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Notes to the consolidated financial statements

1. Segment information, operational segments
Segment information is presented according to the Group's operational and geographical segments. The primary form of segment reporting is based on operational segments.
Operational segments are based on the Group's internal organisational structure and internal financial reporting. Segments are based on the different types of business premises and services as well as geographical areas. Results and the fair value changes of properties are reported to Sponda's Board of Directors and Executive Board according to the following segments: Office Properties, Shopping Centres, Logistics Properties, Property Development, Real Estate Funds and Russia.
Sponda's Board of Directors and Executive Board assess the profitability of each segment based on net operating income, operating profit and occupancy rate. The Board of Directors and Executive Board also monitor other key figures such as investments by segment.
Each segment's assets comprise items that are directly attributable to the segments such as investment and trading properties, investments in real estate funds, goodwill and financial leasing receivables. Items not attributed to any segment comprise tax and financial items and items concerning the Group as a whole. These are presented under "Others" in the segment information. Investments include purchases of investment properties, investments in their development, renovation and tenant improvements and investments in real estate funds.
The Office Properties segment is responsible for the leasing, purchase and sales of office and retail properties in Finland.
The Shopping Centres segment is responsible for the leasing, purchase and sales of the retail space in shopping centres in Finland.
The Logistics Properties segment is responsible for the leasing, purchase and sales of logistics properties in Finland.
The Property Development segment is responsible for the marketing and implementation of new property projects on the basis of customer needs. Its operations focus on undeveloped land sites and building renovation especially in the Helsinki metropolitan area, but also in other parts of Finland.
The Real Estate Funds segment owns and manages holdings in retail, office and logistics properties through the real estate funds. Sponda’s real estate funds operate in mid-sized cities in Finland as per the company’s strategy. Regional organisations manage customer relations and the property portfolios.
The Russia segment leases, purchases, sells and develops office, retail and logistics properties in Russia.
The value of unused building rights is presented in the assets of the segment concerned for investment properties that have a building, and as part of the Property Development segment for building rights for unbuilt land. The value of unused building rights was previously presented in its entirety in the Property Development segment. This change in classification was implemented in the fourth quarter of 2013 and its total amount was EUR 31.2 million.
Sponda’s segment information is prepared under the principle that an investment property belongs in the segment that matches its primary use. From the beginning of 2014, office and retail premises and shopping centres located in the same investment property will be divided into their respective segments for part of the investment properties. This change is due to reasons related to the management of current and potential customer relationships and customer relationship management in general. It will affect the division between segments of an estimated 10 investment properties.
Segment information
12/2013, M€ Office properties Shopping centres Logistics Property development Russia Real Estate Funds Other Group total
Total revenue 145.0 43.9 38.7 1.2 28.6 6.8 0.0 264.3
Maintenance expenses and direct fund expenses -39.3 -10.7 -12.9 -2.2 -6.8 -1.6 0.0 -73.4
Net operating income 105.7 33.2 25.9 -0.9 21.8 5.2 0.0 190.9
Profit on sales of investment properties 0.9 0.0 0.0 0.0 0.0 0.0 0.0 1.0
Loss on sales of investment properties 0.0 0.0 0.0 0.0 -0.2 0.0 0.0 -0.2
Profit/loss on sales of trading properties 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Change in fair value of trading property 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Valuation gains and losses 2.3 1.9 -7.7 0.5 -13.1 1.9 0.0 -14.2
Administration and marketing expenses -8.7 -2.2 -1.1 -3.1 -2.9 -5.1 0.0 -23.2
Other operating income and expenses 0.2 -0.3 -0.2 -1.0 0.0 0.0 0.0 -1.4
Operating profit 100.5 32.6 16.9 -4.6 5.6 2.0 0.0 153.0
Financial income and expenses -59.8 -59.8
Profit before taxes -59.8 93.2
Income taxes 9.9 9.9
Profit for the period -49.9 103.1
Investments 29.4 2.7 1.7 4.7 1.2 13.6 1.2 54.5
Segment assets 1,732.1 741.3 426.5 122.7 247.8 88.3 113.0 3,471.7
Economic occupancy rate 90.1 89.0 75.2 96.0 87.9
12/2012, M€ Office properties Shopping centres Logistics Property development Russia Real Estate Funds Other Group total
Total revenue 143.9 42.0 42.3 1.2 28.7 6.5 0.0 264.6
Maintenance expenses and direct fund expenses -39.0 -9.7 -13.6 -2.3 -6.5 -1.3 0.0 -72.4
Net operating income 104.9 32.3 28.7 -1.1 22.2 5.2 0.0 192.2
Profit on sales of investment properties 1.7 0.5 0.0 0.4 0.0 0.0 0.0 2.7
Loss on sales of investment properties -0.1 0.0 -0.1 0.0 0.0 0.0 0.0 -0.2
Profit/loss on sales of trading properties 0.0 0.0 0.0 6.0 0.0 0.0 -0.7 5.2
Change in fair value of trading property 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Valuation gains and losses 31.4 -5.3 -4.9 -2.6 6.4 8.1 0.0 33.0
Administration and marketing expenses -8.0 -1.8 -1.4 -3.3 -3.0 -5.3 0.0 -22.7
Other operating income and expenses 0.1 0.0 0.0 0.2 0.0 0.0 0.0 0.3
Operating profit 130.0 25.7 22.4 -0.5 25.7 8.0 -0.7 210.5
Financial income and expenses -58.8 -58.8
Profit before taxes -59.5 151.8
Income taxes -37.5 -37.5
Profit for the period -97.0 114.2
Investments 45.9 21.4 1.8 21.5 38.4 18.4 0.4 147.8
Segment assets 1,708.4 736.7 414.4 149.6 269.4 83.6 159.7 3,521.8
Economic occupancy rate 89.4 93.0 75.6 95.4 88.1