Kojamo plc Half-Year Financial Report 1 January–30 June 2024
Kojamo plc Stock Exchange Release, 15 August 2024 at 8.00 a.m.
EEST
Kojamo plc Half-Year Financial Report 1 January–30 June
2024
Total revenue and net rental income increased, renting was
impacted by the continued abundant supply on the market
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 2024
- Total revenue increased by 3.1 per cent to EUR 112.3 (108.9)
million
- Net rental income increased by 3.9 per cent totalling EUR 82.1
(79.0) million. Net rental income represented 73.1 (72.6) per cent
of total revenue
- Result before taxes was EUR -104.3 (71.7) million. The result
includes EUR -149.9 (14.0) million net result on the valuation of
investment properties at fair value. Earnings per share was EUR
-0.34 (0.23)
- Funds From Operations (FFO) decreased by 17.4 per cent and
amounted to EUR 42.7 (51.7) million
- Gross investments totalled EUR 10.9 (61.3) million,
representing 9.7 (56.3) per cent of total revenue
Summary of January–June 2024
- Total revenue increased by 3.9 per cent to EUR 225.6 (217.1)
million.
- Net rental income increased by 3.0 per cent to EUR 142.7
(138.5) million. Net rental income was 63.3 (63.8) per cent of
total revenue.
- Result before taxes was EUR -65.0 (95.7) million. The result
includes EUR -138.8 (5.1) million net result on the valuation of
investment properties at fair value and EUR -0.8 (-0.1) million in
profit/loss from the sale of investment properties. Earnings per
share was EUR -0.21 (0.31).
- Funds From Operations (FFO) decreased by 15.3 per cent to EUR
68.2 (80.5) million.
- The fair value of investment properties was EUR 7.9 (8.3)
billion at the end of the review period, including EUR 1.3 (0.0)
million in Investment properties held for sale.
- The financial occupancy rate was 91.7 (92.2) per cent for the
review period.
- Gross investments amounted to EUR 19.3 (116.3) million,
representing 8.6 (53.5) per cent of total revenue.
- Equity per share was EUR 14.50 (15.46), and return on equity
was -2.9 (4.0) per cent. Return on investment was -0.2 (3.6) per
cent.
- EPRA NRV (Net Reinstatement Value) per share fell by 6.9 per
cent to EUR 18.16 (19.50).
- There were 0 (1,152) Lumo apartments under construction at the
end of the review period.
Kojamo owned 40,973 (39,819) rental apartments at the end of the
review period. Since June of last year, Kojamo has completed 1,152
(1,216) apartments, sold 0 (73) and demolished or otherwise altered
2 (9) apartments.
Key figures
|
4–6/2024 |
4–6/2023 |
Change % |
1–6/2024 |
1–6/2023 |
Change % |
2023 |
Total revenue, M€ |
112.3 |
108.9 |
3.1 |
225.6 |
217.1 |
3.9 |
442.2 |
Net rental income, M€ * |
82.1 |
79.0 |
3.9 |
142.7 |
138.5 |
3.0 |
297.2 |
Net rental income margin, % * |
73.1 |
72.6 |
|
63.3 |
63.8 |
|
67.2 |
Profit/loss before taxes, M€ * |
-104.3 |
71.7 |
-245.5 |
-65.0 |
95.7 |
-167.9 |
-112.3 |
EBITDA, M€ * |
-78.0 |
82.0 |
-195.1 |
-15.9 |
122.9 |
-112.9 |
-39.9 |
EBITDA margin, % * |
-69.4 |
75.3 |
|
-7.1 |
56.6 |
|
-9.0 |
Adjusted EBITDA, M€ * |
71.9 |
68.0 |
5.7 |
123.8 |
118.0 |
4.9 |
255.1 |
Adjusted EBITDA margin, % * |
64.0 |
62.5 |
|
54.9 |
54.3 |
|
57.7 |
Funds From Operations (FFO), M€ * |
42.7 |
51.7 |
-17.4 |
68.2 |
80.5 |
-15.3 |
167.2 |
FFO margin, % * |
38.0 |
47.5 |
|
30.2 |
37.1 |
|
37.8 |
FFO excluding non-recurring costs, M€ * |
42.7 |
51.7 |
-17.4 |
68.2 |
80.5 |
-15.3 |
167.2 |
Investment properties, M€ ¹⁾ |
|
|
|
7,922.6 |
8,268.1 |
-4.2 |
8,038.8 |
Financial occupancy rate, % |
|
|
|
91.7 |
92.2 |
|
93.0 |
Interest-bearing liabilities, M€ * |
|
|
|
3,861.4 |
3,658.8 |
5.5 |
3,600.4 |
Return on equity (ROE), % * |
|
|
|
-2.9 |
4.0 |
|
-2.4 |
Return on investment (ROI), % * |
|
|
|
-0.2 |
3.6 |
|
-0.4 |
Equity ratio, % * |
|
|
|
43.0 |
45.3 |
|
44.5 |
Loan to Value (LTV), % *²⁾ |
|
|
|
45.0 |
43.8 |
|
44.6 |
EPRA Net Reinstatement Value (NRV), M€ |
|
|
|
4,487.0 |
4,819.9 |
-6.9 |
4,558.8 |
Gross investments, M€ * |
10.9 |
61.3 |
-82.2 |
19.3 |
116.3 |
-83.4 |
190.7 |
Number of personnel, end of the period |
|
|
|
299 |
344 |
|
288 |
|
|
|
|
|
|
|
|
Key figures per share, € |
4–6/2024 |
4–6/2023 |
Change % |
1–6/2024 |
1–6/2023 |
Change % |
2023 |
FFO per share * |
0.17 |
0.21 |
-19.1 |
0.28 |
0.33 |
-15.2 |
0.68 |
Earnings per share |
-0.34 |
0.23 |
-247.8 |
-0.21 |
0.31 |
-167.7 |
-0.36 |
EPRA NRV per share |
|
|
|
18.16 |
19.50 |
-6.9 |
18.45 |
Equity per share |
|
|
|
14.50 |
15.46 |
-6.2 |
14.67 |
|
|
|
|
|
|
|
|
* 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, the formulas used in their calculation, and reconciliation
calculations in accordance with ESMA guidelines section of the
Half-Year Financial Report |
¹⁾
Including Non-current assets held for sale |
|
²⁾
Excluding Non-current assets held for sale |
|
Outlook for Kojamo in 2024
Kojamo reiterates its outlook issued on July 15, 2024, in which
Kojamo estimates that in 2024, the Group’s total revenue will
increase by 2–4 per cent (previously 4–7 per cent) year-on-year. In
addition, Kojamo estimates that the Group’s FFO for 2024 will
amount to between EUR 142–152 million, excluding non-recurring
costs (previously EUR 152–164 million).
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
rises in 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 half of
the year. FFO decreased compared to the comparison period due to an
increase in financial and maintenance expenses. Our financial key
figures and liquidity situation have remained good.
The market situation was reflected in a decrease in our
occupancy rate and affected the rent increases. The supply of
apartments remains plentiful, and the competition for good
residents has been intense. A number of previously started projects
were completed, and in addition, unsold new owner-occupied housing
has been moved into the rental market, delaying the correction of
the supply situation. Although urbanisation continued to be strong,
the oversupply situation did not start to dissipate yet in the
spring.
The number of residential start-ups has been very low for a long
time, and the number of granted building permits has declined
further from the previous year. There is no clear sign of
construction activity picking up, which is why the number of
market-based apartments to be completed in the next couple of years
will be very limited. At the same time, urbanisation is
progressing. Population growth has remained strong in Helsinki,
Tampere and Turku regions due to internal migration and
immigration. These factors are still expected to balance the demand
and supply of rental apartments and to lead to a reduction in the
supply of rental apartments in the market. Our renting in July and
at the beginning of August has been supportive for the
guidance.
At the beginning of the year, few significant residential real
estate transactions were made in Finland. However, in the second
quarter, we increased the yield requirements for investment
properties to reflect the completed transactions. The decrease in
interest rates reduces the pressure to change yield requirements in
the near future.
The saving programme launched last autumn has progressed
according to the plan. Our goal is to maintain the company's strong
financial position and adapt our operations to the challenges
brought by the uncertainty in the real estate market and the higher
interest rate environment. Investments this year will be
exceptionally low. No new modernisation investments have been
started, and we have reduced repairs other than those supporting
renting of apartments. The personnel layoffs are still in effect,
and in addition, we have brought efficiency to our operations by
renewing our organisation. The savings in administrative and
marketing expenses have been significant. Also, the decision made
in the spring not to pay the dividend will help to keep the capital
structure strong.
The last apartments under construction were completed at the end
of June. We have a binding preliminary agreement for only one
property. The situation is entirely exceptional in the company's
history. In the short term, we focus on managing the existing
housing portfolio and are not currently planning any new
investments. In this way, we want to ensure that our financial
situation will remain strong, our existing business will
strengthen, and the goals of the saving programme will be
achieved.
Positive signs in the operating environment are visible.
Inflation has slowed down, and the decline in market interest rates
seems to have started, although a rapid decrease in interest rates
has not occurred. Due to the successful financing arrangements made
in the early part of the year, our financial position is solid,
which allows us to patiently await improvements in market
conditions.
Jani Nieminen
CEO
News conference as a webcast
Kojamo will hold a news conference for institutional investors,
analysts and media on 15 August 2024 at 10.00 a.m. EEST at the
company’s head office at Mannerheimintie 168A, Helsinki. The event
will be held in English. After the event, the media has a
possibility to ask questions also in Finnish.
The event can also be followed as a live webcast through which
it is possible to ask questions. No registration for the webcast in
advance is needed. The event will be accessible at
https://kojamo.videosync.fi/q2-2024.
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/
- Kojamo Half-Year Financial Report 1 January - 30 June 2024
- Kojamo Half-Year Financial Report 1 January - 30 June 2024
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