Suomen Hoivatilat Oyj - Interim report (Q1 and Q3)

Suomen Hoivatilat Oyj: Business Review for January-March 2017 (not audited) Increased outlook

Suomen Hoivatilat Oyj
Stock exchange release 18 May 2017, 8:00 am

Suomen Hoivatilat Oyj
Business Review for January-March 2017 (not audited)

Increased outlook

Business Review for January-March 2017
Suomen Hoivatilat Oyj stock exchange release on 18 May 2017, 8:00 a.m.
January-March 2017 in brief (January-March 2016 in brackets for comparison)

  * Revenue: 2.49 (1.66) million euros, growth 49.4%
  * Profit for the period: 3.10 (1.99) million euros, growth 55.5%
  * Operational result: 0.88 (0.60) million euros, growth 47.6%
  * Earnings per share 0.15 (0.13): euros, growth 15,4%
  * Operational result per share 0.04 (0.04): euros, change 0.0%
  * Value of investment properties: 173.25 (97.35) million euros, growth 78.0%
  * Economic occupancy rate: 100% (100%)
  * Net asset value (NAV) per share: 4.57 (3.24) euros, growth 41.0%
  * Value of the agreement portfolio (no index increases): 233.92 (167.45)
    million euros
  * Average maturity of the agreement portfolio: 14.1 (14.3) years
Outlook for 2017

The company expects its total revenue to reach at least EUR 12 million in 2017.
Operational result is expected to be at least EUR 4.5 million. The market value
of the investment properties is expected to be between EUR 225 and 245 million
at the end of 2017 (previously EUR 200-220 million).
Jussi Karjula, CEO:

The company's steady growth continues. Our revenue grew by 49.4% , the
operational result increased by 47.6% and net asset value per share grew by
41.0% compared to the corresponding period in 2016. The market value of our
investment properties grew by 12.0% compared to the end of 2016 (78.0% compared
to the corresponding period in 2016), and their market value was EUR 173.2
million at the end of March. The valuation of investment properties on 31 March
2017 is based on the assumptions and return requirements that were applied to
the financial statements for 2016. The next comprehensive external valuation of
the investment property portfolio will be done on 30 June 2017.


On 1 March 2017, the company was moved from the First North list to Nasdaq
Helsinki. The company carried out a directed offering for institutional
investors, comprising 4,500,000 new shares and bringing in EUR 31.5 million in
new capital before expenses. As a result, the company's capital reserves are
excellent and major investments can be made in the property portfolio. The issue
introduced notable investors into the company's owner base from Sweden, Norway
and the UK, in addition to Finland. The number of the company's shareholders has
more than quadrupled in the past year, reaching over 5,500 on 31 March 2017.

The average lease agreement maturity of completed and unfinished properties was
14.1 years on 31 March 2017, and the total value of the lease agreements (=
future lease cash flow with no index increases) was EUR 233.9 million. Since
March 31(st), the company has signed agreements for ten new development
projects. The combined market value of these projects is approximately EUR 23
million. Due to the new development projects, the company's financial estimates
for 2017 will be adjusted with regard to the market value of the investment
properties.

Five properties were completed during the reviewed period and immediately handed
over to occupants for use. Furthermore, the company purchased one complete day
care property. The purchase of another complete day care property was completed
in early April 2017.
Financial calendar for 2017

Suomen Hoivatilat Oyj will publish its half-yearly financial report (January-
June 2017) on 22 August 2017 and its business review (January-September 2017) on
9 November 2017.

In Oulu on 18 May 2017

Suomen Hoivatilat Oyj
Board of Directors

Further information:

Jussi Karjula, CEO, 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.

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