Published: 2016-02-04 08:00:00 CET
Technopolis
Financial Statement Release

Technopolis Group Financial Statements for 2015

TECHNOPOLIS PLC           FINANCIAL STATEMENTS RELEASE          February 4, 2016 at 9:00 a.m.

Technopolis Group Financial Statements for 2015

Solid performance and Organic Growth

- Net sales rose to EUR 170.6 (161.7) million, up 5.5%
- EBITDA rose to EUR 93,0 (87.2) million, up 6.7%
- Financial occupancy rate was 94.6% (94.7%)
- Earnings per share rose to EUR 0.38 (-0.15)
- Direct result (EPRA) EUR 55.0 (55.9) million, down 1.7%
- Direct result per share, diluted (EPRA) EUR 0.52 (0.53)
- Net asset value per share (EPRA) EUR 4.70 (4.52)
- The Board of Directors proposes a dividend of EUR 0.17 per share


  

  10-12/ 10-12/ 1-12/ 1-12/  
Key Indicators 2015 2014 2015 2014  
Net sales, EUR million 41.7 41.4 170.6 161.7  
EBITDA, EUR million 20.1 21.9 93.0 87.2  
Operating profit, EUR million 25.7 -3.5 88.9 42.9  
Net result for the period, EUR million 17.2 -28.0 50.0 -3.0  
Earnings/share, EUR 0.14 -0.29 0.38 -0.15  
Cash flow from operations/share, EUR             0.60 0.63  
Equity ratio, %     39.3 38.5  
Equity/share, EUR     4.36 4.17  
           
  10-12/ 10-12/ 1-12/ 1-12/  
EPRA-based Key Indicators 2015 2014 2015 2014  
Direct result, EUR million 16.2 16.7 55.0 55.9  
Direct result/share, diluted, EUR 0.15 0.16 0.52 0.53  
Net asset value/share, EUR     4.70  4.52  
Net rental yield, %     7.7 7.5  
Financial occupancy rate, %     94.6*) 94.7  
                     

  *) 16,700 m² under renovation and 11,400 m² of unoccupied but rented space.

The EPRA-based (European Public Real Estate Association) direct result does not include unrealized exchange rate gains and losses, fair value changes or any non-recurring items, such as gains and losses on disposals.

Keith Silverang, CEO:

“The overall macro-environment was tough in 2015, but Technopolis rose to the challenge.

Demand in our main markets was moderate. Competition was tough in Finland, and falling oil prices had an impact on both St. Petersburg and Oslo. However, 2015 demonstrated that the Technopolis concept works. We grew organically and had top line growth of 5.5%. EBITDA was up 6.7% and our EBITDA margin rose to 54.5%, as centralization-related economies continue to kick in.

There were a number of positive operational developments during the year. Service revenues grew as much as 20%, with penetration rising to almost 12%. We are making steady progress toward our strategic service penetration target of 15%. Customer satisfaction improved substantially over the year. For the first time, our average rating was over 4 out of 5. We will build on this foundation to enhance the edge it is giving us in a world where customers want less square meters, more efficiency and a superior service experience.

Occupancy came in at 94.6%. We had like-for-like rental growth in
all countries (without the weakening of NOK and RUB), despite virtually zero inflation in most of our markets. We were able to complete new developments in Tallinn and Vantaa with very high occupancy, and the projects underway in Tampere and Vilnius will bring us further EPS-accretive, organic growth.

As for fair values, the finalization of investment programs in combination with high-occupancy completions and more stable market yields in many of our markets has had a positive impact. We will maintain tight control of capital expenditure moving forward as well. On the financing side, our 2015 bond issue in combination with increased hedging lifted our interest expenses. However, our average interest rate remains one of the lowest among Nordic listed real estate companies. At the same time we have expanded our arsenal of financing instruments and lengthened credit maturities with our first unsecured EUR 150 million bond issue. LTV began to decline in the last quarter as we started to use the proceeds to pay down maturing loans.

We still have plenty of challenges moving forward. We have to find customers for the 10,000 square meters of space in Oulu released from the agreements we prematurely terminated in 2015. This will take time, but we are confident that it can be done. Elsewhere, we need to successfully complete and fill the Yliopistonrinne downtown project in Tampere and boost occupancy on our remaining domestic campuses in Lappeenranta and Oulu. All of this, while selectively divesting assets around the country.

The transactions market remains a double-edged sword. Investors in search of yield are fueling rising international interest in the Finnish real estate market. This is increasing the liquidity of the market and making it easier for sellers to divest assets, but has yet to significantly impact the secondary market.
On the other hand, it has become increasingly challenging to acquire quality assets in the Scandinavian arena, with very aggressive bidding on most quality properties that come on the market.

At this point we see no reason to force it. In order to successfully deploy our concept, it is essential that the campuses we acquire are an excellent fit, with the prerequisites to support higher occupancy, service revenue growth and organic expansion – at reasonable valuations that enhance shareholder value. This means we have to be disciplined and patient in our acquisition activities. In the mean time we will concentrate on refining our concept, developing our offering, improving operational efficiency and strengthening our balance sheet. When the right campuses come along, we’ll be ready to act.”


Full version of Technopolis Plc’s financial statements release 2015 attached.

Additional information:
Keith Silverang
CEO
Tel. +358 40 566 7785

Distribution:
Nasdaq Helsinki, main news media,
www.technopolis.fi

About Technopolis:
Technopolis provides the best addresses for companies to operate and succeed in five countries in the Nordic-Baltic region. The company develops, owns and operates a chain of 20 smart business parks that combine services with flexible and modern office space. The company’s core value is to continuously exceed customer expectations by providing outstanding solutions to 1,700 companies and their 47,000 employees in Finland, Norway, Estonia, Russia and Lithuania. The Technopolis Plc share (TPS1V) is listed on Nasdaq Helsinki.


Technopolis_Financial_Statements_2015.pdf