Technopolis Delivers Solid Performance Despite Tough Macro-Environment


TECHNOPOLIS PLC            PRESS RELEASE  February 4, 2016 at 9:10 a.m.

Technopolis Delivers Solid Performance Despite Tough Macro-Environment

Demand in Technopolis’ main markets was moderate and competition was tough in Finland. Falling oil prices had an impact on both the St. Petersburg and Oslo markets. However, 2015 demonstrated that the Technopolis concept works. The top line came in at +5.5%, EBITDA was up 6.7% and the EBITDA margin rose to 54.5%, as centralization-related economies continue to kick in.

Technopolis Concept Proves Its Power

Technopolis’ core strength is its concept which is built around flexibility, superior service and hands-on customer management.

Service revenues grew as much as 20%, with penetration rising to almost 12%. Customer satisfaction improved substantially over the year, exceeding an average rating 4 out of 5 for the first time. “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”, says CEO Keith Silverang.

Occupancy came in at 94.6%, there was like-for-like rental growth in all countries and the company was able to complete new developments in Tallinn and Vantaa with very high occupancy. “We have projects underway in Tampere and Vilnius that will bring us further EPS-accretive, organic growth”, says Silverang.

In Search of the Perfect Fit

According to Silverang there is plenty of work to be done in 2016. “We will have to work hard to safeguard occupancy in the domestic market, while selectively divesting assets around the country. At the same time we are looking for opportunities to grow both organically and through acquisition at home and abroad.”

The transactions market remains a double-edged sword, according to Silverang. “The search for yield is fueling interest in the Finnish real estate market. This is increasing the liquidity of the market and making it easier for sellers to divest assets. On the other hand, it has become increasingly challenging to acquire quality assets in the Scandinavian arena with reasonable valuations. It is essential that the campuses we acquire are an excellent fit. This means we have to be disciplined and patient in our acquisition activities. When the right campuses come along, we’ll be ready to act.”

Technopolis Financial Statement 2015 available at www.technopolis.fi/investors.
Technopolis 2015 Infographic at
www.technopolis.fi/about-us/media.


For more information, please contact:

Keith Silverang
CEO
Tel. +358 40 566 7785

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.