Summary of January-September 2016
(comparison period 1 Jan.–3o Sept. 2015)

• The Group’s gross investments during the period totalled EUR 609.4 (159.2) million. Gross investments were 228.4 (57.6) per cent of turnover.

• The fair value of investment properties was EUR 4.1 (3.9) billion. Return on investment was 7.0 (7.7) per cent.

• The Group’s turnover totalled EUR 266.8 (276.3) million. Turnover is entirely generated by rental income.

• Profit before taxes amounted to EUR 154.4 (167.3) million. The profit includes EUR 68.6 (52.5) million in net valuation gain on the fair value assessment of investment properties and EUR -20.3 (1.4) million in capital gains and losses on investment properties. The capital losses will be reduced as a result of a decision made by the Housing Finance and Development Centre of Finland ARA after the end of the review period. Net income and capital losses resulting from the delay of the divestment of 8,571 apartments were approximately EUR 14.7 million higher than expected. Nevertheless, the delay of the transaction does not have a substantial effect on the Group’s operating profit. The Group’s favourable profit performance is based on changes in the fair value, low financial costs, a good rental occupancy rate and the successful management of maintenance costs.

• Net rental income was EUR 172.4 (170.5) million, representing 64.6 (61.7) per cent of turnover. Net rental income was increased by completed new development, acquisitions, increased rental income and the successful management of maintenance and repair costs. Divestments decreased net rental income.

• The financial occupancy rate remained high, standing at 97.2 (97.5) per cent during the review period.

• There were 1,415 (1,199) rental apartments under construction at the end of the review period.

• The Group owned 34,926 (40,899) rental apartments on 30 September 2016.

• The company specifies its outlook with regard to investments.

Unless otherwise stated, the comparison figures in brackets refer to the corresponding period of the previous year. The figures in this Interim Report have not been audited.