Lumo Homes Plc · OMXHEX:LUMO
Lumo Homes — Kojamo — H1 2023 Earnings Presentation
45 slides from Lumo Homes's earnings presentation, Aug 17, 2023
Slide 1: Half-Year Financial Report 1–6/2023
17 August 2023 Half-Year Financial Report 1–6/2023 Jani Nieminen, CEO Erik Hjelt, CFO Kojamo plc
Slide 2: Agenda
Agenda • Summary of January–June 2023 • Financial development • Outlook and financial targets Kojamo plc`s Half-Year Financial Report January–June 2023 2
Slide 3: Summary of January–June 2023
Summary of January–June 2023 Kojamo plc`s Half-Year Financial Report January–June 2023 3
Slide 4: Operations continued to be stable
Operations continued to be stable • Total revenue, net rental income and FFO grew • Occupancy rate improved, and tenant turnover decreased • No substantial change in the fair value of investment properties since the year end • Balance sheet remained strong and financing figures good • We entered int
Slide 5: Operating environment
Operating environment General operating environment Industry key figures 2023E 2022 • The growth prospects for the world economy are still Residential start-ups, units <20,000 38,300 weak of which non-subsidised block-of-flats n/a 22,600 • Although inflation has slowed down due to the decline in sta
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 Housing production and demand Housing production need 2020–2040, % • Population growth in the capital region has 22 exceeded housing production since 2005, with Helsinki Tampere the exception of pandemic years 3 ~35,000 43 Oulu Turku 3 apartments / Jyväskylä Kuopio • The amount
Slide 8: Key figures 1–6/2023
Key figures 1–6/2023 total revenue net rental income funds from operations (FFO) 217.1 M€ 138.5 M€ 80.5 M€ (200.0 M€, +8.6%) (129.5 M€, +7.0%) (71.3 M€, +12.8%) fair value of investment profit excluding changes in properties gross investments value 1) profit/loss before taxes 8.3 Bn€ 116.3 M€ 90.7 M
Slide 9: Ongoing development projects
Ongoing development projects Kojamo’s projects on map • 1,152 apartments*** under construction in the Helsinki region and Turku • Costs of completing these is EUR 56.5 million • Owned plots enable starts of about 2,100 apartments • For the time being, we will not make new investment decisions due to
Slide 10: Completed apartments Q2/2023
Completed apartments Q2/2023 333 completed apartments in five locations As Oy Espoon As Oy Helsingin Eerik VII, As Oy Tampereen Jousenpuistonkatu 8 Eerikinkatu 7 Näsilinnankatu 40, D-house House with 11 floors House with 5 floors House with 4 floors Located in Espoo Located in Helsinki Located in Ta
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 23.4 studios 21.9 • All age groups are well represented one bedroom among the tenants two bedroom three bedroom or larger 49.5 Customers by household type, % Customers by a
Slide 12: Key figures of sustainability H1/2023
Key figures of sustainability H1/2023 STRATEGIC FOCAL POINT 2020–2023: RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT We create better urban housing H1 Target H1 Target CO2 emissions per apartment, My Lumo – utilisation rate, % 84 90 t CO2e/apartment, reduction % -12.5* -4.0 Energy consumption, kWh/m3 1
Slide 13: Financial development
Financial development Kojamo plc`s Half-Year Financial Report January–June 2023 13
Slide 14: 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 increased due to higher total revenue but was weakened by higher property maintenance costs
Slide 15: Profit before taxes and FFO
Profit before taxes and FFO • FFO grew compared to previous year. The increase in FFO was attributable to the improvement in net rental income and the profit from the repurchase of bonds Profit before taxes, M€ Funds From Operations (FFO), M€ and € / share Profit excluding changes in value Changes i
Slide 16: Financial occupancy rate improved
Financial occupancy rate improved • Financial occupancy rate was 92.2% (91.5%) 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 91.5 92.2 15.9 14.6 2019 2020 2
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 June 2023 +2.0% +0.0% +1.4% -0.6% Impacts of Impact of Other Like-for-Like rents and water charges occupancy rate impacts rental income growth Ko
Slide 18: Investments
Investments • 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 investments Sales of investment pro
Slide 19: The value of investment properties was EUR 8.3 billion
The value of investment properties was EUR 8.3 billion • No changes in the valuation of the investment properties since the year- Fair value of investment properties, M€ * end -5.4% • No significant transactions in the market during the beginning of the year 8,743.2 8,327.5 8,150.2 8,268.1 6,863.1 •
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 limit of Baa2 rating Equity ratio, % Loan to Value (LTV), % 43.7 43.8 49.0 47.9 40.5 41.4 40.5 46.9 45.6 45.3 45.3 37.7 2019 2020 2021 2022 30 Jun 30 Jun 2019 202
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 30 Jun 2023 Interest-bearing liabilities, M€ 3,658.8 38 Hedging ratio, % ¹⁾ 86 33 200 Cash and cash equivalents 38 M€ Average interest rate, % ²⁾ 2.3 Financial assets 33 M€
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, € -12.1% -12.5% 22.04 22.29 19.53 19.50 17.25 17.58 17.21 15.55 15.46 16.00 12.51 13.39 2019 2020 2021 2022 30 Jun 30 Jun 20
Slide 23: Strategic targets 2020–2023
Strategic targets 2020–2023 Actual Actual Actual Actual Key figure Target 1–6/2023 2022 2021 2020 Annual growth of total 8.6 5.5 2.0 2.3 4–5 revenue, % Annual investments, M€ 116.3 501.6 356.9 371.2 200–400 FFO/total revenue, % 37.1* 38.9 39.1 39.5 > 36 Loan to Value (LTV), % 43.8 43.7 37.7 41.4 < 5
Slide 24: Outlook and financial targets
Outlook and financial targets Kojamo plc`s Half-Year Financial Report January–June 2023 24
Slide 25: Outlook for Kojamo in 2023 (specified)
Outlook for Kojamo in 2023 (specified) Kojamo estimates that in 2023, the Groupʼs total revenue will increase by 7–9 per cent (previously 7–10 per cent) year-on-year. In addition, Kojamo estimates that the Group’s FFO for 2023 will amount to between EUR 158–167 million, excluding non-recurring costs
Slide 26: Saving programme
Saving programme • We want to maintain investment grade credit rating and will therefore take proactive measures to ensure the company’s financial position • We are launching a saving programme which aims to achieve total savings of EUR 43 million in costs and investments in 2024, of which the share
Slide 27: Summary
Summary Operations continued to be Occupancy rate developed During the review stable. Total revenue, net positively from the period, we refinanced rental income and FFO previous year all of our loans grew maturing this year Rental market situation is We are launching a saving expected to improve nex
Slide 28: Thank you!
Interim Report for January-September 2023 to be published on Thank you! 2 November 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 Half-Year Fin
Slide 29: Appendix
Appendix Kojamo plc`s Half-Year Financial Report January–June 2023 29
Slide 30: Kojamoʼs apartment portfolio
Kojamoʼs apartment portfolio Apartment distribution, % Number of commercial Fair 3.6 4.6 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: 1,152 apartments under construction
1,152 apartments under construction • During the review period, 0 (985) apartments were acquired, 73 (0) sold and 652 (784) completed • During the period, construction of 0 (339) apartments was started Development of apartment portfolio, units Apartments under construction, units +3.0% -48.3% 39,231
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 64 Digital services Digitalisation of properties and services 84% 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: 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 39: Kojamoʼs ten largest shareholders
Kojamoʼs ten largest shareholders (as at 30 June 2023) Number of Development of the number of the shareholders Shareholder shares % of shares 12,587 13,201 82,885,164 33.5 11,566 12,128 12,047 Nominee-registered shareholders 1. Heimstaden Bostad AB 49,389,283 20.0 Ilmarinen Mutual Pension Insurance
Slide 40: Key figures
Key figures 4–6/2023 4–6/2022 Change, % 1–6/2023 1–6/2022 Change, % 2022 Total revenue, M€ 108.9 100.5 8.4 217.1 200.0 8.6 413.3 Net rental income, M€ 79.0 72.4 9.1 138.5 129.5 7.0 280.1 Net rental income margin, % 72.6 72.1 63.8 64.7 67.8 Profit/loss before taxes, M€ 71.7 94.8 -24.4 95.7 157.8 -39.
Slide 41: Consolidated income statement
Consolidated income statement M€ 4–6/2023 4–6/2022 1–6/2023 1–6/2022 2022 Total revenue 108.9 100.5 217.1 200.0 413.3 Maintenance expenses -22.0 -20.0 -64.4 -56.7 -103.1 Repair expenses -7.9 -8.0 -14.2 -13.8 -30.2 Net rental income 79.0 72.4 138.5 129.5 280.1 Administrative expenses -12.0 -10.3 -21.
Slide 42: Balance sheet
Balance sheet M€ 30 Jun 2023 30 Jun 2022 31 Dec 2022 Non-current assets Intangible assets 0.6 0.7 0.7 Investment properties 8,268.1 8,743.2 8,150.2 Property, plant and equipment 28.2 28.5 28.4 Investments in associated companies 1.4 1.6 1.5 Financial assets 0.7 0.7 0.7 Non-current receivables 6.6 6.
Slide 43: Balance sheet
Balance sheet M€ 30 Jun 2023 30 Jun 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 41.8 18.3 43.0 Invested non-restricted equity reserve 164.4 164.4 164.4 Retained earnings 3,521.8 4,067.5
Slide 44: Financial key figures
Financial key figures 30 Jun 2023 31 Mar 2023 31 Dec 2022 30 Sep 2022 30 Jun 2022 Equity ratio, % 45.3 44.5 45.3 48.7 47.9 Interest cover 3.6 3.7 3.9 3.9 3.9 Coverage ratio 4.1 3.7 3.8 3.9 3.9 Loan to Value (LTV), % 43.8 42.9 43.7 39.9 40.5 Hedging ratio, % ¹⁾ 86 84 84 92 91 Average interest rate, %
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