TECHNOPOLIS PLC STOCK EXCHANGE RELEASE June 2, 2017 at 9:00 a.m. Technopolis’ Revised Strategy Focuses on Shareholder Value Creation, New Strategic and Financial Targets Set
Technopolis has completed a comprehensive review of the Group’s strategy, as well as strategic and financial targets as announced in the Technopolis Interim Report of May 4, 2017. The revised strategy covers the years 2017-2020, and also sets the direction for the coming years.
The primary focus of the revised corporate strategy is shareholder value creation. Key elements include:
- Enhancement of the Technopolis concept, which generates high occupancy, premium customer value and rent levels, as well as high customer satisfaction
- Accelerated organic expansion of current campuses
- Significant expansion of the UMA co-working network
- Expansion and increasing profitability of the service business
- Exploiting value-creating acquisition opportunities in the Nordic-Baltic Sea region
- Execution of the strategy and investments without new equity issues
New long-term financial targets and dividend policy are:
- Earnings Per Share growth of 8-10% per annum on an EPRA earnings basis
- Return on Equity over 8% per annum on an EPRA basis
- Net Asset Value per share growth of at least 5% per annum on an EPRA basis
- Equity ratio over 35%
- Aim to pay out an increasing annual dividend of 40-60% of EPRA-based direct result (EPRA earnings)
In addition to increasing the profitability of the current real estate and service businesses, the company will accelerate organic investments and, in total, expects to spend EUR 200-250 million on development projects over the 2017-2020 timeframe. Company also plans to allocate approximately EUR 30 million to the development of the UMA co-working network during the next five years. Furthermore, Technopolis currently foresees a EUR 100-200 million spend on acquisitions during 2017-2020, but will only act if a compelling value creation opportunity presents itself.
“The key to success in the future office market is to master the shared workspace environment. Technopolis has the right concept, differentiation and capabilities to do this. We think Technopolis has what it takes to be a world-class workspace provider while offering investors a compelling and value-creating investment opportunity. The thinking and targets contained in this strategy are aligned with this philosophy and we are excited about entering this new strategic era,” states Keith Silverang, CEO.
”In the last few years, Technopolis has expanded and internationalized its business strongly. During 2012-2016, the company invested more than 900 million euros on a gross basis in its business, enabled by three equity issues. We have established a strong platform and 1.7 billion euro asset base. This positions the company to grow and create shareholder value over the next few years without having to go to the market for equity,” continues Juha Laaksonen, Chairman of the Board.
A more detailed overview of Technopolis’ revised strategy is attached. We look forward to communicating our vision, strategy and business performance over the coming months in detail, including a webcast on June 7 at 10:00 a.m. Finnish time, as well as a planned Capital Markets Day to be held in Q4 2017. Technopolis´ interim report for January–June 2017 will be published on August 29, 2017. Additional information: Keith Silverang CEO Tel. +358 40 566 7785 Technopolis provides the best addresses for success in six countries in the Nordic-Baltic region. The company develops, owns and operates a chain of 20 smart business parks that combine services with flexible and modern office space. The company’s core value is to continuously exceed customer expectations by providing outstanding solutions to 1,700 companies and their 50,000 employees in Finland, Sweden, Norway, Estonia, Russia and Lithuania. The Technopolis Plc share (TPS1V) is listed on Nasdaq Helsinki.
