Real estate companies reports continued with shopping centre focused Citycon (HSE: CTY1S) reporting quarterly numbers. The operating profit of 26 million Euros was nearly 50% below Q2 2010. This was entirely due to net fair value gains/losses account turning slightly negative from a big positive number a year ago. Cash flow from operating activities was up from last year.
Citycon also expects for Nordic region to continue to show solid growth and it believes large international retail brands will be interested to set up shops in the region as purchasing power increases. Citycon plans to divest 300 to 400 million worth of assets and enter into joint ventures on some core assets. Market expectations pretty much matched all of the news coming out and the stock has been trading nearly flat.
Citycon also unveiled its new strategy in connection with the Q2 webcast. Citycon wants to be the leader of Nordic and Baltic shoppint centres. In addition to presence in Finland, Sweden and Estonia, core geographies will include Norway, Denmark and Latvia. Towards these ends the company said today that it has completed a near 100 million direct offering. Currently the company is market leader in Finland and has increased presence in Sweden.
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