Financial responsibility
For us, financial responsibility means, among other things, good corporate governance, preserving and growing the value of the assets of the owner universities and a long-term financial policy.
Our objective is to provide appropriate premises for our customers efficiently and on a long-term basis. The key to achieving this objective is having a long-term financial policy and responsibility towards funding providers. These are also the main principles of our financial responsibility as a whole.
We are committed to the project programmes we have agreed upon, and we are also committed to the principles of sustainable development. We manage our responsibilities in a timely manner. This allows us to minimise risk, which in turn ensures a sustainable foundation for our operations. Our aim is to have an economical financing base that supports risk management and enables the implementation of even major investment projects.
Our direct economic impacts consist of purchasing services and materials from subcontractors, personnel expenses, income taxes and property taxes paid by the company, dividends and investments. We regularly monitor our financial and operational indicators, such as our project situation and energy consumption.
SYK’s employment effect in 2018 amounted to approximately 2,040 man-years. The company has 30 employees, which means that the employment effect of our investments and purchases is very significant. These figures are based on the maintenance and investment expenses shown in the company’s income statement, and the have been converted into the employment effect figure using KTI Property Information’s maintenance cost comparisons and, with respect to investments, statistics provided by the Confederation of Finnish Construction Industries RT.
We are one of the largest payers of property taxes in all of the municipalities we operate in, and in the Pirkanmaa economic area, we are one of the largest payers of corporate income tax. In 2018, we paid taxes amounting to EUR 24.2 million in total, of which property taxes represented 50 per cent. We paid property taxes in 16 municipalities, totalling EUR 12.1 million. All of our taxes were paid in Finland.
University Properties of Finland Ltd operates in Finland and pays all of its taxes in Finland
Property taxes by municipality in 2018
Other municipals:
Ii 551 €, Kaarina 3 570 €, Konnevesi 17 132 €,Kuusamo 6 330 €, Savonlinna 47 482 €
Direct and remitted taxes paid by SYK Group
| Tax | M€ | % |
|---|---|---|
| VAT | 5,3 | 22,7 |
| Property taxes | 11,8 | 50,9 |
| Income taxes | 6,1 | 26,3 |
| Total | 23,2 | 100 |
| Tax deductions | 0,8 |
University Properties of Finland Ltd operates in Finland and pays all of its taxes in Finland. The tax footprint reflects the significant indirect and direct taxes paid by SYK Group as well as the taxes deducted from employees’ salaries. The taxes paid by SYK in 2018 consisted of EUR 12.1 million in property taxes, EUR 6.7 million in income taxes, EUR 5.4 million in VAT and EUR 0.8 million in taxes deducted from salaries. Property taxes and income taxes were the largest components of the tax footprint by a clear margin. Property taxes are a substantial expense item in our expense structure and it is spread broadly across Finland. For more information, please see the chart on property taxes by municipality.
SYK does not have a separate tax strategy. The finance unit is in charge of tax affairs. We engage in active efforts to prevent financial crime and tax evasion.
The tax footprint consits of three primary categories:
- Direct taxes (e.g. income taxes, various employer’s contributions, asset transfer taxes, property taxes, etc.).
- Indirect taxes (taxes paid by the company as part of the price of a service or product but remitted by the seller, e.g. tax on insurance premiums, etc.).
- Remitted taxes (e.g. taxes deducted from salaries, tax at source, VAT).
Real estate assets
By grouping our properties into portfolios in accordance with our strategy and carefully allocating our investments, we ensure the development of our solvency and our ability to secure competitive financing.
The responsible management of our real estate assets also indirectly creates wellbeing throughout Finland. The employment effect of our use of maintenance professionals, for example, is approximately 340 man-years.
Purchases by category
Campus development
Responsibility in campus development means maintaining the vitality of our campuses. We understand the significance of campuses as part of the urban infrastructure and take a long-term approach to developing new life on campuses. We seek suitable functions or operators for vacated premises.
We use our resources wisely. We renovate existing properties whenever possible and refrain from building unnecessary new space. We recognise the importance of our cultural heritage and preserve it wherever possible.
We invest in campus development and spatial efficiency, they the best significations of responsibility for us
Spatial efficiency
The learning environments and laboratories of the future are efficient solutions for utilising space and resources. We develop shared-use multi-purpose premises that are not exclusively intended for specific user groups or activities. We seek synergies between the various operators that use our premises and we use various methods to maximise the amount of time our premises are used. Spatial efficiency can also be improved in offices by moving from individual offices, working rooms and large underused meeting facilities to multi-purpose offices in which the space can be adapted to the work and requirements, from open to partitioned layouts and vice versa.
We take user needs into consideration in the design and implementation of premises. We can design and implement spaces such as university lobbies, corridors, restaurants and cafés in such a way that they are part of the learning and working environment.
According to our survey of the users of university premises, university personnel and students value the opportunity to influence aspects such as air conditioning, interior comfort and spatial organisation. Our survey respondents also indicated that the utilisation of outdoor areas should be improved.
We invest in shared-use multi-purpose premises.
Sustainable development indicators
| Year 2018 | Year 2017 | Year 2016 | Unit | |
|---|---|---|---|---|
| Revenue | 159,5 | 150,1 | 148,2 | milj. € |
| Return on equity | 3 | 2,6 | 2,8 | % |
| Balance sheet total | 1 357,1 | 1 268,8 | 1 226,8 | milj. € |
| Investment value | 95,4 | 116,3 | 95,8 | milj. € |
| Tax footprint, total taxes ** | 23,6 | 20,9 | 22,3 | milj. € |
Revenue 2014–2018
Profit 2014–2018
“It took courage, expertise and effort”
SYK has a long track record of emphasising responsibility in its operations. By issuing a green bond, the company has linked its sustainable development goals to its financing.
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