Suomen Hoivatilat Oyj
Stock exchange release 21 March 2017 at 8.00 am
Suomen Hoivatilat Oyj has agreed on significant new property projects
Suomen Hoivatilat Oyj ("Hoivatilat" or the "Company") has agreed on new property projects that, when taken as a whole, represent a significant increase in the future rental revenue under the Company's agreements. The new agreements cover five day care properties and four nurture properties for different customers. The acquisition value of the new properties is approximately EUR 17.9 million and in the Company's assessment the fair value of the properties would exceed EUR 20 million when completed.
Taking into account the new agreements, the future rental revenue under the Company's agreements and excluding index increases is EUR 233.6 million (as at 31 December 2016: EUR 214.2 million), of which the share of finished properties is EUR 138.3 million, the share of unfinished properties is EUR 61.0 million and the share of properties not yet started and properties to be acquired is EUR 34.3 million. The average maturity of Hoivatilat's lease agreements as weighted with future rents (i.e., the remaining average term-to-maturity) for all of its lease agreements is 14.1 years.
Hoivatilat has 36 properties under development and non-initiated property projects with an aggregate acquisition value of EUR 77.3 million representing 33,461 square meters of lettable area. Two properties to be acquired with aggregate acquisition value of EUR 2.4 million representing 1,010 square meters of lettable area are included in the non-initiated property projects. Such portfolio of projects in respect of which agreements have been made will be completed for the use of tenants by the end of the first half of the year 2018. The properties to be acquired are intended to be acquired prior to the end of March 2017.
The new agreements have no effect on the Company's guidance for the year 2017. It is still the Company's estimate that the revenues for the ongoing year will be at least EUR 12 million (2016: EUR 7.4 million) and that the fair value of the real estate portfolio will be EUR 200-220 million at year-end (2016: EUR 154.8 million). The operational result is estimated to be at least EUR 4.5 million (2016: EUR 2.9 million).
The agreed new projects will provide nurture or early childhood education facilities for approximately 550 people. Approximately 150 new jobs will be located in the facilities.
Suomen Hoivatilat Oyj
Board of directors
Further information:
Suomen Hoivatilat Oyj
CEO Jussi Karjula, tel.: +358 40 773 4054
Suomen Hoivatilat in brief:
Suomen Hoivatilat Oyj specialises in producing, developing, owning and leasing out nursing homes, day care centres and service blocks. Hoivatilat was founded in 2008, and the company has been working in cooperation with as many as approximately 50 Finnish municipalities and launched over 100 property projects around Finland. The company was listed on the official list of Nasdaq Helsinki Ltd on 1 March 2017.
