Ovaro Kiinteistösijoitus (OVARO) investor relations material

Executive summary

• Strategic shift from passive ownership to active property development completed, advancing the 'buy-develop-sell' model and maintaining a robust project pipeline, including a €400 million long-term pipeline.

• Q1 2026 results impacted by one-off items, including full-year property tax booked in Q1 and a €200k non-recurring project expense.

• Net loss for Q1 2026 was €1.12 million, compared to €0.8 million in Q1 2025, mainly due to non-recurring items, lower rental income, and timing of project revenue.

• Liquidity declined due to active property investments and dividend payments at the start of the year.

• Ongoing projects progressing as planned, with revenue recognition expected in later quarters.

Financial highlights

• Q1 2026 revenue was €1.069 million, nearly flat year-over-year despite asset sales and a 1.5% decrease in rental income.

• Net operating income improved to -€129k from -€179k year-over-year.

• Net asset value per share stood at €5.22, compared to €5.33 a year earlier.

• Cash position at quarter-end was €0.7 million, unchanged from Q1/2025.

• Equity at quarter-end was €42.4 million; total assets €80.4 million.

Outlook and guidance

• Full-year 2026 guidance unchanged: result expected to improve from 2025 as project revenue is recognized in later quarters.

• Project launches totaling ~€50 million planned for 2026, supporting long-term earnings growth.

• Strategic targets for 2024–2027 include annual return on equity above 10% and equity ratio at least 40%.

• Q1 2026 ROE was -2.6%, below the 10% target; equity ratio remains above target.

• Strong balance sheet with an equity ratio of 52.9% enables new project initiations.