Suomen Hoivatilat Oyj - Inside information

Suomen Hoivatilat Oyj: Suomen Hoivatilat Oyj has agreed on significant new property projects

Suomen Hoivatilat Oyj

Stock exchange release 21 March 2017 at 8.00 am



Suomen Hoivatilat Oyj has agreed on significant new property projects

Suomen Hoivatilat Oyj ("Hoivatilat" or the "Company") has agreed on new property
projects that, when taken as a whole, represent a significant increase in the
future rental revenue under the Company's agreements. The new agreements cover
five day care properties and four nurture properties for different customers.
The acquisition value of the new properties is approximately EUR 17.9 million
and in the Company's assessment the fair value of the properties would exceed
EUR 20 million when completed.

Taking into account the new agreements, the future rental revenue under the
Company's agreements and excluding index increases is EUR 233.6 million (as at
31 December 2016: EUR 214.2 million), of which the share of finished properties
is EUR 138.3 million, the share of unfinished properties is EUR 61.0 million and
the share of properties not yet started and properties to be acquired is EUR
34.3 million. The average maturity of Hoivatilat's lease agreements as weighted
with future rents (i.e., the remaining average term-to-maturity) for all of its
lease agreements is 14.1 years.

Hoivatilat has 36 properties under development and non-initiated property
projects with an aggregate acquisition value of EUR 77.3 million representing
33,461 square meters of lettable area. Two properties to be acquired with
aggregate acquisition value of EUR 2.4 million representing 1,010 square meters
of lettable area are included in the non-initiated property projects. Such
portfolio of projects in respect of which agreements have been made will be
completed for the use of tenants by the end of the first half of the year 2018.
The properties to be acquired are intended to be acquired prior to the end of
March 2017.

The new agreements have no effect on the Company's guidance for the year 2017.
It is still the Company's estimate that the revenues for the ongoing year will
be at least EUR 12 million (2016: EUR 7.4 million) and that the fair value of
the real estate portfolio will be EUR 200-220 million at year-end (2016: EUR
154.8 million). The operational result is estimated to be at least EUR 4.5
million (2016: EUR 2.9 million).

The agreed new projects will provide nurture or early childhood education
facilities for approximately 550 people. Approximately 150 new jobs will be
located in the facilities.



Suomen Hoivatilat Oyj

Board of directors



Further information:

Suomen Hoivatilat Oyj

CEO Jussi Karjula, 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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