Suomen Hoivatilat Oyj: Half-yearly review 1.1.-30.6.2018
Suomen Hoivatilat Oyj
Stock exchange release 16 August 2018 at 8 am EET
Suomen Hoivatilat Oyj: Half-yearly review 1.1.-30.6.2018
Strong growth in the agreement portfolio and operating result
Half-year review January-June 2018 (unaudited)
This is a summary of Hoivatilat's Half-yearly review. The full review is attached to this stock exchange release and it is also available on the company's website at the address www.hoivatilat.fi/en/
Summary January-June 2018
| EUR thousand | 30 Jun 2018 | 30 Jun 2017 | Change, % | 31 Dec 2017 |
| Total revenue | 8,061 | 5,315 | 51.7% | 12,373 |
| Profit for the period | 15,957 | 14,650 | 8.9% | 25,504 |
| Operating result | 3,153 | 1,981 | 59.1% | 5,436 |
| Earnings per share, undiluted (EUR) | 0.63 | 0.63 | 0.0% | 1.05 |
| Earnings per share, diluted (EUR) | 0.63 | 0.63 | 0.0% | 1.04 |
| Operating result per share (EUR) | 0.12 | 0.09 | 33.3% | 0.22 |
| Value of investment properties | 301,579 | 205,079 | 47.1% | 247,066 |
| NAV per share (EUR) | 6.22 | 5.13 | 21.1% | 5.67 |
| Value of the agreement portfolio (without index increases) | 383,075 | 280,529 | 36.6% | 316,046 |
| Economic occupancy rate, % | 100% | 100% | - | 100% |
| Average maturity of the agreement portfolio (years) | 14.7 | 14.3 | - | 14.4 |
* Key figures for the comparison period have been adjusted to reflect the change in the recognition practice for real estate taxes.
Main events
- The European Investment Bank and Hoivatilat signed an agreement on a long-term financing package of EUR 50 million (stock exchange release, 23 April 2018)
- The company decided to establish a subsidiary in Sweden (stock exchange release, 5 June 2018)
- The company introduced a new product group: prefabricated day-care centres (stock exchange release, 13 June 2018)
Financial guidance for 2018
The company expects its total revenue to be at least EUR 17.5 million in 2018. The operating result is estimated to be about 40% of revenue. The fair value of investment properties at the end of 2018 is estimated to be at least EUR 340 million. The guidance is based on the assumption that, in 2018, the company will not make significant purchases or sales of finished investment properties, and that the market yields used in the valuation of real estate will remain as they are.
Jussi Karjula, CEO:
Hoivatilat continues to grow. Its revenue increased by 52% and its operating result grew by 59% from the comparison period. In addition, its agreement portfolio grew strongly, to EUR 383 million - an increase of EUR 103 million from the comparison period. The agreement portfolio consists of future rental cash flow from leases and preliminary agreements. Several 20-year leases were signed during the first half of the year. As a result of this, the average maturity of the agreement portfolio increased to 14.7 years (14.3). The rental occupancy rate continues to be 100%. The value of investment properties reached a record level during the review period: EUR 302 (205) million.
During the review period, we implemented a significant financing arrangement: we signed an agreement with the European Investment Bank on EUR 50 million in long-term financing in April. In June, we established a subsidiary in Sweden. Maria Frid will start as the CEO of the company and the country manager for Sweden at the beginning of September 2018. She has extensive experience in property management and business operations related to care premises.
In June, we announced a new product group: prefabricated day-care centres. The first prefabricated day-care centre is currently in production, and excavation work has begun on the plot in Raahe. In June, Hoivatilat also signed a commercial agreement on nursing home facilities and serviced apartments to be built as part of the Kuopion Portti project in the centre of Kuopio. A total of 65 serviced and assisted living apartments will be built and owned by Suomen Hoivatilat Oyj in the form of a joint-stock property company.
Financial calendar for 2018
Suomen Hoivatilat Oy will publish a business review (January-September 2018) on 1 November 2018.
Oulu, 16 August 2018
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, service communities and schools. Founded in 2008, Hoivatilat has been working in cooperation with as many as 60 Finnish municipalities and has launched 150 property projects throughout Finland. The company was listed on the Nasdaq Helsinki stock exchange on 1 March 2017.