Financial Statements 2010 CONTENTS
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Financial Statements 2010 CONTENTS Report by the Board of Directors ................................ 3 22. Derivative financial instruments ....................... 32 Shareholders and shares ............................................... 51 23. Investment properties held for sale................. 33 EPRA performance measures ..................................... 14 24. Trade and other receivables ................................ 33 Formulas for key figures and ratios ........................ 53 25. Cash and cash equivalents ................................... 33 CITYCON OYJ’S CONSOLIDATED 26. Shareholders’ equity ............................................... 33 Signatures to the financial statements ................ 54 FINANCIAL STATEMENTS 27. Loans ................................................................................ 34 28. Trade and other payables ..................................... 37 FOR 1 JANUARY – 31 DECEMBER 2010 ....................17 Auditors’ report .................................................................. 55 29. Employee benefits ................................................... 37 30. Cash generated from operations....................... 39 Consolidated statement of comprehensive Property list ........................................................................... 56 31. Commitments and contingent liabilities ...... 39 income, IFRS ......................................................................... 17 32. Related party transactions ................................... 40 Valuation statement ........................................................ 60 33. Changes in group structure in 2010 ................ 42 Consolidated statement of 34. Post balance sheet events ................................... 42 financial position, IFRS .................................................. 18 Key figures ............................................................................. 43 Consolidated cash flow statement, IFRS ............. 19 1. Consolidated key figures and ratios for five years .................................................. 43 Consolidated statement of changes 2. Quarterly segment information ......................... 44 in shareholders’ equity, IFRS ....................................... 20 Parent company income statement, FAS ............. 45 Notes to the consolidated financial statements, IFRS ........................................... 21 Parent company balance sheet, FAS ...................... 46 1. Basic company data .................................................. 21 2. Basis of preparation ................................................. 21 Parent company cash flow statement, FAS ........ 47 3. Changes in IFRS and accounting policies ...... 21 4. Summary of significant Notes to the parent company’s accounting policies ................................................... 21 financial statements, FAS ............................................. 48 5. Key estimates and assumptions, and 1. Accounting policies ................................................... 48 accounting policies requiring judgment ......... 24 2. Turnover ......................................................................... 48 6. Gross rental income ................................................. 26 3. Other expenses from leasing operations ..... 48 4. Personnel expenses ................................................. 48 7. Segment information .............................................. 26 5. Depreciation and amortisation 8. Property operating expenses .............................. 28 and impairments ........................................................ 48 9. Other expenses from leasing operations ..... 28 6. Other operating income and expenses .......... 48 10. Administrative expenses ....................................... 28 7. Net financial income and expenses ................. 48 11. Personnel expenses ................................................. 28 8. Income tax expense .................................................. 48 12. Depreciation and amortisation .......................... 28 9. Intangible assets ....................................................... 48 13. Other operating income and expenses .......... 28 10. Tangible assets ........................................................... 49 14. Net financial income and expenses ................. 28 11. Shares in subsidiaries ............................................. 49 15. Income taxes ................................................................ 29 12. Shares in associated companies ....................... 49 16. Earnings per share ..................................................... 29 13. Other investments .................................................... 49 17. Investment properties ............................................ 29 14. Subsidiaries and associated companies........ 49 18. Property, plant and equipment .......................... 31 15. Short-term receivables .......................................... 49 19. Intangible assets ....................................................... 31 16. Shareholders’ equity ............................................... 49 20. Deferred tax assets and liabilities ................... 31 17. Liabilities ....................................................................... 49 21. Classification of financial instruments .......... 32 18. Contingent liabilities ............................................... 50 2 CITYCON OYJ | FINANCIAL STATEMENTS 2010 Report BY THE board OF directors REPort by THE board OF directors Summary OF THE YEAR 2010 COMPARED WITH compensated by lower direct income taxes. KEY FIGURES 1) THE PREVIOUS YEAR - Earnings per share were EUR 0.34 (EUR -0.16). Q4/2010 Q4/2009 Q 3/2010 2010 2009 Change-% - Turnover grew by 5.2 per cent to EUR 195.9 Changes in the fair value of investment properties Turnover, EUR million 49.9 48.9 48.0 195.9 186.3 5.2% million (2009: EUR 186.3 million). This increase have a substantial impact on earnings per share. Net rental income, EUR million 31.8 31.6 33.0 127.2 125.4 1.4% was due to the growth in gross leasable area - The occupancy rate was 95.1 per cent (95.0%). Operating profit, EUR million 35.4 -12.4 42.8 157.7 10.3 - and active development of the retail proper- - Net cash from operating activities per share % of turnover 70.9% - 89.2% 80.5% 5.5% - Profit/loss before taxes, EUR million 22.0 -24.4 28.8 102.8 -37.5 - ties. Turnover growth was reduced by a slightly decreased to EUR 0.09 (EUR 0.30) due to lower Profit/ loss attributable to parent higher vacancy rate during the course of the direct operating profit, extraordinary items and company shareholders, EUR million 14.4 -23.8 22.5 78.3 -34.3 - year, residential divestments in Sweden and the timing differences. start-up of new (re)development projects. Turn- - The equity ratio rose to 37.1 per cent (34.2%). Direct operating profit, EUR million 24.3 26.3 28.0 105.0 107.7 -2.5% over from like-for-like properties increased by - Net financial expenses increased to EUR 54.9 % of turnover 48.8% 53.9% 58.4% 53.6% 57.8% -7.3% 0.9 per cent excluding the impact of strength- million (EUR 47.7 million). Direct result, EUR million 13.5 12.5 12.3 47.3 50.9 -7.2% ened Swedish krona. - On the basis of Citycon’s loan agreement cove- Indirect result, EUR million 0.9 -36.3 10.2 31.1 -85.2 - - Profit/loss before taxes was EUR 102.8 million nants, its interest coverage ratio was 2.0x (2.3x) Earnings per share (basic), EUR 0.06 -0.11 0.10 0.34 -0.16 - (EUR -37.5 million), including a EUR 50.8 million and equity ratio 39.4 per cent (40.6%). Earnings per share (diluted), EUR 0.06 -0.11 0.10 0.34 -0.16 - (EUR -97.4 million) change in the fair value of - In September, the company issued 22 million Direct result per share (diluted), investment properties. new shares in a share issue directed to Finnish (diluted EPRA EPS), EUR 0.06 0.06 0.06 0.21 0.23 -9.2% - Net rental income increased by 1.4 per cent and international institutional investors, raising Net cash from operating activities per share, EUR 0.00 0.06 0.04 0.09 0.30 -71.2% to EUR 127.2 million (EUR 125.4 million). The approximately EUR 63 million in new equity. growth in net rental income was slowed down - The company's financial position improved dur- Fair value of investment properties, EUR million 2,299.9 2,367.7 2,147.4 10.3% by higher property operating expenses due to ing the period, due to a share issue and new loan severe winter conditions and prevailing low in- agreements. Total liquidity at the end of the re- Equity per share, EUR 3.36 3.47 3.31 5.0% 2) flation level. If the impact of the strengthened porting period was EUR 245.0 million, including Net asset value (EPRA NAV) per share, EUR 3.71 3.79 3.64 4.3% EPRA NNNAV per share, EUR 3.37 3.49 3.35 4.1% Swedish krona is excluded, net rental income unutilised committed credit facilities amounting Equity ratio, % 35.9 37.1 34.2 8.6% decreased by 0.7 per cent. to EUR 225.5 million and EUR 19.5 million in cash. Gearing, % 153.4 153.1 169.5 -9.7% - Net rental income from like-for-like properties - The company announced changes in its manage- Net interest-bearing debt (fair value), EUR million 1,343.1 1,386.0 1,312.2 5.6% decreased by 0.3 per cent excluding the impact of ment. Citycon's CEO Petri Olkinuora will leave his Net rental yield, % 5.9 5.8 6.1 - strengthened Swedish krona, due mainly to higher position as of 23 March 2011. Kaisa Vuorio, Vice Net rental yield, like-for-like properties, % 6.5 6.5 6.6 - property operating expenses than in the previous