Lumo Homes Plc · OMXHEX:LUMO
Lumo Homes — Kojamo — FY2021 Earnings Presentation
45 slides from Lumo Homes's earnings presentation, Feb 17, 2022
Slide 1: Financial Statements Release 2021
17 February 2022 Financial Statements Release 2021 Jani Nieminen, CEO Erik Hjelt, CFO Kojamo plc
Slide 2: Agenda
Agenda • Summary of year 2021 • Financial development • Outlook, financial targets and dividend policy Kojamo plc`s Financial Statements Release 2021 2
Slide 3: Summary of year 2021
Summary of year 2021 Kojamo plc`s Financial Statements Release 2021 3
Slide 4: Operating environment
Operating environment General operating environment Industry key figures 2022E 2021E Residential start-ups, units 40,000 44,000 • In Finland, the economic growth is expected to continue driven by domestic demand of which non-subsidised block-of-flats 20,000 23,000 start-ups in the capital region n/a
Slide 5: Operating environment: pandemic and rental market
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: Housing production and demand
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 1–12/2021
Key figures 1–12/2021 total revenue net rental income funds from operations (FFO) 391.7 M€ 262.3 M€ 153.1 M€ (383.9 M€, +2.0%) (257.6 M€, +1.8%) (151.4 M€, +1.1%) fair value of investment profit excluding changes in properties gross investments value 1) profit before taxes 8.3 Bn€ 356.9 M€ 173.2 M€
Slide 8: 2,675 apartments under construction
2,675 apartments under construction • During the review period, 0 (18) apartments were sold, 0 (71) acquired and 1,282 (532) completed • During the period, construction of 1,333 (1,840) apartments was started Development of apartment portfolio, units Apartments under construction, units +3.1% +1.9%
Slide 9: Strong project pipeline
Strong project pipeline Kojamo’s projects on map • 2,675 apartments under construction, in the Helsinki region and Tampere • Co-operation agreements on the construction of almost 600 apartments • Metropolia property development project to create even 1,000 apartments, as six former educational prope
Slide 10: 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 11: Our sustainability work is proceeding
Our sustainability work is proceeding • We participated in the real estate sector’s annual We commit to complying with the international GRESB Sustainability Assessment for the UN Sustainable Development second time. Our score (77/100) improved by seven points Goals compared to the previous year. Wi
Slide 12: Financial development
Financial development Kojamo plc`s Financial Statements Release 2021 12
Slide 13: 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 on financial occupancy rate had a negative impact on the total revenue • Net rental income increased due to higher total revenue and lower repair costs, but was w
Slide 14: 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 15: 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 affected the amount of supply as well as migration • Rent receivables to total revenue on a low level of 1.2% (1.2%) Financial occupancy rate, % Tenant turnover, % excluding internal turnover 32.5 33.3
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 December 2021 COVID-19 pandemic had a +2.2% negative impact on the occupancy rate, due to which Like-for-Like rental income was slightly negative
Slide 17: Investments proceeding according to strategy
Investments proceeding according to strategy • Repairs slightly lower than in the previous year, 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 18: The value of investment properties was EUR 8.3 billion
The value of investment properties was EUR 8.3 billion • The fair value developed positively during the review period • Yield compression in the second and the last quarter increased the fair value substantially Fair value of investment properties, M€ * Number of apartments by valuation classes +21.
Slide 19: Plot and real estate development reserve December 2021
Plot and real estate development reserve 31 December 2021 To be completed in Q1/2022 Owned plots and development Vanhaistentie 1d, Niittykummuntie 12 B, projects 1 Helsinki Espoo Apartments Binding Metropolia under preliminary development construction agreements project Others In total Investment /
Slide 20: Equity ratio and Loan to Value (LTV) strengthened
Equity ratio and Loan to Value (LTV) strengthened • Equity ratio and Loan to Value (LTV) at a very strong level Equity ratio, % Loan to Value (LTV), % 46.0 45.9 49.0 40.5 41.4 46.9 45.6 37.7 41.3 43.0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 The share issue improved the equity ratio by 1.6
Slide 21: 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) +28.8% +28.1% 22.04 17.25 17.21 16.00 13.39 12.51 12.10 11.52 8.88 9.54 2017 2018 2019 2020 2021 2017 2018 2019
Slide 22: Versatile capital structure December 2021
Versatile capital stucture 31 December 2021 The Group’s loan distribution Financing key figures % 1% 2% 0% years Bonds 2,037 M€ 3.0 5 4.3 4 35% Loans from financial institutions 2.5 4.2 3 1,143 M€ 2 Interest subsidy loans 27 M€ 2.0 3,263 M€ 1.8 1 Commercial papers 50 M€ 1.5 0 31 Dec 31 Mar 30 Jun 30
Slide 23: Strategic targets 2020–2023
Strategic targets 2020–2023 Actual Actual Key figure Target 2021 2020 Annual growth of total revenue, % 2.0 2.3 4–5 Annual investments, M€ 356.9 371.2 200–400 FFO/total revenue, % 39.1 39.5 > 36 Loan to Value (LTV), % 37.7 41.4 < 50 Equity ratio, % 49.0 45.6 > 40 Net Promoter Score (NPS) 20 36 40 Ko
Slide 24: Outlook, financial targets and dividend policy
Outlook, financial targets and dividend policy Kojamo plc`s Financial Statements Release 2021 24
Slide 25: Outlook for Kojamo in 2022
Outlook for Kojamo in 2022 Kojamo estimates that in 2022 the Groupʼs total revenue will increase by 3–6 per cent year-on-year. In addition, Kojamo estimates that the Group’s FFO for 2022 will amount to between EUR 153–165 million, excluding non-recurring costs. The outlook is based on the management
Slide 26: Dividend policy
Dividend policy Dividend proposal by the Board of Directors Dividend history The Board of Directors proposes to the 62% 60% 60% 61% Annual General Meeting that the distributable funds be used as follows: a dividend of EUR 0.37 0.38 0.34 0.38 per share to be paid, totalling EUR 0.22 0.29 93,914,871.6
Slide 27: Summary
Summary Total revenue and net The fair value of our We expect that rental income increased. investment properties urbanisation will continue Our balance sheet increased. A strong strong after the COVID-19 strengthened pipeline allows growth to pandemic recedes continue in line with the strategy Koja
Slide 28: Thank you!
Interim Report for January-March 2022 to be published on Thank you! 12 May 2022 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 Financial Statements Rele
Slide 29: Appendix
Appendix Kojamo plc`s Financial Statements Release 2021 29
Slide 30: Kojamo's apartment portfolio
Kojamoʼs apartment portfolio Apartment distribution, % Number of 5.0 commercial Fair 3.9 Helsinki region Number Fair Fair premises value, Financial Share of 4.5 of apart- value, value, Region and other (EUR occupancy revenue, 4.8 ments, (EUR (EUR / leased thousand rate, %3) % Tampere region units mi
Slide 31: 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 32: 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 33: Our Digital Roadmap to 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 64 Digital services Digitalisation of properties and services 70% My Lumo user coverage Knowledge-based management and AI Enabl
Slide 34: 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 35: Key sustainability figures 2021
Key sustainability figures 2021 Energy efficiency Carbon footprint 37.7 9.8 4.3 1.2 kWh/m3 (34.5) MWh/apartment (8.9) kg CO2e/m3 (5.5) t CO2e/apartment (1.4) 20.0% 82% 100% 40% share of renewable energy of completed apartments since of apartments under waste recycling rate (37) of energy consumption
Slide 36: 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 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: 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 39: Kojamo's ten largest shareholders
Kojamoʼs ten largest shareholders (as at 31 December 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 11,843 129,450,733 52.4 shareholders Ilmarinen Mutual Pension Insurance 9,076 1. 20,537,814 8.3
Slide 40: Key figures
Key figures 10–12/2021 10–12/2020 Change, % 2021 2020 Change, % Total revenue, M€ 99.6 97.1 2.6 391.7 383.9 2.0 Net rental income, M€ 65.5 63.8 2.6 262.3 257.6 1.8 Net rental income margin, % 65.8 65.7 67.0 67.1 Profit before taxes, M€ 662.9 193.2 243.2 1,278.9 391.2 226.9 Gross investments, M€ 98.7
Slide 41: Consolidated income statement
Consolidated income statement M€ 10–12/2021 10–12/2020 2021 2020 Total revenue 99.6 97.1 391.7 383.9 Maintenance expenses -25.2 -22.4 -96.9 -90.5 Repair expenses -8.9 -10.9 -32.4 -35.8 Net rental income 65.5 63.8 262.3 257.6 Administrative expenses -9.9 -9.4 -37.3 -38.4 Other operating income and ex
Slide 42: Balance sheet
Balance sheet M€ 31 Dec 2021 31 Dec 2020 ASSETS Non-current assets Intangible assets 0.8 0.4 Investment properties 8,326.4 6,860.7 Property, plant and equipment 28.8 29.8 Investments in associated companies 1.5 1.1 Financial assets 0.7 0.7 Non-current receivables 6.9 7.7 Deferred tax assets 10.1 16.
Slide 43: Balance sheet
Balance sheet M€ 31 Dec 2021 31 Dec 2020 EQUITY AND LIABILITIES Equity attributable to shareholders of the parent company Share capital 58.0 58.0 Share issue premium 35.8 35.8 Fair value reserve -31.0 -54.2 Invested non-restricted equity reserve 164.4 164.4 Retained earnings 4,036.0 3,105.5 Equity a
Slide 44: Financial key figures
Financial key figures 31 Dec 2021 30 Sep 2021 30 Jun 2021 31 Mar 2021 31 Dec 2020 Equity ratio, % 49.0 46.2 45.8 45.5 45.6 Interest cover 4.0 4.0 4.0 4.1 4.2 Loan to Value (LTV), % 37.7 41.0 41.0 40.2 41.4 Hedging ratio, % 92 92 92 90 91 Average interest rate, % ¹⁾ 1.8 1.8 1.8 1.9 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