Published: 2004-04-27 09:00:04 CEST
Citycon Oyj
Quarterly report
CITYCON'S INTERIM REPORT 1 JANUARY ? 31
CITYCON OYJ   STOCK EXCHANGE BULLETIN 27 APRIL 2004	 11.00AM 


CITYCON'S
INTERIM REPORT 1 JANUARY – 31 MARCH 2004 
- Profit before extraordinary items
and taxes rose to EUR 5.7 
million (EUR 4.8 million)
- Turnover increased to
EUR 21.9 million (EUR 19.4 million)
- Earnings per share increased to EUR 0.04
(EUR 0.03)
- The acquisition of the Torikeskus shopping centre in Seinäjoki

boosted Citycon's shopping centres to 16
- Demand for retail premises and
occupancy rates continued to be 
strong during the period

KEY INDICATORS
 
                            1-3 2004     1-3 2003     1-12 2003
Turnover, EUR
million             21.9         19.4          78.1       
Operating
profit,
EUR million                       12.2         10.8          43.3
%
of turnover                     55.7         55.5          55.5
Profit before
extraordinary
items and taxes,
EUR million                        5.7        
 4.8          19.1
Profit , EUR million               4.1          3.5        
 14.3

Earnings per share, EUR           0.04         0.03         
0.14
Earnings per share, 
diluted, EUR                      0.04         0.03
         0.14
Equity per share, EUR             1.91         1.91         
2.01
P/E (price/earnings) ratio          13            7            11
Return
on equity (ROE), %          8.4          7.2           7.1
Return on equity
including 
minority interest,%                5.6          4.9          
4.9
Return on investment (ROI), %      6.0          6.0           5.8
Equity
ratio, %                   43.8         47.6          44.9
Equity ratio with
capital loan 
not counted as part of 
shareholder's equity, %           35.6 
       38.4          36.7
Net rental income, %               8.4          8.4 
         8.5 
Occupancy rate, %                 97.1         97.3         
97.3
Personnel at the end of period      41           33           
34

Trend in the business environment
According to Statistics Finland, the
value of retail sales in 
January 2004 was 6.8 per cent and in February 5.6
per cent higher 
than on the same period last year. Department store trade
grew by 
8.3 per cent in January and 6.2 per cent in February. Groceries

trade grew by 3.6 per cent in January and 4.4 per cent in February 
compared
to the figures on the same period last year.

Strong retail sales kept up
healthy demand for retail premises and 
vacancy rates remained low,
particularly in the Helsinki 
Metropolitan Area and Finland's other major
cities.

Property portfolio
The book value of the property portfolio owned
by Citycon was EUR 
730.7 million at the end of the period  (EUR 646.6
million). 
Citycon owned 16 shopping centres, which comprised 58.6 per cent

of the company's property portfolio, and 132 supermarket and shop

properties, which comprised 41.4 per cent of the company's 
property
portfolio. At the end of the period 46.8 per cent were in 
the Helsinki
Metropolitan Area, 35.4 per cent were in other major 
Finnish cities and 17.8
per cent were in other parts of Finland.

Customers, the trend in the
portfolio of leases, and the occupancy 
rate
Citycon's customers are Finnish
and international speciality and 
grocery retail chains, supermarkets and
department stores, and 
independent dealers who are not part of chains. There
were no 
significant changes in the customer structure. 

During the period,
the company signed a total of 98 leases. The 
acquisition of Torikeskus in
Seinäjoki meant Citycon gained 79 new 
leases. At the end of the period,
Citycon had a total of 1,438 
leases with roughly 830 lessees. The average
length of the leases 
was 3.7 years. The occupancy rate for Citycon's entire
property 
portfolio was 97.1 per cent (97.3%). 

TREND IN PORTFOLIO OF
LEASES BY DIVISION
                                    1-3 2004  1-3 2003 1-12
2003
Shopping centres
Number of leases signed during 
the period            
                   73        36       151                                      
    
Total area of leases signed, sg.m.    11,039     3,304   
16,399
Ooccupancy rate at the end of
period, %                              
97.5      97.7      97.6
Average lenght of lease portfolio 
at the  end of
period, years             2.9       3.3       3.0

Supermarkets and
shops
Number of leases signed during 
the period                             
  25         9        51
Total area of leases signed, sg.m.     13,564   
2,038     9,806
Ooccupancy rate at the end of
period, %                      
         96.9     96.9      96.8
Average lenght of lease portfolio 
at the
end of period, years               4.6      4.8       4.4

Rental income

The net rental income of Citycon's leasing business during the 
period
totalled EUR 15.2 million (EUR 13.8 million). The average 
net rental yield of
the properties owned by the company was 8.4 
per cent.

Shopping centres
accounted for 55.1 per cent of the net rental 
income (49.2 %) and
supermarkets and shops accounted for 44.9 per 
cent (50.8 %). Of the income,
roughly 47.5 per cent was generated 
by properties in the Helsinki
Metropolitan Area, 34.4 per cent by 
properties in other major Finnish cities,
and roughly 18.1 per 
cent by other properties in Finland.

TREND IN RENTAL
INCOME BY DIVISION
                                1-9 2003   1-12 2002   1-12
2003
Shopping centres
Gross rental income, 
EUR million                     
   11.4         8.8        36.5
Net rental income,
EUR million               
          8.4         6.7        27.5
Net rental yield, %                 *7.9
        7.9        *8.1
*Figures include uncompleted projects

Supermarkets
and shops
Gross rental income, EUR million    9.2         9.2        
36.5
Net rental income, EUR million      6.8         6.9         27.2
Net
rental yield, %                 9,1         9,0          8.9

Investments and
development projects 
Citycon's gross investments amounted to EUR 9.4 million
(EUR 0.2 
million). Gross investments include the acquisition of a new

shopping centre, Torikeskus in Seinäjoki, for EUR 7.1 million, and 
EUR 2.3
million for business development projects.

The Shopping Centres Division's
property portfolio grew during the 
period with Torikeskus in Seinäjoki, one
of the foremost shopping 
centres in the Southern Ostrobothnia region.
Torikeskus became 
owned by Citycon on 1 March 2004. The net rental yield of

Torikeskus on the acquisition price at the date of the transaction 
was 8.6
per cent. 

The Shopping Centres Division's biggest investments under way
were 
extensions and conversions at the shopping centres IsoKarhu in 
Pori
and Jyväskeskus in Jyväskylä. The combined total of the 
investments is
roughly EUR 12.0 million. The projects are 
scheduled for completion in the
third quarter. The investments 
will begin to have a positive effect on income
in the fourth 
quarter. The shopping Centres Division also continued the
planning
for extension at the Myyrmanni shopping centre in Vantaa and the

Lippulaiva shopping centre in Espoo. 

The Supermarkets and Shops Division
did not make any significant 
investments during the period. 

The Property
Development Division continued the planning of 
development projects for
Citycon's retail sites together with the 
other divisions as well as
investigating the commercial framework 
for new shopping centres in the
Helsinki Metropolitan Area and in 
the Tampere and Turku market zones. Citycon
deployed effort in the 
processes of land acquisition and city planning
according to plan 
during the period.

Divestments 
During the period,
Citycon sold one property in accordance with 
its strategy. The sale did not
have a significant impact on 
profit. 

Turnover and profit
During the
period, Citycon's turnover increased to EUR 21.9 
million (EUR 19.4 million).
The increase was largely due to the 
acquisitions of shopping centres at the
end of 2003. Gross rental 
income accounted for 94.1 per cent of turnover
(93.3 %). 

Operating profit increased to EUR 12.2 million (EUR 10.8 million)

due to the acquisitions in the end of 2003.

Balance sheet and financing

The Group's financing situation remained good during the period.
The balance
sheet total was EUR 836.4 million (EUR 745.8 million), 
of which cash and cash
equivalents were EUR 7.2 million (EUR 13.4 
million).

At the end of the
period, Citycon had a total of EUR 467.3 million 
(EUR 388.8 million) of
liabilities. Interest-bearing liabilities 
increased by EUR 4.5 million during
the period to EUR 516.5 
million (EUR 440.4 million), when capital loan EUR
68.5 million 
(EUR 68.5 million) was included in the figure. The average

interest rate for interest-bearing liabilities during the period 
was 5.1
per cent (5.4 %). The average loan period, weighted 
according to the
principals of the loans, was roughly 4.3 years 
(5.3 years), and the average
interest-rate fixing period was 4.2 
years (3.8 years). 

Citycon's
interest-bearing liabilities included 86.7 per cent of 
floating rate loans,
of which 76.8 per cent has been converted to
a fixed rate by means of interest
rate swaps and 12.1 per cent has 
been hedged with interest rate caps. The par
value of the interest 
rate swaps at the end of the period was EUR 342.2
million and that 
of the interest rate caps was EUR 53.8 million. The interest

coverage ratio, the previous twelve months' profit before interest

expenses, taxes and depreciation to net financial expenses was 
2.2. The
Group's equity ratio was 43.8 per cent (47.6 %). If the 
capital loan is not
included in shareholders' equity, the equity 
ratio was 35.6 per cent (38.4
%). 

Financial income and expenses rose to EUR 6.5 million (EUR 5.9

million).

Citycon and IFRS 
Citycon Oyj is to go over to reporting in
accordance with IAS/IFRS 
standards (International Financial Reporting
Standards) in its 
interim reports and financial statements in 2005. The
company made 
decisions on the main optional accounting principles in IFRS at

the beginning of 2004 and examined the effect of adoption IFRS on 
its
accounting principles in its financial statements bulletin 
released on 12
February 2004.

Personnel
At the end of the period, the Citycon Group had a
total of 41 (33) 
employees, of whom 32 (27) were employed by the parent
company.

Shares and shareholdings
Citycon's share capital as at 31 March
2004 was EUR 142,800,108.30 
and the number of shares was 105,777,858. The par
value of a share 
is EUR 1.35.

Traded volume and price  
During the
period, the total for Citycon shares traded on the 
Helsinki Exchanges was
78.8 million shares and EUR 146.7 million. 
The high price quoted during the
period was EUR 2.05 and the low 
was EUR 1.52. The weighted average price for
the period was EUR 
1.86 and the closing price of the period was EUR 2.05. The

company's market capitalisation at the end of the period was EUR 
208.9
million (EUR 102.9 million), after deduction the portion of 
treasury shares
from the total.

Shareholders  
During the period Gazit-Globe (1982) Ltd
announced on 3 March 2004 
that it has increased its holdings in the company's
shares and 
voting rights to 25.43 per cent.

At the end of the period,
Citycon had a total of 1,351 registered 
shareholders. The registered
shareholders held 56.0 million 
shares, so they had 53 per cent of the shares
and voting rights.
Nominee-registered shareholders had 49.8 million shares,
which is 
47 per cent of the number of shares and voting rights.

Treasury
shares, the Board of Directors and the management share 
holdings 
The number
of treasury shares remained the same during the period, 
at 3,874,000 shares,
which is the equivalent of 3.7 per cent of 
the company's total shares and
voting rights. The total purchase 
price of the shares was EUR 4.7 million.
The book value of 
treasury shares on 31 March 2004 corresponded to their
purchase 
price, which was lower than their market value at the end of

period. The effect of treasury shares has been deducted for the 
calculation
of the key figures.

The members of Citycon Oyj's Board of Directors held a
total of 
66,453 shares on 31 March 2004, which was 0.06 per cent of the

company's total shares and voting rights. Citycon's CEO held 
100,000 shares
and the other members of the Corporate Management 
Committee held a total of
3,000 shares on 31 March 2004. 

Annual General Meeting  
Citycon's Annual
General Meeting of 15 March 2004 adopted the 
company's financial statements
for 2003 and granted release from 
personal liability to the company's Board
of Directors and CEO. 
The Board's proposals passed by the AGM can be seen in
their 
entirety in the Citycon stock exchange bulletin issued on 12 
February
2004.

Authorisations and warrants
The annual general meeting granted the
Board of Directors an 
authorisation, within one year of the AGM, to decide on
increasing 
the share capital by means of one or more new issues of shares, in

such a way that the total number of shares subscribed in the new 
issue is
no more than 21,085,106 new shares in the company with a 
par value of EUR
1.35 per share and the company's share capital 
may be increased by a maximum
of EUR 28,464,893.10. The 
authorisation includes an entitlement to waive
existing 
shareholders' pre-emption rights.

The annual general meeting
granted the Board of Directors an 
authorisation to decide, within one year of
the AGM, on buying 
back company shares. The maximum number of shares that may
be 
bought back will have a combined par value, combined with the par 
value
of the shares already held by the company, equivalent to 
five per cent of the
company's share capital and of the voting 
rights conferred by all the shares.
Company shares may be bought 
back, for example, to be used as consideration
in prospective 
property or share transactions or for the acquisition of other

assets of importance to the company's business.
 
The AGM granted the Board
of Directors an authorisation to decide, 
within one year of the AGM, to
decide on the surrender of all the 
shares acquired on the basis of the
authorisation granted to the 
Board and other treasury shares to be used, for
example, as 
consideration in prospective property or share transactions or
for 
the acquisition of other assets of importance to the company's

business.

The AGM decided in accordance with a proposal by the Board on

issuing warrants to personnel of Citycon Oyj and of its 
subsidiaries and to
a wholly owned subsidiary of Citycon Oyj. 
Existing shareholders' pre-emption
rights may be waived as the 
warrants are intended to be part of the Group's
personnel 
incentive and commitment system. The number of warrants is

3,900,000. Each option will confer the right to subscribe one (1) 
Citycon
share. Citycon Oyj's share capital may, as a result of the 
share
subscriptions from the 2004 share options, increase by a 
maximum total of EUR
5,265,000 and the number of shares may rise 
by a maximum of 3,900,000 new
shares, which is no more than 3.8 
per cent of the company's total number of
shares and voting rights 
when treasury shares have been deducted.

At the
end of the review period, no part of the authorisations had 
been utilised.


Board of Directors and auditors  
The annual general meeting decided to
re-elect the following to 
the Board of Directors: Stig-Erik Bergström and
Carl G. Nordman, 
and to elect as new members Executive Vice President Amir
Gal, 
Head of Real Estate Investments Timo Kankuri, Managing Director 
Raimo
Korpinen, MSc (Eng), MBA Tuomo Lähdesmäki, and CEO Claes 
Ottosson.  The Board
of Directors elected Stig-Erik Bergström as 
chairman and Tuomo Lähdesmäki as
deputy chairman.

Ari Ahti, Authorised Public Accountant, and Jaakko Nyman,
APA, 
were re-elected as the company's auditors with the APA firm KPMG

Wideri Oy Ab as deputy auditor.
Dividend 

The AGM decided, in accordance
with a proposal from the Board of 
Directors, to pay dividend on shares in
non-company ownership for 
the financial year 1 January – 31 December 2003 in
the amount of 
EUR 0.14 per share. The dividend payment's date of record was
18 
March 2004 and 25 March 2004 was the payment date.

Events after the end
of the review period
Gazit-Globe (1982) Ltd announced on 6 April 2004 that it
had 
increased its holdings of the company's shares and voting rights 
to
33.4 per cent. 

Citycon was selected for international property investment

companies' indexes as of 1 April 2004. EPRA/NAREIT Global Real 
Estate Index
and GPR 250 Property Securities Index serve as 
comparative indexes for
international investors. 

Citycon's 1999 A/B warrants were included on the
main list of the 
Helsinki Exchanges since 23 April 2004.

Outlook for the
future
Citycon forecasts that demand, occupancy rates and rents for its

retail premises will remain good in the Helsinki Metropolitan Area 
and
Finland's major cities. Citycon estimates that turnover and 
profit for the
current year will grow due to favourable market 
view combined with the
shopping centres acquired at the end of 
2003 and the beginning of 2004.


Helsinki, 27 April 2004

Citycon Oyj
Board of
Directors



CONSOLIDATED INCOME STATEMENT, EUR million
                  
            1-3 2004    1-3 2003     1-12 2003
Turnover                       
   21.9        19.4          78.1
Other income                        0.0     
   0.0          -0.5
Expenses                             
Materials and
services              5.8         4.7          18.7                            
             
Salaries and social expenses        0.7         0.7          
2.6                                    
Depreciation and impairments       
1.8         1.6           6.5                                    
Rents and
maintenance charges       0.8         1.0           4.1                        
          
Share of associated companies'
profit                             
0.1         0.1           0.4                              
Other expenses of
business
operations                          0.5         0.6           1.9    
                                                                   
Expenses,
total                     9.7         8.7          34.3                     

Operating profit                   12.2        10.8          43.3
Financial
income and 
expenses                           -6.5        -5.9        
-24.2
Profit before extraordinary 
items and taxes                     5.7   
     4.8          19.1

Taxes                              -1.6        -1.3  
       -4.9
Profit                              4.1         3.5         
14.3

CONSOLIDATED BALANCE SHEET, EUR million
Assets
Non-current
assets
Intangible assets                   4.7         4.1           4.5

Tangible assets                   739.4       624.0        
729.1
Investments
Holdings in associated companies   55.4        74.9        
 55.5                            
Treasury shares                     4.7     
   3.9           4.7
Other investments                  21.4        22.3      
   23.1
Investments, total                 81.5       101.2         
83.3
Non-current assets, total         825.6       729.2        
816.9

Current assets
Short-term receivables              3.6         3.2   
       3.4
Cash and cash equivalents           7.2        13.4         
15.1
Current assets, total              10.8        16.6         
18.5
Assets, total                       836.4       745.8      
835.3

Liabilities and shareholders' equity            
Shareholders'
equity
Share capital                      142.8       142.8       142.8
Share
premium fund                  28.3        28.3        28,3
Treasury share
reserve               4.7         3.9         4.7
Other funds                 
        6.6         6.6         6.6
Retained profits                    13.0  
     13.0        13.0
Profit                               4.1         3.5    
   14.3                  
Capital loan                        68.5        68.5
       68.5
Shareholders' equity, total        267.8       266.5      
278.0

Minority interest                  101.2        90.5       
99.8

Liabilities
Long-term liabilities              433.2       371.8      
428.3
Short-term liabilities              34.1        17.0       
29.2
Liabilities, total                 467.3       388.8      
457.5

Liabilities and shareholders' 
equity, total                     
836.4       745.8       835.3

Gross investment in non-
current assets      
                9.4         0.2        84.2
% of turnover                     
 42.9         0,8       107.9
Depreciations and
impairments                  
       1.8         1.6         6.5
Personnel, average                    39   
      32          33

CASH FLOW STATEMENT, EUR million
                     
          1-3 2004    1-3 2003   1-12 2003
Operating activities               
                           
Profit before
extraordinary items                
 5.7          4.8        19.1                      

Adjustments:
Depreciation                         1.8          1.6        
6.5                              
Financial income and expenses        6.5    
     5.9        24.2             
Other adjustments                    0.1    
     0.1         0.9                              
Cash flow before change in

working capital                     14.2         12.4        50.8            
              

Change in working capital            0.1          0.4        
0.0                  
Cash flow from operating 
activities before financial

items and taxes                     14.2         12.9        50.7         


Interest paid and payments for 
other financial expenses of 
operating
activities                -1.4         -1.4       -24.1
Dividend and interest
received 
from business operations             0.1          0.1         0.5   
                     
Taxes paid                          -1.1         -1.0   
    -4.7                                         
Cash flow from operating

activities                         11.9         10.6        22.4            


Investing actitivies
Investments in tangible 
and intangible assets      
       -3.1         -0.2        -4.9                             
Shares in
subsidiaries purchased   -7.5                    -77.1                  

Shares in subsidiaries sold         0.1                      1.4             
  
Shares in associated companies 
purchased                                 
                 -0.8            
Shares in associated companies sold         
    0.4         1.6 
Other items                                              
   0.1                                
Cash flow from investing 
activities  
                     -10.5          0.2       -79.7             

Financial
activities                  
Withdrawals of short-term loans     0.2          
           2.1 
Withdrawals of long-term loans      4.9                    
67.9             
Repayments of long-term loans      -0.5                    
-0.2             
Dividend paid and other           
distribution of profit  
         -13.7         -9.1        -9.2                    
Cash flow from
financial
activities                         -9.2         -9.1        60.6    
         

Increase in cash and cash 
Equivalents                       
-7.9          1.7         3.3                

Cash and cash equivalents at
the
beginning of period                15.1         11.7        11.7          
              
Cash and cash equivalents 
at the end of period               
7.2         13.4        15.1


KEY FINANCIAL FIGURES       1-3 2004       
1-3 2003    1-12 2003

Earnings per share, EUR         0.04            0.03  
     0.14
Equity per share, EUR           1.91            1.91       
2.01
Return on equity (ROE), %        8.4             7.2         7.1
Return
on equity including
minority interest, %             5.6             4.9      
  4.9               
Return on investment(ROI), %     6.0             6.0     
   5.8
Equity ratio, %                 43.8            47.6       
44.9
Equity ratio with capital 
loan not counted as 
part of shareholders'
equity, % 35.6            38.4        36.7


TREASURY SHARES             
1-3 2004       1-3 2003   1-12 2003
Acquired between 
25 November 1999 and 31
March 2004
Number of shares, million        3.9             3.9        
3.9
Total par value, EUR million     5.2             5.2         5.2
Share of
shareholders'
equity, %                        3.7             3.7        
3.7
Share of voting rights, %        3.7             3.7        
3.7
Acquisition cost, EUR million    4.7             4.7         4.7

The
book value of treasury shares on 31 March 2004 corresponded to 
the purchase
price, which was lower than market value at the end 
of period. The
value/number of treasury shares are deducted from 
shareholders' equity and
the number of shares for the calculation 
of the key figures.

CONSOLIDATED
CONTINGENT LIABILITIES, EUR million
Mortgages on land
and buildings          
       338.4          323.4        338.4
Group company shares pledged    85,3 
                      78,4
Other pledged shares            76.7           96.9
        76.7
Other pledges given              0,1            1.0         
3.2

GROUP'S DERIVATIVES, EUR million

                       31 March 2004
 31 March 2003  31 Dec 2003
                          Par values     Par
values   Par values
Interest-rate derivatives
Interest-rate swaps
Maturing
in 2004                               50.0
Maturing in 2007               
78.2                       78.2
Maturing in 2008                50.0          
            50.0
Maturing in 2009               131.0           66.0       
91.0
Maturing in 2010                83.0           83.0        83.0
Total   
                      342.2          199.0       302.2

Interest-rate
options
Interest-rate caps purchased
Maturing in 2004                53.8    
      53.8        53.8
Total                           53.8           53.8    
   53.8


GROUP'S DERIVATIVES, EUR million
                      31 March
2004    31 March 2003 31 Dec 2003
                         Fair values    
Fair values Fair values
Interest-rate derivatives
Interest-rate
swaps
Maturing in 2004                               -1.7
Maturing in 2007   
              -0.3                       1.1
Maturing in 2008                 
-2.6                      -1.3
Maturing in 2009                  -8.5        
-6.1         -5.4
Maturing in 2010                  -7.7         -6.5        
-5.8
Total                            -19.2        -14.3       
-11.4

Interest-rate options
Interest-rate caps purchased
Maturing in 2004 
                 0.0          0.0          0.0
Total                          
   0.0          0.0          0.0


The fair values for derivatives describe
their value if all 
agreements had been closed at the market price of the end
of 
period.
Derivatives have been used for hedging the loan portfolio.
The
accrued interest for the period included in the derivatives' 
fair values,
being EUR 1.7 million (EUR 1.0 million) has been 
booked in interest
expenses.

The taxes correspond to the profit of the period.

The figures
are unaudited.

ACCOUNTING PRINCIPLES
Accounting principles applied in the
annual financial statements 
as of 31 December 2003 are applied in these
financial statements.

FINANCIAL REPORTING
Citycon Oyj will publish its
other interim reports for 2004 
as follows:
January-June          11 August
2004 
January-September     21 October 2004


Further information for
investors can be seen on Citycon's 
website, www.citycon.fi 

Further
information
CEO Petri Olkinuora 
Tel. +358 9 6803 6738 or +358 400 333 256

petri.olkinuora@citycon.fi

CFO Pirkko Salminen 
Tel. +358 9 6803 6730 or
+358 50 3022 485 
pirkko.salminen@citycon.fi

Distribution
Helsinki
Exchanges
Main media
www.citycon.fi