Technopolis’ Produces Strong First Quarter Fueled by Expansion Projects and Services
Technopolis’ performance was strong in the first quarter 2017. On a constant currency basis, the net sales grew by 5.8% year-on-year with EBITDA growth of 5.2%. Financial occupancy at the end of March was solid at 93.5% (92.5%).
Technopolis continued to expand through acquisition and organic growth projects in the beginning of 2017. In April, the company acquired an office property under construction in Vilnius neighboring its own campus and signed an agreement to acquire a neighboring land plot. The Delta building in Vilnius was fully completed in the first quarter of 2017 with an occupancy rate of over 90%. Technopolis’ other organic expansion projects are progressing as planned in Helsinki and in Tallinn, and there is expansion potential in many other campuses, including the Helsinki Metropolitan Area and CBD Oulu.
In addition, Technopolis’ growth has been fueled by services, which have played an increasingly important role. Their share of total net sales has now reached 13.5% (12.6%). “There is a lot of value-adding potential in services and organic growth projects. They are boosting cash flow less capital-intensively than property acquisitions. Our best performing units have reached close to 20% penetration, which is the direction we want for the whole Group,” says Keith Silverang, CEO of Technopolis.
According to Silverang, organic growth projects and service growth are both driven by demand for more efficiency, flexibility and solutions that support workplace productivity. “Coworking is one part of this overall megatrend that is pointing the way for our concept development. And our coworking spaces have proven successful enough to expand the UMA Workspace in downtown Helsinki in May, only one year after its initial opening,” says Silverang.
Technopolis has initiated a comprehensive review of the company´s strategy as well as and strategic and financial targets, which it expects to complete in June.
Technopolis’ interim report for January 1 – March 31, 2017 is available here. The webcast briefing in English for investors, analysts and media will be held today at 10:00 a.m. Finnish time. The link to the webcast is www.technopolis.fi/webcast.
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