Citycon loses €5.4M euro in Q4
Drop in profit of Gazit-Globe's Finnish subsidiary stems primarily from decrease in value of investment property as opposed to increase in Q4 of 2010
Citycon's Q4 net operating income (NOI) climbed 17% to €37.3 million (about $49.5 million). The company's NOI for 2011 climbed 13%, amounting to €144.3 million ($191.6 million) as compared with €127.2 million ($169 million) in the previous year.
Net income for 2011 was €13 million ($17 million) as compared with a net income of €78.3 million ($104 million) in 2012.
The drop in the company's profit stems primarily from the decrease in the value of investment property as opposed to an increase in the value of such property in the same period in the previous year.
The company reported that the occupancy rate of its property was about 95.5% as compared with 95.1% at the end of 2010.
Citycon CEO Marcel Kokkeel said that "2011 was characterized by a clear distinction between the types and qualities of property. This general trend manifested in Citycon's operational results and portfolio value.
"Demand for good property is strong and property value is stable, whereas the trend of non-core property is reverse."
This report was originally published in Hebrew by Calcalist
