Citycon lowers its estimate for direct operating profit for 2010 published in
the interim report in October. The company estimated earlier the direct
operating profit to grow by approximately 1-4 per cent compared with the
previous year, based on the existing portfolio. According to the updated
estimate, the direct operating profit will decrease compared with the previous
year.
Lowering of direct operating profit guidance is due mainly to unforeseen
expenses related to changes in the company's management and organisation decided
and started during the fourth quarter in 2010 as well as snowy and cold winter,
which will lower the last quarter's and the whole year's operating profit. In
addition, leasing of some (re)development projects to be completed in Finland
and the stabilisation of the largest (re)development projects completed in
2009, has been somewhat slower than expected.
In 2010, Citycon's turnover is still expected to grow by approximately 3-7 per
cent and its direct result to be moderately lower than in the previous year. In
addition to the actual figures for the period 1 January-30 September, the
estimate is based on redevelopment projects completed during the last quarter,
the prevailing low inflation and interest rate level as well as on lower current
taxes than in the previous quarter. In addition, properties taken offline for
planned and ongoing (re)development projects have reduced net rental income
during the year.
Helsinki, 21 December 2010
CITYCON OYJ
Board of Directors
For further information, please contact:
Eero Sihvonen, Executive Vice President and CFO
Tel +358 20 766 4459 or +358 50 557 9137
eero.sihvonen@citycon.fi
Distribution:
NASDAQ OMX Helsinki
Major media
www.citycon.com
[HUG#1474307]