Citycon Posts Loss but Higher Rental Income

Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

HELSINKI, FINLAND-Shopping center developer and investor Citycon saw first half net rental income from like-for-like properties grow 2.1% despite challenging market conditions, while occupancy rates decreased but aggregate sales held at the same year-ago level. It posted a pre-tax loss of €29 million for the first half of this year, including a €59 million depreciation across the assets.

However the group, majority-owned by two Finnish insurance institutions and the Israeli listed firm Gazit Globe through its Gazit Europe unit, held to its forecast of a rise in the full-year direct result and net cash from operating activities.