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Hoivatilat Plc

Stock Exchange Release 27 January 2020 at 5:15 p.m. EET

Hoivatilat Plc: Profit warning – EPRA Earnings are below guidance due to costs associated with the public tender offer for Hoivatilat Plc shares

As a result of the completion of the public tender offer by Aureit Holding Oy, a Finnish limited liability company wholly owned by Aedifica SA/NV, Hoivatilat Plc incurred non-recurring expenses of approximately EUR 1.8 million. The costs consist, among other things, of advisory fees. As a result of these expenses, the EPRA Earnings of Hoivatilat for the financial year 2019 will remain below the previous guidance, to be at least 35 per cent of net sales. In addition, the company refines its estimate of the fair value of investment properties at the end of the year 2019.

Updated outlook:

Hoivatilat expects its total revenue to be around EUR 23 million in 2019. EPRA Earnings are expected to be at least 35 per cent of net sales. The fair value of the investment properties is expected to be approximately EUR 490 million at the end of the year 2019.

Previous outlook published in January-September 2019 Business Review on November 6, 2019 was:

Hoivatilat expects its total revenue to be around EUR 23 million in 2019. EPRA Earnings are expected to be at least 40 per cent of revenue. The fair value of the investment properties is expected to be EUR 470–490 million at the end of 2019. The guidance is based on the assumption that, in 2019, the company will not make significant purchases or sales of completed investment properties, and that the market yields used in the valuation of real estate will remain at their current level.

Hoivatilat Plc

Board of Directors

Further information:


Jussi Karjula
CEO
tel. +358 40 773 4054

Hoivatilat in brief:

Hoivatilat Plc specialises in producing, developing, owning and leasing out nursing homes, day care centres, schools and service communities. Founded in 2008, the company has been working in cooperation with as many as 60 Finnish municipalities and has launched 200 property projects throughout Finland and in Sweden. www.hoivatilat.fi