Kojamo plc Stock Exchange Release, 8 May 2025 at 8.00 a.m. EEST
Kojamo plc’s Interim Report 1 January–31 March 2025
The improvement in occupancy rate accelerated in the first quarter of the year
This is a summary of the 2025 Interim Report, which is in its entirety attached to this release and can be downloaded from the company’s website at www.kojamo.fi/investors.
Unless otherwise stated, the comparison figures in brackets refer to the corresponding period of the previous year. The figures in this Interim Report have not been audited.
Summary of January–March 2025
- Total revenue increased by 0.9 per cent to EUR 114.3 (113.3) million.
- Net rental income increased by 3.7 per cent, totalling EUR 62.8 (60.6) million. Net rental income represented 54.9 (53.5) per cent of revenue.
- Result before taxes was EUR -11.0 (39.3) million. The result includes EUR -37.4 (11.1) million in net result on the valuation of investment properties at fair value and EUR -0.8 (-0.9) million in profit/loss from the sale of investment properties. Earnings per share was EUR -0.04 (0.13).
- Funds From Operations (FFO) decreased by 8.6 per cent and amounted to EUR 23.3 (25.5) million.
- The fair value of investment properties was EUR 7.9 (8.1) billion at the end of the review period, including EUR 280.0 (0.0) million in Investment properties held for sale.
- The financial occupancy rate stood at 92.8 (92.4) per cent during the review period.
- Gross investments totalled EUR 4.0 (8.4) million, representing 3.5 (7.4) per cent of total revenue.
- Equity per share was EUR 14.65 (14.83) and return on equity was -1.0 (3.5) per cent. Return on investment was 1.1 (3.5) per cent.
- EPRA NRV per share (net reinstatement value) fell by 0.8 per cent and amounted to EUR 18.45 (18.60).
- At the end of the review period, there were 119 (113) Lumo apartments under construction.
Kojamo owned 40,949 (40,860) rental apartments at the end of the review period. Since March of last year, Kojamo completed 113 (1,372) apartments, sold 24 (73) apartments and demolished or otherwise altered 0 (11) apartments.
Key figures
| 1–3/2025 | 1–3/2024 | Change % | 2024 | |
| Total revenue, M€ | 114.3 | 113.3 | 0.9 | 452.4 |
| Net rental income, M€ * | 62.8 | 60.6 | 3.7 | 302.9 |
| Net rental income margin, % * | 54.9 | 53.5 | 66.9 | |
| Profit/loss before taxes, M€ * | -11.0 | 39.3 | -128.0 | 26.3 |
| EBITDA, M€ * | 16.3 | 62.1 | -73.7 | 131.3 |
| EBITDA margin, % * | 14.3 | 54.8 | 29.0 | |
| Adjusted EBITDA, M€ * | 54.5 | 51.9 | 5.0 | 266.2 |
| Adjusted EBITDA margin, % * | 47.7 | 45.8 | 58.8 | |
| Funds From Operations (FFO), M€ * | 23.3 | 25.5 | -8.6 | 148.2 |
| FFO margin, % * | 20.3 | 22.5 | 32.8 | |
| FFO excluding non-recurring costs, M€ * | 23.3 | 25.5 | -8.6 | 149.0 |
| Investment properties, M€ ¹⁾ | 7,922.6 | 8,058.9 | -1.7 | 7,960.0 |
| Financial occupancy rate, % | 92.8 | 92.4 | 91.5 | |
| Interest-bearing liabilities, M€ * ²⁾ | 3,740.5 | 3,676.0 | 1.8 | 3,827.9 |
| Return on equity (ROE), % * | -1.0 | 3.5 | 0.6 | |
| Return on investment (ROI), % * | 1.1 | 3.5 | 2.0 | |
| Equity ratio, % * | 43.6 | 44.3 | 43.2 | |
| Loan to Value (LTV), % * ³⁾ | 45.4 | 44.5 | 43.9 | |
| EPRA Net Reinstatement value (NRV), M€ | 4,559.9 | 4,597.2 | -0.8 | 4,573.4 |
| Gross investments, M€ * | 4.0 | 8.4 | -52.8 | 52.8 |
| Number of personnel, end of the period | 260 | 281 | 256 | |
| Key figures per share, € | 1–3/2025 | 1–3/2024 | Change % | 2024 |
| FFO per share * | 0.09 | 0.10 | -10.0 | 0.60 |
| Earnings per share | -0.04 | 0.13 | -130.8 | 0.09 |
| EPRA NRV per share | 18.45 | 18.60 | -0.8 | 18.51 |
| Equity per share | 14.65 | 14.83 | -1.2 | 14.68 |
| * In accordance with the guidelines issued by the European Securities and Markets Authority (ESMA), Kojamo provides an account | ||||
| of the Alternative Performance Measures used by the Group in the Key figures section of the Interim Report | ||||
| ¹⁾ Including Non-current assets held for sale | ||||
| ²⁾ Excluding Liabilities related to non-current assets held for sale | ||||
| ³⁾ Excluding Non-current assets held for sale and liabilities related to non-current assets held for sale. On 31 March 2025, Loan to Value (LTV) | ||||
| including Non-current assets held for sale and related liabilities is 44.0%. | ||||
Outlook for 2025 unchanged
Kojamo estimates that in 2025, the Group’s total revenue will increase by 1–4 per cent year-on-year. In addition, Kojamo estimates that the Group’s FFO for 2025 will amount to between EUR 135–145 million, excluding non-recurring costs.
The outlook is based on the management’s assessment of total revenue, property maintenance expenses and repairs, administrative expenses, financial expenses and taxes to be paid as well as the management’s view on future developments in the operating environment.
The outlook takes into account the estimated occupancy rate and development of rents. The outlook does not take into account the impact of potential acquisitions or disposals on total revenue and FFO.
The management can influence total revenue and FFO through the company’s business operations. In contrast, the management has no influence over market trends, the regulatory environment or the competitive landscape.
CEO’s review
Total revenue and net rental income grew in the first quarter of the year. The growth in net rental income was especially impacted by improved occupancy rate, the rental apartments completed last year and the decrease in maintenance expenses as the heating costs were lower due to the weather being milder than last year. FFO decreased from the comparison period which was affected by increased financial expenses. Our balance sheet has remained strong, and our liquidity is good.
Currently, we are focusing on improving the occupancy rate, and the rent increases are moderate for now. Our occupancy rate has improved since last autumn. The increase accelerated during the first quarter of the year despite the oversupply of apartments and the typical seasonality. We succeeded in increasing the occupancy rate by 1.2 percentage points compared to the previous quarter, and the first quarter occupancy rate was 92.8%. Our occupancy rate for March was already 93.5%.
The fair value of investment properties remained at year-end level. The transaction market was still muted in the beginning of the year but there is interest towards the Finnish residential market. As stated previously, the company’s goal is to carry out moderate property sales. The proceeds from the sales are intended to be used primarily for loan repayments as well as possibly also for share buybacks and payment of dividends.
Our financing situation has remained strong. Following the successful issuance of the EUR 500 million bond in March, our loans maturing in 2026 are also covered. The seven-year bond extends the maturity profile of our loans. In connection with the issuance of the new bond, we repurchased the company’s bond maturing in 2026 with EUR 165 million.
Enhancing customer experience is one of our most important focus areas. The Net Promoter Score, which measures customer satisfaction, continued to improve and was 57 at the end of March. We have successfully developed the operations of Lumo service centre and the cooperation with our property maintenance partners, resulting in faster and more effortless service for our customers.
The geopolitical tensions grew significantly in the beginning of the year. The uncertainty caused by the trade war and tariffs is also reflected in the development of Finland’s economy. Kojamo has business operations only in Finland, and we do not have any export or import so the tariffs do not have a direct impact on our company. Although market uncertainty naturally impacts the operating environment, the supply and demand situation in the rental market has a greater impact on the company’s operations.
Erik Hjelt
Interim CEO
News conference and webcast
Kojamo will hold a news conference for institutional investors, analysts and media on 8 May 2025 at 10:00 a.m. EEST at its headquarters at Mannerheimintie 168A, Helsinki, Finland. The event will be held in English. After the event, the media has a possibility to ask questions also in Finnish.
The event can be followed as a live webcast. No registration for the webcast in advance is needed. The event will be accessible at https://kojamo.events.inderes.com/q1-2025.
It is also possible to join the news conference via phone. Accessing the teleconference requires registration by clicking the following link: https://events.inderes.com/kojamo/q1-2025/dial-in. After the registration you will be provided phone numbers and a conference ID to access the conference.
A recording of the webcast will be available later at the company’s website at https://kojamo.fi/en/investors/releases-and-publications/financial-reports/.
For more information, please contact:
Niina Saarto, Director, Treasury & Investor Relations, Kojamo plc, tel. +358 20 508 3283, [email protected]
Erik Hjelt, Interim CEO, Kojamo plc, tel. +358 20 508 3225, [email protected]
Distribution:
Nasdaq Helsinki, Irish Stock Exchange, key media
Kojamo is Finland’s largest private residential real estate company and one of the biggest investors in Finland. Our mission is to create better urban housing. Lumo offers environmentally friendly housing and services for the city dweller who appreciates quality and effortlessness. We actively develop the value of our investment properties by developing new properties and our existing property portfolio. We want to be the property market frontrunner and the number one choice for our customers. Kojamo’s shares are listed on the official list of Nasdaq Helsinki. For more information, please visit https://kojamo.fi/en/
Attachments
- Kojamo Interim Report 1 January – 31 March 2025
- Kojamo Interim report 1 January – 31 March 2025 presentation
