Slide 1: Interim Report 1–9/2024
7 November 2024 Interim Report 1–9/2024 Erik Hjelt, Interim CEO Kojamo plc
Slide 2: Agenda
Agenda • Summary of January– September 2024 • Financial development • Outlook and financial targets Kojamo plc's Interim Report January−September 2024 2
Slide 3: Summary of January–September 2024
Summary of January– September 2024 Kojamo plc's Interim Report January−September 2024 3
Slide 4: Total revenue and net rental income increased, the fair value of investment properties unchanged
Total revenue and net rental income increased, the fair value of investment properties unchanged • Total revenue and net rental income increased • Financial occupancy rate decreased from the comparison period. Occupancy rate in the third quarter nevertheless improved compared to the second quarter o
Slide 5: Operating environment
Operating environment General operating environment Operating environment key figures • Global economic uncertainty has increased particularly 2024E 2023 due to geopolitical tensions GDP growth, % -0.2 -1.2 Unemployment, % 8.0 7.2 • Strong growth in the United States continues, driven by Inflation,
Slide 6: Operating environment
Operating environment Housing production Industry key figures • Construction is recovering slowly. The number of residential start-ups this year is forecast to fall below 2024E 2023 last year’s level, reaching 17,000 apartments Residential start-ups, units 17,000 18,000 of which non-subsidised apart
Slide 7: Operating environment
Operating environment Rental market situation • There is still oversupply in the market, but the supply of Population growth forecast 2022–2040, % apartments has turned to a decline Helsinki 22.4 Capital region* 25.9 • Urbanisation and decreasing average household size Jyväskylä 8.0 support the long
Slide 8: Key figures 1–9/2024
Key figures 1–9/2024 total revenue net rental income funds from operations (FFO) 338.8 M€ 228.4 M€ 113.8 M€ (328.6 M€, +3.1%) (221.6 M€, +3.1%) (128.9 M€, -11.8%) fair value of investment profit excluding changes in gross investments value 1) profit/loss before taxes properties 7.9 Bn€ 21.6 M€ 123.6
Slide 9: Financial development
Financial development Kojamo plc's Interim Report January−September 2024 9
Slide 10: Total revenue and net rental income increased
Total revenue and net rental income increased • Total revenue increased due to the rental apartments completed at the end of last year and the beginning of the year, and it was weakened by the development of rents and the financial occupancy rate • Net rental income was positively impacted by higher
Slide 11: Profit before taxes and FFO
Profit before taxes and FFO • FFO decreased from the comparison period, which was particularly affected by higher financial and maintenance expenses. Financial income of the comparison period includes a profit of EUR 8.7 million from the repurchase of bonds • Administrative expenses and repair expen
Slide 12: Financial occupancy rate
Financial occupancy rate • Financial occupancy rate was 91.5 (92.7) per cent for the review period. Occupancy rate in the third quarter nevertheless improved compared to the second quarter of the year • Tenant turnover increased from the previous year • Renting was impacted by the abundant supply of
Slide 13: Development of Like-for-Like rental income
Development of Like-for-Like rental income The past 12 months compared to the previous 12-month period Development of Like-for-Like rental income as at 30 September 2024 +0.9% -0.9% -0.4% -0.4% Impacts of Impact of Other Like-for-Like rents and water charges occupancy rate impacts rental income grow
Slide 14: As a part of the saving programme, investments decreased significantly
As a part of the saving programme, investments decreased significantly • We will not make new investment decisions nor will we launch modernisation projects for the time being • At the end of this year, we will start the construction of a project which is based on a previously signed binding prelimi
Slide 15: The value of investment properties was EUR 7.9 billion
The value of investment properties was EUR 7.9 billion • The fair values did not change significantly from Changes in fair value the end of second quarter. The valuation yield M€ 1–9/2024 1–9/2023 requirements of the investment properties were Change in yield requirement -165.9 -154.1 not changed in
Slide 16: Equity ratio and Loan to Value (LTV) at a strong level
Equity ratio and Loan to Value (LTV) at a strong level • Equity ratio and Loan to Value (LTV) have remained strong • There’s a significant buffer to LTV maximum limit of 50 per cent Equity ratio, % Loan to Value (LTV), % 43.7 44.6 44.3 44.7 49.0 41.4 45.6 45.3 44.5 45.0 37.7 43.1 2020 2021 2022 2023
Slide 17: Loans maturing in 2024 and 2025 are covered
Loans maturing in 2024 and 2025 are covered • Following the financing arrangements made in the beginning of the year, our liquidity situation is good • The next financing need is for loans maturing in 2026 • The average interest rate of loans decreased • In the autumn, Moody's confirmed Kojamo's pre
Slide 18: Key figures per share
Key figures per share • Key figures per share did not change significantly from the year-end Equity per share, € EPRA NRV per share, € -4.1% -4.0% 22.04 19.53 19.11 18.45 18.34 17.25 17.21 15.55 14.67 15.18 14.56 13.39 2020 2021 2022 2023 30 Sep 30 Sep 2020 2021 2022 2023 30 Sep 30 Sep 2023 2024 202
Slide 19: Outlook and financial targets
Outlook and financial targets Kojamo plc's Interim Report January−September 2024 19
Slide 20: Outlook for Kojamo in 2024 unchanged
Outlook for Kojamo in 2024 unchanged Kojamo estimates that in 2024, the Groupʼs total revenue will increase by 2–4 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. The outlook is based on the
Slide 21: Strategic targets
Strategic targets M€ 1–9/2024 2023 2022 2021 2020 Target Annual growth of total revenue, % 3.1 7.0 5.5 2.0 2.3 4–5 Annual investments, M€ 21.6 190.7 501.6 356.9 371.2 200–400 FFO/total revenue, % 33.6 37.8 38.9 39.1 39.5 > 36 Loan to Value (LTV), % 44.7 44.6 43.7 37.7 41.4 < 50 Equity ratio, % 43.1
Slide 22: Summary
Summary Total revenue and net Financial occupancy rate Saving programme is rental income increased decreased from the progressing according to comparison period but the plan FFO decreased due to improved in the third increased financial and Balance sheet has quarter compared to the maintenance expen
Slide 23: Thank you!
Financial Statements for 2024 to be published on Thank you! 13 February 2025 Contact details: Interim CEO Erik Hjelt, tel. +358 20 508 3225 Director, Treasury & Investor Relations Niina Saarto, tel. +358 20 508 3283 www.kojamo.fi Kojamo plc's Interim Report January−September 2024 23
Slide 24: Appendix
Appendix Kojamo plc's Interim Report January−September 2024 24
Slide 25: Our strategy
Our strategy • Delivering the best • The most competent customer experience personnel and a • Growth dynamic workplace • Operational excellence • Renewal through • Responsibility and digital solutions sustainable development 25
Slide 26: Strategic focal points
Strategic focal points Delivering the We offer easy and effortless services For now, we focus on growing best customer for our customers and create added Growth total revenue in the existing experience value through services apartment portfolio Responsibility We create competitiveness and Responsibi
Slide 27: Lumo – Easily best living
Lumo – Easily best living Basic functions Lumo Service Center Real estate development My Lumo service Maintenance Homes for Sales Cleaning various life Lumo webstore Renovations and repairs stages Building management Waste management Technical management Fixed customer benefits Customer benefits Bro
Slide 28: Our roadmap towards carbon neutrality
Our roadmap towards carbon neutrality • We are committed to carbon-neutral energy use in our properties by 2030 • Our goal is to reduce carbon dioxide emissions by 5% annually until the end of 2025 • Our property electricity is 100% carbon neutral Kojamo plc's Interim Report January−September 2024 2
Slide 29: Kojamo's apartment portfolio
Kojamoʼs apartment portfolio Apartment distribution, % Fair value distribution, % Helsinki region 3.5 4.5 3.2 2.22.5 4.1 Tampere region 2.5 3.0 5.0 Turku region 4.2 5.4 Oulu 8.6 5.2 Jyväskylä 9.6 62.7 Kuopio region Lahti region 73.9 Others Number of Number of commercial and Financial apartments, oth
Slide 30: Housing stock and customer distribution
Housing stock and customer distribution • Kojamo’s housing stock meets the demand nicely • All age groups are well represented among the tenants Housing stock by apartment Customers by household Customers by age group, % type, % type, % studios 1 person <25 5.0 7.5 3.3 3.3 12.4 24.0 14.3 2 person 25
Slide 31: Topical with our sustainability work
Topical with our sustainability work • In February, we updated our Green Finance Framework to align future financing activities with market best practices and standards • We have implemented an AI-powered sustainability and energy management system which provides up-to-date information to support de
Slide 32: Key figures of sustainability 1–9/2024
Key figures of sustainability 1–9/2024 1-9/2024 1-9/2023 Target 1-9/2024 1-9/2023 Target CO₂ emissions -18.9 -15.3 -5.0 Percentage of 87 85 90 per apartment, customers using tCO₂e/apartment, My Lumo, % change % * NPS 54 51 48 Heat index of portfolio, 3.5 n/a -3.0 weather-nomalized, kWh/m³, change %
Slide 33: Sustainability is visible in our every day life
Sustainability is visible in our every day life Kojamo plc's Interim Report January−September 2024 33
Slide 34: Sustainability commitments and reporting
Sustainability commitments and reporting Our sustainability Our sustainability reporting and Our commitments recognitions memberships Our target is carbon- We participated in the global neutral energy use in our 74/100* GRESB sustainability properties by 2030 assessment We are committed to We are a
Slide 35: Dividend policy
Dividend policy Kojamo’s objective is to be a stable Dividend history dividend payer whose annual dividend payment will be at least 60 per cent of FFO, provided that the Group’s equity 60% 60% 61% 60% ratio is 40 per cent or more and taking 0.38 account of the company’s financial 0.34 0.37 0.39 posi
Slide 36: Kojamo's ten largest shareholders (as at 30 September 2024)
Kojamoʼs ten largest shareholders (as at 30 September 2024) Number of Shareholder shares % of shares Development of the number of the Nominee-registered shareholders 79,254,521 32.1 shareholders 1. Heimstaden Bostad AB 49,389,283 20.0 2. Ilmarinen Mutual Pension Insurance Company 20,537,814 8.3 15,3
Slide 37: Key figures
Key figures 7–9/2024 7–9/2023 Change, % 1–9/2024 1–9/2023 Change, % 2023 Total revenue, M€ 113.2 111.5 1.5 338.8 328.6 3.1 442.2 Net rental income, M€ 85.7 83.1 3.1 228.4 221.6 3.1 297.2 Net rental income margin, % 75.8 74.6 67.4 67.4 67.2 Profit/loss before taxes, M€ 50.6 -88.5 157.2 -14.3 7.2 -299
Slide 38: Consolidated income statement
Consolidated income statement M€ 7–9/2024 7–9/2023 1–9/2024 1–9/2023 1–12/2023 Total revenue 113.2 111.5 338.8 328.6 442.2 Maintenance expenses -22.7 -21.4 -93.8 -85.7 -115.7 Repair expenses -4.7 -7.0 -16.6 -21.3 -29.3 Net rental income 85.7 83.1 228.4 221.6 297.2 Administrative expenses -8.8 -10.5
Slide 39: Balance sheet
Balance sheet M€ 30 Sep 2024 30 Sep 2023 31 Dec 2023 Non-current assets Intangible assets 0.4 0.6 0.6 Investment properties 7,924.6 8,171.4 8,038.8 Property, plant and equipment 27.6 28.1 28.0 Investments in associated companies 2.2 1.8 2.0 Financial assets 0.8 0.7 0.8 Non-current receivables 6.3 6.
Slide 40: Balance sheet
Balance sheet M€ 30 Sep 2024 30 Sep 2023 31 Dec 2023 Equity attributable to shareholders of the parent company Share capital 58.0 58.0 58.0 Share issue premium 35.8 35.8 35.8 Fair value reserve -6.2 42.5 11.2 Invested non-restricted equity reserve 164.4 164.4 164.4 Retained earnings 3,345.5 3,451.1
Slide 41: Financial key figures
Financial key figures 30 Sep 2024 30 Jun 2024 31 Mar 2024 30 Dec 2023 30 Sep 2023 Equity ratio, % 43.1 43.0 44.3 44.5 45.0 Interest cover 2.5 2.7 3.0 3.2 3.4 Coverage ratio 2.7 2.8 3.3 3.6 3.9 Loan to Value (LTV), % 44.7 45.0 44.5 44.6 44.3 Hedging ratio, % ¹⁾ 93 78 94 93 86 Average interest rate, %
Slide 42: Important information
Important information This presentation shall not constitute an offer to sell or the solicitation of an offer to buy securitites in any jurisdiction. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitme