Kojamo plc Half-Year Financial Report 1 January-30 June 2025

Kojamo plc Stock Exchange Release, 21 August 2025 at 8.00 a.m. EEST

HELSINKI, Aug. 21, 2025 /PRNewswire/ --

Strong increase in occupancy rate continued

This is a summary of the January–June Half-Year Financial 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 Half-Year Financial Report have not been audited.

Summary of April–June 2025

• Total revenue increased by 2.9 per cent to EUR 115.6 (112.3) million.
• Net rental income increased by 0.9 per cent totalling EUR 82.8 (82.1) million. Net rental income represented 71.7 (73.1) per cent of revenue.
• Result before taxes was EUR -12.7 (-104.3) million. The result includes EUR -48.0 (-149.9) million in net result on the valuation of investment properties at fair value. Earnings per share was EUR -0.04 (-0.34).
• Funds From Operations (FFO) decreased by 9.3 per cent and amounted to EUR 38.8 (42.7) million.
• Gross investments totalled EUR 10.1 (10.9) million, representing 8.8 (9.7) per cent of total revenue.

Summary of January–June 2025

• Total revenue increased by 1.9 per cent to EUR 229.9 (225.6) million.
• Net rental income increased by 2.0 per cent, totalling EUR 145.6 (142.7) million. Net rental income represented 63.3 (63.3) per cent of revenue.
• Result before taxes was EUR -23.8 (-65.0) million. The result includes EUR -85.3 (-138.8) million in net result on the valuation of investment properties at fair value and EUR -0.8 (-0.8) million in profit/loss from the sale of investment properties. Earnings per share was EUR -0.08 (-0.21).
• Funds From Operations (FFO) decreased by 9.0 per cent and amounted to EUR 62.0 (68.2) million.
• The fair value of investment properties was EUR 7.9 (7.9) billion at the end of the review period including EUR 272.8 (1.3) million Investment properties held for sale.
• The financial occupancy rate stood at 93.6 (91.7) per cent during the review period.
• Gross investments totalled EUR 14.1 (19.3) million, representing 6.1 (8.6) per cent of total revenue.
• Equity per share was EUR 14.59 (14.50) and return on equity was -1.1 (-2.9) per cent. Return on investment was 1.1 (-0.2) per cent.
• EPRA NRV per share (net reinstatement value) increased by 1.2 per cent and amounted to EUR 18.38 (18.16).
• At the end of the review period, there were 119 (0) Lumo apartments under construction.

Kojamo owned 40,946 (40,973) rental apartments at the end of the review period. Since June of last year, Kojamo completed 0 (1,152) apartments, sold 27 (0) apartments and demolished or otherwise altered 0 (2) apartments.

Key figures

Outlook for Kojamo in 2025

Kojamo restates its outlook from stock exchange release published on July 31, 2025. The outlook update was due to the sale of a residential portfolio, as the outlook does not take into account the impact of potential acquisitions and disposals on revenue or on cash flow before changes in working capital (FFO).

Kojamo estimates that in 2025, the Group's total revenue will increase by 0–2 per cent year-on-year. In addition, Kojamo estimates that the Group's FFO for 2025 will amount to between EUR 135–141 million, excluding non-recurring costs.

The outlook is based on the management's assessment of total revenue, property maintenance expenses and repairs, administrative expenses, financial expenses and taxes to be paid as well as the management's view on future developments in the operating environment.

The outlook takes into account the estimated occupancy rate and development of rents. The total revenue and FFO outlook also takes into account the impacts of disposal of the 44 residential properties, but it does not take into account the impact of potential future acquisitions or disposals. The outlook does not take into account the taxes resulting from the transaction.

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

The growth in total revenue and net rental income continued in the second quarter of the year. FFO decreased which was due to higher financial, maintenance and repair expenses than in comparison period. Our balance sheet has remained strong.

Improving the occupancy rate is still our key priority, and robust growth continued during the second quarter. Our financial occupancy rate was 92.8 per cent in the first quarter, and it increased to 94.4 per cent in the second quarter. In June, our occupancy rate already reached 94.8 per cent.

There is still oversupply in the rental market, particularly in the capital region. New construction is not expected to increase supply in the near term, as the volume of residential development in Finland has remained at a low level. Although construction companies have started some projects for owner-occupied housing, construction is not anticipated to resume on a broad scale. Based on listings on housing portals, the number of available rental apartments has not yet decreased significantly, but the growth in supply appears to have stalled.

Our commitment to customer experience is delivering results. The Net Promoter Score (NPS) reached an all-time high of 58 at the end of June. Customer turnover has also developed positively, declining from the previous year.

In June, we signed an agreement to sell a total of 1,944 apartments. The transaction was completed after the review period, at the end of July. The 44 properties being sold are located in eight different municipalities, mainly outside the capital region. As we are strongly focused on Finland's growth centres, these properties were not aligned with our strategy. The sale of this housing portfolio is in line with our targets for the current year and is, so far, the largest transaction in the Finnish residential market this year. The proceeds from the sale will be used to reduce debt and for share buybacks, which will strengthen our balance sheet and support the creation of shareholder value.

Our financing position is very good. In June, we refinanced a EUR 100 million bank loan with Swedbank maturing next year, thereby extending the maturity profile of our loans. The average interest rate of financing decreased from the end of March. In addition, after the review period in August, we refinanced a EUR 100 million bank loan maturing in 2026 with OP. Our next financing arrangements will focus on loans maturing in 2027.

I had the honour of starting as CEO of Kojamo at the beginning of June. I am grateful to everyone at Kojamo for the warm welcome I have received in many different encounters. Kojamo is a strong company – both in terms of its balance sheet and expertise – and it is well positioned to be a forerunner in housing and the number one choice for customers, in line with its vision. Our goal is to create an even better customer experience, with a focus on growth centres.

Reima Rytsölä
CEO

News conference as a webcast

Kojamo will hold a news conference for institutional investors, analysts and media on 21.8.2025 at 10:00 a.m. EEST at its headquarters at Mannerheimintie 168A, Helsinki, Finland. The event will be held in English. After the event, the media has a possibility to ask questions also in Finnish.

The event can be followed as a live webcast. No registration for the webcast in advance is needed. The event will be accessible at https://kojamo.events.inderes.com/q2-2025.

It is also possible to join the news conference via phone. Accessing the teleconference requires registration by clicking the following link: https://events.inderes.com/kojamo/q2-2025/dial-in. After the registration you will be provided phone numbers and a conference ID to access the conference.

A recording of the webcast will be available later at the company's website at https://kojamo.fi/en/investors/releases-and-publications/financial-reports/.

For more information, please contact:
Niina Saarto, Director, Treasury & Investor Relations, Kojamo plc, tel. +358 20 508 3283, [email protected]
Erik Hjelt, CFO, Kojamo plc, tel. +358 20 508 3225, [email protected]

Distribution:

Nasdaq Helsinki, Irish Stock Exchange, key media

Kojamo is Finland's largest private residential real estate company and one of the biggest investors in Finland. Our mission is to create better urban housing. Lumo offers environmentally friendly housing and services for the city dweller who appreciates quality and effortlessness. We actively develop the value of our investment properties by developing new properties and our existing property portfolio. We want to be the property market frontrunner and the number one choice for our customers. Kojamo's shares are listed on the official list of Nasdaq Helsinki. For more information, please visit https://kojamo.fi/en/

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