Quarter highlights Q3/2022

Quarter highlights Q3/2022

On 1 July 2022, YIT announced that it had been selected as the developer of the Kamppi Health and Well-being Centre by the City of Helsinki.
On 30 August 2022, YIT announced that it had launched the first phase of construction at Seinäjoki station and sold Asematalo to eQ.
On 26 September 2022, YIT announced the signing of a contract with Ilmarinen Mutual Pension Insurance Company on the renovation of the property at Aleksanterinkatu 13 in downtown Helsinki.

Key discussion points of the quarter

The most discussed topics with investors and analysts during the third quarter of 2022 were the prevailing market instability, demand outlook for Housing and YIT´s growth investments.

We have collected below a list of the most prevalent questions we received during the quarter.

Q: How has the prevailing market instability impacted the demand outlook for Housing?
A: Demand has come down from last year’s exceptionally strong levels as rising interest rates combined with high inflation are causing uncertainties in the near term. However, some markets are affected less than others; while the demand for housing was also impacted in Central Eastern Europe, the demand outlook there remains cautiously positive. Those regions are also in the core of our strategy and that is where the growth is sought.

Q: Are you planning to slow down apartment start-ups due to the prevailing uncertainty in the market?
A: We are constantly evaluating the market, and we have been more careful with reservation rates before a project start-up. However, even as the short-term outlook is subdued, we do not want to slow down excessively, as our apartments are located in growing cities with healthy underlying housing market fundamentals in the long term.

Q: What was the number of unsold completed apartments at the end of Q2? How do you see it developing going forward?
A: At the end of Q2 the number of unsold apartments amounted to 204, which is a low number compared with the historical average. We are completing a good number of apartments in H2, so we could see increases in inventory especially as the demand comes down from exceptionally strong levels.

Q: What was the operating environment like in Business Premises, Infrastructure and Property Development during the quarter?
A: Rising interest rates and higher inflation have impacted the operating environment in our other segments as well. For example, the decision making by some customers has slowed down due to growing cost pressures. Overall, the operating environment has remained stable, but the uncertainty is increasing.

Silent period

YIT will arrange a silent call for Analyst on Friday 30 September and a recording of the call will be published later on the same day on our website. The silent period starts on 1 October and lasts until publication of our Q3 Interim Report.

Earnings release

YIT’s Interim Report for January-September 2022 will be published on Thursday, 27 October 2022 around 9 a.m. EEST (around 7 a.m. BST). A news conference will be arranged on the same day at 10:00 a.m. EEST (8:00 a.m. BST). The results will be presented by Markku Moilanen, President and CEO of YIT Corporation, and CFO Tuomas Mäkipeska. The news conference will be held as a live webcast that can be followed on the company's web site at www.yitgroup.com/webcast. A recording of the webcast will be available at the same address later that day.