Procurements extended rental apartment investments to more than EUR 100 million

Profit performance remained excellent during the review period. An important part of our favourable profit performance remains the more efficient management of maintenance costs. This is a result of the tendering of maintenance and cleaning during the previous financial period as well as improvements to our operating models. Other major factors in our performance trend are low turnover, solid occupancy rate and low financing expenses.

We continued active operations to develop customer service and to increase the number of rental apartments. We procured rental apartments in the Helsinki areas of Etu-Töölö, Munkkiniemi and Lauttasaari from a total of three foundations. Procuring apartments is a part of carrying out our growth strategy: we are increasing the number of apartments through the procurement of existing housing stock and new construction.

A large number of new construction projects were started during the review period and renovation investments were at the same level as last year. Several construction companies replied to VVO's invitation to tender worth one hundred million euros, and negotiations with two of these companies are ongoing. We will be reporting on new rental apartment projects in early autumn.

We are happy that our present customers are, according to our customer surveys, satisfied and willing to recommend VVO as a landlord, year after year.

We carry out regular surveys with our new tenants of their satisfaction with customer service and, among other things, for making rental agreements electronically. Based on the survey, nearly all new tenants give excellent or good marks for making rental agreements electronically.

Our centralised customer service was expanded to provide a nationwide service in June, and the Customer Service Centre can be contacted by phone or email in all matters relating to apartment rental and housing. In addition to the Customer Service Centre, customers are also served by VVO Home Centres across Finland. Customer service and interaction with our tenants are among our core activities.

VVO updated its strategy during the review period. Our goal is to be the first choice in rental housing. The focus is on increasing the number of rental apartments and an excellent customer experience: by 2018, the number of our rental apartments will grow to 45,000 in 35 locations in Finland and their fair value will grow to EUR 4.5 billion. The customer experience is created by versatile housing solutions, easy and convenient services and smooth-running electronic services. In early autumn we will also launch a new rental housing brand, along with new housing services.

Thank you for the past review period!

Jani Nieminen