Finance

Citycon Oyj Unveils Share Repurchase Plan to Enhance Share-Based Incentive Programs

HELSINKI, March 19, 2024 - Citycon Oyj, a major player in Nordic region real estate, has announced a strategic decision to repurchase and convey its own shares. This move, as decreed by the Board of Directors on March 19, 2024, is geared towards facilitating the payment of rewards earned under the company's share-based incentive schemes. The repurchase will be carried out under the authorisation of the Annual General Meeting, also held on the same day.

Citycon's repurchasing initiative is set to commence on March 20, 2024. The operations are scheduled to conclude either upon the conclusion of the 2025 Annual General Meeting or by June 30, 2025, whichever comes first. The targeted number of shares to be bought back by the company amounts to a maximum of 231,603, representing around 0.13 percent of all shares, with an estimated value of nearly EUR 0.9 million, in line with the last trading day's closing share price prior to this announcement.

Comprehensive Share Repurchase and Distribution

These shares will be repurchased as part of the company's commitment under diverse incentive plans including, but not limited to, the Restricted Share Plan of 2020–2022, Performance Share Plan of 2020–2022, CFO Restricted Share Plan of 2024–2026, CEO Restricted Share Plan of 2021–2025, Matching Share Plan of 2022–2024, Restricted Share Plan of 2023–2025, and the Performance Share Plan of 2023–2025. Eligible participants under these schemes will acquire the shares without consideration via a directed share issue in alignment with the stipulated plan conditions.

Citycon's undertaking to repurchase shares is centered around the fulfillment of its share-based incentive programs, thus providing substantial financial justification for this buyback and subsequent share issuance. The distribution plan for the repurchase shares adheres to a fixed schedule, post-vesting period or post-confirmation of rewards for each performance cycle by the Board of Directors, ensuring a structured and timely delivery to plan participants.

Shares will be acquired from the public market of Nasdaq Helsinki Ltd, in a manner that is not proportional to the existing shareholdings of current investors. This purchase will utilize the company's unrestricted equity and will hinge upon the share pricing set by Nasdaq Helsinki on the purchase date. Transactions will be executed following the Nasdaq Helsinki trading rules and standard settlement timetables for share trades.

Moreover, the shares due for issue will render their holders eligible for dividends and other shareholder rights once registered in the book-entry accounts of the recipients.

Enhanced Transparency and Availability of Information

Despite this repurchase, it is essential to note that as of this declared date, Citycon does not possess any of its own shares. The Company's share capital will remain unaffected by this new share issue. For those interested in an in-depth understanding of Citycon’s share-based incentive programs, comprehensive details is accessible through the company's compensation reports, stock exchange releases, and the official Citycon website.

About Citycon Oyj

Citycon Oyj is a leader in developing mixed-use real estate optimized for modern urban living. With assets totaling approximately EUR 4.0 billion, Citycon’s portfolio features necessity-based retail integrated with residential, office, and municipal service spaces that significantly contribute to the communities they serve.

The company takes pride in practicing sustainable property management across the Nordic region. Furthermore, Citycon's investment-grade credit rating from Standard & Poor's stands at BBB-, and its shares are publicly traded on Nasdaq Helsinki Ltd.

Those looking for further details or to engage with Citycon's Chief Financial Officer can reach out to Mr. Sakari Järvelä at the provided [email protected] contact information.

For additional insights into Citycon and its activities, the public and investors are encouraged to visit the company’s website, which can be accessed here: www.citycon.com. The online hub provides an extensive array of information about the company’s projects, sustainability efforts, and latest news.

This information has been sourced through Cision, a trusted provider of corporate news and press release distribution services. Interested parties can find more corporate announcements and related content at http://news.cision.com.

To ensure that the public has direct access to full information regarding Citycon’s repurchase and issuance decision, it's advised to review the detailed release found at the following link: https://news.cision.com/citycon-oyj/r/citycon-oyj-has-decided-to-repurchase-its-own-shares-and-to-issue-shares-for-the-implementation-of-s,c3948294.

Conclusion

In a time when stock incentives play a crucial role in attracting and retaining top talent, Citycon Oyj’s commitment to honoring its promise to employees is evident through this newly announced repurchase strategy. Although the operation does not impact the total share capital, it underscores the company’s dedication to its share-based incentive programs and reflects its future growth objectives.

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