YIT as an investment
Why invest in YIT?
Target for annually growing dividend, large development portfolio, solid balance sheet with improving business mix, strong brand and market position.
YIT is the largest Finnish and a significant North European urban developer and construction company. We create more sustainable, functional and attractive cities and living environments. We develop and build apartments, business premises and entire areas. We also specialise in demanding infrastructure construction. We own properties together with our partners, and we also provide our customers with services that increase the value of properties.
Revenue
3.1 B€
Dividend
0.14€
Personnel
7,400
Customer offeringCustomer offering
The core of our business model and the engine of our growth is sustainable urban development and an exceptional ability to develop and implement self-developed projects as well as other projects involving responsibility for planning and design. Our portfolio comprises the new construction and renovation of housing, business premises and industrial facilities as well as construction and maintenance services for infrastructure. In addition, we provide and develop various living services.
Read more about our businesses below.
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Housing
We construct and develop apartments and entire residential areas. Our operations are focused on growth centres. Our vision is to bring more life to sustainable cities. We are actively involved in area development and introduce customer-oriented housing solutions and services. We mainly sell our apartments ourselves. Our clients are both households and private and institutional investors.
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Business premises
We construct and develop, among others, commercial, industrial and public buildings such as offices, schools, hospitals and logistics premises. In addition to new construction, we carry out renovation projects. Our customers are investors, public sector representatives and owner-occupiers. We also conduct our own self-developed projects.
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Infrastructure
Well-functioning infrastructure allows urban development, better competitiveness of the society and traffic connections meeting the goals of sustainable development. We build roads, bridges, tramlines, metro stations and ports. We also build energy, water supply and industrial plants. We also maintain roads, streets and green areas. Our customers are mainly from the public sector and investors.
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Partnership properties
We offer partnerships and investment opportunities in profitable properties through their development and ownership. There are attractive investment opportunities in housing, offices, retail, logistics and warehouses, care facilities and infrastructure, among others.
Operating environmentOperating environment
YIT operates in 10 countries:Finland, Russia, Sweden, Norway, Estonia, Latvia, Lithuania, the Czech Republic, Slovakia and Poland. YIT announced in October 2020 that it would close down its infrastructure business in Norway. The close down is estimated to last until 2022.
Finland is YIT's largest market area and its share of revenue in 2020 was nearly 75%.
An up-to-date description of the regional market outlook in the latest interim report
StrategyStrategy
The target of YIT's strategy is to improve profitability and to maintain financial stability. The company’s strategic priorities, sources of growth and structural profitability, include urban development and the non-cyclical Partnership properties and services businesses.
Strategic targetsStrategic targets
Return on capital employed
(ROCE-%)
>12
Gearing
(%)
<50
Dividend per share
(€)
annually growing
Emission intensity
(CO2e)
-50%
YIT has set strategic targets related to financial development and sustainability. The aim is to raise the return on capital employed to over 12%, reduce the gearing to less than 50% and halve greenhouse gas emissions by 2030. In addition, YIT strives to be an attractive dividend payer, with the goal of annually growing dividend.
We create valueWe create value
As an urban developer, YIT creates value for its stakeholders through its entire business portfolio.
YIT’s most important resources are its professional staff, strong financial capital, broad plot reserve, various building materials and natural resources as well as YIT’s brand, corporate culture and long-term partnerships in the supply chain.
From these resources, YIT develops and builds value for people, society and the environment through its business.
YIT as a responsible investmentYIT as a responsible investment
We want to be builders of future-proof urban environments. Being future-proof means operating responsibly and in accordance with sustainable development, which allows the products we build and the world around us to maintain their value in the future.
The most material sustainability themes for YIT are:
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1) Creating sustainable, comfortable and safe urban development by utilising opportunities provided by the circular economy. |
2) Compliance with good corporate governance and preventing corruption and the grey economy. | 3) Occupational safety | 4) Promoting the personnel’s occupational well-being and competence development. | 5) Implementing responsible subcontracting and procurement. | 6) Reducing the environmental impacts of YIT’s own operations. |
Read more about our sustainability work Read more about our governance practices
Climate targets
-50%
YIT has set ambitious targets related the climate change mitigation. The aim is to halve the greenhouse gas emissions of own operations and self-developoed projects by 2030 compared to 2019.
Progress in 2020
Emission intensity of own operations
-21%
UN Sustainable Development Goals
We are committed to supporting the UN Sustainable Development Goals (SDGs). The most significant of the SDG's with respect to our operations are:
- Goal 11. Sustainable cities and communities
- Goal 12. Responsible consumption and production
- Goal 13. Climate action
- Goal 16. Peace, justice and strong institutions
- Goal 8. Decent work and economic growth
Green Finance Framework
YIT has established a Green Finance Framework to support investments promoting the transition towards carbon-neutral circular economy.
ESG reporting
YIT strives to report openly on its operations in relation to sustainable development.
CDP Climate Change C-rating (2020)
MSCI AA-rating (2020)
Acquisition historyAcquisition history
During the last years, YIT's major acquisitions and disposals have been:
- Sale of Nordic paving and mineral aggregates businesses in 2020
- Merger of YIT and Lemminkäinen in 2018
- Demerger of YIT Corporation and Caverion Corporation in 2013
