Lumo Homes Plc · OMXHEX:LUMO
Lumo Homes — Kojamo — Q1 2021 Earnings Presentation
45 slides from Lumo Homes's earnings presentation, May 12, 2021
Slide 1: Interim Report 1–3/2021
12 May 2021 Interim Report 1–3/2021 Jani Nieminen, CEO Erik Hjelt, CFO Kojamo plc
Slide 2: Agenda
Agenda • Summary of January–March 2021 • Financial development • Outlook, financial targets and dividend policy Kojamo plc's Interim Report January–March 2021 2
Slide 3: Summary of January–March 2021
Summary of January–March 2021 Kojamo plc's Interim Report January–March 2021 3
Slide 4: Operating environment
Operating environment General operating environment Industry key figures 2021E 2020 Residential start-ups, units 37,000 40,900 • The global economy and world trade have gradually strength- ened since last summer of which non-subsidised block-of-flats 17,300 21,700 start-ups in the capital region n/a
Slide 5: Operating environment
Operating environment Population growth forecast 2019–2030 Helsinki 11.7% Pandemic does not have a long-term impact on Capital region* 13.0% the rental market Helsinki region** 10.5% • Urbanisation, decreasing average household size and demand Jyväskylä 7.1% focusing on central locations support the
Slide 6: Operating environment
Operating environment Completed apartments and population Housing production need 2020–2040 growth in the capital region in 2000–2020 Helsinki apartments population 22% 20,000 30,000 Tampere 15,000 Oulu 20,000 3% ~35,000 43% Turku 10,000 3% apartments / Jyväskylä 10,000 year 5,000 4% Kuopio 8% Lahti
Slide 7: Key figures 1–3/2021
Key figures 1–3/2021 total revenue net rental income funds from operations (FFO) 97.2 M€ 55.5 M€ 27.6 M€ (95.7 M€, +1.6%) (56.0 M€, -1.0%) (29.4 M€, -6.2%) fair value of investment profit excluding properties gross investments changes in value 1) profit before taxes 7.1 Bn€ 68.0 M€ 33.6 M€ 177.1 M€
Slide 8: 2,619 apartments under construction
2,619 apartments under construction • During the review period, 0 (3) apartments were sold, 0 (0) acquired and 45 (119) completed • During the period, construction of 40 (454) apartments was started Development of apartment portfolio, units Apartments under construction, units +1.3% +58.6% 35,802 35
Slide 9: Strong project pipeline
Strong project pipeline • Over 2,600 apartments under construction, all in the Kojamo’s projects on map Helsinki region • Co-operation agreements on the construction of almost 1,000 apartments • Metropolia property development project to bring even 1,000 apartments, as 6 former educational buildings
Slide 10: We want to be the property market frontrunner and the number one choice for our customers
We want to be the property market frontrunner and the number one choice for our customers Distribution of Lumo customers Services of a new customer Services during tenancy Distribution by household type Pets are welcome Lumo real estate management and 1 person 15% customer service Broadband included
Slide 11: Our sustainability work is proceeding
Our sustainability work is proceeding • Our sustainability programme is guiding our sustainability work since 2021 We commit to complying with the UN Sustainable Development • We published a comprehensive sustainability report as a Goals part of our annual report in March We aim to use carbon-neutra
Slide 12: Financial development
Financial development Kojamo plc's Interim Report January–March 2021 12
Slide 13: Total revenue increased
Total revenue increased • Total revenue increased mainly due to growth of property portfolio as well as Like-for-Like rental income growth • The weather was colder and the winter was snowier than in the comparison period which had an impact on net rental income Total revenue, M€ Net rental income, M
Slide 14: Profit before taxes increased
Profit before taxes increased • Profit before taxes increased mainly due to changes in value • Lower net rental income and higher financing costs due to increased amount of interest-bearing debt than in the comparison period had an impact on FFO Funds From Operations (FFO), M€ Profit before taxes, M
Slide 15: The impact of COVID-19 pandemic was visible in the financial occupancy rate
The impact of COVID-19 pandemic was visible in the financial occupancy rate • COVID-19 pandemic has temporarily had an impact on the increase of supply as well as migration • Rent receivables to total revenue on a low level of 1.1% (1.2%) Financial occupancy rate, % Tenant turnover, % excluding inte
Slide 16: 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 31 March 2021 +2.0% COVID-19 pandemic had a negative impact on the occupancy rate, which is why Like-for-Like growth was moderate as anticipated -1.
Slide 17: Investments proceeding according to strategy
Investments proceeding according to strategy • Gross investments increased from previous year Gross investments and sales of Modernisation investments and investment properties, M€ repairs, M€ Gross investments Sales of investment properties Modernisation investments Repairs 371.2 67.6 367.3 365.2 6
Slide 18: The value of investments properties was EUR 7.1 billion
The value of investments properties was EUR 7.1 billion • The fair value has developed positively during the review period • Yield compression increased the fair value Fair value of investment properties, M€ 1) Number of apartments by valuation (at the end of the review period) classes (at the end o
Slide 19: Plot and real estate development reserve March 2021
Plot and real estate development reserve 31 March 2021 To be completed in Q2/2021 Owned plots and development projects1 Niittykatu 15, Vinsentinaukio 4, Espoo Helsinki Apartments Binding Metropolia under preliminary development construction agreements project Others In total Investment / actual cost
Slide 20: Equity ratio and Loan to Value (LTV)
Equity ratio and Loan to Value (LTV) • Equity ratio and Loan to Value (LTV) in line with the strategic targets Equity ratio, % Loan to Value, (LTV), % 46.0 45.9 46.9 45.6 45.5 41.4 40.2 45.3 40.5 39.5 41.3 43.0 2017 2018 2019 2020 31 Mar 31 Mar 2017 2018 2019 2020 31 Mar 31 Mar 2020 2021 2020 2021 T
Slide 21: Key figures per share improved significantly
Key figures per share improved significantly • Going forward, we will follow EPRA NRV as our principal key figure for net asset value Equity per share, € 1) EPRA NRV per share, € 1) +10.7% +10.8% 13.39 13.63 17.21 17.55 12.51 12.30 16.00 15.86 9.54 11.52 12.10 8.88 2017 2018 2019 2020 31 Mar 31 Mar
Slide 22: Versatile capital structure
Versatile capital structure The Group’s loan distribution Financing key figures 31 March 2021 % years 3 6 Loan portfolio EUR 2,966 million Average interest rate fixing period, years 4.5 5 2.5 Average loan maturity, years 4.4 4 Bonds 3 EUR 1,689 million 1% 2% 0% 2 Average interest rate, % 1.9 2 Loans
Slide 23: Strategic targets 2020–2023
Strategic targets 2020–2023 Actual Actual Key figure Strategic target 1–3/2021 2020 Annual growth of total revenue, % 1.6 2.3 4–5 Annual investments, M€ 68.0 371.2 200–400 FFO/total revenue, % 28.4 39.5 > 36 Loan to Value (LTV), % 40.2 41.4 < 50 Equity ratio, % 45.5 45.6 > 40 Net Promoter Score (NPS
Slide 24: Outlook, financial targets and dividend policy
Outlook, financial targets and dividend policy Kojamo plc's Interim Report January–March 2021 24
Slide 25: Outlook for Kojamo in 2021
Outlook for Kojamo in 2021 Kojamo estimates that in 2021, the Group’s total revenue will increase by 3–5 per cent year-on-year. In addition, Kojamo estimates that the Group’s FFO for 2021 will amount to between EUR 150–163 million, excluding non-recurring items. The outlook is based on the managemen
Slide 26: Dividend policy
Dividend policy Dividend history Kojamo’s objective is to be a 62% 60% 60% stable dividend payer whose 0.51 annual dividend payment will be 0.37 0.34 0.29 0.29 at least 60 per cent of FFO, 0.22 0.16 provided that the Group’s equity 0.22 ratio is 40 per cent or more and 2015 2016* 2017 2018 2019 2020
Slide 27: Summary
Summary The beginning of the year Our project portfolio is We expect the impact of went as anticipated and strong and located well in COVID-19 pandemic on we continue our steady the capital region the operating environment growth: the value of to be temporary and that investment properties urbanisat
Slide 28: Thank you!
Half-year financial report for January–June 2021 Thank you! to be published on 19 August 2021 Contact details: CEO Jani Nieminen, tel. +358 20 508 3201 CFO Erik Hjelt, tel. +358 20 508 3225 Manager, Investor Relations Maija Hongas, tel. +358 20 508 3004 www.kojamo.fi Kojamo plc's Interim Report Janu
Slide 29: Appendix
Appendix Kojamo plc's Interim Report January–March 2021 29
Slide 30: Kojamo’s apartment portfolio
Kojamo’s apartment portfolio Apartment distribution, % Number of 4.0 5.2 commercial 4.7 Number Fair Fair value Fair Helsinki premises Financial Share of 4.9 of apart- value, (EUR value region Region and other occupancy revenue, 6.2 ments, (EUR thousand (EUR / leased rate, %3) % Tampere units million
Slide 31: Metropolia properties
Metropolia properties E Six former educational building assets to be converted in rental apartments F Metropolia development project assets Metro Railway D Anticipated approval of B Asset rezoning A. Abrahaminkatu 1 Chemistry faculties Completed B. Agricolankatu 1 Completed C C. Albertinkatu 40 Eeri
Slide 32: Our strategy 2020–2023
Our strategy 2020–2023 Megatrends Mission Values We create better urban housing. Urbanisation & internationalisation Happy to serve Vision Ageing population & We are the property market frontrunner and smaller family sizes the number one choice for our customers. New technologies & Strategic focal p
Slide 33: Strategic focal points 2020–2023
Strategic focal points 2020–2023 Delivering the Strong growth Operational best customer excellence experience We offer easy and effortless We seek profitable growth with We create competitiveness and services for our customers and multi-channel approach and profitability through industry- create add
Slide 34: Our Digital Roadmap will guide us from today to year 2023 according to our strategy
Our Digital Roadmap will guide us from today to year 2023 according to our strategy Customer experience and servitisation Scalability of operations, employee experience NPS 59 Digital services Digitalisation of properties and services 72 % My Lumo user coverage Knowledge-based management and AI Enab
Slide 35: Sustainability programme guides our sustainability work from 2021 onwards
Sustainability programme guides our sustainability work from 2021 onwards STRATEGIC FOCAL POINT 2020–2023: RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT We create better urban housing Ensuring long-term profitability and Sustainable and responsible operations Transparent communications and business gro
Slide 36: Key sustainability figures 2020
Key sustainability figures 2020 Energy efficiency Carbon footprint 34.5 8.9 5.5 1.4 kWh/m3 (40.4) MWh/apartment kg CO2e/m3 (6.9) t CO2e/apartment 20.6% 84% 100% 37% share of renewable energy of completed apartments since of apartments under waste recycling rate (35) of energy consumption 2016 with a
Slide 37: Sustainability commitments and reporting
Sustainability commitments and reporting Our sustainability Our sustainability reporting and Our commitments recognitions memberships We aim to use carbon- We participated the global neutral energy in our GRESB sustainability 70/100 assessment for the first time properties by 2030 We commit to We ap
Slide 38: Sustainability is visible in our every day life
Sustainability is visible in our every day life Sustainable cities The most competent A responsible personnel and a corporate citizen We commit to complying with the UN Sustainable Development Goals and to use carbon-neutral energy in our properties by 2030 dynamic place to work Anti-grey economy 10
Slide 39: Kojamo’s ten largest shareholders (as at 31 March 2021)
Kojamo’s ten largest shareholders (as at 31 March 2021) Number of Development of the number Shareholder shares % of shares Nominee-registered and direct foreign of the shareholders 12,960 102,807,017 41.6 shareholders 1. The Finnish Industrial Union 24,809,561 10.0 2. Ilmarinen Mutual Pension Insura
Slide 40: Key figures
Key figures 1–3/2021 1–3/2020 Change, % 2020 Total revenue, M€ 97.2 95.7 1.6 383.9 Net rental income, M€ 55.5 56.0 -1.0 257.6 Net rental income margin, % 57.0 58.6 67.1 Profit before taxes, M€ 177.1 51.7 242.3 391.2 Gross investments, M€ 68.0 62.1 9.6 371.2 Funds From Operations (FFO), M€ 27.6 29.4
Slide 41: Consolidated income statement
Consolidated income statement M€ 1–3/2021 1–3/2020 2020 Total revenue 97.2 95.7 383.9 Maintenance expenses -35.4 -33.1 -90.5 Repair expenses -6.3 -6.5 -35.8 Net rental income 55.5 56.0 257.6 Administrative expenses -9.3 -10.2 -38.4 Other operating income and expenses 0.3 0.6 3.4 Profit/loss on sales
Slide 42: Balance sheet
Balance sheet M€ 31 Mar 2021 31 Mar 2020 31 Dec 2020 ASSETS Non-current assets Intangible assets 0.4 0.2 0.4 Investment properties 7,072.3 6,344.2 6,860.7 Property, plant and equipment 29.6 30.7 29.8 Investments in associated companies 1.1 2.4 1.1 Financial assets 0.7 0.7 0.7 Non-current receivables
Slide 43: Balance sheet
Balance sheet M€ 31 Mar 2021 31 Mar 2020 31 Dec 2020 EQUITY AND LIABILITIES 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 -44.9 -51.5 -54.2 Invested non-restricted equity reserve 164.4 164.4 164.4 Retained
Slide 44: Financial key figures
Financial key figures 31 Mar 2021 31 Dec 2020 30 Sep 2020 30 Jun 2020 31 Mar 2020 Equity ratio, % 45.5 45.6 44.1 43.3 45.3 Interest cover 4.1 4.2 4.2 4.3 4.3 Loan to Value (LTV), % 40.2 41.4 42.1 42.6 39.5 Hedging ratio, % 90 91 89 87 85 Average interest rate, %1) 1.9 1.8 1.8 1.7 1.8 Average loan ma
Slide 45: 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