Property Assets

 

             
Investment properties of Sponda
1 Jan - 31 Dec 2015 M€
Total Office Properties Shopping Centres Logistics Properties Property Development Russia
Operating income 229.6 149.0 46.6 16.8 0.3 16.9
Maintenance costs -63.4 -39.0 -10.9 -7.7 -1.8 -4.0
Net operating income 166.2 110.0 35.7 9.1 -1.4 12.8
             
Investment properties at 1 Jan 2015 3,142.1 1,853.5 726.0 205.1 133.1 224.4
Capitalized interest 2015 0.8 - - - 0.8 -
Acquisitions  4.7 4.7 - - - -
Investments 103.0 29.3 6.8 0.9 66.0 0.1
Transfers between segments 0.0 98.4 -2.3 - -96.0 -
Sales -161.9 -18.1 - -103.9 0.0 -39.8
Change in fair value 23.2 35.5 3.2 -7.4 25.9 -33.9
Transferred to non-current assets classified as held for sale -10.2 -8.4 - -1.8 - -
Investment properties at 31 Dec 2015 3,101.7 1,994.8 733.6 92.9 129.7 150.7
             
Change in fair value, % 0.7 1.9 0.4 -3.6 19.5 -15.1
             
Weighted average yield requirement % 6.32 6.17 5.66 9.11 - 10.33
Weighted average yield requirement %, Finland 6.13          
             
Maintenance investments, M€ 37.8 29.7 6.8 0.9 0.3 0.1
Property development, M€ 65.2 -0.4 - - 65.7 -
Acquisitions, M€ 4.7 4.7 - - - -
Sales, M€ -161.9 -18.1 - -103.9 0.0 -39.8
Investments, total, M€ -54.2 15.9 6.8 -103.0 66.0 -39.7

 

Yield requirements used in valuation of investment properties 31 December 2015
  Helsinki CBD Other Helsinki Espoo/Vantaa Other Finland Russia
Office- and retail properties, % 5.3 6.0 8.4 7.0 10.3
Logistics properties, %   9.0 8.4 11.8 12.5

 

Sensitivity analysis
Change in investment property fair value, M€ and %              
    -10 % -5 % 0 % 5 % 10 %
    Change, M€ Change, % Change, M€ Change, % M€ Change, M€ Change, % Change, M€ Change, %
Yield requirement 318 10.8 150 5.1 0 -136 -4.6 -260 -8.8
Rental income (contractual rents) -67 -2.3 -34 -1.1 0 34 1.1 67 2.3
Maintenance expenses 78 2.6 39 1.3 0 -39 -1.3 -77 -2.6
Economic occupancy rate (1st year) -22 -0.7 -11 -0.4 0 11 0.4 22 0.7

The sensitivity analysis has been carried out as a quantitative analysis of the investment properties in Finland calculating the 15 year cash flow and of the properties in Russia calculating the 10 year cash flow.
The changes in yield requirements and economic occupancy rates have been calculated for average figures. The analysis includes only investment properties generating cash flows.