Interim report for 1 January to 30 September 2002

Improved result for Citycon
Citycon Group’s result - before exceptional items and taxes - for the first nine months of 2002 rose by 17.5 per cent to EUR 15.8 million (EUR 13.4 million a year earlier). The equity ratio rose by 1.2 percentage points. The company’s net yield on investment properties was 8.6 per cent (8.2%) and the occupancy rate 98 per cent (97%). Letting activities generated EUR 42.2 million (EUR 40.4 million). This performance was in line with expectations.

Earnings per share were EUR 0.11 (EUR 0.09). Equity per share was EUR 1.94 (EUR 1.87). The equity ratio was 38.9 per cent (37.7 %), and 48.2 per cent (46.9 %) when the capital loan was included in core capital. ROE was 5.4 per cent (4.5 %) and ROI
6.3 per cent (6.2 %).

Citycon Oyj is a listed property investment company specialising in buying, letting and developing business premises used by the retail trade.

The company’s property assets are divided into two portfolios: Shopping Centres and Supermarkets & Shops. Shopping Centres and the largest 15 supermarkets generate 81 per cent of Citycon’s revenue. The company’s property assets are managed by three regional organisations.

Business environment
Demand for retail premises remained good in Finland’s largest cities and growth centres against a background of higher sales volumes and the scarce availability of new retail premises. In particular, strong confidence shown by consumers in their own finances bolstered sales in the retail trade. In many places, prolonged planning is slowing the construction of new retail premises.

Long-term interest rates continued falling during Q3 and there are no signs of
a rise in the immediate future. Falling interest rates have especially increased the sale of residential properties.

The HEX All Share Index continued to fall during Q3 and was down by 41 per cent on the year.

However, the index reflecting the share prices of listed property investment companies has risen by 5 per cent since the start of the year.

Letting activities
Net rent yields from Citycon properties amounted to EUR 42.2 million
(EUR 40.4 million). Of this figure, 52 per cent was generated by units in the Helsinki Metropolitan Area and 48 per cent by units in the rest of Finland. Shopping Centres generated a total net yield of 8.1 per cent (7.5%) and Supermarkets & Shops
9.2 per cent (8.9%).

The letting rate for Citycon properties in the Helsinki Metropolitan Area was
99 per cent and 97 per cent in the rest of Finland.

During the period under review, Citycon concluded 146 (152) rent agreements, 38 (88) of which were new lets to former tenants and 108 (64) lets to new tenants. The rent generated by agreements signed during the period under review averaged 6.9 per cent higher than that of earlier agreements. New rent agreements were concluded for a surface area totalling around 25,500 m2 (31,000 m2).

At the end of the period under review, Citycon had 1,145 rent agreements, the average length of which weighted by gross rent was 4.1 years.

Development projects
Citycon’s most important development projects underway were planning extensions to the Myyrmanni, IsoKarhu and Lippulaiva shopping centres and large retail units planned by Retail Park Oy.

Property acquired and divested
During the period under review Citycon acquired retail premises in Heikintori Oy, a shopping centre in Tapiola Espoo. Subsequent to this deal, Citycon’s holding in Heikintori Oy rose to 52.1 per cent and Heikintori became a Citycon subsidiary. During the period under review, Citycon also increased its holding in Kiinteistö Oy Saturnus, in Annankatu in the centre of Helsinki. Subsequent to the deal, Citycon owns all the retail premises in Kiinteistö Oy Saturnus.

In line with its divestment programme, Citycon sold the entire share capital in 15 (14) properties and reduced its interest in one (5) property during the period under review. Citycon made a gain of EUR 0.4 million (EUR 1.9 million) on properties divested for a total of EUR 5.8 (EUR 9.9 million). This gain is shown as part of turnover.

Citycon Group made investments of EUR 5.8 million (EUR 19.4 million).

Finance
The consolidated balance sheet total was EUR 743.8 million (EUR 749.6 million) at
30 September 2002. The group’s interest bearing debt was EUR 438.6 million
(EUR 455.4 million). The average interest rate on debt was 5.4 per cent (5.9%) p.a. The average borrowing period was 5.2 years (5.9 years) and the average interest-rate fixing period was 3.9 years (4.7 years). Group equity ratio stood at 38.9 per cent (37.7%) and 48.2 per cent (46.9%) with the capital loan included in core capital. The EBITDA/interest charge ratio, which describes debt servicing ability, was 2.1.

Share performance
A total of 5,891,447 Citycon shares were traded for EUR 6.2 million during the period under review. At the start of the period under review, Citycon shares were trading at EUR 1.02 and at EUR 1.03 at 30 September 2002. During the period under review the lowest and highest trading prices were EUR 0.98 and EUR 1.12 respectively. The middle trading price weighted by the number of shares traded was EUR 1.06. The market capitalisation at 30 September 2002 was EUR 104,960,974 (EUR 98,846,785).

Citycon owned 3,874,000 of its own shares, which it had acquired for a total of
EUR 4,675,812.76. The number of shares acquired corresponded to 3.7 per cent of Citycon’s share capital and votes.

Decisions of the Annual General Meeting of Shareholders
The decisions made by Citycon Oyj’s Annual General Meeting held on 26 March 2002 are reported in the interim report for January to March 2002.

None of the authorisations given by the AGM to issue shares has been exercised.

Board of Directors
Members of Citycon’s Board of Directors are Stig-Erik Bergström DSc (Chairman), Jorma Lehtonen (Deputy Chairman), Director, Real Estate, Heikki Hyppönen MSc (Econ & Bus Admin), Juhani Järvi, Executive Vice President CFO (finance and administration), Carl G. Nordman Counsellor of Industry (Hon) and Juha Olkinuora, Unit Managing Director.

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

Employees
At the end of the period under review, the group had a total of 33 (29) employees, 27 (23) of which were employed by the parent company.

Events taking place after 30 September 2002
The damage caused by the tragic bomb explosion at the Myyrmanni Shopping Centre in Vantaa on 11 October 2002 will have a minimum effect on Citycon’s business. Citycon Oyj and Kiinteistö Oy Myyrmanni are insured against the material damage caused by the explosion and against the loss of rent resulting from the temporary closure of the shopping centre. The Myyrmanni Shopping Centre is owned by Kiinteistö Oy Myyrmanni, a subsidiary in which Citycon has a 74 per cent holding.

Future outlook
Occupancy rates and the demand for retail premises are expected to remain good in the focus of Citycon’s activities, the Helsinki Metropolitan Area and major growth centres in Finland. Good demand for retail premises is expected to result in continued high occupancy rates for Citycon properties. Citycon’s result for the whole year is expected to be slightly better than that of 2001.

Helsinki, 24 October 2002

CITYCON OYJ

Board of Directors

Distribution: Helsinki Exchanges, main media

Further information from: Managing Director Petri Olkinuora, tel. +358 400 333 256, Deputy Managing Director Olli-Pekka Mikkola, tel. +358 400 601 089

	CONSOLIDATED INCOME STATEMENT EUR 1,000 1-9 2002 1-9 2001 1-12 2001 Turnover 59,649 59,410 77,716 Other income 280 29 105 Operating profit 34,462 34,244 44,895 Financial charges (net) -18,679 -20 816 -27 252 Profit before exceptional items and taxes 15,783 13,428 17,643 Profit for the period under review 11,404 9,370 12,595         CONSOLIDATED BALANCE SHEET       Assets       Fixed assets       Intangible assets 6,247 5,535 5,494 Tangible assets 626,098 617,141 616,548 Financial assets 98,162 113,799 112,987 Own shares 3,990 3,760 3,951 Fixed assets, total 734,497 740,234 738,980 Current assets       Debtors 3,798 3,900 4,177 Cash in hand and at bank 5,475 5,473 5,770 Current assets, total 9,273 9,372 9,948 Assets, total 743,770 749,606 748,928 Shareholders’ equity and liabilities       Subscribed capital 201,385 194,678 198,086 Capital loan 68,452 68,452 68,452 Minority interests 90,485 90,132 89,918 Creditors 383,448 396,344 392,471 Long-term 355,652 371,463 354,873 Short-term 27,795 24,881 37,598 Shareholders' equity and liabilities, total 743,770 749,606 748,928 Gross fixed asset balance sheet investments 5,830 19,445 21,794 as % of turnover 9.8 32.7 28,0 Planned depreciation 5,180 5,050 6,792 Employees, average 33 25 26 FINANCIAL INDICATORS       EPS, EUR 0.11 0.,09 0.12 Equity per share, EUR 1.94 1.87 1.91 ROE, % 5.4 4.5 4.5 ROI, % 6.3 6.2 6.1 Equity ratio, % 38.9 37.7 38.2 Equity ratio, % (capital loan treated as core capital) 48.2 46.9 47.3 CONSOLIDATED CONTINGENT LIABILITIES       Shares pledged (book value) 547,316 492,690 552,613 Other pledges given 1 514 1,663 Mortgages on land and buildings 11,951 15,147 15,147 Interest rate swaps 1999 (5-year fixed interest) nominal value of underlying instrument 50,000 50,000 50,000 Interest rate swaps 1999 (10-year fixed interest) nominal value of underlying instrument 66,000 66,000 66,000 Interest rate swaps 1999 (11-year fixed interest) nominal value of underlying instrument 82,412 82,412 82,412 Interest rate option 1998 and 1999 (5-year interest cap) nominal value of underlying instrument 132,512 132,512 132,512 The company uses derivatives solely to reduce or eliminate risks in the balance sheet. OWN SHARES Acquired between 25 November 1999 and 30 June 2002       Number of shares, 1000 3,874 3,874 3,874 Total nominal value 5,230 5,212 5,212 Share of subscribed capital, % 3.7 3.7 3.7 Share of votes, % 3.7 3.7 3.7 Consideration paid 4,676 4,676 4,676

Own shares have been valued at the closing price on 30 September 2002.
The taxes used are those are those corresponding to the result for the period under review. The figures are unaudited.

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