Kojamo Plc Stock Exchange Release,
Growth continues, the fair value of investment properties is over
This is a summary of the Interim Report January–March 2021, which is in its entirety attached to this release and can be downloaded from the company’s website at www.kojamo.fi/investors.
Unless otherwise stated, the comparison figures in brackets refer to the corresponding period of the previous year. The figures in this Interim Report have not been audited.
Summary of January–March 2021
- Total revenue increased by 1.6 per cent to
EUR 97.2 (95.7) million. - Net rental income decreased by -1.0 per cent to
EUR 55.5 (56.0) million. Net rental income was 57.0 (58.6) per cent of total revenue. - Profit before taxes was
EUR 177.1 (51.7) million. The profit includesEUR 143.5 (22.0) million in net gain on the valuation of investment properties at fair value andEUR 0.3 (-0.1) million in profits and losses from the sale of investment properties. Earnings per share wasEUR 0.57 (0.17). - Funds From Operations (FFO) decreased by -6.2 per cent to
EUR 27.6 (29.4) million. - The fair value of investment properties was
EUR 7.1 (6.3) billion at the end of the review period. - The financial occupancy rate was 94.9 (96.9) per cent for the review period.
- Gross investments amounted to
EUR 68.0 (62.1) million, or 69.9 (64.8) per cent of total revenue. - Equity per share was
EUR 13.63 (12.30) and return on equity was 17.0 (5.4) per cent. Return on investment was 12.0 (4.8) per cent. - EPRA NRV (Net Reinstatement Value) per share grew by 10.7 per cent to
EUR 17.55 (15.86). - There were 2,619 (1,651) Lumo apartments under construction at the end of the review period.
Key figures
1–3/2021 | 1–3/2020 | Change % | 2020 | |
Total revenue, M€ | 97.2 | 95.7 | 1.6 | 383.9 |
Net rental income, M€ * | 55.5 | 56.0 | -1.0 | 257.6 |
Net rental income margin, % * | 57.0 | 58.6 | 67.1 | |
Profit before taxes, M€ * | 177.1 | 51.7 | 242.3 | 391.2 |
EBITDA, M€ * | 190.2 | 68.3 | 178.3 | 447.6 |
EBITDA margin, % * | 195.6 | 71.4 | 116.6 | |
Adjusted EBITDA, M€ * | 46.4 | 46.4 | 0.0 | 222.6 |
Adjusted EBITDA margin, % * | 47.7 | 48.5 | 58.0 | |
Funds From Operations (FFO), M€ * | 27.6 | 29.4 | -6.2 | 151.5 |
FFO margin, % * | 28.4 | 30.7 | 39.5 | |
FFO excluding non-recurring costs, M€ * | 27.6 | 29.4 | -6.2 | 151.5 |
Investment properties, M€ ¹⁾ | 7,072.3 | 6,344.2 | 11.5 | 6,863.1 |
Financial occupancy rate, % | 94.9 | 96.9 | 96.4 | |
Interest-bearing liabilities, M€ * | 3,034.2 | 2,745.6 | 10.5 | 3,053.3 |
Return on equity (ROE), % * | 17.0 | 5.4 | 9.8 | |
Return on investment (ROI), % * | 12.0 | 4.8 | 7.4 | |
Equity ratio, % * | 45.5 | 45.3 | 45.6 | |
Loan to Value (LTV), % * ²⁾ | 40.2 | 39.5 | 41.4 | |
EPRA Reinstatement value (NRV), M€ | 4,338.5 | 3,920.9 | 10.7 | 4,254.6 |
Gross investments, M€ * | 68.0 | 62.1 | 9.6 | 371.2 |
Number of personnel, end of the period | 312 | 300 | 317 | |
Key figures per share, € | 1–3/2021 | 1–3/2020 | Change % | 2020 |
FFO per share * | 0.11 | 0.12 | -8.3 | 0.61 |
Earnings per share | 0.57 | 0.17 | 235.3 | 1.27 |
EPRA NRV per share | 17.55 | 15.86 | 10.7 | 17.21 |
Equity per share | 13.63 | 12.30 | 10.8 | 13.39 |
* In accordance with the guidelines issued by the | ||||
¹⁾ Including non-current assets held for sale | ||||
²⁾ Excluding non-current assets held for sale |
Outlook for
The outlook is based on the management’s assessment of total revenue, net rental income, administrative expenses, financial expenses, taxes to be paid and new development to be completed, as well as the management’s view on future developments in the operating environment.
The outlook takes into account the estimated occupancy rate and rises in rents as well as the number of apartments to be completed. The outlook does not take into account the impact of potential acquisitions on total revenue and FFO.
The outlook is also based on the estimate that sufficient vaccination coverage will be achieved in the summer and that migration will gradually recover to pre-pandemic levels thereafter. Migration sustains strong demand, which will increase Like-for-Like rental income. However, due to the impacts of the pandemic on the operating environment, the Group expects the development of Like-for-Like rental income to be moderate during the first half of the year.
The management can influence total revenue and FFO through the company’s business operations. In contrast, the management has no influence over market trends, the regulatory environment or the competitive landscape.
CEO’s review
Kojamo’s total revenue grew in the first quarter, supported by the growth of the housing stock. The value of our investment properties developed favorably, with the fair value exceeding
In the first quarter, maintenance costs were increased by the colder weather and higher snowfall compared to the previous year and the long-term average, and net rental income decreased slightly. Repairs and modernisation investments remained on a par with the comparison period.
The impacts of the COVID-19 pandemic are still visible in the market. Migration has temporarily slowed down due to the restrictions aimed at preventing the spread of the pandemic. The market supply of rental apartments is high, especially in
The recovery of urbanisation depends on reaching sufficient vaccination coverage. We believe the impacts of the pandemic will be short-lived and we expect urbanisation to continue even stronger once the pandemic abates. The resumption of contact instruction in studies, for example, would quickly increase the demand for rental apartments in cities with universities.
We are a long-term operator that is focused on creating the conditions for future growth. We have set detailed criteria for our investments and I am satisfied with our strong project pipeline, which responds to the needs of urbanising
It is essential for us to provide our customers with good, easy and effortless living solutions and we will continue to invest in service development. Our digital My Lumo service channel has achieved a high level of popularity amongst our customers as well as a high customer promoter score. One in ten new customers have also used the channel to order some of our paid value-added services.
Our balance sheet is strong, and our equity ratio and Loan to Value (LTV) are both in line with our strategic targets. In March, we also took a significant step on the sustainable finance front by publishing Kojamo’s Green Finance Framework. It enables us to link our sustainability targets with our financing solutions and underscores our commitment to promoting sustainable development. Our goal is to become carbon-neutral in energy consumption for our entire property portfolio by 2030.
CEO
News conference as a webcast
A recording of the webcast will be available later on the company website at https://kojamo.fi/en/investors/releases-and-publications/financial-reports/
The news conference can be streamed online at https://kojamo.videosync.fi/2021-q1-results
You can also participate in the press conference by calling:
FI: +358 981 710 310
SE: +46 856 642 651
US: +1 631 913 1422
Please use the following PIN code to participate in the press conference by telephone: 60113807#.
For more information, please contact
Maija Hongas, Manager, Investor Relations,
Distribution:
Nasdaq
Attachments
Kojamo Interim Report January-March 2021 presentationKojamo Interim Report January–March 2021
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