YIT Corporation to establish a new Partnership Properties segment to support its growth in urban development
YIT Corporation Stock Exchange Release June 19, 2017 at 7.55 a.m.
YIT Corporation’s Board of Directors has decided to establish a new segment, Partnership Properties. The new segment will focus on financing the development of significant projects as well as owning and timely divestment of developed properties. According to its strategy, YIT targets to make the majority of big and long-term investments with partners.
Partnership Properties segment will be reported as a separate segment as of the beginning of 2018, which will improve the transparency of the value of YIT’s project development portfolio. YIT estimates that the total value of such investments may increase from the current total value of EUR 1 billion to over EUR 2 billion by the end of 2020. Currently, the amount of YIT’s investments or agreed commitments in joint ventures is approximately EUR 170 million, and the target is to increase the amount to approximately EUR 300–400 million by the end of 2020, considering the frames based on the financial targets, such as keeping the group cash flow positive after dividend.
The completion of large development projects through financial partnership models and own property management unit is justified from the capital effectiveness and risk management point of view. Partnership Properties segment supports YIT’s opportunities to implement large urban development projects according to its strategy. The object of the new segment is to improve the group’s growth capability, to improve completion and visibility on the reporting of partnership projects and to enable the creation of a project portfolio of stable cash flows.
Partnership Properties segment will operate in close cooperation with other segments of YIT Corporation. The operations of the segment will focus on creating financing structures and ownership as the responsibility for project development and implementation regarding all projects remains with the existing segments. The CFO of the group Esa Neuvonen will be responsible for preparations for the new segment.
For further information, please contact:
Hanna Jaakkola, Vice President, Investor Relations, YIT Corporation, tel. +358 40 5666 070, email@example.com
Esa Neuvonen, Chief Financial Officer, YIT Corporation, tel. +358 40 500 1003, firstname.lastname@example.org
Vice President, Investor Relations
Distribution: Nasdaq Helsinki, major media, www.yitgroup.com
YIT creates better living environment by developing and constructing housing, business premises, infrastructure and entire areas. Our vision is to bring more life in sustainable cities. We want to focus on caring for customer, visionary urban development, passionate execution and inspiring leadership. Our growth engine is urban development involving partners. Our operating area covers Finland, Russia, the Baltic countries, the Czech Republic, Slovakia and Poland. In 2016, our revenue amounted to nearly EUR 1.8 billion, and we employ about 5,300 employees. Our share is listed on Nasdaq Helsinki. www.yitgroup.com