Sponda in 2016

The current Finnish gross domestic product growth forecast for 2016 is 1.2 per cent. This figure represents a moderate recovery compared to the previous year, as Finnish GDP growth in 2015 is estimated to be very low (0.2%). As the economy takes an upward turn, Sponda is expecting an increase in demand on the property market, particularly in growth areas in Helsinki and Tampere.

In February 2016, Sponda announced the purchase of six prime properties in the Forum block located in the centre of Helsinki. The acquisition includes both the Forum shopping centre and adjacent office properties. This acquisition is a continuation of Sponda’s strategy of increasing the share of shopping centre and office properties in our portfolio, while also increasingly focusing our property ownership on the prime area of Helsinki’s central business district.

Sponda’s operational focal points for 2016:

  • Increase the economic occupancy rate from the year-end 2015 level (87.7%).
  • Continue to sell non-core properties and purchase core properties.
  • Maintain a stable dividend payout capacity.
  • Start at least one new property development project. The target for each development project is to maintain a development margin of 15 per cent.

Financial objectives

Sponda’s long-term goal is to maintain its equity ratio at above 40 per cent. The equity ratio was 46 per cent at the end of 2015 (2014: 41). Sponda distributes dividend amounting to approximately 50 per cent of the operational cash earnings per share for the financial period, taking into account, however, the economic situation and the company’s development needs.

Prospects for 2016 (4 February 2016)

Net operating income

Sponda expects net operating income for 2016 to amount to EUR 152–168 million. The estimate is based on the company’s view of property purchases and sales to be completed and the development of rental operations during the year.

Adjusted EPRA Earnings

Sponda estimates that company's adjusted EPRA Earnings in 2016 will amount to EUR 82–98 million. This outlook is based on the development of net operating income and the company’s estimate of the development of financial expenses.