Lumo Homes Plc · OMXHEX:LUMO
Lumo Homes — Kojamo — Q1 2023 Earnings Presentation
44 slides from Lumo Homes's earnings presentation, May 11, 2023
Slide 1: Interim Report 1–3/2023
11 May 2023 Interim Report 1–3/2023 Jani Nieminen, CEO Erik Hjelt, CFO Kojamo plc
Slide 2: Agenda
Agenda • Summary of January–March 2023 • Financial development • Outlook, financial targets and dividend policy Kojamo plc`s Interim Report January–March 2023 2
Slide 3: Summary of January–March 2023
Summary of January–March 2023 Kojamo plc`s Interim Report January–March 2023 3
Slide 4: Total revenue and net rental income grew
Total revenue and net rental income grew • Total revenue and net rental income grew • Occupancy rate improved compared to the comparison period • No substantial change in the fair value of investment properties since the year end • Balance sheet is strong • Good financing and liquidity situation is
Slide 5: Operating environment
Operating environment General operating environment Industry key figures 2023E 2022 • The outlook for the world economy is still uncertain Residential start-ups, units 27,400 38,300 of which non-subsidised block-of-flats 11,700 22,600 • Inflation remains rapid, and central banks have continued with
Slide 6: Operating environment
Operating environment The situation in the rental market has improved Population growth forecast 2021–2040, % • Urbanisation, decreasing average household size and Helsinki 19.9 demand focusing on central locations support the demand for Capital region* 21.7 rental apartments in the long term Jyväsk
Slide 7: Operating environment
Operating environment Completed apartments and population Housing production need 2020–2040, % growth in the capital region in 2000–2022 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 1–3/2023
Key figures 1–3/2023 total revenue net rental income funds from operations (FFO) 108.2 M€ 59.5 M€ 28.8 M€ (99.5 M€, +8.8%) (57.0 M€, +4.3%) (28.9 M€, -0.6%) fair value of investment profit excluding changes in properties gross investments value 1) profit/loss before taxes 8.2 Bn€ 54.9 M€ 33.0 M€ 24.
Slide 9: Ongoing development projects
Ongoing development projects Kojamo’s projects on map • 1,604 apartments*** under construction in the Helsinki region, Tampere and Turku • Costs of completing these is EUR 125.0 million • Owned plots enable starts of about 1,900 apartments • For the time being, we will not make new investment decisi
Slide 10: Completed apartments Q1/2023
Completed apartments Q1/2023 319 completed apartments in five locations As Oy Helsingin As Oy Vantaan As Oy Espoon As Oy Helsingin Liikkalankuja 4 Haltiantie 14 Linnustajankuja 2 Junailijankuja 9a Three houses with five floors House with eight floors Two houses with four floors House with six floors
Slide 11: Housing stock and customer distribution
Housing stock and customer distribution Housing stock by apartment type, % • Kojamo’s housing stock meets the 5.1 demand nicely 23.3 studio apartment 22.0 one bedroom two bedroom three bedroom or large 49.7 Customers by household type, % Customers by age group, % 3.9 3.9 10.6 12.3 14.7 1 person <25
Slide 12: Key figures of sustainability Q1/2023
Key figures of sustainability Q1/2023 STRATEGIC FOCAL POINT 2020–2023: RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT We create better urban housing Q1 Target Q1 Target CO2 emissions per apartment, My Lumo – utilisation rate, % 83 90 t CO2e/apartment, reduction % -8.6 -4.0 Energy consumption, kWh/m3 12.
Slide 13: Financial development
Financial development Kojamo plc`s Interim Report January–March 2023 13
Slide 14: Total revenue and net rental income increased
Total revenue and net rental income increased • The growth of property portfolio and development of rents had a positive impact on the total revenue • Net rental income increased due to higher total revenue but was weakened by higher property maintenance and repair costs Total revenue, M€ Net rental
Slide 15: Profit before taxes and FFO
Profit before taxes and FFO • FFO remained on level with the previous year. FFO was affected by the increase in maintenance costs, especially in terms of heating costs, as well as financing costs Profit before taxes, M€ Funds From Operations (FFO), M€ and € / share Profit excluding changes in value
Slide 16: Financial occupancy rate improved
Financial occupancy rate improved • Financial occupancy rate was 92.2% (91.9%) at the end of the review period • Tenant turnover decreased from last year Financial occupancy rate, % Tenant turnover, % excluding internal turnover 32.5 33.3 97.2 31.1 96.4 29.6 93.9 92.0 91.9 92.2 8.5 7.4 2019 2020 202
Slide 17: Positive development of Like-for-Like rental income
Positive 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 2023 +2.2% +0.0% +0.8% -1.4% Impacts of rents and water Impact of occupancy rate Other impacts Like-for-Like rental income growth
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 Gross investments and sales of Modernisation investments and investment properties, M€ repairs, M€ Gross i
Slide 19: The value of investment properties was EUR 8.2 billion
The value of investment properties was EUR 8.2 billion • The fair value remained at the year-end level Fair value of investment properties, M€ * • No significant transactions in the market -2.5% during the beginning of the year 8,327.5 8,150.2 8,406.6 8,197.0 • The yield requirement for the fair val
Slide 20: 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) remained strong • Significant buffer to the upper limit of Baa2 rating Equity ratio, % Loan to Value (LTV), % 43.7 42.9 49.0 40.5 41.4 46.9 45.6 45.3 46.9 37.7 37.4 44.5 2019 2020 2021 2022 31 Mar 31 Mar 20
Slide 21: High hedging ratio reduced the impact of rising interest rates
High hedging ratio reduced the impact of rising interest rates on financing costs The Group’s liquidy, M€ Financing key figures 31 Mar 2023 Interest-bearing liabilities, M€ 3,637.8 Hedging ratio, % 84 124 Cash and cash equivalents 124 M€ Average interest rate, % ¹⁾ 1.9 Average loan maturity, years 3
Slide 22: Key figures per share
Key figures per share • Fair value decrease of the investment properties at the year end had a negative impact on key figures per share Equity per share, € EPRA NRV per share, € -11.4% -12.2% 22.04 21.90 19.53 19.23 17.25 17.18 17.21 15.55 15.22 16.00 12.51 13.39 2019 2020 2021 2022 31 Mar 31 Mar 20
Slide 23: Strategic targets 2020–2023
Strategic targets 2020–2023 Actual Actual Actual Actual Key figure Target 1–3/2023 2022 2021 2020 Annual growth of total 8.8 5.5 2.0 2.3 4–5 revenue, % Annual investments, M€ 54.9 501.6 356.9 371.2 200–400 FFO/total revenue, % 26.6 * 38.9 39.1 39.5 > 36 Loan to Value (LTV), % 42.9 43.7 37.7 41.4 < 5
Slide 24: Outlook, financial targets and dividend policy
Outlook, financial targets and dividend policy Kojamo plc`s Interim Report January–March 2023 24
Slide 25: Outlook for Kojamo in 2023 unchanged
Outlook for Kojamo in 2023 unchanged Kojamo estimates that in 2023, the Groupʼs total revenue will increase by 7–10 per cent year-on-year. In addition, Kojamo estimates that the Group’s FFO for 2023 will amount to between EUR 153–165 million, excluding non-recurring costs. The outlook is based on th
Slide 26: 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 62% 61% 60% 60% 60% per cent of FFO, provided that the Group’s equity ratio is 40 per cent or 0.37 0.38 0.39 0.34 more and taking account of the 0.29 company’s finan
Slide 27: Summary
Summary Operations continued Occupancy rate developed Our balance sheet is steadily: total revenue and positively, and the demand strong, and liquidity net rental income grew for rental apartments is on has remained good the rise FFO remained at year-end level Kojamo plc`s Interim Report January–Mar
Slide 28: Thank you!
Half-Year Financial Report for January-June 2023 to be published on Thank you! 17 August 2023 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 29: Appendix
Appendix Kojamo plc`s Interim Report January–March 2023 29
Slide 30: Kojamo's apartment portfolio
Kojamoʼs apartment portfolio Apartment distribution, % Number of commercial Fair 3.6 4.7 Helsinki region Number Fair Fair 4.2 premises value, Financial Share of of apart- value, value, 5.2 Region and other (EUR occupancy revenue, ments, (EUR (EUR / leased thousand rate, %3) % 5.6 Tampere region unit
Slide 31: 1,485 apartments under construction
1,485 apartments under construction • During the review period, 0 (0) apartments were acquired, 0 (0) sold and 319 (270) completed • During the period, construction of 0 (161) apartments was started Development of apartment portfolio, units Apartments under construction, units +6.4% -42.1% 39,231 39
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 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 65 Digital services Digitalisation of properties and services 83% My Lumo user coverage Knowledge-based management and AI Enabl
Slide 35: Key sustainability figures 2022
Key sustainability figures 2022 Total energy consumption Carbon footprint 35.3 8.9 3.9 1.0 kWh/m3 (37.7) MWh/apartment (9.8) kg CO2e/m3 (4.4) t CO2e/apartment (1.1) Share of renewable Apartments completed Apartments under Waste recycling rate energy of energy since 2016 with an E-value construction
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 72/100 assessment properties by 2030 We apply EPRA’s Sustainability We com
Slide 38: Kojamo's ten largest shareholders (as at 31 March 2023)
Kojamoʼs ten largest shareholders (as at 31 March 2023) Number of Development of the number of the shareholders Shareholder shares % of shares 12,128 12,047 12,587 Nominee-registered shareholders 82,933,770 33.6 11,448 11,566 1. Heimstaden Bostad AB 49,389,283 20.0 Ilmarinen Mutual Pension Insurance
Slide 39: Key figures
Key figures 1–3/2023 1–3/2022 Change, % 2022 Total revenue, M€ 108.2 99.5 8.8 413.3 Net rental income, M€ 59.5 57.0 4.3 280.1 Net rental income margin, % 55.0 57.3 67.8 Profit/loss before taxes, M€ 24.0 62.9 -61.8 -499.8 Gross investments, M€ 54.9 48.9 12.4 501.6 Funds From Operations (FFO), M€ 28.8
Slide 40: Consolidated income statement
Consolidated income statement M€ 1–3/2023 1–3/2022 2022 Total revenue 108.2 99.5 413.3 Maintenance expenses -42.4 -36.7 -103.1 Repair expenses -6.3 -5.8 -30.2 Net rental income 59.5 57.0 280.1 Administrative expenses -9.9 -9.6 -43.1 Other operating income and expenses 0.4 0.1 3.5 Profit/loss on sale
Slide 41: Balance sheet
Balance sheet M€ 31 Mar 2023 31 Mar 2022 31 Dec 2022 Non-current assets Intangible assets 0.7 0.7 0.7 Investment properties 8,189.5 8,405.6 8,150.2 Property, plant and equipment 28.2 28.7 28.4 Investments in associated companies 1.3 1.5 1.5 Financial assets 0.7 0.6 0.7 Non-current receivables 6.7 6.
Slide 42: Balance sheet
Balance sheet M€ 31 Mar 2023 31 Mar 2022 31 Dec 2022 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 39.6 -2.9 43.0 Invested non-restricted equity reserve 164.4 164.4 164.4 Retained earnings 3,464.2 3,991.4
Slide 43: Financial key figures
Financial key figures 31 Mar 2023 31 Dec 2022 30 Sep 2022 30 Jun 2022 31 Mar 2022 Equity ratio, % 44.5 45.3 48.7 47.9 46.9 Interest cover 3.7 3.9 3.9 3.9 4.0 Loan to Value (LTV), % 42.9 43.7 39.9 40.5 37.4 Hedging ratio, % 84 84 92 91 93 Average interest rate, % ¹⁾ 1.9 1.9 1.7 1.7 1.8 Average loan m
Slide 44: 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