Total revenue increased, the number of apartments exceeded 37,000
This is a summary of the January–March Interim Report, 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 2022
- Total revenue increased by 2.4 per cent to
EUR 99.5 (97.2) million - Net rental income increased by 2.8 per cent to
EUR 57.0 (55.5) million. Net rental income was 57.3 (57.0) per cent of total revenue - Profit before taxes was
EUR 62.9 (177.1) million. The profit includesEUR 27.9 (143.5) million in net gain on the valuation of investment properties at fair value andEUR 0.0 (0.3) million in profits and losses from the sale of investment properties. Earnings per share wasEUR 0.20 (0.57) - Funds From Operations (FFO) increased by 3.6 per cent to
EUR 28.9 (27.9) million - The fair value of investment properties was
EUR 8.4 (7.1) billion at the end of the review period, includingEUR 1.1 (0.0) million in Investment properties held for sale - The financial occupancy rate was 91.9 (94.9) per cent for the review period
- Gross investments amounted to
EUR 48.9 (68.0) million, or 49.1 (69.9) per cent of total revenue - Equity per share was
EUR 17.18 (13.63) and return on equity was 4.7 (17.0) per cent. Return on investment was 4.0 (12.0) per cent - EPRA NRV (Net Reinstatement Value) per share grew by 24.8 per cent to
EUR 21.90 (17.55) - There were 2,566 (2,619) Lumo apartments under construction at the end of the review period
Key figures
1–3/2022 | 1–3/2021 | Change % | 2021 | |
Total revenue, M€ | 99.5 | 97.2 | 2.4 | 391.7 |
Net rental income, M€ * | 57.0 | 55.5 | 2.8 | 262.3 |
Net rental income margin, % * | 57.3 | 57.0 | 67.0 | |
Profit before taxes, M€ * | 62.9 | 177.1 | -64.5 | 1,278.9 |
EBITDA, M€ * | 75.6 | 190.2 | -60.3 | 1,334.8 |
EBITDA margin, % * | 75.9 | 195.6 | 340.8 | |
Adjusted EBITDA, M€ * | 47.7 | 46.4 | 2.7 | 228.5 |
Adjusted EBITDA margin, % * | 47.9 | 47.7 | 58.3 | |
Funds From Operations (FFO), M€ * ¹⁾ | 28.9 | 27.9 | 3.6 | 153.1 |
FFO margin, % * | 29.1 | 28.7 | 39.1 | |
FFO excluding non-recurring costs, M€ * | 28.9 | 27.9 | 3.6 | 153.1 |
Investment properties, M€ ²⁾ | 8,406.6 | 7,072.3 | 18.9 | 8,327.5 |
Financial occupancy rate, % | 91.9 | 94.9 | 93.9 | |
Interest-bearing liabilities, M€ * | 3,622.3 | 3,034.2 | 19.4 | 3,334.5 |
Return on equity (ROE), % * | 4.7 | 17.0 | 27.0 | |
Return on investment (ROI), % * | 4.0 | 12.0 | 19.2 | |
Equity ratio, % * | 46.9 | 45.5 | 49.0 | |
Loan to Value (LTV), % * ³⁾ | 37.4 | 40.2 | 37.7 | |
EPRA Net Reinstatement Value (NRV), M€ | 5,412.3 | 4,338.5 | 24.8 | 5,447.9 |
Gross investments, M€ * | 48.9 | 68.0 | -28.2 | 356.9 |
Number of personnel, end of the period | 315 | 312 | 325 | |
Key figures per share, € | 1–3/2022 | 1–3/2021 | Change % | 2021 |
FFO per share * | 0.12 | 0.11 | 9.1 | 0.62 |
Earnings per share | 0.20 | 0.57 | -64.9 | 4.14 |
EPRA NRV per share | 21.90 | 17.55 | 24.8 | 22.04 |
Equity per share | 17.18 | 13.63 | 26.1 | 17.25 |
* In accordance with the guidelines issued by the | ||||
¹⁾ The formula used in the calculation was changed in 2021 regarding current taxes from disposals. The comparison figures for 1-3/2021 have been adjusted to reflect the current calculation method | ||||
²⁾ Including non-current assets held for sale | ||||
³⁾ Excluding non-current assets held for sale |
Outlook for
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 COVID-19 restrictions, market trends, the regulatory environment or the competitive landscape.
CEO’s review
Our operations remained stable and our financial position strong during the first quarter of the year. Total revenue and net rental income as well as FFO increased, and the fair value of our investment properties rose to
In the early part of the year, the rental market was still clearly affected by the tighter COVID-19 restrictions introduced late last year and the related uncertainty. Consequently, our financial occupancy rate decreased year-on-year. Nearly all COVID-19 restrictions were lifted at the beginning of March, and we expect this to be favourably reflected in the rental market and the recovery of migration. As urbanisation continues in line with forecasts, the outlook for the demand for rental apartments is stable, especially in Finland’s major growth centres. In the
The war in
At the end of the review period, we had 2,566 apartments under construction, along with binding preliminary agreements for the construction of 636 apartments. In the first quarter, we started work on the renovation of Helsingin Bulevardi 31, which is the first part of the Metropolia real estate development project. The former chemistry laboratory and teaching facilities, known as Uusi kemia and Vanha kemia, will be renovated and converted into 77 premium apartments to be completed in autumn 2023. In the coming years, the Metropolia project will see us develop as many as 1,000 new apartments in central locations in
We continued to invest in the development of sustainability services for our customers. In the first quarter, we worked on a carbon footprint test for residents and the possibility to compensate for district heating emissions. The services will be launched at the beginning of May. In construction, we made decisions on the use of geothermal heating at seven of our properties in the capital region. We also started our first pilot project that adheres to the principles of Green Deal demolition. The property to be demolished is the old Puotila shopping centre in
Volatility in the financial markets has been high in the early part of the year, and market interest rates have continued to rise. In spite of the challenging market situation, we successfully issued a
CEO
News conference as a webcast
The event can also be followed 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 followed online at https://kojamo.videosync.fi/q1-2022.
You can also participate in the news conference by calling:
FI: +358 981 710 310
SE: +46 856 642 651
US: +1 631 913 14 22
The participants joining the news conference will be asked to provide the following PIN code: 69956062#
For more information, please contact:
Niina Saarto, Group Treasurer, Investor Relations,
Distribution:
Nasdaq
Attachments
Kojamo Interim Report January-March 2022 Kojamo Interim Report January-March 2022 presentation
© OMX, source