Citycon (OMXH: CTY1S) has acquired Citytalo property in Isokatu 20-22, Oulu, Finland for 13.5 million on debt-free basis. The building lies next to Citycon owned shopping centre Galleria in the heart of the city. Citycon has aspirations of an extension and redevelopment of Galleria and therefore wanted to buy Citytalo. Citytalo has a leasable area of 2800 square metres and is fully leased to clients such as Clas Ohlson (OMX: CLAS B), Gina Tricot and DinSKo. It is currently yielding 6.5% annual return.
The seller is Oulu evangelic Lutheran parish with 50% and some private individuals for the other half. Development of Oulu city centre had been on halt for a number of years as fighting over whether to build an underground parking area called Kallioparkki (now Kivisydän) went on. Finally last month building work for it was allowed to start. It did not take long after that for the other plans to nudge forward. S-cooperative has previously expressed interest to have a Sokos department store in the premises.
Showing posts with label Citycon. Show all posts
Showing posts with label Citycon. Show all posts
Monday, 2 July 2012
Wednesday, 20 June 2012
Strong H1 report from H&M
Investors were expecting strong numbers from H&M Hennes & Mauritz Ab (OMX: HM B) but got even more than they were hoping. Comparable sales during the first half-year were up by 3 percent. In Swedish kronor, sales excluding VAT were around 59.5 billion, an increase of 14%. In the second the numbers were more of the same, with the 31.7 billion total sales number excluding value added tax being a 15% improvement while comparable unit sales were up by 2%.
But these numbers were already known for investors, since the company announces monthly sales numbers. What was most positive was that the margins kept stable, with gross margin at 61.7% and operating margin up to 17.5% from 17.3%. This translates to six month gross profit of 35 billion, operating profit of 10.4 billion and profit after taxes of just under 8 billion for earnings per share of 4.81 SEK. Second quarter profit was 5.2 billion, up strongly from 4.25 billion a year ago.
The growth plans are on track with five new markets in 2012 being Bulgaria, Mexico, Latvia, Malaysia and Thailand. Online sales in the USA will be initiated in the autumn and store contracts are in place for 2013 in Estonia (as announced by Citycon (OMXH: CTY1S) today) and Indonesia. CEO Karl-Johan Persson called current fashion retail market ”challenging” so the fact that H&M managed to grow market share and maintain good financial performance was especially gratifying.
But these numbers were already known for investors, since the company announces monthly sales numbers. What was most positive was that the margins kept stable, with gross margin at 61.7% and operating margin up to 17.5% from 17.3%. This translates to six month gross profit of 35 billion, operating profit of 10.4 billion and profit after taxes of just under 8 billion for earnings per share of 4.81 SEK. Second quarter profit was 5.2 billion, up strongly from 4.25 billion a year ago.
The growth plans are on track with five new markets in 2012 being Bulgaria, Mexico, Latvia, Malaysia and Thailand. Online sales in the USA will be initiated in the autumn and store contracts are in place for 2013 in Estonia (as announced by Citycon (OMXH: CTY1S) today) and Indonesia. CEO Karl-Johan Persson called current fashion retail market ”challenging” so the fact that H&M managed to grow market share and maintain good financial performance was especially gratifying.
Thursday, 14 July 2011
Citycon's Q2 2011
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.
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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