Orava Residential REIT is the first real estate fund in REIT (Real Estate Investment Trust) form in Finland. Orava Funds is responsible for the management of the operations of Orava Residential REIT; it has been granted the authorisation of an alternative investment fund manager and its operations are supervised by the Financial Supervisory Authority.

Orava Residential REIT invests in Finnish rental apartments and its targeted return on shareholders’ equity is 10% in a year. It attempts to distribute dividends four times a year, and its dividend return objective is 7–10% of its net assets per share. The shares of Orava Residential REIT are listed on the main list of the Helsinki Stock Exchange.

Persons considering investment should take into account that risks are related to the investment in the shares of Orava Residential REIT. It is not necessarily possible to distribute dividends as required, and the market price of the share on the Helsinki Stock Exchange may vary considerably due to the housing market situation, investors’ expectations, uncertainty factors related to price formation and liquidity, the result of business operations, changes in the development and the new shares issued.

Investment operations

Orava Residential REIT is a return-oriented residential REIT that aims to utilise the wholesale discounts often achievable for large investors in the housing market by acquiring, as a rule, entire properties. The apartments are sold to the market individually. The investment properties are diversified in accordance with the desired regional and age distribution. The company’s financing strategy seeks to optimise the amount of debt to suit the current interest rate and market situation. The aim is to keep the company’s crediting rate between 30% and 60%.

Housing portfolio

The 1,600 apartments of Orava Residential REIT are located in over 100 properties. In accordance with the investment strategy, the properties are located in various parts of Finland in more than 30 cities and towns – about 40% in the Helsinki region measured by market value, about 29% in major cities, and about 31% in medium-sized towns.

Financial information

The operations of Orava Residential REIT are centrally affected by the Real Estate Funds Act and the Act on the Tax Exemption of Certain Limited Liability Companies Engaging in Apartment Rental Operations (“the Tax Exemption Act”) regulating the operations of residential REITs. Orava Residential REIT prepares IFRS compliant interim reports on a quarterly basis. The company’s shares are included in the book-entry system, and the trading code is OREIT.