Total revenue and FFO increased in 2023 in a challenging operating environment
This is a summary of the 2023 Financial Statements Release, 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 information in the Financial Statements Release is based on the
Summary of October-
- Total revenue increased by 5.2 per cent to
EUR 113.5 (107.9) million. - The financial occupancy rate increased to 94.0 (93.0) per cent in the last quarter.
-
Net rental income increased by 4.3 per cent totalling
EUR 75.5 (72.4) million. Net rental income represented 66.5 (67.1) per cent of revenue. -
Result before taxes was
EUR -119.5 (-748.3) million. The result includesEUR -158.7 (-792.8) million in net result on the valuation of investment properties at fair value. Earnings per share wasEUR -0.38 (-2.42). -
Funds From Operations (FFO) decreased by 6.0 per cent and amounted to
EUR 38.3 (40.7) million. -
Gross investments totalled
EUR 29.5 (85.1) million, representing 26.0 (78.9) per cent of total revenue.
Summary of January-December 2023
- Total revenue increased by 7.0 per cent to
EUR 442.2 (413.3) million. -
Net rental income increased by 6.1 per cent, totalling
EUR 297.2 (280.1) million. Net rental income represented 67.2 (67.8) per cent of revenue. -
Result before taxes was
EUR -112.3 (-499.8) million. The result includesEUR -295.4 (-682.0) million in net result on the valuation of investment properties at fair value andEUR 0.2 (0.2) million in profit/loss from the sale of investment properties. Earnings per share wasEUR -0.36 (-1.62). -
Funds From Operations (FFO) increased by 4.1 per cent and amounted to
EUR 167.2 (160.7) million. -
The fair value of investment properties was
EUR 8.0 (8.2) billion at the end of the financial year. - The financial occupancy rate stood at 93.0 (92.0) per cent during the financial year.
-
Gross investments totalled
EUR 190.7 (501.6) million, representing 43.1 (121.4) per cent of total revenue. -
Equity per share was
EUR 14.67 (15.55) and return on equity was -2.4 (-9.9) per cent. Return on investment was -0.4 (-5.7) per cent. -
EPRA NRV per share (net reinstatement value) decreased by 5.5 per cent and amounted to
EUR 18.45 (19.53). - At the end of the financial year, there were 354 (1,804) Lumo apartments under construction.
- The Board of Directors' dividend proposal is that no dividend be paid for 2023.
Key figures
10-12/2023 | 10-12/2022 | Change % | 2023 | 2022 | Change % | |
Total revenue, ME | 113.5 | 107.9 | 5.2 | 442.2 | 413.3 | 7.0 |
Net rental income, ME * | 75.5 | 72.4 | 4.3 | 297.2 | 280.1 | 6.1 |
Net rental income margin, % * | 66.5 | 67.1 | 67.2 | 67.8 | ||
Profit/loss before taxes, ME * | -119.5 | -748.3 | 84.0 | -112.3 | -499.8 | 77.5 |
EBITDA, ME * | -94.8 | -732.3 | 87.1 | -39.9 | -441.3 | 91.0 |
EBITDA margin, % * | -83.5 | -678.7 | -9.0 | -106.8 | ||
Adjusted EBITDA, ME * | 63.3 | 60.6 | 4.5 | 255.1 | 240.4 | 6.1 |
Adjusted EBITDA margin, % * | 55.8 | 56.2 | 57.7 | 58.2 | ||
Funds From Operations (FFO), ME * | 38.3 | 40.7 | -6.0 | 167.2 | 160.7 | 4.1 |
FFO margin, % * | 33.7 | 37.8 | 37.8 | 38.9 | ||
FFO excluding non-recurring costs, ME * | 38.3 | 40.7 | -6.0 | 167.2 | 160.7 | 4.1 |
Investment properties, ME | 8,038.8 | 8,150.2 | -1.4 | |||
Financial occupancy rate, % | 93.0 | 92.0 | ||||
Interest-bearing liabilities, ME * | 3,600.4 | 3,678.2 | -2.1 | |||
Return on equity (ROE), % * | -2.4 | -9.9 | ||||
Return on investment (ROI), % * | -0.4 | -5.7 | ||||
Equity ratio, % * | 44.5 | 45.3 | ||||
Loan to Value (LTV), % * | 44.6 | 43.7 | ||||
EPRA Net Reinstatement value (NRV), ME | 4,558.8 | 4,825.9 | -5.5 | |||
Gross investments, ME * | 29.5 | 85.1 | -65.4 | 190.7 | 501.6 | -62.0 |
Number of personnel, end of the period | 288 | 304 | ||||
Key figures per share, E | 10-12/2023 | 10-12/2022 | Change % | 2023 | 2022 | Change % |
FFO per share * | 0.15 | 0.16 | -6.3 | 0.68 | 0.65 | 4.6 |
Earnings per share | -0.38 | -2.42 | 84.3 | -0.36 | -1.62 | 77.8 |
EPRA NRV per share | 18.45 | 19.53 | -5.5 | |||
Equity per share | 14.67 | 15.55 | -5.7 | |||
Dividend per share ¹⁾ | - | 0.39 | -100.0 | |||
* In accordance with the guidelines issued by the | ||||||
¹⁾ 2023: The Board of Directors proposes to the Annual General Meeting that no dividend be paid for 2023 |
Outlook for 2024
The outlook is based on the management's assessment of total revenue, property maintenance costs and repairs, 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 or disposals on total revenue and FFO.
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
We achieved a good result last year in a very challenging market. Total revenue, net rental income and FFO increased, and our financial position has remained strong.
Although there was still a lot of supply in the rental market, we managed to improve our occupancy rate from previous year. Urbanisation continued stronger, which boosted demand. Population growth accelerated last year in the so-called growth triangle, meaning the capital region,
The fair value of our investment properties decreased by 1.9 per cent in the year-end valuation. Last year, there were no significant comparable transactions in the transaction market, so the increase in yield requirements was based on an overall evaluation. The valuation was positively impacted by increased cash flows and the growth assumptions of future rents and expenses.
We launched a saving programme in the early autumn because we want to maintain investment grade credit rating and to ensure the company's strong financial position. The saving programme has progressed as planned, and we have not started new investments. In relation to the personnel costs, we renewed organization in the autumn to make our operations more efficient. The lay-offs are being implemented in stages after the end of the change negotiations, and most of the personnel cost savings as well as other cost impacts and the dividend decision will be visible in 2024. In December, Moody's affirmed our Baa2 credit rating.
We successfully made significant financing arrangements despite the uncertainty in the financial market. During the year, we signed loan agreements totalling
Our investments last year amounted to
The customer experience has always been a key part of our strategy. At the end of the year, the net promoter score (NPS) of our customers was 50, representing a five-point improvement compared to the previous year. During the year, we developed the My Lumo service on the basis of our residents' wishes. The changes were based on a resident survey and usability testing, and their aim was to improve customer satisfaction and retention, as well as to reduce the number of customer service contacts.
Last year was highly exceptional in terms of the operating environment. We again demonstrated our strength and capacity for both anticipation and renewal in the face of the changes around us. With that in mind, I want to take this opportunity to thank everyone at
CEO
News conference and webcast
The event can also be followed as a live webcast through which it is possible to ask questions. No registration for the webcast in advance is needed. The event will be accessible at https://kojamo.videosync.fi/q4-2023.
A recording of the webcast will be available later on the company website at https://kojamo.fi/en/investors/releases-and-publications/financial-reports/.
For more information, please contact:
Niina Saarto, Director,
Distribution:
Nasdaq Helsinki,
https://news.cision.com/kojamo-oyj/r/kojamo-plc-s-financial-statements-release-1-january-31-december-2023,c3928856
https://mb.cision.com/Main/18367/3928856/2606394.pdf
https://mb.cision.com/Public/18367/3928856/be580f362b510e0a.pdf
(c) 2024 Cision. All rights reserved., source