Kojamo plc: : Interim Report 1 January-30 September 2017
KOJAMO PLC
Interim Report (Q1 and Q3)
26 September 2017 at 12.00
Kojamo plc's Interim Report 1 January-30 September 2017
Summary of January-September 2017
- Turnover totalled EUR 251.3 (266.8) million. Turnover is generated entirely by rental income. Turnover decreased due to the divestments of rental apartments in 2016 and early 2017.
- Profit before taxes amounted to EUR 207.8 (154.4) million. The profit includes EUR 100.8 (68.6) million in net valuation gain on the fair value assessment of investment properties and EUR 1.5 (-20.3) million in capital gains and losses on investment properties. The profit increase resulted primarily from larger changes in the fair value, higher income from the divestment of investment properties and lower financial costs than in the comparison period.
- Net rental income was EUR 162.1 (172.4) million, representing 64.5 (64.6) per cent of turnover. Net rental income decreased due to the divestments of rental apartments in 2016 and early 2017.
- The financial occupancy rate remained high, standing at 96.7 (97.2) per cent during the period under review.
- Gross investments during the period totalled EUR 193.7 (609.4) million. Gross investments were 77.1 (228.4) per cent of turnover. The decrease in gross investments resulted from a significant purchase of rental apartments in the comparison period.
- The fair value of investment properties was EUR 4.5 (4.1) billion. Return on investment was 7.7 (7.0) per cent.
- There were 1,760 (1,415) Lumo apartments under construction at the end of the review period.
- Kojamo owned 34,046 (34,926) rental apartments on 30 September 2017.
- Kojamo specifies its outlook for the financial year 2017 with regard to net rental income and operative result.
Summary of July-September 2017
- Turnover totalled EUR 84.0 (84.6) million. Turnover decreased due to the divestment of rental apartments.
- Profit before taxes amounted to EUR 71.0 (49.0) million. The profit includes EUR 33.2 (12.4) million in net valuation gain on fair value assessment.
- Net rental income was EUR 56.2 (55.9) million, representing 66.8 (66.1) per cent of turnover.
- The financial occupancy rate remained high, standing at 96.9 (97.8) per cent during the period.
- The Group's gross investments during the period totalled EUR 64.3 (519.5) million.
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.
CEO Jani Nieminen:
Kojamo is achieving growth in line with its strategy and boldly renewing housing
A substantial number of new rental apartments has been completed, particularly in the Helsinki Metropolitan Area. We have been able to maintain our occupancy rate at a good level, and we are confident that the continued trend of urbanisation will create long-term demand for rental housing.
After the end of the review period, we implemented our strategy by, for example, finalising the purchase of properties located in Helsinki at Onnentie 18, Sofianlehdonkatu 5, Tukholmankatu 10, Agricolankatu 1-3, Albertinkatu 40-42, Abrahaminkatu 1-3 and Bulevardi 29-31 from the City of Helsinki. The purchase will deliver new growth in the Helsinki region in line with Kojamo's strategy: the new properties will make it easier for people to relocate in pursuit of employment in urbanising Finland.
The trend of urbanisation is also reflected by strong demand in our web store. The Lumo web store has shifted power to the customers and seen strong growth, with some 3,000 tenancy agreements already signed. All Lumo rental apartments that became vacant during the review period were available for rent on the Lumo web store, which offers customers the opportunity to choose their preferred apartment and sign a tenancy agreement immediately.
As part of our ongoing effort to deliver the best customer experience, which is a strategic focus area for us, we revamped the role of the property manager. The property managers we recruit are creators of the customer experience. In addition to managing the provision of housing-related services and looking after the properties, they are tasked with building a unique customer experience.
We provide our tenants with innovative services that make their daily lives easier while also making significant investments and boldly renewing housing as a whole.
Key indicators
| 7-9/2017 | 7-9/2016 | 1-9/2017 | 1-9/2016 | 2016 | |
| Revenue, M€ | 84.0 | 84.6 | 251.3 | 266.8 | 351.5 |
| Net rental income, M€ | 56.2 | 55.9 | 162.1 | 172.4 | 222.0 |
| % revenue | 66.8 | 66.1 | 64.5 | 64.6 | 63.2 |
| Profit before taxes, M€ | 71.0 | 49.0 | 207.8 | 154.4 | 289.7 |
| Operative result, M€*) | 27.4 | 29.8 | 79.9 | 95.2 | 116.9 |
| Investment properties, M€ 1) | 4,516.3 | 4,127.5 | 4,298.9 | ||
| Financial occupancy rate, % | 96.9 | 97.8 | 96.7 | 97.2 | 97.4 |
| Interest-bearing liabilities, M€ 2) | 2,352.7 | 1,984.8 | 2,122.8 | ||
| Return on equity, % (ROE)*) | 11.4 | 9.6 | 12.9 | ||
| Return on investments, % (ROI)*) | 7.7 | 7.0 | 8.8 | ||
| Equity ratio, %*) | 40.2 | 39.5 | 40.7 | ||
| Loan to Value, % 2) 3) *) | 45.9 | 45.5 | 47.1 | ||
| Earnings per share, € | 7.42 | 5.27 | 22.15 | 16.80 | 31.38 |
| Equity per share, € | 268.44 | 233.93 | 251.20 | ||
| Gross investments, M€ | 64.3 | 519.5 | 193.7 | 609.4 | 696.0 |
| Number of personnel, end of period | 302 | 290 | 286 | ||
| 1) Including items held for sale | |||||
| 2) Does not include items held for sale | |||||
| 3) The calculation formula is changed 2017 and the comperative figures adjusted to corresbond to the current calculation method | |||||
| *) Disclosure on Alternative Performance Measurements based on ESMA guidelines is located on key figures section of the Interim Report | |||||
Kojamo specifies its outlook for 2017
Kojamo specifies its outlook for the financial year 2017 with regard to net rental income and operative result.
Kojamo estimates that, in 2017, net rental income will be EUR 209-218 million (previous outlook: EUR 208-220 million). Investments in new development and housing stock acquisitions are forecast to exceed EUR 300 million. Kojamo estimates that, in 2017, its result will be EUR 100-109 million (previous outlook: EUR 96-107 million). The outlook takes into account the effects of both the significant housing divestments carried out in 2016 and the housing divestments and acquisitions planned for 2017, the estimated occupancy rate and the number of apartments under construction.
More information:
Kojamo plc
Jani Nieminen, CEO, tel. +358 20 508 3201
Erik Hjelt, CFO, tel. +358 20 508 3225
Kojamo is the frontrunner in rental housing and real estate investments. It has undergone major renewals in recent years. The renewed Kojamo is able to provide better urban housing in a rapidly changing world. Kojamo is transforming Finnish society together with its customers, other companies and operators, and cities.