Kojamo Plc Stock Exchange Release,
Profitable growth, nearly 2,400 apartments under construction
This is a summary of the Half-Year Financial Report January-
Summary of April-
· Total revenue increased by 1.9 per cent to
· Net rental income increased by 3.1 per cent, totalling
· Profit before taxes was
· Funds From Operations (FFO) increased by 4.9 per cent and amounted to
· Gross investments totalled
Summary of January-
· Total revenue increased by 3.2 per cent to
· Net rental income increased by 6.2 per cent, totalling
· Profit before taxes was
· Funds From Operations (FFO) increased by 7.6 per cent and amounted to
· The fair value of investment properties was
· The financial occupancy rate decreased year-on-year and stood at 96.3 (96.9) per cent.
· Gross investments totalled
· EPRA NAV per share (net asset value) grew by 31.5 per cent and amounted to
· Equity per share was
· At the end of the review period, there were 2,380 (1,329) Lumo apartments under construction.
·
Key figures
[][][][][][][][][][][][][][][][][][]
4-6/20 4-6/201 Change 1-6/2020 1-6/2019 Change 2019
20 9 % %
Total 94.8 93.1 1.9 190.5 184.6 3.2 375.3
revenue, M€
Net rental 68.9 66.8 3.1 124.9 117.7 6.2 247.3
income,
M€ [*)]
Net rental 72.7 71.8 65.6 63.8 65.9
income
margin,
% [*)]
Profit 73.5 85.9 -14.4 125.2 124.8 0.3 1,031.3
before
taxes,
M€ [*)]
EBITDA, 85.2 99.2 -14.0 153.6 151.5 1.4 1,083.1
M€ [*)]
EBITDA 89.9 106.5 80.6 82.1 288.6
margin,
% [*)]
Adjusted 59.6 56.9 4.9 106.1 98.8 7.3 210.3
EBITDA,
M€ [*)]
Adjusted 62.9 61.1 55.7 53.6 56.0
EBITDA
margin, %
[*)]
Funds From 42.1 40.1 4.9 71.5 66.4 7.6 140.7
Operations
(FFO),
M€ [*)]
FFO margin, 44.4 43.1 37.5 36.0 37.5
% [*)]
FFO 42.1 40.1 4.9 71.5 66.4 7.6 140.7
excluding
non
-recurring
costs,
M€[ *)]
Investment 6,486.4 5,303.2 22.3 6,260.8
properties,
M€[ 1)]
Financial 96.3 96.9 97.2
occupancy
rate, %
Interest 3,212.8 2,616.1 22.8 2,674.2
-bearing
liabilities,
M€[ 2)*)]
Return on 6.5 8.5 30.3
equity, %
(ROE) [*)]
Return on 5.1 6.2 20.5
investment,
% (ROI) [*)]
Equity 43.3 41.9 46.9
ratio,
% [*)]
Loan to 42.6 46.9 40.5
Value (LTV),
%[ 3) *)]
EPRA NAV, 3,861.2 2,936.0 31.5 3,828.0
M€
Gross 116.9 58.6 99.6 179.0 96.6 85.3 259.9
investments,
M€ [*)]
Number of 340 329 296
personnel,
end of
period
Key figures 4-6/20 4-6/201 Change 1-6/2020 1-6/2019 Change 2019
per 20 9 % %
share, €
FFO per 0.17 0.16 6.3 0.29 0.27 7.4 0.57
share [*)]
Earnings per 0.24 0.27 -11.1 0.40 0.40 0.0 3.34
share
EPRA NAV per 15.62 11.88 31.5 15.49
share
Equity per 12.53 9.55 31.2 12.51
share
*) In accordance with the guidelines issued by the
Markets Authority (ESMA),
Performance Measures used by the Group in the section Key figures, the
formulas used in their calculation, and reconciliation calculations in
accordance with the ESMA guidelines of the Half-Year Financial Report.
1) Including items held for sale.
2) Excluding liabilities related to non-current assets held for sale.
3) Excluding non-current assets held for sale or liabilities related to non
-current assets held for sale.
Outlook for
The outlook takes into account the effects of the completed housing divestments and acquisitions, the estimated occupancy rate and rises in rents, as well as the number of apartments to be completed. 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.
Additionally, the outlook is based on strong demand sustained by migration, which will increase Like-for-Like rental income. 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.
Effects of the COVID-19 pandemic on
In spite of the pandemic,
CEO's review
The first half of the year went well in spite of the COVID-19 pandemic. Our total revenue, net rental income and FFO increased. The fair value of investment properties was
The impacts of the COVID-19 pandemic on our operations have been minor and we do not expect them to have an impact on our guidance for 2020. The pandemic has, however, had an impact on the housing market. Work-related immigration has stopped for the time being, students have temporarily moved in with their parents and foreign students have returned to their home countries. Supply has increased due to new development projects completed during the review period, and the restrictions on travel have resulted in apartments intended for short-term rentals moving to the long-term housing market. Our financial occupancy rate is at a good level in spite of the growing supply of rental housing. We expect the impacts of the pandemic to be short-lived. In the long term, urbanisation will continue even stronger after the crisis.
Housing production in the market has slowed down significantly as a result of the pandemic, but the demand for new apartments will continue to grow due to urbanisation. The situation has presented us with opportunities in our property development operations, and during the first half of the year we have announced the start of several new projects, such as the start of construction of the Lumo One high-rise building to be built next to the Redi shopping centre. We now have a record-high 2,380 apartments under construction. When you add the apartments included in our existing cooperation agreements for which construction is yet to begin, we will build some 3,600 apartments in total during the next four years.
We strengthened our financing position early on in the year to prepare for the potential consequences of the pandemic, supported by our diverse financing structure. We also secured the financing for our development projects ahead of time by carrying out a successful senior unsecured notes issue of
We have also taken measures to pursue renewal through digital solutions. In the early summer, we completed our Digital Road Map 2023, which specifies development actions that support the execution of
We are in a good position to continue our operations. Much of the credit for this belongs to our employees, who have done an excellent job of maintaining our operating activities during the exceptional circumstances.
CEO
News conference and webcast
Participants are requested to only attend the event in person if they are completely healthy. The practical arrangements take into account the official recommendations concerning the coronavirus pandemic.
The event can also be streamed as a live 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/2020-q2-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: 76954984#
For more information, please contact
Maija Hongas, Manager, Investor Relations,
Distribution:
Nasdaq
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