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1. Company Snapshot

1.a. Company Description

Citycon Oyj, a real estate investment company, operates as an owner, manager, and developer of mixed-use centers for urban living in the Nordic region.The company develops retail, office space, and residential properties.It owns 36 centers and 1 other retail property.


The company was incorporated in 1988 and is headquartered in Espoo, Finland.Citycon Oyj operates as a subsidiary of G City Ltd.

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1.b. Last Insights on CTY1S

Citycon Oyj's recent performance has been impacted by persistent losses, with a five-year average annual loss growth rate of 45.5%. Despite projected earnings growth of 8.03% per year, the company's revenue growth is expected to trail the Finnish market average at 1.8% per year. Additionally, Citycon faces challenges in asset sales, financial costs, and debt management, with high interest rate pressures. Its net profit margins have yet to show improvement, and the company's valuation discount persists ahead of earnings.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Undervalued European Small Caps With Insider Action For November 2025

Nov -21

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Citycon Oyj (HLSE:CTY1S): Five-Year Losses Deepen, Valuation Discount Persists Ahead of Earnings

Nov -01

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Citycon Oyj (FRA:TY2B) Q3 2025 Earnings Call Highlights: Strong Operational Performance Amid ...

Oct -31

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Citycon Oyj (FRA:TY2B) Q2 2025 Earnings Call Highlights: Strong NRI Growth Amid Debt Management ...

Aug -08

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Citycon Oyj (FRA:TY2B) Q1 2025 Earnings Call Highlights: Strong Operational Gains Amidst ...

May -15

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Citycon Oyj (FRA:TY2B) Q3 2024 Earnings Call Highlights: Strong Rental Income Growth and ...

Nov -08

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Citycon outsources its finance activities related to Nordic Accounting and Lease Administration

May -13

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Citycon recognized as a European Climate Leader and ranks number one in the Nordic real estate sector

Apr -25

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.55%)

6. Segments

Gross Rental

Expected Growth: 2.5%

Citycon Oyj's gross rental income is driven by increasing foot traffic in its shopping centers, strategic location of properties, and growing demand for retail space in Finland and other European countries.

Service Charges

Expected Growth: 2.5%

The growth of service charges from Citycon Oyj is driven by increasing demand for maintenance and repair services, rising property values, and growing need for additional services such as waste management and security.

Utility Charges

Expected Growth: 2.5%

Growing demand for sustainable living and increasing focus on energy efficiency drive the growth of utility charges from Citycon Oyj. Rising costs of electricity, water, and heating also contribute to the growth, as Citycon Oyj passes these costs on to tenants.

Other Service

Expected Growth: 4.5%

Citycon Oyj's Other Service segment is expected to grow driven by increasing demand for property management and development services, leveraging the company's expertise in shopping center operations. This growth is further supported by the rising trend of outsourcing non-core functions among property owners and developers.

Temporary and Contractual Rental Discounts

Expected Growth: 2.5%

Temporary and Contractual Rental Discounts from Citycon Oyj are driven by increasing demand for flexible lease terms, rising competition among landlords, and tenants' growing bargaining power, leading to a forecasted CAGR of 2.5%.

Straight-lining of Lease Incentives

Expected Growth: 2.5%

The straight-lining of lease incentives from Citycon Oyj drives growth through reduced lease expenses, increasing profitability. This accounting treatment enables companies to recognize incentives as a reduction in lease expense over the lease term, resulting in improved financial performance and increased investor confidence.

7. Detailed Products

Shopping Centers

Citycon Oyj develops and operates shopping centers in the Nordic region, providing a platform for retailers to showcase their products and services to a large customer base.

Office Spaces

Citycon Oyj offers office spaces for rent in prime locations, providing businesses with modern and flexible workspaces.

Residential Properties

Citycon Oyj develops and manages residential properties, offering high-quality living spaces in desirable locations.

Mixed-Use Developments

Citycon Oyj creates mixed-use developments that combine retail, office, and residential spaces, providing a unique and dynamic environment.

8. Citycon Oyj's Porter Forces

Forces Ranking

Threat Of Substitutes

Citycon Oyj operates in the real estate industry, which has a moderate threat of substitutes. While there are alternative investment options available, the company's focus on Nordic retail properties provides a unique value proposition.

Bargaining Power Of Customers

Citycon Oyj's customers, primarily retailers, have limited bargaining power due to the company's diversified tenant base and long-term lease agreements.

Bargaining Power Of Suppliers

Citycon Oyj has a diversified supplier base, and the company's scale and reputation provide it with significant negotiating power, reducing the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants in the Nordic retail property market is low due to high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The Nordic retail property market is moderately competitive, with several established players. However, Citycon Oyj's strong market position and diversified portfolio help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 63.87%
Debt Cost 3.95%
Equity Weight 36.13%
Equity Cost 8.42%
WACC 5.56%
Leverage 176.78%

11. Quality Control: Citycon Oyj passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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HIAG Immobilien

A-Score: 7.0/10

Value: 3.6

Growth: 7.0

Quality: 6.6

Yield: 5.6

Momentum: 9.5

Volatility: 9.7

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Mobimo Holding

A-Score: 6.2/10

Value: 3.1

Growth: 3.9

Quality: 6.6

Yield: 6.2

Momentum: 7.5

Volatility: 10.0

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Zug Estates Holding

A-Score: 5.7/10

Value: 3.4

Growth: 3.7

Quality: 6.7

Yield: 3.8

Momentum: 7.5

Volatility: 9.3

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Citycon

A-Score: 5.1/10

Value: 6.5

Growth: 1.9

Quality: 4.0

Yield: 6.9

Momentum: 3.0

Volatility: 8.3

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Diös Fastigheter

A-Score: 4.6/10

Value: 4.9

Growth: 3.2

Quality: 5.3

Yield: 5.6

Momentum: 1.5

Volatility: 7.3

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Galimmo

A-Score: 4.3/10

Value: 4.0

Growth: 6.6

Quality: 4.1

Yield: 3.8

Momentum: 4.0

Volatility: 3.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.98$

Current Price

3.98$

Potential

-0.00%

Expected Cash-Flows