The real estate sector feared a collapse in values last year. However, no significant devaluation was seen in Teknologiakiinteistöt’s holdings; instead, the company’s balance sheet grew and operations continued almost as usual.
The real estate market was weighed down last year by familiar challenges from the last two years: adapting to a higher interest rate environment after years of zero interest rates, lower loan-to-value ratios, and generally more expensive and scarcer financing. However, global economic uncertainty did not manifest in Teknologiakiinteistöt’s operations, as the company’s turnover grew by nearly five percent from 42 million euros to 44 million euros.
The company’s operating profit rose to 45.9 million euros.
– Turnover was increased by new leases and annual index adjustments. Due to long-term lease agreements, the increased efficiency in public sector space usage did not yet reflect in Teknologiakiinteistöt’s turnover last year, says Teknologiakiinteistöt’s CEO Mikko Lehtinen.
Balance sheet grew to 559 million euros
In 2024, Teknologiakiinteistöt invested a total of 34 million euros in tenant alterations and new projects, the most significant of which were GeneCity and AkvaCity.
– 2024 was quieter than the previous year in terms of new projects. Construction work on the GeneCity factory building, implemented for Biovian, was completed at the end of 2024, and the project will be handed over to the user once the cleanroom contract is finished during the autumn. Meanwhile, the wooden structure AkvaCity, implemented for Turun Vesihuolto, was completed in the spring of 2025.
After two years of decline, the values of the properties owned by the company, and especially the land assets, rose by a total of 24.2 million euros. As a result, Teknologiakiinteistöt’s balance sheet grew from 504.5 million to 559 million euros. Due to the increased turnover and appreciation in value, the company’s operating profit also rose to 45.9 million euros, with a result of 23.8 million euros.
Services as a second pillar
Teknologiakiinteistöt’s EBITDA remained almost unchanged in 2024 at 54.9 percent. The EBITDA for the leasing business was 62.4 percent and the EBITDA for the service business was 12.5 percent.
– We see a lot of future potential, especially in the service business, and we believe that it provides significant added value to our customers and makes everyday life easier.
The weakening of the general economic situation and the spread of hybrid work were reflected in Teknologiakiinteistöt’s occupancy rate, as in the entire real estate sector. However, the company’s economic occupancy rate remained good, although it fell from 94.5 percent at the end of 2023 to 92.8 percent.
– Demand for office space typically follows general economic cycles with a lag of a few quarters, so we expect leasing demand to recover in step with Finland’s economic growth. Despite this, the already known needs for efficiency in public sector facilities will pose challenges for us in the coming years.
Despite the market situation, Teknologiakiinteistöt’s average square meter rent rose from 20.5 euros to 21.2 euros. At the same time, property maintenance costs were kept moderate, which improved business profitability.
– Overall, we survived a very challenging year well. I believe that the efficient and attractive spaces we offer and the related services will continue to attract customers in the future, concludes Lehtinen.