Kojamo plc Stock Exchange Release, 21 August 2025 at 8.00 a.m. EEST
Kojamo plc Half-Year Financial Report 1 January-30 June 2025
Strong increase in occupancy rate continued
This is a summary of the January-June Half-Year Financial 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 Half-Year
Financial Report have not been audited.
Summary of April-June 2025
· Total revenue increased by 2.9 per cent to EUR 115.6 (112.3) million.
· Net rental income increased by 0.9 per cent totalling EUR 82.8 (82.1)
million. Net rental income represented 71.7 (73.1) per cent of revenue.
· Result before taxes was EUR -12.7 (-104.3) million. The result includes EUR
-48.0 (-149.9) million in net result on the valuation of investment properties
at fair value. Earnings per share was EUR -0.04 (-0.34).
· Funds From Operations (FFO) decreased by 9.3 per cent and amounted to EUR
38.8 (42.7) million.
· Gross investments totalled EUR 10.1 (10.9) million, representing 8.8 (9.7)
per cent of total revenue.
Summary of January-June 2025
· Total revenue increased by 1.9 per cent to EUR 229.9 (225.6) million.
· Net rental income increased by 2.0 per cent, totalling EUR 145.6 (142.7)
million. Net rental income represented 63.3 (63.3) per cent of revenue.
· Result before taxes was EUR -23.8 (-65.0) million. The result includes EUR
-85.3 (-138.8) million in net result on the valuation of investment properties
at fair value and EUR -0.8 (-0.8) million in profit/loss from the sale of
investment properties. Earnings per share was EUR -0.08 (-0.21).
· Funds From Operations (FFO) decreased by 9.0 per cent and amounted to EUR
62.0 (68.2) million.
· The fair value of investment properties was EUR 7.9 (7.9) billion at the end
of the review period including EUR 272.8 (1.3) million Investment properties
held for sale.
· The financial occupancy rate stood at 93.6 (91.7) per cent during the review
period.
· Gross investments totalled EUR 14.1 (19.3) million, representing 6.1 (8.6)
per cent of total revenue.
· Equity per share was EUR 14.59 (14.50) and return on equity was -1.1 (-2.9)
per cent. Return on investment was 1.1 (-0.2) per cent.
· EPRA NRV per share (net reinstatement value) increased by 1.2 per cent and
amounted to EUR 18.38 (18.16).
· At the end of the review period, there were 119 (0) Lumo apartments under
construction.
Kojamo owned 40,946 (40,973) rental apartments at the end of the review period.
Since June of last year, Kojamo completed 0 (1,152) apartments, sold 27 (0)
apartments and demolished or otherwise altered 0 (2) apartments.
Key figures
4-6/20 4-6/20 Change 1-6/2025 1-6/2024 Change 2024
25 24 % %
Total revenue, M€ 115.6 112.3 2.9 229.9 225.6 1.9 452.4
Net rental income, 82.8 82.1 0.9 145.6 142.7 2.0 302.9
M€ *
Net rental income 71.7 73.1 63.3 63.3 66.9
margin, % *
Profit/loss before -12.7 -104.3 87.8 -23.8 -65.0 63.4 26.3
taxes, M€ *
EBITDA, M€ * 25.1 -78.0 132.2 41.5 -15.9 360.9 131.3
EBITDA margin, % * 21.7 -69.4 18.0 -7.1 29.0
Adjusted EBITDA, 73.1 71.9 1.6 127.6 123.8 3.1 266.2
M€ *
Adjusted EBITDA 63.2 64.0 55.5 54.9 58.8
margin, % *
Funds From 38.8 42.7 -9.3 62.0 68.2 -9.0 148.2
Operations (FFO),
M€ *
FFO margin, % * 33.5 38.0 27.0 30.2 32.8
FFO excluding non 38.8 42.7 -9.3 62.0 68.2 -9.0 149.0
-recurring costs,
M€ *
Investment 7,885.1 7,922.6 -0.5 7,960.0
properties, M€ ¹⁾
Financial occupancy 93.6 91.7 91.5
rate, %
Interest-bearing 3,598.4 3,861.4 -6.8 3,827.9
liabilities, M€ *
²⁾
Return on equity -1.1 -2.9 0.6
(ROE), % *
Return on 1.1 -0.2 2.0
investment (ROI), %
*
Equity ratio, % * 44.3 43.0 43.2
Loan to Value 45.7 45.0 43.9
(LTV), % * ³⁾
EPRA Net 4,543.4 4,487.0 1.3 4,573.4
Reinstatement value
(NRV), M€
Gross investments, 10.1 10.9 -7.2 14.1 19.3 -27.1 52.8
M€ *
Number of 286 299 256
personnel, end of
the period
Key figures per 4-6/20 4-6/20 Change 1-6/2025 1-6/2024 Change 2024
share, € 25 24 % %
FFO per share * 0.16 0.17 -5.9 0.25 0.28 -10.7 0.60
Earnings per share -0.04 -0.34 88.2 -0.08 -0.21 61.9 0.09
EPRA NRV per share 18.38 18.16 1.2 18.51
Equity per share 14.59 14.50 0.6 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 Half-Year
Financial 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 30 June
2025, Loan to Value
(LTV)
including Non
-current assets
held for sale and
related liabilities
was 44.4%.
Outlook for Kojamo in 2025
Kojamo restates its outlook from stock exchange release published on July 31,
2025. The outlook update was due to the sale of a residential portfolio, as the
outlook does not take into account the impact of potential acquisitions and
disposals on revenue or on cash flow before changes in working capital (FFO).
Kojamo estimates that in 2025, the Group's total revenue will increase by 0-2
per cent year-on-year. In addition, Kojamo estimates that the Group's FFO for
2025 will amount to between EUR 135-141 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 total revenue and FFO outlook also takes into account the impacts of
disposal of the 44 residential properties, but it does not take into account the
impact of potential future acquisitions or disposals. The outlook does not take
into account the taxes resulting from the transaction.
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
The growth in total revenue and net rental income continued in the second
quarter of the year. FFO decreased which was due to higher financial,
maintenance and repair expenses than in comparison period. Our balance sheet has
remained strong.
Improving the occupancy rate is still our key priority, and robust growth
continued during the second quarter. Our financial occupancy rate was 92.8 per
cent in the first quarter, and it increased to 94.4 per cent in the second
quarter. In June, our occupancy rate already reached 94.8 per cent.
There is still oversupply in the rental market, particularly in the capital
region. New construction is not expected to increase supply in the near term, as
the volume of residential development in Finland has remained at a low level.
Although construction companies have started some projects for owner-occupied
housing, construction is not anticipated to resume on a broad scale. Based on
listings on housing portals, the number of available rental apartments has not
yet decreased significantly, but the growth in supply appears to have stalled.
Our commitment to customer experience is delivering results. The Net Promoter
Score (NPS) reached an all-time high of 58 at the end of June. Customer turnover
has also developed positively, declining from the previous year.
In June, we signed an agreement to sell a total of 1,944 apartments. The
transaction was completed after the review period, at the end of July. The 44
properties being sold are located in eight different municipalities, mainly
outside the capital region. As we are strongly focused on Finland's growth
centres, these properties were not aligned with our strategy. The sale of this
housing portfolio is in line with our targets for the current year and is, so
far, the largest transaction in the Finnish residential market this year. The
proceeds from the sale will be used to reduce debt and for share buybacks, which
will strengthen our balance sheet and support the creation of shareholder value.
Our financing position is very good. In June, we refinanced a EUR 100 million
bank loan with Swedbank maturing next year, thereby extending the maturity
profile of our loans. The average interest rate of financing decreased from the
end of March. In addition, after the review period in August, we refinanced a
EUR 100 million bank loan maturing in 2026 with OP. Our next financing
arrangements will focus on loans maturing in 2027.
I had the honour of starting as CEO of Kojamo at the beginning of June. I am
grateful to everyone at Kojamo for the warm welcome I have received in many
different encounters. Kojamo is a strong company - both in terms of its balance
sheet and expertise - and it is well positioned to be a forerunner in housing
and the number one choice for customers, in line with its vision. Our goal is to
create an even better customer experience, with a focus on growth centres.
Reima Rytsölä
CEO
News conference as a webcast
Kojamo will hold a news conference for institutional investors, analysts and
media on 21.8.2025 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/q2-2025.
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/q2-2025/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, niina.saarto@kojamo.fi
Erik Hjelt, CFO, Kojamo plc, tel. +358 20 508 3225, erik.hjelt@kojamo.fi
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/