Published: 2003-02-27 10:00:06 CET
Citycon Oyj
Quarterly report
CITYCON'S FINANCIAL STATEMENTS FOR 1 JAN
CITYCON OYJ STOCK EXCHANGE BULLETIN, 27 FEBRUARY 2003 	AT 11.00AM

CITYCON'S
FINANCIAL STATEMENTS FOR 1 JANUARY TO 31 DECEMBER 2002

Continued earnings
progress for Citycon
- The result for the year under review before exceptional
items and 
taxes rose by 8.7 per cent to EUR 19.2 million (EUR
17.6m).
Turnover was up by 2.2 per cent to EUR 79.4 million (EUR 77.7m).
-
Operating profit was down by 2.2 per cent to EUR 43.9 million 
(EUR 44.9m).
-
Earnings per share were EUR 0.14 (EUR 0.12). 
- Payment of a dividend of EUR
0.09 per share (EUR 0.08 per share) 
is being recommended for all shares
outside the company's 
ownership. The dividend corresponds to 66.5 per cent of
earnings.
- Market development was encouraging for Citycon. Demand for and

occupancy rates of retail premises remained healthy.

KEY FIGURES
        
                           Jan-Dec 2002  Jan-Dec 2001
Turnover, EUR million   
                   79.4          77.7
Turnover, increase %                    
    2.2           2.2
Operating profit, EUR million               43.9        
 44.9
 as % of turnover                           55.3          57.8
Result
before exceptional items
and taxes, EUR million                      19.2     
    17.6
 as % of turnover                                            

Number of employees at 31 December 2002       33            29
EPS, EUR     
                              0.14          0.12
Equity per share, EUR        
              1.96          1.91
P/E ratio                                    
 8             8
Dividend per share, EUR                     0.09         
0.08
(Board of Director's recommendation)
Return on equity (ROE), %          
         4.8           4.5
ROE excluding minority interests, %          7.1   
       6.7
Return on investment (ROI), %                6.0          
6.1
Equity ratio, %                             39.1          38.2
Equity
ratio, capital loan                                    
included in core
capital, %                 48.4          47.3
Net rental return of property
stock, %       8.6           8.3
Economic occupancy rate 
of retail premises,
%                         98            98

TURNOVER AND BUSINESS
ENVIRONMENT

Citycon's turnover principally consists of the rental income
from 
its retail properties. During 2002 the company's turnover rose to 
EUR
79.4 million (EUR 77.7m), of which gross rental income 
accounted for EUR 73.7
million (EUR 71.3m). Shopping centres and 
the 15 largest supermarkets account
for 75 per cent of the income 
from Citycon's operations. Other turnover
consists mostly of 
proceeds from the divestment of properties. In 2002,
Citycon made 
gains of EUR 0.4 million (EUR 1.7m) on the divestment of
property 
assets.

Citycon's turnover and rental agreement stock developed
as expected 
during 2002. There was continued strong demand for retail
premises 
in the Helsinki region and in Finland's largest cities. Despite

uncertainty in the economy as a whole, consumers were very 
confident about
their own personal finances and there was continued 
brisk consumer demand.
Figures released by Statistics Finland show 
that sales in the retail trade,
excluding cars, rose by 3.7 per 
cent and grocery sales by 4.7 per
cent.

Higher consumer demand sustained the strong demand for retail

premises. Despite new construction projects, overall occupancy 
rates for
retail premises remained high. Slow urban planning and 
construction continued
to hamper the availability of good, new 
retail premises. 

CLIENTS AND
RENTAL AGREEMENTS

At year-end 2002, Citycon had 700 tenants, with whom it
had 
concluded 1 150 rental agreements. Most, 18.2 per cent, of 
Citycon's
rental agreements are long, fixed-term agreements. The 
fixed-term agreements
are valid for an average of 4.2 years. 

The total annual rent of new rental
agreements signed during the 
year amounted to some EUR 6.9 million. The most
significant new 
agreements were signed with Kesko and HOK Liiketoiminta Oy.

Citycon's 10 largest clients generate around 69.2 per cent of the 
company's
net rental income. The vacancy rate of Citycon's retail 
premises remained
healthy at 2.0 per cent. 

NET RENTAL INCOME AND OPERATING PROFIT

During
2002, net rental income from Citycon's property assets 
totalled EUR 56.2
million (EUR 54.5m), of which 49.3 per cent was 
generated by Shopping Centres
and 50.7 per cent by Supermarkets & 
Shops. Calculated in accordance with the
recommendations of the 
Institute for Real Estate Economics (KTI) net rental
income from 
the entire property stock were 8.6 per cent (8.3%). Shopping

Centres generated a total net return of 8.2 per cent (7.6%) and

Supermarkets & Shops 9.1 per cent (9.0%). The economic occupancy 
rate of
Citycon's retail premises was 98 per cent.

The operating profit for the 2002
financial year was EUR 43.9 
million (EUR 44.9m) and the profit EUR 13.8
million (EUR 12.6m). 
This encouraging trend was made on the back of the
completion of 
the IsoKarhu Shopping Centre extension in Pori, active letting

activities and positive market development in the line of
business.

BUSINESS DEVELOPMENT PROJECTS

During the 2002 financial year,
Citycon's property assets were 
divided into two portfolios: Shopping Centres
and Supermarkets & 
Shops. 

On the Shopping Centres front, major
development projects during 
2002 involved planning for extensions to the
Myyrmanni, IsoKarhu 
and Lippulaiva shopping centres in Vantaa, Pori and Espoo

respectively. These extensions seek to improve the market position 
of these
shopping centres and to increase income. 

On the Supermarkets & Shops front,
major development projects 
during the 2002 financial year focused primarily
on property 
refurbishment and other modification work necessary for tenants'

business activities. 

IMPACT ON CITYCON OF THE EVENT AT THE MYYRMANNI
SHOPPING CENTRE 
The damage caused by the explosion at the Myyrmanni Shopping
Centre 
in October 2002 had minimum impact on Citycon's performance. 
Citycon
Oyj and Kiinteistö Oy Myyrmanni were insured against the 
material damage
caused by the explosion and the loss of rent 
resulting from the temporary
closure of the shopping centre. 
Kiinteistö Oy Myyrmanni contributed to the
fund to raise money for 
the victims of the exlosion. 
PROPERTY ACQUISITIONS
AND DIVESTMENTS
The 2002 financial year saw Citycon further intensify its
focus on 
its chosen geographical areas and acquired retail properties or

holdings in retail properties in the Helsinki region. In line with 
its
strategy, Citycon divested properties outside its core 
business. 
Citycon
acquired retail premises in Heikintori Oy, a shopping 
centre in Tapiola
Espoo. Subsequent to these deals, Citycon's 
holding in Heikintori Oy rose to
52.1 per cent and Heikintori 
became a Citycon subsidiary. During the 2002
financial year, 
Citycon also increased its holding in Kiinteistö Oy Saturnus,
in 
Annankatu in the centre of Helsinki. Subsequent to the deal, 
Citycon
owns all the commercial property in Kiinteistö Oy Saturnus. 
In line with its
divestment programme, Citycon sold the entire 
share capital in 18 (20)
properties and reduced its interest in two 
(5) properties during 2002.
Citycon made a gain of EUR 0.4 million 
(EUR 1.7m) on properties divested for
a total of EUR 6.4 (EUR 
11.5m). This gain is shown as part of turnover.

BALANCE SHEET AND FINANCES
At year-end 2002, Citycon owned 152 properties,
which had a total 
book value of EUR 649.2 million (EUR 660.4m). The market
value of 
the properties was EUR 650.1m (EUR 666.6m). The balance sheet total

at 31 December 2002 was EUR 746.3 million (EUR 748.9m), of which 
liquid
cash assets amounted to EUR 11.7 million (EUR 5.8m), or 1.6 
per cent of the
balance sheet total. 
Creditors at the consolidated balance sheet date
totalled EUR 383.3 
million (EUR 392.5m). Interest bearing debt amounted to
EUR 440.5 
million (EUR 451.5m) and zero interest-rated debt was EUR 68.5

million (EUR 68.5m). The average interest rate on debt was 5.3 per 
cent
(5.8%) a year. The average borrowing period was approximately 
4.9 (5.8) years
and the average interest-rate fixing period was 4.1 
years (5.0). Group equity
ratio stood at 39.1 per cent (38.2%) and 
48.4 per cent (47.3%) with the
capital loan included in core 
capital.

Of Citycon's loan portfolio, 84 per
cent were floating loans. Half 
of these were swapped to fixed rate using
interest-rate swaps and a 
third was hedged through interest-rate caps. The
nominal value of 
interest-rate swaps was EUR 199 million and that of
interest-rate 
caps EUR 133 million. The EBITDA/interest charge ratio, which

describes debt servicing ability, was 2.1 (1.9).

Citycon Group's financial
position was good throughout the year. 
Citycon signed a EUR 360 million
syndicated loan facility on 25 
November 2002. Nordea Bank Finland Plc acted
as the credit 
coordinator and lead manager together with managers Svenska

Handelsbanken AB of Sweden and EuroHypo AG of Germany. The loan 
facility is
intended to broaden Citycon's capital base, to secure 
future investments and
to restructure Citycon's existing loan 
stock. The arrangement will make at
least EUR 150 million available 
for Citycon to fund future new property
investments. 

Gross investments made by the Group in 2002 totalled €5.9
million 
(€20.4m) and were mostly in the acquisition of shares in new

properties and the refurbishment of Citycon's existing
properties.

EMPLOYEES AND SALARIES

There was a moderate increase in
employee numbers during 2002. At 
the end of the financial year, the Group had
a total of 33 (29) 
employees, 27 (23) of which were employed by the parent
company. 

Wages and salaries paid by the Citycon Group totalled EUR 2.0

million, of which EUR 0.3 million was paid to managing directors 
and
members of the Board of Directors. Wages and salaries paid to 
employees in
the parent company totalled EUR 1.7 million, of which 
EUR 0.2 million was
paid to the CEO and to members of the Board of 
Directors. 

Petri Olkinuora
MSc (Tech) was appointed the company's new CEO and 
Olli-Pekka Mikkola LLM
deputy CEO. Both appointments became 
effective on 1 August 2002. Olli-Pekka
Mikkola left the company on 
31 December 2002.

EVENTS TAKING PLACE AFTER 31
DECEMBER 2002

Citycon specified its operational model and organisation at
the 
start of 2003. The company has split its property business into 
three
divisions according to property type: Shopping Centres, 
Supermarkets & Shops
and Retail Parks. In future, the company will 
increasingly address the
development of retail premises and new 
retail centres such as retail parks.


The new operational model consolidates Citycon's position as 
Finland's
leading company specialising in retail premises. Retail 
Park development
projects will enable Citycon to expand its target 
client base, to provide a
more comprehensive service for various 
sectors of the retail trade and to
provide diverse premises 
solutions to support the business of its clients.
Property assets 
will continue to be focused on Finland's largest cities,
where 
Citycon is working on development projects to further consolidate 
its
position as the best provider of retail premises and its 
clients' long-term
partner of choice.

SHARE PERFORMANCE

At 31 December 2002, Citycon's share
capital was EUR 142,800,108.30 
distributed among 105,777,858 shares, each
having a nominal value 
of EUR 1.35.

During the year under review,
8,581,070 Citycon shares (4,652,941) 
were traded on the Helsinki Exchanges
for a total of EUR 
9,060,607.20 (EUR 4.7m). Nominee registered shares and
shares in 
foreign ownership accounted for 908,500 Citycon shares,

corresponding to 0.87 per cent of the shares and votes. 

The highest and
lowest trading prices during the year under review 
were EUR 1.12 (EUR 1.07)
and EUR 0.98 (EUR 0.93) respectively. The 
weighted middle price during the
period under review was EUR 1.06 
(EUR 1.01) and the shares closed on the year
at EUR 1.10 (EUR 
1.02). The market capitalisation value at the balance sheet
date 
was EUR 112.1 million, excluding the impact of those shares owned 
by
the company. 

During 2002, the HEX All Share Index fell by 34.4 per cent (31

December 2002) and the Portfolio Index by 16.7 per cent. However, 
the index
reflecting the share prices of listed property investment 
companies rose by
5.3 per cent during 2002.

Citycon's ownership structure remained almost
unchanged. Citycon 
had 1,123 shareholders at 31 December 2002. At year-end
2002, the 
ten largest shareholders owned a total of 82.4 per cent of

Citycon's shares and votes. The largest shareholders were Nordea 
Bank
Finland Plc, Kesko Corporation including its subsidiaries and 
associated
companies, Sampo Life Insurance Company Ltd and Etra-
Invest Oy, with a total
of 78.0 per cent of the company's shares 
and votes. At 31 December 2002,
members of Citycon's Board of 
Directors owned 108,257 shares, corresponding
to 1.0 per cent of 
the total shares and votes. Citycon's CEO and Corporate
Management 
Committee had no interests in the company's shares. 
At the end
of the period under review, Citycon owned 3,874,000 of 
its own shares, which
it acquired for a total of EUR 4,675,812.76, 
the lowest price paid being EUR
1.10 and the highest EUR 1.35. The 
shares owned by company represented 3.7
per cent of total shares 
and votes.

AUTHORISATIONS

Meeting on 26 March
2002, Citycon's Annual General Meeting 
authorised the Board of Directors to
decide whether to increase the 
share capital by €28,464,893.10 through one or
more rights issues 
offering a maximum aggregate of 21,085,106 shares.
Furthermore, the 
Annual General Meeting authorised the Board of Directors to
decide 
on the purchase or conveyance of a maximum of 14,124,892 of the

Company's own shares having a nominal value of €1.35 during the 
validity of
this authorisation. At the end of 2002 none these 
authorisations had been
exercised. The authorisations are valid 
until 20 March 2003.

BOARD OF
DIRECTORS AND AUDITORS

Stig-Erik Bergström DSc (Econ & Bus Admin), Heikki
Hyppönen MSc 
(Econ & Bus Admin), Juhani Järvi MSc (Econ & Bus Admin), Jorma

Lehtonen MSc (Eng), Carl G. Nordman Counsellor of Industry (Hon) 
and Juha
Olkinuora MSc (Eng) were appointed to Citycon's Board of 
Directors on 26
March 2002. Stig-Erik Bergström was elected as 
Chairman and Jorma Lehtonen as
Deputy Chairman of the Board of 
Directors.

Ari Ahti authorised public
accountant and Jaakko Nyman authorised 
public accountant serve as the
company's auditors. Authorised 
Public Accountants KPMG Wideri Oy Ab are the
company's deputy 
auditors.

BOARD OF DIRECTORS' DIVIDEND
RECOMMENDATION

Citycon's Board of Directors is to recommend to the Annual
General 
Meeting convening on 20 March 2003 that a dividend of EUR 0.09 per

share be paid for 2002 on all shares outside the company's 
ownership. The
Board of Directors recommends that the record date 
be 25 March 2003 and that
the dividend be paid to shareholders on 1 
April 2003.


FUTURE
OUTLOOK

The demand for, occupancy rates and rent levels of retail premises

are expected to remain healthy in the Helsinki region and in 
Finland's
largest cities. There is still adequate demand for good 
retail premises since
consumers' have strong confidence in their 
own finances and private
consumption is rising. The encouraging 
trend in the retail trade is
constantly creating a need for new 
premises and in turn bolstering demand for
retail premises. Despite 
new construction, the scant supply of retail
premises continues to 
sustain demand.

Citycon's new business model and
especially development projects 
will provide a platform for long-term growth
potential. Citycon's 
turnover and earnings in 2003 are expected to be in line
with those 
of the previous year.

Citycon Oyj
Board of
Directors


Further information is available from:
CEO Mr Petri Olkinuora,
tel +358 680 36738 or +358 400 333
256
petri.olkinuora@citycon.fi

Distribution:
Helsinki Exchanges
Main
media
www.citycon.fi 


FINANCIAL STATEMENTS

EUR 1000
                 
         Jan-Dec 2002      Jan-Dec 2001
CONSOLIDATED INCOME
STATEMENT

Turnover                         79,398            77,716
Other
income                        287               105
Operating profit          
      43,895            44,895
Financial charges (net)         -24,715        
  -27,252
Profit before exceptional
items and taxes                  19,180  
         17,643
Profit for the financial year    13,801           
12,595

CONSOLIDATED BALANCE SHEET

Assets
Fixed assets
Intangible assets
                 4,036             5,494
Tangible assets                 
625,508           616,548
Financial assets                  97,710          
112,987
Own shares                         4,261             3,951
Fixed
assets, total              731,515           738,980
Current assets
Debtors  
                         3,088             4,177
Cash in hand and at bank     
    11,730             5,770
Current assets, total             14,818         
   9,948
Assets, total                    746,333          
748,928

Shareholders' equity and
liabilities
Subscribed capital           
   204,045           198,086
Capital loan                      68,452         
  68,452
Minority interests                90,521           
89,918

Creditors                        383,315           392,471
Long-term
                       371,769           354,873
Short-term                   
    11,545            37,598
Shareholders' equity and
liabilities, total     
         746,333           748,928

Gross fixed asset balance
sheet
investments                 5,854             20,368
as % of turnover         
          7,4               26,2
Planned depreciation and
value adjustments  
              7,620              6,792
Employees, average                   33
                26

FINANCIAL INDICATORS

EPS, EUR                         
   0.14               0.12
Equity per share, EUR                1.96          
    1.91
Equity ratio %                       39.1               38.2
Equity
ratio % 
(capital loan
treated as core capital)             48.4             
 47.3

CONSOLIDATED CONTINGENT LIABILITIES

Shares pledged
(book value)   
                   95,506            111,614
Shares in subsidiaries           
                   441,000
Other pledges given                   633          
   1,663
Mortgages on land
and buildings                     323,440         
   15,147
Interest-rate swaps 1999
(5-year fixed interest)
nominal value of
underlying
instrument                        -                  
50,000
market value of underlying 
instrument	                -              
       447

Interest-rate swaps 1999
(10-year fixed interest) 
nominal
value of
underlying instrument               -                 66,000
market
value of underlying 
instrument	                  -                   
430

Interest rate swaps 1999
(11-year fixed interest)
nominal value
of
underlying instrument               -                 82,412
market value
of underlying 
instrument                          -                  
-231

Interest rate swaps 2002
(2-year fixed interest)
nominal value of
underlying
instrument                         50,000           -
market value
of underlying 
instrument                          1,491          
-

Interest rate swaps 2002
(7-year fixed interest)
nominal value of
underlying
instrument                         66,000           -
market value
of underlying 
instrument                          5,111          
-

Interest rate swaps 2002
(8-year fixed interest)
nominal value of
underlying
instrument                         83,000           -
market value
of underlying 
instrument                          5,418          
-

Interest rate option 1998
and 1999
(5-year interest cap)
nominal value
of underlying
instrument                        -                
132,512
market value of underlying 
instrument                        -      
            - 195

Interest rate option 2002
(5-year interest cap)
nominal
value of underlying
instrument                         78,712          
-
market value of underlying 
instrument                              0      
    -

Interest rate option 2002
(2-year interest cap)
nominal value of
underlying
instrument                         53,800             -
market
value of underlying 
instrument                              1             -  
   

As a result of the loan facility signed in November, Citycon

rearranged hedging accordingly. Derivatives have been valued using 
market
prices at the balance sheet date. Calculations comply with 
the Finnish
Financial Supervision Authority's regulations governing 
credit institutions
on the evaluation of derivative trades in 
financial statements. 
The company
uses derivatives solely to reduce or eliminate risks in 
the balance
sheet.

OWN SHARES
25 November 1999-31 December 2002
Number of shares, 1000
          3,874
Total nominal value              5,212              

Percentage of share capital        3.7             
Percentage of votes     
          3.7             
Consideration paid               4,676            


Own shares have been valued at the closing price on 31 December 
2002.
This is lower than the acquisition price. 
The taxes correspond to the taxes
on earnings during the period 
under review.