Thank you for coming. We'll start the results of the six months. We had a very good opening of 2026. Our like-for-like growth is 5.6%. Our occupancy rate is 94.4. We lost around 0.9%. Retail average rent increased by 1% to EUR 28.5 per square meter. Footfall like-for-like growth by 3.1%, and the like-for-like tenant sales increased by 2.6%. The fair value grow by EUR 2.7 million, and NOI margin is 94.2. The key achievement in the first half, we signed leases for about 20,700 sq m. The leasing spread is 9.9%, which is impressive. The like-for-like general mall leasing increased by 26%, which is extraordinary. The operating expenses we cut for 5.5%, and we actually buy back our bond for 2026 and 2027 in an amount of EUR 252 million. We took a loan of EUR 214 million in order to stabilize our financial situation.
The like-for-like NOI growth for the first half of the year, you can see that Sweden contributes almost 8%, Norway 5.8%, and Finland 4.1%. In total, the average is 5.6, while the European average growth for this year is 3.5%. This is actually the, I would say, third quarter, including the last quarter of last year, that we are actually beating the European average. We can see that it's not a coincidence. This is a trend. Go ahead. Regarding divestment, we signed a LOI for three assets in Finland, Myyrmanni, Koskikeskus, and Trio. The deal is a conditional deal. On the day of the closing, the buyer, which is Noga Finland, will issue an IPO in the stock exchange in Tel Aviv. Based on them success IPO, we will do the transaction.
As I mentioned, we signed an LOI, and we believe that between today to 45 days, we are expecting the closing. We are in discussion with a few potential buyers regarding assets in Sweden and in Norway, but nothing is mature yet. Now I'll give the floor to Hilik to do the financial overview.
Thank you, Eshel. As Eshel mentioned, strong results in the performance. NOI for the quarter, EUR 57.5 million versus EUR 53.3 million. That's a 7.8% growth, 5.9% with the FX adjustment. You can see it for the half year, 5.7% growth and 3.9% with FX adjustment. Of course, taking into account the [Lipot Áruház] divestment NOI loss, that 3.9% would grow to around 5%. Direct operating profit against here we show 4.6% increase from EUR 47.7 million to EUR 50.8 million. Also in the half year, 4.9% increase, EUR 96.6 million versus EUR 91.4 million. On the EPRA earnings, 17.6 resemble to the Q2 2025, and also they have here the same trend, 36.6 versus 36.9. The EPRA earnings, excluding hybrids, 25.7 versus 26.3, and the half year 52.8 versus 54.3. That's EUR 0.10 per share in the quarter and EUR 0.20 for the half year. The EPRA NRV landed at 7.64 versus 8.29 in Q2 2025.
In the bridge, you can see that our solid results in the NOI growth and the G&A reduction, that is a consistent effort from management to try to cut expenses. We're subsidizing the increased cost that we have here. The main driver here is the higher interest rate environment in the refinancing process and is reflected by the interest expenses, somewhat offset by the buyback of hybrid bonds, you can see EUR 1.3 million. On the recent financing actions, we accomplished a lot of actions in the first half year, de-risking the balance sheet while extending maturities. We've done early redemptions of 2026 and 2027 bonds on the one hand. We drew a secured loan with favorable terms, EUR 240 million on the other hand. That's the interest-bearing liabilities went down by EUR 38 million quarter to quarter.
We also entered into EUR 200 million related party credit facility where we gave a loan, EUR 70 million to G City with 6.5% interest arm length. In the amortization schedule, you can see average debt maturity was going up to 3.5 years from 3.2. Weighted average interest rate, 4.72%. That's an increase. We try to offset it by entering into secured financing, which has favorable terms. But again, the interest environment is still higher than the current coupons. On the key credit metrics, you can see that we're still in a very good place. Loan-to-value 51.4%. Net debt to EBITDA 10.1. Interest coverage ratio at 2.2. Of course, Citycon is in compliance with all of its covenants.
Well, that was about the presentation. Next we will go into the Q&A session. If you would like to submit the question to the management, please use the Q&A function available in the toolbar at the bottom. We will collect your questions and address them here in the call. We have a few questions coming in on the line. The first one is related to divestments. How do you plan to use the proceeds from divestment of the three shopping centers in Finland?
Well, in case we will execute the transaction, then I believe that we'll buy the next bonds that we have on the line is 2028 and some hybrids.
Then we have another question which is partly related to the same. Also asking about the divestments, what the net proceeds from this portfolio would be. Maybe we can take, t here are different parts to the question. This is the first, what the net proceeds would be. I can take the second after your answer.
I think that we've mentioned that we're talking about book value latest appraisal, which is EUR 422.6 million. Of course, customary adjustments would be made. But this is what we're experiencing, and this is still all under negotiation and conditional deal.
Then the second one coming from the same is related to the vendor financing, if that will be in addition to the mutual loan agreement together with G City .
No. Maybe people are confused. There is nothing to do with G City apart of the, let's say, one minute that Noga will go for the IPO. Once Noga is a public company, is no more G City, and the vendor loan will be to Noga, Finland, which will be a public company that G City will hold, if I remember, not more than 25%. So it will be a real public company, and we will give vendor loan as we gave vendor loan before, when we do divestment in the years before, not more than 20%.
Then an additional question. Do you plan any dividends during the second half year in 2026?
We didn't plan it yet.
Then an additional question coming from the line, related to the credit facility with G City. How do you think about buying back hybrids instead, even they have higher coupons and trade well below par?
I think that we have demonstrated that we can do buybacks of hybrids. We've done in Q3 2025, EUR 35 million buybacks. This is, of course, part of our toolkit, and we'll consider it, of course.
Then an additional question related to hybrids. What is your plan for the EUR 321 million hybrid where coupon reset date is in third quarter?
As I mentioned, I believe that if we will do the transaction, we will use the money for both bond as we have the next on the line, the 2028, and partially for the hybrid.
One more question related to the divestment, partly already discussed. But the question is, will the asset sale be done at book value or premium/discount? About when the timing would be for this divestment.
Noga?
Yeah.
Well, as I mentioned before, the price is the book value price with the last appraisal that we make lately. As I said, it will be on a book value, and we will give them a loan or vendor loan of up to 20%. It all depend, of course, on the results of the IPO. That is why I am saying that I am not 100% sure that we will do it. It depend on the results. I hope we will do it because it is a very good deal for us to sell, first time after many, many years, to sell some asset in a book value. On the other hand, we will keep manage these assets, and we will get management fee. So for Citycon, I believe it is a very good transaction. There was a part that I miss.
Oh, the timing of the divestment.
Yeah. As I mentioned, we expect to do the closing between, I believe, today to 45, maximum two months.
Thank you, Eshel and Hilik. For now, it is the last question we had on the line, and there are no more open questions. Thank you.
I want to take one more minute from your time. I know that there are some Cityconians on the line, so I want to tell all of you guys that you did a very great job, and keep going. Thank you very much, and I wish all of us a good weekend.