Suomen Hoivatilat Oyj - Half Year financial report

Suomen Hoivatilat Oyj: Half-yearly review 1.1.-30.6.2017

Suomen Hoivatilat Oyj
Stock exchange release 22 August 2017 at 8:00 am

Strong profitable growth, new business concepts

Half-yearly review January-June 2017
January-June 2017 in brief (January-June 2016 in parentheses for comparison)

  * Revenue: 5.3 (3.4) million euros, growth 58.0%
  * Profit for the period: 14.8 (6.6) million euros, growth 123.0%
  * Operational result: 2.1 (1.3) million euros, growth 63.6%
  * Earnings per share, undiluted 0.64 (0.36) euros
  * Earnings per share, diluted 0.63 (0.36) euros
  * Operational result per share 0.09 (0.07) euros
  * Value of investment properties: 205.1 (115.1) million euros, growth 78.2%
  * Economic occupancy rate: 100% (100%)
  * Net asset value (NAV) per share: 5.14 (3.50) euros, growth 46.6%
  * Value of the agreement portfolio (no index increases): 280.5 (190.5) million
    euros, growth 47.3%
  * Average maturity of the agreement portfolio: 14.3 (14.3) years.

Outlook for 2017

The company expects its total revenue to reach at least EUR 12 million in 2017.
The 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.
Jussi Karjula, CEO:

The company's first half of the year was characterised by strong growth
according to plan. Our revenue grew by 58% and the operational result increased
by 64% compared to the comparison period. The fair value of our investment
properties grew by 33% compared to the end of 2016 (78% compared to the
comparison period), with the value being EUR 205 million at the end of June. The
net asset value (NAV) per share also developed favourably and was EUR 5.14,
showing growth of 47% from the comparison period.

We will continue on a growth path. On 30 June 2017, the company had a record
number of 44 property projects under construction or with a building permit
issued, and their procurement value is over EUR 92 million. During the beginning
of the year, we invested in growth and development by recruiting key personnel,
among other things.

The occupancy rate of properties owned by Hoivatilat is 100%. This high number
is based on our operating model of launching property projects only after the
lease agreements have been signed. The value of the agreement portfolio at the
end of the review period was nearly EUR 281 million, showing growth of EUR 90
million compared to the comparison period. The average maturity of the agreement
portfolio was 14.1 (14.3) years. During the spring and the summer, we signed the
first 20-year lease agreements. During spring 2017, we also productised the
Hoivatilat lifecycle model, in which the company may assume a more extensive
responsibility for maintaining and servicing its properties. This is a tangible
indication of the company's responsible ownership.
Events after the review period

The company's Board of Directors decided on 21 August 2017 to launch a school
concept, in which municipalities and other operators in the school sector are
offered a modern school building, constructed in accordance with the new
curriculum, under the turnkey model without the need for user investment in the
facilities. M.A., Petri Kauppinen, who previously worked as the municipal
manager of Sotkamo, was appointed to head the school business operations.

On 16 August 2017, Hoivatilat and the municipality of Siilinjärvi signed a 20-
year lease and maintenance agreement on an assisted living facility project,
which will be completed towards the end of 2018. The municipality of Siilinjärvi
announced the procurement decision on 28 June 2017, and the agreement was
included in the company's reported agreement portfolio on 30 June 2017. The
value of the agreement is more than EUR 10 million (without index adjustments).

On 21 August 2017, Hoivatilat signed a lease agreement on a day care centre to
be built of logs in Lahti. This project will be the first day care centre in
which the company uses logs as the construction material.
Financial calendar for 2017

Suomen Hoivatilat Oyj will publish its Business Review (January-September 2017)
on 8 November 2017
In Oulu on 22 August 2017
Suomen Hoivatilat
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, service blocks and schools. 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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Attachments:

Hoivatilat half yearly review H1_2017 EN.pdf