Orava Asuntorahasto Oyj - Company Announcement

STRATEGY UPDATE OF ORAVA RESIDENTIAL REIT PLC

Orava Residential REIT plc

Stock Exchange Release 21 December 2016 at 11:45 am.



STRATEGY UPDATE OF ORAVA RESIDENTIAL REIT PLC



The Board of Directors of Orava Residential REIT plc has confirmed the
company's updated strategy. 

The key financial objectives remained unchanged: the targeted long-term return
on equity shall be 10% p.a. and the targeted long-term dividend yield 7–10%
p.a. on net asset value per share. The loan-to-value ratio will be kept at
approximately 50% in 2017. 

In addition to the key financial objectives, the main strategic objectives were
confirmed to be: 

  -- raising equity capital to EUR 110-120 million in 2017 and maintain ca. 20%
     p.a. growth over the medium term
  -- lifting the economic occupancy rate to over 95% in 2017
  -- reducing the property maintenance and repair costs, expenses from rental
     operations and administrative costs in relation to the size of the
     investment portfolio in 2017
  -- increasing the volume of apartment sales in 2017 and maintaining the level
     of apartment sales at 5-10% of the value of the investment assets on the
     opening balance sheet over the medium term
  -- enhancing the quantity and quality of investor information

The age and regional distribution objectives for portfolio management were
updated. According to the updated age distribution objective the weighting of
properties completed in the 1990s and afterwards shall be 53%, and the
weighting of properties completed before 1990 shall be 47% plus minus
approximately 10 percentage points calculated from the market value of the
investment portfolio. The regional distribution objective remained unchanged,
53% of the market value of apartments shall be located in the Helsinki region,
22% in large towns and 25% in medium-sized towns with a variation range of plus
minus approximately 10 percentage points. 

Investors, analysts and media representatives are invited to attend Orava
Residential REIT's Capital Markets Day, which will be held in Pörssitalo at
Fabianinkatu 14, 00100 Helsinki, on Tuesday 17 January 2017 starting at 1:00
p.m. At the event Orava Residential REIT's strategy, business model, profit
drivers and housing market analysis shall be presented (in Finnish). 



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.oravaresidentialreit.com/