Orava Asuntorahasto Oyj - Company Announcement

STRATEGY UPDATE OF ORAVA RESIDENTIAL REIT PLC

Orava Residential REIT plc

Stock Exchange Release 11 January 2016 at 5:00 pm.



STRATEGY UPDATE OF ORAVA RESIDENTIAL REIT PLC



The Board Of Directors of Orava Residential REIT plc has confirmed the
company's updated strategy for 2016. 

The strategic financial objectives remained unchanged: the targeted total
return on the share shall be at least 10% p.a., the targeted dividend yield
shall be 7–10% p.a. on net asset value per share, and the loan to value shall
be approximately 50%. 

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

  -- increasing equity to EUR 110 million in 2016 and maintain at least ca. 20%
     p.a. growth over the medium term
  -- further diversifying the sources 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
  -- apartment sales 5-10% of the value of investment assets on the opening
     balance sheet.

The regional and age distribution objectives for portfolio management were
updated. According to the updated regional distribution objective, 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. The age distribution objective remained
unchanged. 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 percentage points calculated from the market
value of the investment portfolio. 



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/