Lumo Homes Plc · OMXHEX:LUMO
Lumo Homes — Kojamo — 9M 2021 Earnings Presentation
45 slides from Lumo Homes's earnings presentation, Nov 4, 2021
Slide 1: Interim report 1–9/2021
4 November 2021 Interim report 1–9/2021 Jani Nieminen, CEO Erik Hjelt, CFO Kojamo plc
Slide 2: Agenda
Agenda • Summary of January– September 2021 • Financial development • Outlook, financial targets and dividend policy Kojamo plc`s Interim Report January–September 2021 2
Slide 3: Summary of January–September 2021
Summary of January– September 2021 Kojamo plc`s Interim Report January–September 2021 3
Slide 4: Operating environment
Operating environment General operating environment Industry key figures 2021E 2020 Residential start-ups, units 44,000 40,500 • The recovery of the Finnish economy after the COVID-19 pandemic has been quick after last spring of which non-subsidised block-of-flats 23,000 20,900 start-ups in the capi
Slide 5: Operating environment
Operating environment Population growth forecast 2020–2040, % Pandemic does not have a long-term impact on Helsinki 18.8 the rental market Capital region* 21.1 • The pandemic has had a temporary impact on occupancy rates Jyväskylä 4.2 • Urbanisation, decreasing average household size and demand Kuop
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 20,000 30,000 Tampere 22 15,000 Oulu 20,000 ~35,000 43 Turku 3 apartments / 10,000 3 Jyväskylä year 10,000 4 5,000 Kuopio 8 6 Lahti
Slide 7: Key figures 1–9/2021
Key figures 1–9/2021 total revenue net rental income funds from operations (FFO) 292.0 M€ 196.7 M€ 114.5 M€ (286.8 M€, +1.8%) (193.8 M€, +1.5%) (113.3 M€, +1.1%) fair value of investment profit excluding changes in properties gross investments value 1) profit before taxes 7.6 Bn€ 258.1 M€ 131.9 M€ 6
Slide 8: 2,624 apartments under construction
2,624 apartments under construction • During the review period, 0 (18) apartments were sold, 0 (45) acquired and 820 (340) completed • During the period, construction of 818 (1,556) apartments was started Development of apartment portfolio, units Apartments under construction, units +2.4% +3.6% 2,62
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 800 apartments • Metropolia property development project to create even 1,000 apartments, as six former educational properti
Slide 10: Metropolia properties
Metropolia properties Six former educational building E assets to be converted in rental apartments F Metropolia development project assets Metro Railway D B Asset Anticipated approval of rezoning A. Abrahaminkatu 1 Completed (construction estimated Chemistry faculties to start in 2021) B. Agricolan
Slide 11: We want to be the property market frontrunner
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 customer service 3 1 person 14 Broadband incl
Slide 12: Our sustainability work is proceeding
Our sustainability work is proceeding • We participated in the real estate sector’s annual international GRESB Sustainability Assessment for the We commit to complying with the second time. Our score (77/100) improved by seven points UN Sustainable Development compared to the previous year. With thi
Slide 13: Financial development
Financial development Kojamo plc`s Interim Report January–September 2021 13
Slide 14: Total revenue increased
Total revenue increased • The growth of property portfolio and rental growth had a positive impact and the decrease on financial occupancy rate had a negative impact on the total revenue • The growth of total revenue and the decrease of repair costs had a positive impact and higher property maintena
Slide 15: Positive development with profit before taxes and FFO
Positive development with profit before taxes and FFO • Profit before taxes increased mainly due to changes in value • The positive development of FFO was attributable to the improvement in net rental income Profit before taxes, M€ Funds From Operations (FFO), M€ and € / share +1.1% Profit excluding
Slide 16: COVID-19 pandemic had a substantial effect on the financial occupancy rate
COVID-19 pandemic had a substantial effect on the financial occupancy rate • COVID-19 pandemic has temporarily had an impact on the amount 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 interna
Slide 17: 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 2021 COVID-19 pandemic had a +2.1% negative impact on the occupancy rate, which is why Like-for-Like rental income was slightly negativ
Slide 18: Investments proceeding according to strategy
Investments proceeding according to strategy • Repairs decreased from the previous year’s level, the decrease in modernisation investments was related to the timing of projects Gross investments and sales of Modernisation investments and investment properties, M€ repairs, M€ Gross investments Sales
Slide 19: The value of investment properties was EUR 7.6 billion
The value of investment properties was EUR 7.6 billion • The fair value has developed positively during the review period • Yield compression increased the fair value especially in the second quarter Fair value of investment properties, M€ * Number of apartments by valuation classes +15.3% Yield val
Slide 20: Plot and real estate development reserve 30 September
Plot and real estate development reserve 30 September 2021 To be completed in Q4/2021 Owned plots and development Runoratsunkatu 11, Koronakatu 1, Espoo Espoo projects 1 Apartments Binding Metropolia under preliminary development construction agreements project Others In total Investment / actual co
Slide 21: 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), % 46.9 45.6 46.2 46.0 45.9 43.0 44.1 42.1 41.3 40.5 41.4 41.0 2017 2018 2019 2020 30 Sep 30 Sep 2017 2018 2019 2020 30 Sep 30 Sep 2020 2021 2020 2021 Th
Slide 22: Key figures per share improved significantly
Key figures per share improved significantly • Fair value growth of the investment properties had a positive impact on key figures per share Equity per share, € 1) EPRA NRV per share, € 1) +18.2% +17.6% 19.32 17.21 16.43 15.08 16.00 12.51 13.39 12.76 11.52 12.10 8.88 9.54 2017 2018 2019 2020 30 Sep
Slide 23: Versatile capital structure 30 September 2021
Versatile capital stucture 30 September 2021 The Group’s loan distribution Financing key figures % years 1%2% 0% Bonds 2,036 M€ 3.0 5 4.5 35% 4.4 4 Loans from financial institutions 2.5 3 1,156 M€ 2 Interest subsidy loans 31 M€ 2.0 3,280 M€ 1.8 1 Commercial papers 50 M€ 1.5 0 30 Sep 31 Dec 31 Mar 30
Slide 24: Strategic targets 2020–2023
Strategic targets 2020–2023 Actual Actual Key figure Target 1–9/2021 2020 Annual growth of total revenue, % 1.8 2.3 4–5 Annual investments, M€ 258.1 371.2 200–400 FFO/total revenue, % 39.2 39.5 > 36 Loan to Value (LTV), % 41.0 41.4 < 50 Equity ratio, % 46.2 45.6 > 40 Net Promoter Score (NPS) 20 36 4
Slide 25: Outlook, financial targets and dividend policy
Outlook, financial targets and dividend policy Kojamo plc`s Interim Report January–September 2021 25
Slide 26: Outlook for Kojamo in 2021
Outlook for Kojamo in 2021 Kojamo estimates that in 2021, the Groupʼs total revenue will increase by 2–4 per cent year-on-year. In addition, Kojamo estimates that the Group’s FFO for 2021 will amount to between EUR 150–158 million, excluding non-recurring costs. The outlook is based on the managemen
Slide 27: Dividend policy
Dividend policy Dividend history Kojamo’s objective is to be a stable dividend payer whose 62% 60% 60% annual dividend payment will be 0.51 at least 60 per cent of FFO, 0.29 0.34 0.37 0.29 0.22 provided that the Group’s equity 0.16 0.22 ratio is 40 per cent or more and taking account of the company’
Slide 28: Summary
Summary Total revenue and net Our project portfolio is We expect the impact of rental income increased, strong and will support us COVID-19 pandemic on FFO developed favourably, in creating future growth the operating environment especially in the third to be temporary and that quarter urbanisation
Slide 29: Thank you!
Financial Statements Release for 2021 to be published on Thank you! 17 February 2022 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 January–Septe
Slide 30: Appendix
Appendix Kojamo plc`s Interim Report January–September 2021 30
Slide 31: Kojamo's apartment portfolio
Kojamoʼs apartment portfolio Apartment distribution, % Number of commercial Fair 3.9 5.1 Helsinki region Number Fair Fair premises value, Financial Share of 4.6 of apart- value, value, Region and other (EUR occupancy revenue, 4.9 ments, (EUR (EUR / leased thousand rate, %3) % Tampere region units mi
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
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 63 Digital services Digitalisation of properties and services 70% My Lumo user coverage Knowledge-based management and AI Enabl
Slide 35: Sustainability programme guides our sustainability work
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 77/100 assessment properties by 2030 We commit to We apply EPRA’s Sustaina
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
Kojamoʼs ten largest shareholders (as at 30 September 2021) Number of Development of the number of the shareholders Shareholder shares % of shares 12,960 12,803 Nominee-registered and direct foreign 12,258 113,877,635 46.1 shareholders 1. The Finnish Industrial Union 21,506,142 8.7 9,076 8,273 Ilmar
Slide 40: Key figures
Key figures 7–9/2021 7–9/2020 Change, % 1–9/2021 1–9/2020 Change, % 2020 Total revenue, M€ 98.1 96.3 1.9 292.0 286.8 1.8 383.9 Net rental income, M€ 72.2 68.9 4.9 196.7 193.8 1.5 257.6 Net rental income margin, % 73.6 71.5 67.4 67.6 67.1 Profit before taxes, M€ 69.3 72.8 -4.8 616.0 198.0 211.1 391.2
Slide 41: Consolidated income statement
Consolidated income statement M€ 7–9/2021 7–9/2020 1–9/2021 1–9/2020 2020 Total revenue 98.1 96.3 292.0 286.8 383.9 Maintenance expenses -17.8 -17.9 -71.8 -68.1 -90.5 Repair expenses -8.1 -9.6 -23.5 -24.9 -35.8 Net rental income 72.2 68.9 196.7 193.8 257.6 Administrative expenses -8.2 -8.8 -27.4 -29
Slide 42: Balance sheet
Balance sheet M€ 30 Sep 2021 30 Sep 2020 31 Dec 2020 ASSETS Non-current assets Intangible assets 0.5 0.1 0.4 Investment properties 7,605.6 6,595.4 6,860.7 Property, plant and equipment 28.7 29.6 29.8 Investments in associated companies 1.1 1.6 1.1 Financial assets 0.7 0.7 0.7 Non-current receivables
Slide 43: Balance sheet
Balance sheet M€ 30 Sep 2021 30 Sep 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 -37.7 -55.1 -54.2 Invested non-restricted equity reserve 164.4 164.4 164.4 Retained
Slide 44: Financial key figures
Financial key figures 30 Sep 2021 30 Jun 2021 31 Mar 2021 31 Dec 2021 30 Sep 2020 Equity ratio, % 46.2 45.8 45.5 45.6 44.1 Interest cover 4.0 4.0 4.1 4.2 4.2 Loan to Value (LTV), % 41.0 41.0 40.2 41.4 42.1 Hedging ratio, % 92 92 90 91 89 Average interest rate, % ¹⁾ 1.8 1.8 1.9 1.8 1.8 Average loan m
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