Slide 1: Interim Report 1–9/2022
3 November 2022 Interim Report 1–9/2022 Jani Nieminen, CEO Erik Hjelt, CFO Kojamo plc
Slide 2: Agenda
Agenda • Summary of January– September 2022 • Financial development • Outlook, financial targets and dividend policy Kojamo plc`s Interim Report January–September 2022 2
Slide 3: Summary of January–September 2022
Summary of January– September 2022 Kojamo plc`s Interim Report January–September 2022 3
Slide 4: Strong position in an uncertain market situation
Strong position in an uncertain market situation • Profitable growth continued and the operative result improved • Positive turn in the occupancy rate • Strong balance sheet protects against the impacts of changes in the financial market • Good liquidity situation and diverse funding sources • Our f
Slide 5: Operating environment
Operating environment General operating environment Industry key figures 2022E 2021 Residential start-ups, units 40,800 47,300 • The outlook of the global economy has been clouded by of which non-subsidised block-of-flats 22,200 26,500 rapid inflation, the European energy crisis and Russia’s start-u
Slide 6: Operating environment
Operating environment The situation in the rental market has improved Population growth forecast 2021–2040, % • The pandemic has had a temporary impact on occupancy Helsinki 19.9 rates but population growth has picked up again in the Capital region* 21.7 capital region Jyväskylä 4.6 Kuopio 0.0 • Ris
Slide 7: Operating environment
Operating environment Completed apartments and population Housing production need 2020–2040, % growth in the capital region in 2000–2021 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 8: Key figures 1–9/2022
Key figures 1–9/2022 total revenue net rental income funds from operations (FFO) 305.4 M€ 207.6 M€ 120.0 M€ (292.0 M€, +4.6%) (196.7 M€, +5.5%) (114.5 M€, +4.8%) fair value of investment profit excluding changes in properties gross investments value 1) profit before taxes 8.9 Bn€ 416.5 M€ 137.7 M€ 2
Slide 9: 2,012 apartments under construction
2,012 apartments under construction • During the review period, 985 (0) apartments were acquired, 0 (0) sold and 1,100 (820) completed • During the period, construction of 437 (818) apartments was started Development of apartment portfolio, units Apartments under construction, units +6.8% -23.3% 38,
Slide 10: Strong project pipeline
Strong project pipeline Kojamo’s projects on map • 2,012 apartments under construction in the Helsinki region, Tampere and Turku • Co-operation agreements on the construction of about 500 apartments • Metropolia property development project to create even 1,000 apartments, as six former educational
Slide 11: Lumo One skyscraper was completed in September
Lumo One skyscraper was completed in September Lumo One is the tallest rental apartment building in Finland, with 291 apartments on 31 floors. On the 29th floor of the building are glazed view terraces, sauna facilities and a common living room for the residents, which also has remote workstations,
Slide 12: Lumo – Easily best living
Lumo – Easily best living Lumo is urban life at its best. Lumo rental homes offer safe, convenient and environmentally friendly housing paired Services of a new customer Services during tenancy with the best housing services. Lumo homes are located in the best areas of Pets are welcome Lumo real est
Slide 13: Financial development
Financial development Kojamo plc`s Interim Report January–September 2022 13
Slide 14: Total revenue and net rental income increased
Total revenue and net rental income increased • The growth of property portfolio and rental growth had a positive impact and the decrease of financial occupancy rate in the beginning of the year had a negative impact on the total revenue • Net rental income increased due to higher total revenue and
Slide 15: Positive development with profit before taxes and FFO
Positive development with profit before taxes and FFO • Profit before taxes and excluding fair value changes of investment properties increased • The FFO growth was attributable to the improvement in net rental income Profit before taxes, M€ Funds From Operations (FFO), M€ and € / share Profit exclu
Slide 16: Financial occupancy rate improved in the third quarter
Financial occupancy rate improved in the third quarter • Financial occupancy rate at the end of June was 91.5% • COVID-19 pandemic affected the financial occupancy rate in the first half of the year • Tenant turnover decreased from last year Financial occupancy rate, % Tenant turnover, % excluding i
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 2022 +2.2% COVID-19 pandemic had a negative impact on the occupancy rate, due to which Like-for-Like rental income was slightly negativ
Slide 18: Investments have proceeded according to plans
Investments have proceeded according to plans • For the time being, we will not make new investment decisions due to the uncertainty in the market • Ongoing projects will be completed as agreed • Repairs slightly lower than in the previous year Gross investments and sales of Modernisation investment
Slide 19: The value of investment properties was EUR 8.9 billion
The value of investment properties was EUR 8.9 billion • The fair value increased especially due to investments and positive development margins Fair value of investment properties, M€ * Number of apartments by valuation classes +16.4% Yield value (new technique) Transaction value Yield value (old t
Slide 20: Plot and real estate development reserve 30 September 2022
Plot and real estate development reserve 30 September 2022 To be completed in Q4/2022 Owned plots and development Tenderinlenkki 6, projects 1 Helsinki Apartments Binding Metropolia under preliminary development construction agreements project Others In total Investment / actual costs incurred, M€ 3
Slide 21: 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) strengthened • Significant buffer to Baa2 rating upper limit Equity ratio, % Loan to Value (LTV), % 45.9 49.0 48.7 40.5 41.4 41.0 39.9 46.9 45.6 46.2 37.7 43.0 2018 2019 2020 2021 30 Sep 30 Sep 2018 2019 20
Slide 22: Key figures per share improved year-on-year
Key figures per share improved year-on-year • 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) +19.1% +17.1% 22.04 22.63 19.32 17.25 17.96 17.21 15.08 16.00 12.51 13.39 12.10 9.54 2018 2019 2020 2021 30 Sep
Slide 23: Rising interest rates didn’t increase our financial costs
Rising interest rates didn’t increase our financial costs due to high hedging ratio and strong financial position The Group’s liquidity, M€ Financing key figures % years 3.0 5 4 53 3.7 Cash and cash equivalents 53 M€ 2.5 3 3.5 Financial assets 108 M€ 2 108 2.0 1 300 1.7 Unused committed credit facil
Slide 24: Strategic targets 2020–2023
Strategic targets 2020–2023 Actual Actual Actual Key figure Target 1–9/2022 2021 2020 Annual growth of total revenue, % 4.6 2.0 2.3 4–5 Annual investments, M€ 416.5 356.9 371.2 200–400 FFO/total revenue, % 39.3 39.1 39.5 > 36 Loan to Value (LTV), % 39.9 37.7 41.4 < 50 Equity ratio, % 48.7 49.0 45.6
Slide 25: Outlook, financial targets and dividend policy
Outlook, financial targets and dividend policy Kojamo plc`s Interim Report January–September 2022 25
Slide 26: Outlook for Kojamo in 2022 (specified)
Outlook for Kojamo in 2022 (specified) Kojamo estimates that in 2022 the Groupʼs total revenue will increase by 5–6 per cent (previously 4–6 per cent) year-on-year. In addition, Kojamo estimates that the Group’s FFO for 2022 will amount to between EUR 156–164 million, excluding non-recurring costs (
Slide 27: Dividend policy
Dividend policy Dividend history Kojamo’s objective is to be a stable dividend payer whose annual 62% 60% 60% 61% dividend payment will be at least 60 0.34 0.37 0.38 per cent of FFO, provided that the 0.29 0.22 Group’s equity ratio is 40 per cent or more and taking account of the company’s financial
Slide 28: Summary
Summary Stable development The situation in the rental Our balance sheet is continued - total revenue market has improved and strong and liquidity is and net rental income as our occupancy rate turned good. Our hedging ratio is well as FFO increased to growth high, and there are no significant finan
Slide 29: Thank you!
Thank you! Contact details: CEO Jani Nieminen, tel. +358 20 508 3201 CFO Erik Hjelt, tel. +358 20 508 3225 Group Treasurer, Investor Relations Niina Saarto, tel. +358 20 508 3283 www.kojamo.fi Kojamo plc`s Interim Report January–September 2022 29
Slide 30: Appendix
Appendix Kojamo plc`s Interim Report January–September 2022 30
Slide 31: Kojamoʼs apartment portfolio
Kojamoʼs apartment portfolio Apartment distribution, % Number of commercial Fair 4.7 3.7 Helsinki region Number Fair Fair 4.3 premises value, Financial Share of of apart- value, value, Region and other (EUR occupancy revenue, 5.3 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 61 Digital services Digitalisation of properties and services 82% My Lumo user coverage Knowledge-based management and AI Enabl
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: Our sustainability work is proceeding
Our sustainability work is proceeding • As a part of our action plan aimed at zero emissions for our We commit to complying with the properties by 2030, we made decisions on geothermal heating UN Sustainable Development investments in the beginning of the year. Geothermal heating Goals will be insta
Slide 37: Key sustainability figures 2021
Key sustainability figures 2021 Total energy consumption Carbon footprint 37.7 9.8 4.4 1.2 kWh/m3 (35.6) MWh/apartment (9.2) kg CO2e/m3 (5.5) t CO2e/apartment (1.4) Share of renewable Apartments completed Apartments under Waste recycling rate energy of energy since 2016 with an E-value construction
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: 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 40: Metropolia properties
Metropolia properties Six former educational building E assets to be converted into rental apartments F Metropolia development project assets Metro Railway D Asset Anticipated approval of rezoning B A. Abrahaminkatu 1 Completed Bulevardi 31 (construction ongoing) B. Agricolankatu 1 Completed (constr
Slide 41: Kojamoʼs ten largest shareholders (as at 30 September 2022)
Kojamoʼs ten largest shareholders (as at 30 September 2022) Number of Development of the number of the shareholders Shareholder shares % of shares Nominee-registered and direct foreign 12,258 11,843 12,128 132,429,507 53.6 11,448 11,566 shareholders Ilmarinen Mutual Pension Insurance 1. 20,537,814 8
Slide 42: Key figures
Key figures 7–9/2022 7–9/2021 Change, % 1–9/2022 1–9/2021 Change, % 2021 Total revenue, M€ 105.4 98.1 7.5 305.4 292.0 4.6 391.7 Net rental income, M€ 78.2 72.2 8.2 207.6 196.7 5.5 262.3 Net rental income margin, % 74.1 73.6 68.0 67.4 67.0 Profit before taxes, M€ 90.8 69.3 31.0 248.6 616.0 -59.7 1,27
Slide 43: Consolidated income statement
Consolidated income statement M€ 7–9/2022 7–9/2021 1–9/2022 1–9/2021 2021 Total revenue 105.4 98.1 305.4 292.0 391.7 Maintenance expenses -19.5 -17.8 -76.2 -71.8 -96.9 Repair expenses -7.7 -8.1 -21.6 -23.5 -32.4 Net rental income 78.2 72.2 207.6 196.7 262.3 Administrative expenses -9.8 -8.2 -29.7 -2
Slide 44: Balance sheet
Balance sheet M€ 30 Sep 2022 30 Sep 2021 31 Dec 2021 ASSETS Non-current assets Intangible assets 0.9 0.5 0.8 Investment properties 8,857.1 7,605.6 8,326.4 Property, plant and equipment 28.4 28.7 28.8 Investments in associated companies 1.6 1.1 1.5 Financial assets 0.7 0.7 0.7 Non-current receivables
Slide 45: Balance sheet
Balance sheet M€ 30 Sep 2022 30 Sep 2021 31 Dec 2021 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 40.2 -37.7 -31.0 Invested non-restricted equity reserve 164.4 164.4 164.4 Retained
Slide 46: Financial key figures
Financial key figures 30 Sep 2022 30 Jun 2022 31 Mar 2022 31 Dec 2021 30 Sep 2021 Equity ratio, % 48.7 47.9 46.9 49.0 46.2 Interest cover 3.9 3.9 4.0 4.0 4.0 Loan to Value (LTV), % 39.9 40.5 37.4 37.7 41.0 Hedging ratio, % 92 91 93 92 92 Average interest rate, % ¹⁾ 1.7 1.7 1.8 1.8 1.8 Average loan m
Slide 47: 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