Published: 2005-04-27 11:12:02 CEST
Citycon Oyj
Quarterly report
CITYCON'S INTERIM REPORT 1 JANUARY-31 MARCH 2005
CITYCON OYJ STOCK EXCHANGE RELEASE 27 APRIL 2005 AT 12:00

CITYCON'S INTERIM
REPORT 1 JANUARY-31 MARCH 2005
- Profit before taxes amounted to EUR 7.8
million (EUR 7.4 million)
- Turnover totalled EUR 21.2 million (EUR 21.0
million)
- Earnings per share were EUR 0.05 (EUR 0.08)
- Demand and occupancy
rates for retail premises remained strong
- Citycon continuously enhances its
readiness to expand its international
operations

Key figures               
      1-3 2005  1-3 2004  1-12 2004
Turnover, EUR million                21.2 
    21.0       84.7
Operating profit, EUR million        14.2      13.9      
52.6
% of turnover                          67        66         62
Profit
before taxes, EUR million      7.8       7.4       26.5
Profit, EUR million   
               5.6       8.4       22.7

Earnings per share, EUR             
0.05      0.08       0.22
Earnings per share, diluted, EUR     0.05      0.08 
     0.22
Equity per share, EUR                2.07      1.88       2.01
P/E
(price/earnings) ratio             12         6         10
Return on equity
(ROE), %             9.6      17.5       11.0
Return on investment (ROI), %   
     7.7       7.6        7.3
Equity ratio, %                      29.8     
25.2       29.6
Gearing, %                          209.1     266.2     
221.5
Net rental yield, %                   8.7       8.6       
8.8
Occupancy rate, %                    96.4      97.1       95.7
Personnel
at the end of period         45        41         45

Citycon and
IFRS
Citycon Oyj applies for the first time IAS/IFRS standards
(International
Financial Reporting Standards) in its interim reports,
financial statements for
2005 and comparable figures for 2004. In 2004,
Citycon already disclosed
preliminary IFRS-comparative figures on the opening
balance sheet of 1 January
2004 and for each quarter, on 31 August 2004, 21
October 2004 and 18 February
2005. Information related to this change is also
available in the company's
Annual Report for 2004.

The main changes related
to IFRS-compliant reporting, and their impact on the
opening balance sheet as
of 1 January 2005, are as follows:

                                         
       EUR million
FAS Shareholders' equity 31 Dec.2004                  
302.0
IAS 40 Change in valuation of investment properties     18.6
IAS 39
Change in values of interest rate derivatives   -18.3
IAS 32 Reclassification
of treasury shares              -4.7
IAS 32 Reclassification of capital loan  
             -68.5
IAS 12 Change in deferred tax assets and liabilities   
-3.0
IFRS Shareholders' equity 1 Jan. 2005                  226.0

The most
essential changes in the income statement involve the abolishment
of
depreciation related to investment properties from, and the inclusion of
the
change in value in, the income statement. The impact of IFRS-related
changes on
taxes also affects the income statement.

As of 1 January 2005,
the net rental yield percentage of the property portfolio
has been calculated
on the basis of the fair value of property, using the time-
weighted returns
method based on the guidelines of the KTI Institute for Real
Estate Economics
and the Investment Property Databank.

Trends in the Business
Environment

Developments in the Finnish retail business remained favourable
in the first
quarter of 2005. Retail sales grew by 4.2 per cent1) in the
period from December
2004 to February 2005, buoying up demand for leased
retail premises and keeping
their average vacancy rates low.

Financial
markets remained stable, interest rates in the euro zone were lower
than ever
and international interest in the Finnish property market remained
high.
1)
Source: Statistics Finland

Business Activities and Property Portfolio
Summary
Citycon's business activities comprise the entire chain of retail
premises
ownership, i.e. ownership, leasing, management and property
development. Citycon
operates in three divisions (business segments) according
to customer needs and
the type of premises: Shopping Centres, Supermarkets and
Shops, and Property
Development.

At the end of the reporting period,
Citycon owned 144 properties (148) with a
fair value totalling EUR 736.4
million (EUR 735.4 million). Practically all of
the company's property
portfolio consists of retail properties.

The company owned 16 shopping
centres and 128 supermarkets and shops. Shopping
centres accounted for 60.8
per cent and supermarket and shop premises for 39.2
per cent of the property
portfolio's fair value. In terms of fair values, 45.0
per cent of the
properties were in the Helsinki Metropolitan Area, 37.0 in other
major Finnish
cities and 18.0 in other parts of Finland at the end of the
period.

Customers, Lease Portfolio and Occupancy Rate
At the end of the
period, Citycon had a total of 1,463 leases with roughly 845
lessees. The
average length of leases was 3.6 years.

The period-end occupancy rate for
Citycon's property portfolio was 96.4 per cent
(97.1%), the change in the
occupancy rate being due to normal fluctuations in the
leasing
business.

Lease portfolio summary                     1-3 2005   1-3
2004
Number of leases started during
the period, total                       
         77         98
Total area of leases started, sq.m.           19,684   
 24,603
Occupancy rate at end of period, %              96.4      
97.1
Average length of lease portfolio
at end of period, in years            
          3.6        3.7

Shopping Centres Division

Shopping Centres
Division's key figures

Lease portfolio summary                     1-3 2005 
 1-3 2004
Number of leases started during
the period, total                  
              56         73
Total area for leases started, sq.m.          
6,051     11,039
Occupancy rate at end of period, %              97.0      
97.5
Average length of lease portfolio at
end of period, in years            
             2.7        2.9
Financial performance                       1-3
2005   1-3 2004
Turnover, EUR million                           12.7      
11.8
Operating profit, EUR million                    9.1        8.8
Gross
rental income, EUR million                12.4       11.4
Net rental income,
EUR million                   9.2        8.4
Net rental yield, %              
               8.2        7.5
Net rental yield, standing investments, %       
8.4        7.8
Market value of property portfolio,
EUR million               
                    447.4      454.6
Gross investments, EUR million           
       0.8        9.4

Standing investments means those properties which have
been Citycon-held for the
entire comparison year. Properties subject to
development and extension have been
eliminated from the figures. Also lots
have been eliminated.

Supermarkets and Shops Division

Supermarkets and
Shops Division's key figures

Lease portfolio summary                   1-3
2005    1-3 2004
Number of leases started during
the period, total           
                   21          25
Total area for leases started, sq.m.       
13,633      13,564
Occupancy rate at end of period, %            95.7       
96.6
Average length of lease portfolio at
end of period, in years            
           4.8         4.6

Financial performance                     1-3
2005    1-3 2004
Turnover, EUR million                          8.5        
9.2
Operating profit, EUR million                  6.7         6.4
Gross
rental income, EUR million               8.5         9.2
Net rental income,
EUR million                 6.2         6.8
Net rental yield, %               
            9.6        10.1
Net rental yield, standing investments, %      9.7
       10.3
Market value of property portfolio,
EUR million                  
               289.0       280.7
Gross investments, EUR million               
 0.3         0.0

Standing investments means those properties which have been
Citycon-held for the
entire comparison year. Properties subject to development
and extension have been
eliminated from the figures. Also lots have been
eliminated.

The most significant new lease for the Supermarkets and Shops
Division was that
signed with a new grocery chain on the Länsikeskus retail
site in Espoo. Mainly
as a result of this, the division's occupancy rate
raised by 2.3 percentage
points from year end 2004.

The Division sold two
properties at a total amount of EUR 3.6 million during the
reporting period.
The impact of these transactions on the results was EUR
0.3
million.

Property Development Division
The Property Development
Division's mission is to contribute to realising the
corporate strategy by
developing and extending Citycon's existing retail sites,
alongside the other
divisions. The division is also responsible for commissioning
the construction
of new retail sites - i.e., for acquiring land and controlling
and developing
the related commercial and functional planning, including
negotiations on
planning permission, liaison with the authorities and
administering projects.
The division also handles the marketing and leasing of
premises on new retail
sites.

The division's key figures are not reported separately because it
does not have
property portfolio or rental income.

Turnover and Profit
The
turnover for the period was EUR 21.2 million (EUR 21.0 million). Gross
rental
income accounted for 98.6 per cent (98.1 %) of turnover. Operating
profit rose to
EUR 14.2 million (EUR 13.9 million). Profit before taxes
amounted to EUR 7.8
million (EUR 7.4 million) and profit after taxes was EUR
5.6 million (EUR 8.4
million). Profit after taxes in the corresponding period
of the previous year
included one time deferred tax receivable of EUR 2.6
million related to the
acquisition of Torikeskus in Seinäjoki which was booked
in income taxes.
The profit includes EUR 0.3 million in capital gains from
investment properties.

Balance Sheet and Financing
The period-end balance
sheet total was EUR 765.8 million (EUR 746.9 million), of
which cash and cash
equivalents were EUR 23.1 million (EUR 6.7 million). The
Group's financial
situation remained sound.

The Group's period-end liabilities totalled EUR
533.9 million (EUR 555.3
million). Interest-bearing liabilities decreased
during the period by EUR 0.5
million to EUR 507.9 million (EUR 516.5 million),
of which short-term liabilities
accounted for EUR 36.7 million (EUR 34.0
million).

The average interest rate for interest-bearing liabilities was 5.2
per cent (5.1
%), the average loan period, weighted according to loan
principals, came to 3.3
years (4.3 years), and the average interest-rate
fixing period was 3.4 years (4.2
years). The Group's equity ratio was 29.8 per
cent (25.2 %).

The interest coverage ratio, i.e. the previous twelve months'
profit before
interest expenses, taxes and depreciation relative to net
financial expenses, was
2.2 (2.1). Period-end gearing was 209.1 per cent
(266.2). Citycon's interest-
bearing liabilities at the period end included
86.0 per cent (86.7 %) of floating
rate loans, of which 80.6 per cent (76.8 %)
have been converted to a fixed rate
by means of interest rate swaps. The
overall hedging rate of the loan portfolio
was 69.1 per cent (77.0 %). On 31
March 2005, the par value of interest rate
swaps was EUR 339.4 million (EUR
342.2 million) while the market value of
derivatives was EUR -19.3 million
(EUR -19.2 million).

Net financial expenses decreased by EUR 0.1 million to
EUR 6.4 million (EUR 6.5
million).

Personnel
At the end of the period, the
Citycon Group had a total of 45 (41) employees.

Share Capital and
Shares

Share Capital
At the beginning of the reporting period, the
company's share capital was EUR
156,655,833.30 and the number of shares was
116,041,358. The share capital
increased by EUR 124,200 during the period as a
result of share subscriptions
based on Citycon's 1999 option scheme. A total
of 92,000 new Citycon shares with
a par value of EUR 1.35 per share were
subscribed in December 2004 at a per-share
subscription price of EUR 1.54,
exercising the A/B/C options based on the option
scheme. The corresponding
share capital increase was entered in the Trade
Register on 3 February 2005.
The new shares have been traded on the Helsinki
Stock Exchange's Main list
together with the old shares as of 4 February 2005.

At the end of the
reporting period, Citycon's registered share capital stood at
EUR
156,780,033.30 and the number of shares totalled 116,133,358. The par value
of
a share is EUR 1.35, each share conferring one vote.

Traded Volume and
Price
During the period, a total of 7,8 million Citycon shares were traded on
the
Helsinki Stock Exchange, providing a turnover of EUR 21,1 million. The
high price
quoted during the period was EUR 3.03 and the low was EUR 2.40. The
weighted
average price for the period was EUR 2.71 and the closing price EUR
2.45. The
company's market capitalisation at the end of the period was EUR
275.0 million
(EUR 240.6 million), after deducting the portion of treasury
shares from the
total.

Shareholding
At the end of the period, Citycon had
a total of 1,296 registered shareholders.
Nominee-registered shareholders,
mostly international investors, had 101,496,158
shares, which is 87.4 per cent
of the number of shares and voting rights in the
company.

Treasury Shares
and the Shareholdings of the Board of Directors and the
Management
The number
of treasury shares remained unchanged during the period, at 3,874,000
shares,
which was the equivalent of 3.3 per cent of the company's total shares
and
voting rights at the end of the period. The total purchase price of the
shares
was EUR 4.7 million. The book value of treasury shares on 31 March
2005
corresponded to their purchase price, which was lower than their market
value at
the end of the period. The effect of treasury shares has been
deducted for the
calculation of the key figures.

Citycon's Board of
Directors decided to propose to the Annual General Meeting the
cancellation of
treasury shares.

The Board members of Citycon Oyj held a total of 91,173
shares on 31 March 2005,
which was 0.08 per cent of the company's total shares
and voting rights.
Citycon's CEO held 100,000 shares and 1,650,000 stock
options while the other
members of the Corporate Management Committee held a
total of 3,000 shares and
971,670 stock options at the end of the reporting
period.

Stock Options
Citycon has two option schemes in force, the 1999
A/B/C scheme and the 2004 A/B/C
scheme. By the end of March, 355,500 shares
had been subscribed with warrants
issued in 1999, while a maximum of 5,144,500
shares can still be subscribed for
based on these warrants. The warrants
related to the 1999 option scheme are
listed on the Helsinki Stock
Exchange.

A total of 1,135,000 A-warrants of the 2004 option scheme have
been issued to the
personnel of the Citycon Group. The remaining 2,765,000
(A/B/C) warrants were
granted to Veniamo-Invest Oy, a subsidiary of Citycon
Oyj, to be further
distributed to the present and future personnel of the
Citycon Group.

Further information on the company's option schemes is
available in the Annual
Report 2004 and on the company's website.

Events
after the End of the Reporting Period

Annual General Meeting

Citycon's
Annual General Meeting was held on 5 April 2005 in Helsinki. The AGM
adopted
the financial statements of Citycon Oyj and the Citycon Group for 2004
and
released the Board of Directors and the CEO from personal liability. The
AGM
also decided that a per-share dividend of EUR 0.14 be paid for 2004.
The
dividends were paid on 15 April 2005.

Board of Directors and Board
Remunerations
The number of Board members remained at eight. The following
persons were re-
elected for a one-year term: Stig-Erik Bergström, Amir Gal,
Raimo Korpinen, Tuomo
Lähdesmäki, Carl G. Nordman, Claes Ottosson and Dor
(Dori) Segal while Thomas
(Thom) Wernink, a Dutch citizen, was elected as a
new member. Stig-Erik Bergström
will continue as the Chairman of the Board.
The Board elected Thom Wernink as
Deputy Chairman of the Board.

The AGM
decided that the Chairman of the Board be paid an annual fee of EUR
40,000,
the Deputy Chairman an annual fee of EUR 30,000 and ordinary members of
the
Board an annual fee of EUR 20,000. It was further resolved that the
Chairman
of the Board be paid a meeting fee of EUR 500 and the Deputy Chairman
and
ordinary members of the Board a meeting fee of EUR 400 for each meeting.
The
meeting fee shall also be paid for Board committee meetings. The payment
of the
annual fee to Finnish members of the Board is conditional upon their
signing an
undertaking to purchase Citycon shares with the amount of fee
remaining after the
deduction of the applicable taxes.

Board
Committees
The following Board members were elected to Board committees at the
Board meeting
which convened immediately after the Annual General
Meeting:

Audit Committee: Raimo Korpinen (Chairman), Stig-Erik Bergström,
Thom Wernink

Compensation Committee: Stig-Erik Bergström (Chairman), Tuomo
Lähdesmäki, Carl G.
Nordman

Investment Committee: Thom Wernink (Chairman),
Stig-Erik Bergström, Amir Gal,
Dori Segal

Nomination Committee: Tuomo
Lähdesmäki (Chairman), Stig-Erik Bergström, Amir Gal,
Claes Ottosson

At the
same meeting, the Board of Directors also decided to sign a
consultation
agreement with Thom Wernink on the development of Citycon's
international
operations, on the basis of which he will be paid a consultancy
fee of EUR 40,000
for a year.

Independence of Board Members
It is the view
of the Board of Directors that all members of the Board except
Thom Wernink,
who has entered into a consultancy agreement with the company, are
independent
of the company. Furthermore, it is the view of the Board of Directors
that
Stig-Erik Bergström, Raimo Korpinen, Tuomo Lähdesmäki, Carl G. Nordman
and
Thom Wernink are independent of any major shareholder.

According to the
company's rules of Procedure the members of the Audit Committee
shall be
independent of the company. As an exception to this rule the Board has
elected
Thom Wernink as a member of the Audit Committee due to his background as
the
chairman of EPRA  (European Public Real Estate Association). During
his
chairmanship EPRA published Best Practice Policy Recommendations for
public real
estate companies on compliance with IFRS
standards.

Auditors
Authorised public accountants Tuija Korpelainen and
Mikael Holmström were elected
as the company's auditors for the financial year
2005, and a firm of authorised
public accountants Ernst & Young Oy as the
deputy auditor, with authorised public
accountant Tiina Lind serving as
auditor-in-charge appointed by Ernst & Young.

Furthermore, the Annual
General Meeting approved the following proposals made by
the
Board:

Amendment to the Articles of Association
The AGM decided to amend
Article 3 of the Articles of Association, changing the
maximum share capital
of the company to EUR 500 million, and Article 12, to
stipulate that notice of
a general meeting be issued to shareholders by means of
an advertisement
published in at least one national newspaper appearing in
Helsinki.

Share
Capital Reduction
The AGM decided to reduce the company's share capital by EUR
5,229,900 through
cancellation without payment of 3,874,000 treasury shares.
This reduction in
share capital was executed by transferring the total nominal
value of the
cancelled shares to the share premium fund with no effects on the
restricted
shareholders' equity. The change in share capital was registered in
the Trade
Register on 6 April 2005. After the reduction, the company's share
capital is EUR
151,550,133.30, and the number of shares is 112,259,358. After
the cancellation
of treasury shares, the company has no such
shares.

Authorisation for a Share Capital Increase
The AGM authorised the
Board to decide by 5 April 2006 to issue one or several
convertible bonds,
issue stock options and increase the company's share capital
through one or
several share issues in such a way that the total increases in the
company's
share capital based on these issues do not exceed EUR 31,356,004.50 and
that a
maximum of 23,226,670 new shares with a nominal value of EUR 1.35 may
be
offered. This authorisation includes the right to deviate from the
shareholders'
pre-emptive subscription right.

Selling of Shares in the
Joint Book-entry Account
The AGM decided to sell the company's shares held in
the joint book-entry account
for the benefit of their owners in accordance
with Chapter 3a, Article 3a of the
Finnish Companies Act authorising the Board
to take any and all actions provided
for by the said Act to execute the sale.
The number of shares in the joint book-
entry account as of 2 March 2005 was
7,537, corresponding to 0.006 per cent of
the total number of shares in the
company.

Subscription of Shares with Warrants

After the reporting period,
37,000 shares were subscribed for based on the option
rights 1999 A/B/C at a
per-share subscription price of EUR 1.40. The
corresponding increase in share
capital, EUR 49,950 has not yet been entered in
the Trade Register.

After
the increase the registered share capital of Citycon Oyj is EUR
151,600,083.30
and the total amount of shares is 112,296,358. The new shares will
be traded
on the Helsinki Stock Exchange's Main list together with the old
shares
approx. as of 2 May 2005.

The unexercised stock options based on
Citycon's stock option scheme 1999 entitle
their holders to subscribe
5,107,500 new shares, corresponding to a further
capital increase of EUR
6,895,125. The share subscription period will expire on
30 September
2007.

Future Outlook

Citycon forecasts that demand, occupancy rates and
rents for its retail premises
will continue to remain stable in the Helsinki
Metropolitan Area and Finland's
major cities. In the increasingly tightening
competitive environment, the company
is seeking opportunities to expand its
operations in Finland, the Baltic
countries and Scandinavia. Implementation of
this growth strategy is expected to
begin in 2005. The company estimates that
turnover and profit for 2005 will be at
least on the level of the 2004
figures.


Helsinki, 27 April 2005
Citycon Oyj


Board of
Directors
Consolidated income statement
EUR million                1-3 2005  
  %  1-3 2004     %  1-12 2004
Turnover                       21.2 100.0     
21.0 100.0       84.7
Other income                                            
        0.7
Profit on sale of investment
Property                        0.3 
           0.0              0.1
Change in value of investment
Property       
                0.0             0.0             -5.0
Expenses
Depreciation
and impairments    0.0    0.0      0.0              0.2
Other expenses        
         7.3   34.2      7.1  33.8       27.8

Operating profit              
14.2   67.1     13.9  66.2       52.6
Net financial expenses          6.4  
30.2      6.5  31.0       26.1
Profit before taxes             7.8   36.9     
7.4  35.2       26.5
Taxes                          -2.2  -10.5      1.0   4.7
      -3.8
Profit                          5.6   26.3      8.4  39.8      
22.7

Earnings per share, EUR          0.05          0.08            
0.22
Earnings per share, diluted, EUR 0.05          0.08            
0,22

Consolidated balance sheet
EUR million                    31.3.2005  
31.3.2004          31.12.2004
Assets

Non-current assets
Intangible assets 
                  0.2         0.4           0.5
Tangible assets               
      1.7         1.3           1.7
Investment properties              736.4  
    735.4         738.7
Investmets                           0.0         0.0  
        0.0
Deferred tax assets
Non-current assets, total          738.4     
 737.1         740.8

Current assets
Short-term receivables              
4.2         3.1           4.2
Cash and cash equivalents           23.1        
6.7           7.9
Current assets, total               27.4         9.8        
 12.2

Assets, total                      765.8       746.9        
753.0

Liabilities and shareholders' equity

Equity attributable to equity
holders of the parent
Share capital                     156.8       142.8     
   156.8
Share premium fund                 35.0        28.3         
35.0
Treasury shares                    -4.7        -4.7          -4.7
Fair
value reserve                -13.0       -12.4         -13.3
Other funds      
                  6.6         6.6           6.6
Retained profits              
    45.7        22.8          22.9
Profit                              5.6    
    8.4          22.7
Shareholders' equity, total       231.9       191.7     
   226.0

Liabilities
Long-term liabilities             493.2       518.2   
     493.5
Deferred tax liabilities            4.0         3.1          
3.0
Long-term liabilities, total      497.2       521.3        
496.6
Short-term liabilities             36.7        34.0         
30.5
Liabilities, total                533.9       555.3        
527.0

Liabilities and shareholders'
equity, total                     765.8
      746.9         753.0


Statement of changes in shareholders'
equity
Attributable to equity holders of the parent
EUR million
            
                   Share
                              premium
              
              fund and       Fair  Trea- Retai-
                              
 other   value   sury    ned
                        Share  reser-  reser-  
sha-   pro-   Total
                      capital     ves      ve    res  
fits  equity

IFRS Shareholders'
equity 1 Jan. 2004      142.8    34.8   
-7.7     -4.7 37.1   202.4

Cash flow hedges                         -4.7    
             -4.7
Profit                                                  8.4 
   8.4
Total recognised
income and expense                       -4.7        
  8.4     3.6
Dividends                                             -14.3  
-14.3
IFRS Shareholders'
equity 31 Mar. 2004     142.8    34.8   -12.4    
-4.7 31.2   191.7

IFRS shareholders'
equity 1 Jan. 2005      156.8    41.5 
 -13.3     -4.7 45.6   226.0

Cash flow hedges                          0.3  
                0.3
Profit                                                 
5.6     5.6
Total recognised income
and expense                              
0.3           5.6     5.9
Dividends                                           
           0.0
IFRS shareholders'
equity 31 Mar. 2005     156.8    41.5  
-13.0     -4.7 51.2   231.9

Cash flow statement
EUR million                
     1-3 2005    1-3 2004  1-12 2004
Operating activities
Profit before taxes
                7.8         7.4         26.5
Adjustments:
Profit on sale
of
investment property                -0.3         0.0         -0.1
Change in
value of
investment property                 0.0         0.0         
5.0
Depreciation and impairments        0.0         0.0         
0.1
Financial income and expenses       6.4         6.5         26.1
Other
adjustments                   0.1         0.3          0.2
Cash flow before
change in
working capital                    14.1        14.2        
57.7

Change in working capital           0.3         0.1         -0.2
Cash
flow from operating
activities before financial
items and taxes              
     14.4        14.2         57.5

Interest paid and payments for
other
financial expenses
of operating activities            -0.8        -1.4       
-28.0
Dividend and interest received
from business operations            0.1 
       0.1          0.8
Taxes paid                         -0.9        -1.1   
     -4.2
Cash flow from operating
activities                         12.7   
    11.9         26.1

Investing activities
Investments in tangible
and
intangible assets                  -1.0        -3.1        -10.8
Shares
in associated
companies sold                      3.6         0.0         
0.0
Shares in subsidiaries purchased    0.0        -7.5         -8.8
Shares
in subsidiaries sold         0.0         0.1          0.8
Other investments
sold              0.0         0.0          0.1
Cash flow from
investing
activities                          2.5       -10.5       
-18.7

Financial activities
Share issue                         0.0        
0.0         20.8
Fund payments from minority
interest                        
   0.0         0.0          0.1
Withdrawals of short-term loans     0.0       
 0.2         18.2
Repayments of short-term loans      0.0         0.0       
-18.1
Withdrawals of long-term loans      0.0         4.9       
414.9
Repayments of long-term loans       0.0        -0.5      
-435.7
Dividend paid and other
distribution of profit              0.0      
-13.7        -14.3
Cash flow from financial activities 0.0        -9.2       
-14.1

Increase in cash and
cash equivalents                  15.2      
-7.9          -6.7

Cash and cash equivalents at
the beginning of period    
       7.9       14.7          14.7
Cash and cash equivalents at
the end of
period                 23.1        6.7           7.9

Segment reporting
EUR
million                   1-3 2005    1-3 2004    1-12 2004
Turnover
Shopping
Centres                  12.7        11.8         48.4
Supermarkets and Shops 
           8.5         9.2         36.3
Others                             0.0
        0.0          0.0
Total                             21.2        21.0   
     84.7

Operating profit
Shopping Centres                   9.1        
8.8          18.8
Supermarkets and Shops             6.7         6.4         
37.5
Others                            -1.6        -1.2          -3.7
Total  
                          14.2        13.9          52.6

Key financial
figures
                               1-3 2005    1-3 2004    1-12
2004
Earnings per share, EUR            0.05        0.08        
0.22
Earnings per share, diluted, EUR   0.05        0.08         0.22
Equity
per share, EUR              2.07        1.88         2.01
Return on equity
(ROE), %           9.6        17.5         11.0
Return on investment (ROI), % 
     7.7         7.6          7.3
Equity ratio, %                    29.8     
  25.2         29.6

Consolidated contingent liabilities
EUR million        
           31.3.2005   31.3.2004   31.12.2004
Mortgages on land and buildings 
   2.4       338.4           2.4
Group company shares pledged        0.0      
 85.3           0.0
Other pledged shares                0.0        76.7       
   0.0
Other pledges given                 0.0         0.1          
0.0

Group's derivatives
EUR million              31.3.2005       31.3.2004 
     31.12.2004
                        Par    Fair    Par    Fair      Par   
Fair
                     values  values values  values   values 
values

Interest-rate derivatives
Interest-rate swaps
Maturing in 2007     
 78.2    -0.7    78.2    -0.3    78.2    -0.5
Maturing in 2008       50.0   
-2.3    50.0    -2.6    50.0    -2.2
Maturing in 2009      128.2    -8.5  
131.0    -8.5   128.2    -7.9
Maturing in 2010       83.0    -7.7    83.0   
-7.7    83.0    -7.9
Total                 339.4   -19.3   342.2   -19.2  
339.4   -18.5

Interest-rate options
Interest-rate caps
Purchased
Maturing
in 2004                 0.0     0.0    53.8     0.0    0.0     
0.0
Total                   0.0     0.0    53.8     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 1.7
million) has been booked in interest expenses.

Summary of effects of IFRS on
profit
EUR million                                 1-3 2004     1-12
2004
Profit FAS                                       4.1          17.4
IAS
40 Change in valuation of
investment property                              1.7
          2.4
IAS 12 Change in deferred tax assets
and liabilities           
                      2.6           3.0
Other changes                         
          0.0          -0.2
Changes total                                   
4.3           5.3
Profit IFRS                                      8.4        
 22.7

Summary of effects of IFRS on shareholders' equity

EUR million     
                 1.1.2004   31.3.2004   31.12.2004

Shareholders' equity FAS 
           278.0       267.8        302.0

IAS 40 Change in valuation
of
investment properties                 16.2        17.8         18.6
IAS 39
Change in values of
interest rate derivatives            -10.9       -17.6    
   -18.3
IAS 32 Reclassification of
treasury shares                      
-4.7        -4.7         -4.7
IAS 32 Reclassification of
capital loan        
                -68.5       -68.5        -68.5
IAS 12 Change in deferred
tax
assets and liabilities                -7.7        -3.1         -3.0
Other
changes                          0.0        -0.1         -0.2
Changes total   
                    -75.6       -76.1        -76.0

Shareholders' equity IFRS
           202.4       191.7        226.0

The figures are
unaudited.

Accounting Principles
The IFRS accounting principles applied in
the annual financial statements as of
31 December 2004 have been applied to
these financial statements.

Financial Information in 2005

Citycon will
publish interim reports for 2005 as follows:
January-June         20 July 2005
at 12:00
January-September    18 October 2005 at 12:00

Further information
for investors is available on Citycon's website,
www.citycon.fi.

Further
information:
CEO Mr Petri Olkinuora
Tel. +358 9 6803 6738 or +358 400 333
256
petri.olkinuora@citycon.fi


CFO Ms Pirkko Salminen

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

Distribution:
Helsinki
Stock Exchange
Main media
www.citycon.fi

Report on the general review of
Citycon Oyj's interim report for the period 1.1.-
31.3.2005

We have
generally reviewed the interim report of Citycon Oyj for the period
1.1.-
31.3.2005. The Board of Directors and the Managing Director have
prepared an
interim report in accordance with the Securities Market Act,
chapter 2, paragraph
5. Based on our interim review we express at the request
of the Board of
Directors a report in accordance with the Securities Market
Act, chapter 2,
paragraph 5.

We conducted our general review in accordance
with the International Standard on
Auditing applicable to general review
engagements. This standard requires that we
plan and perform the review to
obtain reasonable assurance as to whether the
financial statements are free of
material misstatement. The general review is
limited primarily to inquiries of
company personnel and analytical procedures
applied to financial data and thus
provides less assurance than an audit. We have
not performed an audit and,
accordingly, we do not express an audit opinion.

Based on our general
review, nothing has come to our attention that causes us to
believe that the
interim report does not give a true and fair view in accordance
with the
Securities Market Act regarding the financial position of Citycon
Oyj.

Helsinki, 27 April 2005

Tuija Korpelainen                   Mikael
Holmström
Authorized Public Accountant        Authorized Public Accountant