

To the Annual General Meeting

of Citycon Oyj

Report on the Audit of

the Financial Statements

Opinion

We have audited the financial statements of Citycon Oyj

(business identity code 0699505-3) for the year ended

31 December, 2024. The financial statements comprise

the consolidated income statement, statement of

comprehensive income, balance sheet, statement of

changes in equity, statement of cash flows and notes,

including material accounting policy information, as

well as the parent company’s balance sheet, income

statement, statement of cash flows and notes.

In our opinion

• the consolidated financial statements give a true and

fair view of the group’s financial position, financial

performance and cash flows in accordance with IFRS

Accounting Standards as adopted by the EU.

• the financial statements give a true and fair view of

the parent company’s financial performance and

financial position in accordance with the laws and

regulations governing the preparation of financial

statements in Finland and comply with statutory

requirements.

Our opinion is consistent with the additional report

submitted to the Audit and Governance Committee.

(Translation of the Finnish original)

Basis for Opinion

We conducted our audit in accordance with good

auditing practice in Finland. Our responsibilities under

good auditing practice are further described in the

Auditor’s Responsibilities for the Audit of the Financial

Statements section of our report.

We are independent of the parent company and of

the group companies in accordance with the ethical

requirements that are applicable in Finland and are

relevant to our audit, and we have fulfilled our other

ethical responsibilities in accordance with these

requirements.

In our best knowledge and understanding, the non-audit

services that we have provided to the parent company

and group companies are in compliance with laws

and regulations applicable in Finland regarding these

services, and we have not provided any prohibited non-

audit services referred to in Article 5(1) of regulation (EU)

537/2014. The non-audit services that we have provided

have been disclosed in note 1.5 to the consolidated

financial statements.

We believe that the audit evidence we have obtained

is sufficient and appropriate to provide a basis for our

opinion.

Key Audit Matters

Key audit matters are those matters that, in our

professional judgment, were of most significance in our

audit of the financial statements of the current period.

These matters were addressed in the context of our

audit of the financial statements as a whole, and in

forming our opinion thereon, and we do not provide a

separate opinion on these matters.

We have also addressed the risk of management

override of internal controls. This includes consideration

of whether there was evidence of management bias

that represented a risk of material misstatement due to

fraud.

Financial statementsFinancial review Financial Review 2024

Responsibilities of the Board of Directors and the

Managing Director for the Financial Statements

The Board of Directors and the Managing Director are

responsible for the preparation of consolidated financial

statements that give a true and fair view in accordance

with IFRS Accounting Standards as adopted by the

EU, and of financial statements that give a true and

fair view in accordance with the laws and regulations

governing the preparation of financial statements in

Finland and comply with statutory requirements. The

Board of Directors and the Managing Director are also

responsible for such internal control as they determine

is necessary to enable the preparation of financial

statements that are free from material misstatement,

whether due to fraud or error.

In preparing the financial statements, the Board of

Directors and the Managing Director are responsible

for assessing the parent company’s and the group’s

ability to continue as going concern, disclosing, as

applicable, matters relating to going concern and using

the going concern basis of accounting. The financial

statements are prepared using the going concern basis

of accounting unless there is an intention to liquidate

the parent company or the group or cease operations, or

there is no realistic alternative but to do so.

Auditor’s Responsibilities for

the Audit of Financial Statements

Our objectives are to obtain reasonable assurance on

whether the financial statements as a whole are free

from material misstatement, whether due to fraud or

error, and to issue an auditor’s report that includes

our opinion. Reasonable assurance is a high level

of assurance, but is not a guarantee that an audit

conducted in accordance with good auditing practice

will always detect a material misstatement when it

exists. Misstatements can arise from fraud or error and

are considered material if, individually or in aggregate,

they could reasonably be expected to influence the

economic decisions of users taken on the basis of the

financial statements.

As part of an audit in accordance with good auditing

practice, we exercise professional judgment and

maintain professional skepticism throughout the audit.

We also:

• Identify and assess the risks of material misstatement

of the financial statements, whether due to fraud

or error, design and perform audit procedures

responsive to those risks, and obtain audit evidence

that is sufficient and appropriate to provide a

basis for our opinion. The risk of not detecting a

material misstatement resulting from fraud is higher

than for one resulting from error, as fraud may

involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant

to the audit in order to design audit procedures that

are appropriate in the circumstances, but not for the

purpose of expressing an opinion on the effectiveness

of the parent company’s or the group’s internal

control.

• Evaluate the appropriateness of accounting policies

used and the reasonableness of accounting estimates

and related disclosures made by management.

• Conclude on the appropriateness of the Board of

Directors’ and the Managing Director’s use of the

going concern basis of accounting and based on

the audit evidence obtained, whether a material

uncertainty exists related to events or conditions that

may cast significant doubt on the parent company’s

or the group’s ability to continue as a going concern.

If we conclude that a material uncertainty exists, we

are required to draw attention in our auditor’s report

to the related disclosures in the financial statements

Key audit matter How our audit addressed the key audit matter

Valuation of investment property

Refer to Note 2.1 in the consolidated financial statements.

The value of investment properties in the consolidated financial

statements 31.12.2024 is 3.627,8 million euros (3.858,2 million euros).

Investment properties are properties in accordance with the IAS 40

standard, which are measured at fair value as referred to in IFRS 13.

The key factors of the fair value of investment properties are the yield

requirement, market rents, vacancy rate and operating expenses.

The valuation of investment property has been considered as a

key audit matter of consolidated financial statements because the

determination of the fair value of investment properties requires

management judgement and estimates.

This matter is a significant risk of material misstatement referred to

in EU Regulation No 537/2014, point (c) of Article 10(2).

In our audit, we have evaluated and challenged the principles and

methods applied in determining fair values.

Among other things, we have carried out the following audit activities:

• assessing the appropriateness of valuation methods and the

reasonableness of the assumptions used by management.

• testing the mathematical accuracy of the valuation method used by

the company.

• comparison of the valuation of investment properties by region with

external market information sources.

• assessment of the accuracy of the valuation calculation

parameters.

• ensuring the competence and objectivity of an external evaluator

used by management.

We have assessed the appropriateness of presentation in the

consolidated financial statements.

Goodwill valuation

Refer to Note 5.2 in the consolidated financial statements.

Goodwill in the consolidated balance sheet is 89,9 million euros (EUR

111,4 million euros). All goodwill has been allocated to the Norwegian

business unit.

Management assesses the need for impairment of goodwill annually.

The present value of the recoverable amount of a cash-generating

unit is based on calculations in use. Recoverable amount is

particularly affected by assumptions about the discount rate and net

rental income.

Goodwill has been considered as a key audit matter of the

consolidated financial statements, as impairment testing involves

significant management judgement and assumptions, especially in

determining recoverable amounts.

In our audit, we have evaluated impairment testing models prepared

by the management and approved by the Board of Directors and

evaluated impairment testing controls.

We have discussed with management of the bases used in

the forecasts and evaluated significant assumptions used by

management:

• We have compared growth and profitability assumptions with

historical development.

• We have compared the input data and estimates used in the

calculations with the budgets approved by the Board of Directors.

• In assessing the accuracy of discount rates, we have compared

the input data used to determine the discount rate with external

sources and mirrored the change in interest rates to the previous

year, assessing its accuracy.

• We have tested the mathematical accuracy of the impairment test

calculation.

We have also assessed the appropriateness of the notes on

impairment testing.

We have no key audit matters to report with respect to our audit of the parent company financial statements. There are no significant

risks of material misstatement referred to in EU regulation No 537/241, point (c) of Article 10(2) relating to the parent company’s financial

statements.

Financial statementsFinancial review Financial Review 2024

or, if such disclosures are inadequate, to modify our

opinion. Our conclusions are based on the audit

evidence obtained up to the date of our auditor’s

report. However, future events or conditions may

cause the parent company or the group to cease to

continue as a going concern.

• Evaluate the overall presentation, structure and

content of the financial statements, including the

disclosures, and whether the financial statements

represent the underlying transactions and events so

that the financial statements give a true and fair view.

• Plan and perform the group audit to obtain sufficient

appropriate audit evidence regarding the financial

information of the entities or business units within

the group as a basis for forming an opinion on the

group financial statements. We are responsible for

the direction, supervision and review of the audit work

performed for purposes of the group audit. We remain

solely responsible for our audit opinion.

We communicate with those charged with governance

regarding, among other matters, the planned scope

and timing of the audit and significant audit findings,

including any significant deficiencies in internal control

that we identify during our audit.

We also provide those charged with governance with

a statement that we have complied with relevant

ethical requirements regarding independence, and

communicate with them all relationships and other

matters that may reasonably be thought to bear on

our independence, and where applicable, related

safeguards.

From the matters communicated with those charged

with governance, we determine those matters that

were of most significance in the audit of the financial

statements of the current period and are therefore the

key audit matters. We describe these matters in our

auditor’s report unless law or regulation precludes public

disclosure about the matter or when, in extremely rare

circumstances, we determine that a matter should not

be communicated in our report because the adverse

consequences of doing so would reasonably be

expected to outweigh the public interest benefits of

such communication.

Other Reporting Requirements

Information on our audit engagement

We were first appointed as auditors by the Annual

General Meeting on 19.3.2024, and our appointment

represents a total period of uninterrupted engagement

of 1 year.

Other Information

The Board of Directors and the Managing Director

are responsible for the other information The other

information comprises the report of the Board of

Directors and the information included in the Annual

Report but does not include the financial statements

and our auditor’s report thereon. We have obtained the

report of the Board of Directors prior to the date of this

auditor’s report, and the Annual Report is expected to be

made available to us after that date.

Our opinion on the financial statements does not cover

the other information

In connection with our audit of the financial statements,

our responsibility is to read the other information

identified above and, in doing so, consider whether the

other information is materially inconsistent with the

financial statements or our knowledge obtained in the

audit, or otherwise appears to be materially misstated.

With respect to the report of the Board of Directors, our

responsibility also includes considering whether the

report of the Board of Directors has been prepared in

compliance with the applicable provisions.

In our opinion, the information in the report of the Board

of Directors is consistent with the information in the

financial statements and the report of the Board of

Directors has been prepared in compliance with the

applicable provisions.

If, based on the work we have performed on the other

information that we obtained prior to the date of this

auditor’s report, we conclude that there is a material

misstatement of this other information, we are required

to report that fact. We have nothing to report in this

regard.

Helsinki, 26th of February 2025

Deloitte Oy

Audit Firm

Anu Servo

Authorised Public Accountant (APA)

Financial statementsFinancial review Financial Review 2024

www�citycon�com

Address:

Iso Omena, Piispansilta 9 A,

FI-02230 Espoo, Finland

info@citycon.com