Lumo Homes Plc · OMXHEX:LUMO
Lumo Homes — Kojamo — Q1 2024 Earnings Presentation
46 slides from Lumo Homes's earnings presentation, May 8, 2024
Slide 1: Interim Report 1–3/2024
8 May 2024 Interim Report 1–3/2024 Jani Nieminen, CEO Erik Hjelt, CFO Kojamo plc
Slide 2: Agenda
Agenda • Summary of January–March 2024 • Financial development • Outlook and financial targets Kojamo plc's Interim Report January−March 2024 2
Slide 3: Summary of January–March 2024
Summary of January–March 2024 Kojamo plc's Interim Report January−March 2024 3
Slide 4: Total revenue and net rental income increased, no significant value changes
Total revenue and net rental income increased, no significant value changes in the investment properties • Total revenue, net rental income and profit before taxes increased in the first quarter of the year • Financial occupancy rate slightly improved from the comparison period, and tenant turnover
Slide 5: Operating environment
Operating environment General operating environment Operating environment key figures • The outlook for the global economy is improving; slower 2024E 2023 inflation and falling interest rates boost consumption GDP growth, % 0.0 -1.0 and investments. Geopolitical tensions cast a shadow Unemployment,
Slide 6: Operating environment: rental market situation
Operating environment The rental market situation Population growth forecast 2022–2040, % • Urbanisation, decreasing average household size and Helsinki 22.4 demand focusing on central locations support the demand Capital region* 25.9 for rental apartments in the long term Jyväskylä 8.0 • Internal m
Slide 7: Operating environment: housing production and demand
Operating environment Housing production and demand Industry key figures • The number of residential start-ups plummeted last year, and a turn for the better is not in sight yet. The 2024E 2023 collapse of residential start-ups and long construction Residential start-ups, units 16,500 17,500 times a
Slide 8: Key figures 1–3/2024
Key figures 1–3/2024 total revenue net rental income funds from operations (FFO) 113.3 M€ 60.6 M€ 25.5 M€ (108.2 M€, +4.7%) (59.5 M€, +1.9%) (28.8 M€, -11.5%) fair value of investment profit excluding changes in gross investments value 1) profit/loss before taxes properties 8.1 Bn€ 8.4 M€ 28.3 M€ 39
Slide 9: Ongoing development projects
Ongoing development projects • For the time being, we will not make new investment decisions due to the uncertainty in the market • 113 apartments* under construction in the Helsinki region • Costs of completing these is EUR 5.3 million • Owned plots enable starts of about 2,300 apartments Estimate
Slide 10: 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 11: 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−March 2024 11
Slide 12: Financial development
Financial development Kojamo plc's Interim Report January−March 2024 12
Slide 13: Total revenue and net rental income increased
Total revenue and net rental income increased • Total revenue increased due to the growth of property portfolio as well as due to the development of rents and the financial occupancy rate • Net rental income was positively impacted by higher total revenue and negatively impacted by increase in prope
Slide 14: Profit before taxes and FFO
Profit before taxes and FFO • Profit before taxes improved from the comparison period • FFO decreased compared to the comparison period which was particularly affected by increased financial expenses and maintenance expenses • Administrative expenses and repair expenses decreased Profit before taxes
Slide 15: Financial occupancy rate slightly improved from the comparison period
Financial occupancy rate slightly improved from the comparison period • Financial occupancy rate was 92.4 (92.2) per cent for the review period. At the beginning of the year, the occupancy rate was affected by seasonal variation and high supply of rental apartments • Tenant turnover was at the previ
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 2024 +0.7% -0.1% +1.6% +1.0% Impacts of Impact of Other Like-for-Like rents and water charges occupancy rate impacts rental income growth K
Slide 17: As part of the saving programme, investments decreased substantially
As a part of the saving programme, investments decreased substantially • We will not make new investments nor will we launch new modernisation projects for the time being • Ongoing projects will be completed according to the plan • We will focus repairs to support renting of apartments Gross investm
Slide 18: The value of investment properties was EUR 8.1 billion
The value of investment properties was EUR 8.1 billion Changes in fair value • The fair value of investment properties did not M€ 1–3/2024 1–3/2023 change significantly from the year-end level. The Change in net rental income 7.8 -22.2 positive fair value change of the investment Other 3.3 13.2 prop
Slide 19: 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 • Moody’s affirmed Baa2 rating in December 2023. There’s a significant buffer to LTV limit of 50 per cent Equity ratio, % Loan to Value (LTV), % 43.7 44.6 42.9 44.5 49.0 41.4 45.6 45.3
Slide 20: Loans maturing in 2024 and 2025 are covered
Loans maturing in 2024 and 2025 are covered • In January, we issued a new EUR 200 million bond • In March, we signed a new EUR 250 million secured term loan facility agreement. The loan remained undrawn at the end of the review period • EUR 425 million syndicated loan made in autumn 2023 was also un
Slide 21: Key figures per share
Key figures per share • No changes in key figures per share during the first quarter Equity per share, € EPRA NRV per share, € -2.6% -3.3% 22.04 19.53 19.23 18.45 18.60 17.25 17.21 15.55 14.67 15.22 14.83 13.39 2020 2021 2022 2023 31 Mar 31 Mar 2020 2021 2022 2023 31 Mar 31 Mar 2023 2024 2023 2024 K
Slide 22: Outlook and financial targets
Outlook and financial targets Kojamo plc's Interim Report January−March 2024 22
Slide 23: Outlook for Kojamo in 2024 specified
Outlook for Kojamo in 2024 specified Kojamo estimates that in 2024, the Groupʼs total revenue will increase by 4–7 per cent (previously 4–8 per cent) year-on-year. In addition, Kojamo estimates that the Group’s FFO for 2024 will amount to between EUR 152–164 million, excluding non-recurring costs (p
Slide 24: Strategic targets
Strategic targets M€ 1–3/2024 2023 2022 2021 2020 Target Annual growth of total revenue, % 4.7 7.0 5.5 2.0 2.3 4–5 Annual investments, M€ 8.4 190.7 501.6 356.9 371.2 200–400 FFO/total revenue, % * 22.5 37.8 38.9 39.1 39.5 > 36 Loan to Value (LTV), % 44.5 44.6 43.7 37.7 41.4 < 50 Equity ratio, % 44.3
Slide 25: Summary
Summary Total revenue, net rental Occupancy rate slightly Balance sheet and income and profit before improved from previous financial key figures taxes increased year, but seasonal variation have remained strong, affected renting at the and our liquidity The fair value of the beginning of the year s
Slide 26: Thank you!
Half-Year Financial Report for January-June 2024 Thank you! to be published on 15 August 2024 Contact details: CEO Jani Nieminen, tel. +358 20 508 3201 CFO 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
Slide 27: Appendix
Appendix Kojamo plc's Interim Report January−March 2024 27
Slide 28: Saving programme
Saving programme • We launched a saving programme in August which aims to achieve total savings of EUR 43 million in costs and investments in 2024, of which the share of costs is estimated to be EUR 18 million • The measures of the programme aim at maintaining the company’s profitability and safegua
Slide 29: Immigration and its impact
Immigration and its impact • In addition to migration within the country, immigration that has increased in the 2020s will advance urbanisation. • Immigration is heavily focused on the capital region and other large cities 60,000 50,000 40,000 30,000 20,000 10,000 0 2010 2011 2012 2013 2014 2015 201
Slide 30: Kojamo's apartment portfolio
Kojamoʼs apartment portfolio Apartment distribution, % Apartment distribution, % Helsinki region 2.1 3.5 4.5 3.12.5 2.4 4.1 Tampere region 2.9 5.0 Turku region 4.3 5.4 Oulu 8.6 5.2 Jyväskylä 9.7 62.6 Kuopio region Lahti region 74.0 Others Number of Number of commercial and Financial apartments, othe
Slide 31: 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, % 5.0 3.3 3.3 10.8 studios 12.7 1 person 14.6 24.0 <25 22.0 one 2
Slide 32: 113 apartments under construction
113 apartments under construction • During the review period, 0 (0) apartments were acquired, 0 (0) sold and 241 (319) completed • During the period, construction of 0 (0) apartments was started Development of apartment portfolio, units Apartments under construction, units +3.3% -92.4% 40,619 40,860
Slide 33: Our strategy
BH Our strategy Mission We create better urban living. Urbanisation & internationalisation Strategic focal points Vision + Delivering the best + The most competent We are the property market frontrunner customer experience personnel and a dynamic and the number one choice + Strong growth workplace f
Slide 34: Strategic focal points
Strategic focal points Delivering the We offer easy and effortless services We seek profitable growth with best customer for our customers and create added Strong growth multi-channel approach and experience value through services optimised financing structure Responsibility We create competitivenes
Slide 35: 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 • In May, we will implement an AI-powered sustainability and energy management system which provides up-to-date information to supp
Slide 36: Key figures of sustainability 1–3/2024
Key figures of sustainability 1–3/2024 1-3/2024 1-3/2023 Target 1-3/2024 1-3/2023 Target CO₂ emissions -13.2 -8.6 -5.0 Percentage of 87 83 90 per apartment, customers using tCO₂e/apartment, My Lumo, % change % * NPS 51 53 48 Heat index of the portfolio, 1.4 n/a -3.0 weather-nomalized, kWh/m³, change
Slide 37: Sustainability is visible in our every day life
Sustainability is visible in our every day life Kojamo plc's Interim Report January−March 2024 37
Slide 38: 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 78/100 GRESB sustainability properties by 2030 assessment We apply EPRA’s Best Practice
Slide 39: 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 account of the company’s financial 0.37 0.38 0.39 0.34 posi
Slide 40: Kojamo's ten largest shareholders
Kojamoʼs ten largest shareholders (as at 31 March 2024) Number of Shareholder shares % of shares Development of the number of the Nominee-registered shareholders 82,135,314 33.3 shareholders 1. Heimstaden Bostad AB 49,389,283 20.0 14,651 2. Ilmarinen Mutual Pension Insurance Company 20,537,814 8.3 1
Slide 41: Key figures
Key figures 1–3/2024 1–3/2023 Change, % 2023 Total revenue, M€ 113.3 108.2 4.7 442.2 Net rental income, M€ 60.6 59.5 1.9 297.2 Net rental income margin, % 53.5 55.0 67.2 Profit/loss before taxes, M€ 39.3 24.0 63.7 -112.3 Gross investments, M€ 8.4 54.9 -84.7 190.7 Funds From Operations (FFO), M€ 25.5
Slide 42: Consolidated income statement
Consolidated income statement M€ 1–3/2024 1–3/2023 2023 Total revenue 113.3 108.2 442.2 Maintenance expenses -46.7 -42.4 -115.7 Repair expenses -6.0 -6.3 -29.3 Net rental income 60.6 59.5 297.2 Administrative expenses -9.1 -9.9 -45.6 Other operating income and expenses 0.4 0.4 3.7 Profit/loss on sal
Slide 43: Balance sheet
Balance sheet M€ 31 Mar 2024 31 Mar 2023 31 Dec 2023 Non-current assets Intangible assets 0.5 0.7 0.6 Investment properties 8,058.9 8,189.5 8,038.8 Property, plant and equipment 27.8 28.2 28.0 Investments in associated companies 2.0 1.3 2.0 Financial assets 0.8 0.7 0.8 Non-current receivables 6.4 6.
Slide 44: Balance sheet
Balance sheet M€ 31 Mar 2024 31 Mar 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 17.5 39.6 11.2 Invested non-restricted equity reserve 164.4 164.4 164.4 Retained earnings 3,388.2 3,464.2
Slide 45: Financial key figures
Financial key figures 31 Mar 2024 30 Dec 2023 30 Sep 2023 30 Jun 2023 31 Mar 2023 Equity ratio, % 44.3 44.5 45.0 45.3 44.5 Interest cover 3.0 3.2 3.4 3.6 3.7 Coverage ratio 3.3 3.6 3.9 4.1 3.7 Loan to Value (LTV), % 44.5 44.6 44.3 43.8 42.9 Hedging ratio, % ¹⁾ 94 93 86 86 84 Average interest rate, %
Slide 46: 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