2014-12-17 11:14:23 CET

2014-12-17 11:15:23 CET


REGULATED INFORMATION

English
Orava Asuinkiinteistörahasto Oyj - Company Announcement

CORRECTION: STRATEGY UPDATE OF ORAVA RESIDENTIAL REAL ESTATE INVESTMENT TRUST PLC


Orava Residential Real Estate Investment Trust plc

STOCK EXCHANGE RELEASE 17 DECEMBER 2014 AT 12:00 NOON

STRATEGY UPDATE OF ORAVA RESIDENTIAL REAL ESTATE INVESTMENT TRUST PLC



The Board of Directors of Orava Residential Real Estate Investment Trust plc
has confirmed the company's updated strategy for 2015. 

The strategic financial objectives remained unchanged: the targeted total
return on the share shall be at least 10% p.a., the targeted dividend return
shall be 7-10% p.a. on net assets per share, and the crediting rate shall be
approximately 50%. 

In addition to the financial objectives, the main strategic objectives are:

  -- increasing equity to EUR 90 million in 2015 and to EUR 200-300 million over
     the medium term
  -- diversifying the acquisition of debt financing
  -- increasing the economic occupancy rate to over 95%
  -- reducing property maintenance costs to 5% and repair costs to 10% below the
     statistical benchmark, and
  -- increasing the volume of apartment sales to approximately 10% of the value
     of investment assets on the opening balance sheet.

The regional and age distribution objectives for portfolio management were
updated, and the acquisition criteria for apartments were specified further. 

According to the updated regional distribution objective, 52% of the market
value of apartments shall be located in the Helsinki region, 22% in large towns
and 26% in medium-sized towns with a variation range of plus minus
approximately 10%. 

According to the updated age distribution objective, the weighting of
properties completed in the 1990s and afterwards shall be 51%, and the
weighting of properties completed before 1990 shall be 49% plus minus
approximately 10% calculated from the market value of the investment portfolio, 

The acquisition criteria of residential apartments were further specified so
that, as a rule, properties to be acquired for the Residential REIT shall be
located in towns for which Statistics Finland forecasts population growth. If
the forecasted population growth of a target town remains materially below the
average in the entire country, it is additionally required that the property to
be acquired be located in the pedestrian zone in the centre of the town. 

Board of Directors



Additional information

Pekka Peiponen, CEO, telephone +358 (0)10 420 3104

Veli-Matti Salmenkylä, CFO and administrative director, telephone +358 (0)10
420 3102 



http://www.oravaasuntorahasto.fi/