The first quarter of 2026 marked a solid start to the year with operating performance developing positively across key areas. Like-for-like net rental income increased by 4.5% with comparable FX rates, driven by index-linked rent increases and positive leasing spreads. Operating and administrative expenses remained well controlled, and our cost efficiency measures continued to support a strong operating margin. We managed to reduce administrative expenses by 17.5% to further support the P&L.
A notable contribution to the quarter’s performance was the 25%, with comparable FX, growth in general mall leasing income, including specialty leasing, energy and parking income. Through general mall leasing we can monetise our assets even further and bring additional revenue. Expanding general mall leasing income remains a key operational and value‑creation priority for Citycon in 2026.
At the end of the first quarter, retail economic occupancy rate stood at 94.8%. The decline from year-end was mainly due to normal seasonal effects. Tenant sales continued to develop favourably, with like-for-like tenant sales increasing by 3.5% compared to the corresponding period last year. Footfall followed a positive trend, with like-for-like visits increasing by 2.1%, underlining the continued relevance of our centres as local hubs for daily services.
During the quarter, we completed significant energy‑efficiency projects at four assets in Finland. These comprehensive upgrades include modernization of heating, ventilation and air‑conditioning systems, as well as LED lighting improvements. As a result, aggregated district heating consumption across these centres is expected to decrease by up to 38%, while electricity consumption in common areas is expected to decline by up to 5%. These investments support both our sustainability objectives and long‑term cost efficiency.
We also took important actions to strengthen and derisk our balance sheet. During the first quarter we signed a new EUR 270 million secured loan. With the proceeds from the new loan we completed an early redemption of the shortest bond which was due in September 2026. The redemption was announced in March and completed in April 2026 when the remaining nominal amount of around EUR 123 million was repaid in full. In April we additionally signed a new EUR 220 million secured loan from which we received the funds in early May. These transactions are important actions to improve our credit maturity profile and to reduce our near-term refinancing needs. These secured loan transactions also demonstrate strong lender interest in our high-quality assets. Additionally, Citycon paid two dividends during Q1/2026. In January Citycon announced a EUR 0.20 per share dividend and in March a EUR 0.90 per share dividend.
We continue the work on optimising our asset portfolio by identifying and carrying out potential asset divestments. Following Q1/2026 we have been approached by several potential buyers related to selected assets in Finland, Sweden and Norway.
Looking ahead, Citycon is well positioned to deliver strong operational performance in 2026. Supported by resilient cash flows and a proactive approach to portfolio, we remain focused on creating sustainable long‑term value for all our stakeholders.
I want to thank all Citycon employees for the achievements during the quarter.
Eshel Pesti
Citycon's CEO
Source: Citycon's Q1/2026 Interim Report