Lumo Homes Plc · OMXHEX:LUMO
Lumo Homes — Kojamo — Q1 2019 Earnings Presentation
41 slides from Lumo Homes's earnings presentation, May 9, 2019
Slide 1: Interim Report 1–3/2019
9 May 2019 Interim Report 1–3/2019 Jani Nieminen, CEO Erik Hjelt, CFO Kojamo plc
Slide 2: Sisältö
Sisältö • Summary of January–March 2019 • Financial development • Outlook, financial targets and dividend policy Kojamo plc's Interim Report January–March 2019 2
Slide 3: Summary of January–March 2019
Summary of January–March 2019 Kojamo plc's Interim Report January–March 2019 3
Slide 4: Operating environment
Operating environment Business environment key figures 7.4 6.3 6.1 6.0 General operating environment 2.3 1.7 1.4 1.2 • Kojamo is affected particularly by the situation in the residential property market and development in the 1.2 1.5 1.1 1.7 Finnish growth centres, as well as macro-economic 2018 201
Slide 5: Operating environment
Operating environment Industry key figures 2019E 2018 Residential start-ups, units 39,000 46,200 Building permits granted, annual*, units 41,263 51,118 Construction costs, % 2.0 2.5 Residential production and price development Prices of old dwellings in the whole country, change, % 1.2 1.2 • The vol
Slide 6: Operating environment
Operating environment Development of household sizes (% of all households) 45% 40% The popularity of rental housing increases 35% • The trend of regional divergence will accelerate in 30% 2017–2040 and the significance of the 10 largest urban 25% areas will increase 20% • Urbanisation increases the
Slide 7: Key figures 1–3/2019
Key figures 1–3/2019 total revenue net rental income funds from operations (FFO) 91.5 M€ 50.8 M€ 26.3 M€ (EUR 88.2 million, (EUR 48.1 million, (EUR 21.9 million, +3.7%) +5.7%) +20.3%) fair value of investment properties gross investments occupancy rate profit before taxes 5.2 Bn€ 38.0 M€ 96.9% 38.9
Slide 8: Of the apartments' fair value 98.3% in the seven largest Finnish growth centres
Of the apartments’ fair value 98.3% in the seven largest Finnish growth centres Apartment distribution, % Helsinki region 4.8%3.2% 4.2% Fair Fair value Fair Tampere Number of Financial 4.8% value, (EUR value region Region apartments, occupancy (EUR thousand / (EUR / 6.4% units rate, % million) unit)
Slide 9: The apartment portfolio grew from year-end
The apartment portfolio grew from year-end • Kojamo gave up segment reporting at the beginning of 2019 • Apartment portfolio declined from the comparison period due to portfolio sale at the end of April 2018, but slightly grew from year-end Development of apartment portfolio, units -2.5% 41,153 34,9
Slide 10: Lumo builds customer experience in a new way
Lumo builds customer experience in a new way Services of a new customer Services during tenancy Key courier Easy pick up service service Installation service Personal Pets are Lumo Yard open welcome janitors coach house Car- 0– Affordable security Broadband included Benefits from sharing partners 25
Slide 11: Electronic services make every day life easier
Electronic services make every day life easier Over My Lumo application launched for tenants at the 10,000 end of March 2019, already over rental agreements via webstore by the end of March 7,000 users • Fully automated service, where tenant can • Electronic service channel, where tenant choose his
Slide 12: Financial development
Financial development Kojamo plc's Interim Report January–March 2019 12
Slide 13: Total revenue increased by 3.7 per cent
Total revenue increased by 3.7 per cent • The development of total revenue was supported by the completion of rental apartments in 2018 and during the review period as well as rental like for like (LfL) growth • Operative business developed well Total revenue, M€ Profit before taxes, M€ Profit exclu
Slide 14: Net rental income and FFO increased
Net rental income and FFO increased • The increase in net rental income was mainly due to the completion of rental apartments and rental like for like (LfL) growth • Improved net rental income and lower income taxes than in the comparison period had an effect on FFO growth Net rental income, M€ Fund
Slide 15: Gross investments in line with the strategy
Gross investments in line with the strategy • Modernisation investments and repairs slightly lower than in the comparison period Gross investments and sales of Modernisation investments and investment properties, M€ repairs, M€ Gross investments Sales of investment properties Modernisation investmen
Slide 16: The value of investment properties increasing in line with strategy
The value of investment properties increasing in line with strategy • Fair value of investment properties increased from both year-end and comparison period • Properties measured at market value 82% of total portfolio Fair value of investment properties, M€ 1) Number of apartments by valuation (at t
Slide 17: Plot and real estate development reserve 31 March 2019
Plot and real estate development reserve 31 March 2019 Plots and real estate development sites owned Division of plot and real estate by the company 1,000 development reserve per sq. m., M€ fl.sq.m. % Plots 54.3 78 Plots and existing residential building 28.0 40 Conversions 95.3 85 35% Total 1) 177.
Slide 18: Occupancy rate increased
Occupancy rate increased • Occupancy rate increased despite of slight increase in tenant turnover Financial occupancy rate, % Tenant turnover, % excluding internal turnover 97.6 97.4 96.7 97.0 96.3 96.9 28.6 28.8 27.6 23.7 7.0 7.4 2015 2016 2017 2018 1–3/2018 1–3/2019 2015 2016 2017 2018 1–3/2018 1–
Slide 19: Equity ratio improved
Equity ratio improved • Equity ratio and Loan to Value (LTV) were in line with financial targets Equity ratio, % Loan to Value, (LTV), % 41.3 43.0 41.1 40.7 40.7 49.2 37.4 47.1 45.9 46.7 46.0 39.8 2015 2016 2017 2018 31 Mar 31 Mar 2015 2016 2017 2018 31 Mar 31 Mar 2018 2019 2018 2019* The share issu
Slide 20: EPRA NAV per share improved
EPRA NAV per share improved • Equity per share improverd by 5.1 per cent and EPRA NAV per share by 4.2 per cent Equity per share, € 1) EPRA NAV per share, € 1) +5.1% +4.2% 9.54 9.32 8.88 8.87 11.69 11.55 11.11 11.08 8.10 10.31 7.58 6.75 6.88 2013 2014* 2015 2016 2017 2018 31 Mar 31 Mar 2016 2017 201
Slide 21: Versatile capital structure
Versatile capital structure The Group’s loan distribution Financing key figures 31 Mar 2019 % years Average interest rate fixing period, years 3 5.6 6 Loan portfolio EUR 2,573 million 5.3 Average loan maturity, years 5 2.5 4 Bonds 1,300 M€ 3 5% 2% 0% 2 Average interest rate, % 2 Loans from financial
Slide 22: Outlook, financial targets and dividend policy
Outlook, financial targets and dividend policy Kojamo plc's Interim Report January–March 2019 22
Slide 23: We are progressing toward our strategic targets
We are progressing toward our strategic targets Actual Target Strategic key figures 31 Mar 2019 12/2021 Fair value of investment properties, 5.2 6.0 Bn€ Number of apartments 34,792 ~38,000 Equity ratio, % 40.7 > 40 Loan to Value (LTV), % 46.7 < 50 FFO as a percentage of total revenue 28.8 > 32 Net P
Slide 24: Outlook for Kojamo in 2019 (specified)
Outlook for Kojamo in 2019 (specified) Kojamo estimates that in 2019, the Group’s total revenue will increase by 2–7 per cent year-on-year. In addition, the company estimates that the Group’s FFO for 2019 will amount to between EUR 130–143 million, excluding one-off items (previously EUR 126– 141 mi
Slide 25: Dividend policy
Dividend policy Kojamo’s objective is to be a stable Dividend history 62% dividend payer whose annual dividend payment will be at least 60 per cent of FFO, provided that the Group’s equity ratio is 40 0.51 0.29 per cent or more and taking account of the 0.16 0.22 company’s financial position. 2015 2
Slide 26: Summary
Summary Central key figures We are proceeding well Launched at the end of improved during the review towards our strategic growth March, My Lumo application period: total revenue and net target: The value of our has already 7,000 users and rental income increased, investment properties already over
Slide 27: Thank you!
Thank you! Interim Report 1–6/2019 to be published on 23 August 2019 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–March 2019 27
Slide 28: Appendix
Appendix Kojamo plc's Interim Report January–March 2019 28
Slide 29: Kojamo evolution: From VVO Group to Kojamo
Kojamo evolution: From VVO Group to Kojamo Modern residential portfolio with focus on Lumo apartments 2021 Target ~ €6bn € 5.1 bn € 5.2 bn € 4.7 bn € 4.3 bn € 4.0 bn Name changed to Kojamo Kojamo received VVO Lumo Baa2 rating from Kojamo issued converted to Lumo webstore was the first listed Moody's
Slide 30: Kojamo plc's strategy
Kojamo plc’s strategy Megatrends Mission Values We create better urban housing. Urbanisation & internationalisation Happy to serve Vision 2021 Ageing population & smaller family sizes We are the property market frontrunner and the number one choice for our customers. New technologies & digitalisatio
Slide 31: Customer experience at the center
Customer experience at the center • We focus on creating excellent customer experience, which comes from versatile living solutions, easy contacting and fluent digital services. Our homes are located close to good transport connections and services • We develope new living services and solutions tog
Slide 32: Services enabling better urban living
Services enabling better urban living Unique Lumo webstore Lumo is a home full of Activities and other Constantly improving services benefits to customers customer experience The only residential real Comprehenive Activities and other Developing digital estate company with a services that ma
Slide 33: Sustainability is visible in our every day life
Sustainability is visible in our every day life Eco-friendly All of Anti-grey 29,000 motoring new construction projects utilising own plot reserves economy apartments’ indoor temperature controlled by – shared cars in use of nearly zero-energy buildings in accordance models Leanheat’s IoT solution L
Slide 34: Sustainability is part of our operations
Sustainability is part of our operations • Kojamo is committed to developing new and modern construction solutions, housing services and ecological innovations related to energy-efficient housing solutions. All of Kojamo’s new construction projects utilising own plot reserves will be nearly zero-ene
Slide 35: Kojamo's ten largest shareholders (31 Mar 2019)
Kojamo’s ten largest shareholders (31 Mar 2019) Number of % of 25.3% Shareholder shares shares Development of number of Ilmarinen Mutual Pension Insurance shareholders 1. 32,359,243 13.1 Company 24.1% Varma Mutual Pension Insurance 23.9% 2. 30,398,089 12.3 23.7% Company 3,510 3. The Finnish Industri
Slide 36: Key figures
Key figures 1–3/2019 1–3/2018 Change,% 2018 Total revenue, M€ 91.5 88.2 3.7 358.8 Net rental income, M€ 50.8 48.1 5.7 234.0 Net rental income margin of total revenue, % 55.6 54.5 65.2 Profit before taxes, M€ 38.9 48.9 -20.4 277.3 Gross investments, M€ 38.0 203.7 -81.3 365.2 Funds From Operations (FF
Slide 37: Consolidated income statement
Consolidated income statement M€ 1–3/2019 1–3/2018 1–12/2018 Total revenue 91.5 88.2 358.8 Maintenance expenses -33.9 -32.5 -89.5 Repair expenses -6.7 -7.6 -35.4 Net rental income 50.8 48.1 234.0 Administrative expenses -9.3 -9.1 -38.6 Other operating income and expenses 0.4 0.3 1.1 Profit/loss on s
Slide 38: Balance sheet
Balance sheet M€ 31 Mar 2019 31 Mar 2018 31 Dec 2018 ASSETS Non-current assets Intangible assets 0.2 0.4 0.2 Investment properties 5,201.8 4,834.4 5,093.2 Property, plant and equipment 31.3 30.8 30.5 Investments in associated companies 2.2 1.8 2.2 Financial assets 0.6 0.5 0.6 Non-current receivables
Slide 39: Balance sheet
Balance sheet M€ 31 Mar 2019 31 Mar 2018 31 Dec 2018 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 -37.2 -16.6 -23.9 Invested non-restricted equity reserve 164.4 17.9 164.4 Retained
Slide 40: Financial key figures
Financial key figures 31 Mar 2019 31 Dec 018 30 Sep 2018 30 Jun 2018 31 Mar 2018 Equity ratio, % 40.7 43.0 42.2 41.6 37.4 Interest cover 4.3 4.3 4.3 4.2 4.2 Loan to Value (LTV), % 1) 2) 46.7 45.9 46.2 46.7 49.2 Hedging ratio, % 93 94 94 92 87 Average interest rate, %3) 1.8 1.8 1.8 1.8 1.8 Average lo
Slide 41: 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