Kojamo plc’s Financial Statements Release 1 January–31 December 2024
Kojamo plc Stock Exchange Release, 13 February 2025 at 8.00 a.m. EET
Kojamo plc’s Financial Statements Release 1 January–31 December 2024
Total revenue and net rental income grew in 2024, the fair value of investment properties remained at previous year’s level
This is a summary of the 2024 Financial Statements Release, 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 information in the Financial Statements Release is based on the Kojamo plc’s audited Financial Statements for the year 2024. The quarterly figures are unaudited.
Summary ofOctober–December 2024
- Total revenue increased by 0.1 per cent to EUR 113.6 (113.5) million.
- Net rental income decreased by 1.5 per cent totalling EUR 74.4 (75.5) million. Net rental income represented 65.5 (66.5) per cent of revenue.
- Result before taxes was EUR 40.7 (-119.5) million. The result includes EUR 3.9 (-158.7) million in net result on the valuation of investment properties at fair value. Earnings per share was EUR 0.13 (-0.38).
- Funds From Operations (FFO) decreased by 10.0 per cent and amounted to EUR 34.5 (38.3) million.
- Gross investments totalled EUR 31.3 (29.5) million, representing 27.5 (26.0) per cent of total revenue.
Summary of January–December2024
- Total revenue increased by 2.3 per cent to EUR 452.4 (442.2) million.
- Net rental income increased by 1.9 per cent, totalling EUR 302.9 (297.2) million. Net rental income represented 66.9 (67.2) per cent of revenue.
- Result before taxes was EUR 26.3 (-112.3) million. The result includes EUR -134.0 (-295.4) million in net result on the valuation of investment properties at fair value and EUR -0.8 (0.2) million in profit/loss from the sale of investment properties. Earnings per share was EUR 0.09 (-0.36).
- Funds From Operations (FFO) decreased by 11.4 per cent and amounted to EUR 148.2 (167.2) million.
- The fair value of investment properties was EUR 8.0 (8.0) billion at the end of the financial year.
- The financial occupancy rate stood at 91.5 (93.0) per cent during the financial year.
- Gross investments totalled EUR 52.8 (190.7) million, representing 11.7 (43.1) per cent of total revenue.
- Equity per share was EUR 14.68 (14.67) and return on equity was 0.6 (-2.4) per cent. Return on investment was 2.0 (-0.4) per cent.
- EPRA NRV per share (net reinstatement value) increased by 0.3 per cent and amounted to EUR 18.51 (18.45).
- At the end of the financial year, there were 119 (354) Lumo apartments under construction.
- The Board of Directors’ dividend proposal is that no dividend be paid for 2024.
Kojamo owned 40,973 (40,619) rental apartments at the end of the financial year. In 2024, Kojamo completed 354 (1,450) apartments, sold 0 (73) apartments and demolished or otherwise altered 0 (11) apartments.
Key figures
| 10–12/2024 | 10–12/2023 | Change % | 2024 | 2023 | Change % | |
| Total revenue, M€ | 113.6 | 113.5 | 0.1 | 452.4 | 442.2 | 2.3 |
| Net rental income, M€ * | 74.4 | 75.5 | -1.5 | 302.9 | 297.2 | 1.9 |
| Net rental income margin, % * | 65.5 | 66.5 | 66.9 | 67.2 | ||
| Profit/loss before taxes, M€ * | 40.7 | -119.5 | 134.0 | 26.3 | -112.3 | 123.4 |
| EBITDA, M€ * | 68.3 | -94.8 | 172.1 | 131.3 | -39.9 | 429.5 |
| EBITDA margin, % * | 60.1 | -83.5 | 29.0 | -9.0 | ||
| Adjusted EBITDA, M€ * | 64.5 | 63.3 | 1.8 | 266.2 | 255.1 | 4.3 |
| Adjusted EBITDA margin, % * | 56.7 | 55.8 | 58.8 | 57.7 | ||
| Funds From Operations (FFO), M€ * | 34.5 | 38.3 | -10.0 | 148.2 | 167.2 | -11.4 |
| FFO margin, % * | 30.3 | 33.7 | 32.8 | 37.8 | ||
| FFO excluding non-recurring costs, M€ * | 35.2 | 38.3 | -8.0 | 149.0 | 167.2 | -10.9 |
| Investment properties, M€ | 7,960.0 | 8,038.8 | -1.0 | |||
| Financial occupancy rate, % | 91.5 | 93.0 | ||||
| Interest-bearing liabilities, M€ * | 3,827.9 | 3,600.4 | 6.3 | |||
| Return on equity (ROE), % * | 0.6 | -2.4 | ||||
| Return on investment (ROI), % * | 2.0 | -0.4 | ||||
| Equity ratio, % * | 43.2 | 44.5 | ||||
| Loan to Value (LTV), % * | 43.9 | 44.6 | ||||
| EPRA Net Reinstatement value (NRV), M€ | 4,573.4 | 4,558.8 | 0.3 | |||
| Gross investments, M€ * | 31.3 | 29.5 | 6.0 | 52.8 | 190.7 | -72.3 |
| Number of personnel, end of the period | 256 | 288 | ||||
| Key figures per share, € | 10–12/2024 | 10–12/2023 | Change % | 2024 | 2023 | Change % |
| FFO per share * | 0.14 | 0.15 | -6.7 | 0.60 | 0.68 | -11.8 |
| Earnings per share | 0.13 | -0.38 | 134.2 | 0.09 | -0.36 | 125.0 |
| EPRA NRV per share | 18.51 | 18.45 | 0.3 | |||
| Equity per share | 14.68 | 14.67 | 0.1 | |||
| Dividend per share ¹⁾ | - | - | - | |||
| * 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 hereinafter | ||||||
| ¹⁾ 2024: The Board of Directors proposes to the Annual General Meeting that no dividend be paid |
Outlook for 2025
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 2024, and the fair value of our investment properties stayed at the previous year 's level. FFO decreased due to rising financial and maintenance expenses. Our balance sheet remained solid.
The oversupply of rental apartments continued, especially in the capital region. However, the rental market is expected to balance out as the number of new residential start-ups is historically low while population growth has accelerated in big cities. Since the summer, we have taken several measures to respond to the intense competitive situation. In the autumn, we achieved a clear turn for the better in renting, despite the usual seasonal variation. The occupancy rate in the last quarter of the year improved by 0.3 percentage points from the previous quarter and was 91.6%. In the coming year, our focus continues to be on improving the occupancy rate.
The saving programme was implemented according to the plan. The programme was started in the autumn of 2023 when we wanted to react to the changed operating environment and to take proactive measures in order to safeguard the company’s strong financial situation and investment grade credit rating. We achieved savings in accordance with the targets from administrative expenses and repairs. Additionally, we significantly reduced investments. Due to the measures taken, our financial situation has remained good, and our credit rating has remained unchanged.
We did not make any new investment decisions last year. In the first half of the year, yet another 354 apartments were completed from previously started projects, and our apartment portfolio grew to 40,973 apartments. In the autumn, we started one development project based on a previously signed preliminary agreement, and we are building 119 apartments in Helsinki. For the time being, we are not acquiring new properties. Instead, we are focusing on increasing total revenue in the existing housing stock.
To support the maintenance of investment grade credit rating, Kojamo’s Board of Directors proposes to the Annual General Meeting in spring that no dividend will be paid for 2024. The company aims to carry out property sales. The funds obtained from the possible sales will be used to repay loans. They may also be used to repurchase own shares and to pay dividends.
Our financial position and liquidity situation remained strong throughout the year. We successfully made financing arrangements totalling EUR 600 million by utilising diverse sources of funding. In addition to the bond tap issuance and bank loan made at the beginning of the year, we concluded a financing agreement of EUR 150 million with a new financier in December. Our financial position is secured, and the loans maturing this year have been covered. The next financing arrangements will be for maturities in 2026.
Developing the customer experience is one of our key focus areas. The Net Promoter Score (NPS), which measures customer satisfaction, was 54 at the end of the year, showing a four-point improvement from the previous year. The positive development was especially due to the determined efforts to improve the multichannel capabilities and the efficiency of Lumo service centre as well as due to the development of close collaboration with our new property maintenance partners. For our residents, these efforts have been reflected in a faster and smoother service.
The operating environment remained challenging, but we developed our operations with determination and strived to respond actively to the market situation. I would like to thank the personnel for their exceptional work and ability to renew our operations. I also thank all customers, partners and shareholders for their cooperation and trust in the company.
Erik Hjelt
Interim CEO
News conference and webcast
Kojamo will hold a news conference for institutional investors, analysts and media on 13 February 2025 at 10:00 a.m. EET 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.videosync.fi/q4-2024.
It is also possible to join the news conference via phone. Accessing the teleconference requires registration by clicking the following link: https://player.videosync.fi/kojamo/q4-2024/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, Interim CEO, 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 visithttps://kojamo.fi/en/
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