Annual report 2019

Annual report 2019

CEO’s review

The rapid rate of construction in the Helsinki metropolitan area and other growth centres has not eliminated the need for affordable housing. The number of applicants for our new buildings has indicated that demand remains high. In 2019, we responded to this demand by introducing 266 new affordable rental apartments. We are aiming to increase the production of new housing together with our city planning development partners and within the limits created by the availability of plots. Housing costs account for the majority of the disposable income of households, and state-subsidised housing production plays an effective role in reducing homelessness.

The special report by the Intergovernmental Panel on Climate Change published in October 2018 was a wake-up call for every individual and organisation that cares about scientific facts. While sustainable business and the mitigation of climate change have already been part of the Y-Foundation Group’s approach to its operations previously, we have now adopted these priorities as the foundation of our property business to an even greater extent. In 2019, we began preparing the Foundation’s next long-term strategy period and adopted the UN’s Sustainable Development Goals as the framework.

Eradicating homelessness in Finland is possible. We were successful in having our views noted in the government programme objectives of the new government that took office after the 2019 parliamentary elections. We now expect the state authorities to create a new homelessness programme and we look forward to supporting that process with our housing acquisition operations and expertise. This is a core element of our non-profit mission in society.

As a lessor, we have been able to offer employment opportunities in tasks that we previously had performed by external parties. During the past year, we offered more than 700 work assignments to our tenants, and 96 tenants took the opportunity to have the wages deposited in their rent payment account. Our summer workers valued us highly as a summer employer. We won first place in the Responsible Summer Job competition in the category of small and medium-sized organisations.

Our apartments are located in Finland, but the impacts of our operations extend beyond the country’s borders. Y-Foundation has hosted several international groups interested in finding out how Finland has become the only EU country to reduce homelessness. The core of the concept is ultimately quite simple. Housing First.

Juha Kaakinen

Board of Trustees’s report 2019

Board of Trustees' report and Financial statements 2019

Group revenue (M€)

Rent margin (%)

Operating surplus (M€)

Investments (M€)

Equity ratio at fair values (%)

Equity ratio at book values (%)

Economic occupancy rate (%)

Total number of apartments

Rental apartments owned by Y-Foundation Group
state-subsidised ARA rental apartments
apartments for specific target groups
Renovation operations under the Koti kuntoon concept
New affordable rental apartments
Work assignments via the Uuras job bank