Total revenue and net rental income increased, occupancy rate improved
This is a summary of the January-September 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 July-
- Total revenue increased by 5.7 per cent to
EUR 111.5 (105.4) million -
Net rental income increased by 6.3 per cent totalling
EUR 83.1 (78.2) million. Net rental income represented 74.6 (74.1) per cent of total revenue -
Result before taxes was
EUR -88.5 (90.8) million. The result includesEUR -141.8 (35.8) million net result on the valuation of investment properties at fair value. Earnings per share wasEUR -0.29 (0.29) -
Funds From Operations (FFO) decreased by 0.4 per cent and amounted to
EUR 48.5 (48.6) million -
Gross investments totalled
EUR 45.0 (78.1) million, representing 40.3 (74.1) per cent of total revenue
Summary of January-
- Total revenue increased by 7.6 per cent to
EUR 328.6 (305.4) million -
Net rental income increased by 6.7 per cent to
EUR 221.6 (207.6) million. Net rental income was 67.4 (68.0) per cent of total revenue -
Result before taxes was
EUR 7.2 (248.6) million. The result includesEUR -136.7 (110.9) million net result on the valuation of investment properties at fair value andEUR -0.1 (0.2) million in profits and losses from the sale of investment properties. Earnings per share wasEUR 0.02 (0.81) -
Funds From Operations (FFO) increased by 7.5 per cent to
EUR 128.9 (120.0) million -
The fair value of investment properties was
EUR 8.2 (8.9) billion at the end of the review period - The financial occupancy rate was 92.7 (91.7) per cent for the review period
-
Gross investments amounted to
EUR 161.3 (416.5) million, or 49.1 (136.4) per cent of total revenue -
Equity per share was
EUR 15.18 (17.96), and return on equity was 0.2 (6.1) per cent. Return on investment was 1.2 (5.1) per cent -
EPRA NRV (Net Reinstatement Value) per share fell by 15.6 per cent to
EUR 19.11 (22.63) - There were 779 (2,012) Lumo apartments under construction at the end of the review period
Key figures
7-9/2023 | 7-9/2022 | Change % | 1-9/2023 | 1-9/2022 | Change % | 2022 | |
Total revenue, ME | 111.5 | 105.4 | 5.7 | 328.6 | 305.4 | 7.6 | 413.3 |
Net rental income, ME * | 83.1 | 78.2 | 6.3 | 221.6 | 207.6 | 6.7 | 280.1 |
Net rental income margin, % * | 74.6 | 74.1 | 67.4 | 68.0 | 67.8 | ||
Profit/loss before taxes, ME * | -88.5 | 90.8 | -197.5 | 7.2 | 248.6 | -97.1 | -499.8 |
EBITDA, ME * | -67.9 | 105.1 | -164.7 | 55.0 | 291.0 | -81.1 | -441.3 |
EBITDA margin, % * | -60.9 | 99.7 | 16.7 | 95.3 | -106.8 | ||
Adjusted EBITDA, ME * | 73.8 | 69.3 | 6.5 | 191.8 | 179.9 | 6.6 | 240.4 |
Adjusted EBITDA margin, % * | 66.2 | 65.7 | 58.4 | 58.9 | 58.2 | ||
Funds From Operations (FFO), ME * | 48.5 | 48.6 | -0.4 | 128.9 | 120.0 | 7.5 | 160.7 |
FFO margin, % * | 43.5 | 46.1 | 39.2 | 39.3 | 38.9 | ||
FFO excluding non-recurring costs, ME * | 48.5 | 48.6 | -0.4 | 128.9 | 120.0 | 7.5 | 160.7 |
Investment properties, ME | 8,171.4 | 8,857.1 | -7.7 | 8,150.2 | |||
Financial occupancy rate, % | 92.7 | 91.7 | 92.0 | ||||
Interest-bearing liabilities, ME * | 3,650.3 | 3,582.9 | 1.9 | 3,678.2 | |||
Return on equity (ROE), % * | 0.2 | 6.1 | -9.9 | ||||
Return on investment (ROI), % * | 1.2 | 5.1 | -5.7 | ||||
Equity ratio, % * | 45.0 | 48.7 | 45.3 | ||||
Loan to Value (LTV), % * | 44.3 | 39.9 | 43.7 | ||||
EPRA Net Reinstatement Value (NRV), ME | 4,722.9 | 5,592.3 | -15.6 | 4,825.9 | |||
Gross investments, ME * | 45.0 | 78.1 | -42.4 | 161.3 | 416.5 | -61.3 | 501.6 |
Number of personnel, end of the period | 311 | 309 | 304 | ||||
Key figures per share, E | 7-9/2023 | 7-9/2022 | Change % | 1-9/2023 | 1-9/2022 | Change % | 2022 |
FFO per share * | 0.20 | 0.20 | 0.0 | 0.52 | 0.49 | 6.1 | 0.65 |
Earnings per share | -0.29 | 0.29 | -200.0 | 0.02 | 0.81 | -97.5 | -1.62 |
EPRA NRV per share | 19.11 | 22.63 | -15.6 | 19.53 | |||
Equity per share | 15.18 | 17.96 | -15.5 | 15.55 | |||
* In accordance with the guidelines issued by the |
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. In addition, the outlook takes into account the result of the repurchase of eurobonds and the effect on FFO of the financing arrangement made after the review period.
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
Our operations developed as anticipated during the third quarter. Total revenue and net rental income grew, and occupancy rate improved from previous year. Our balance sheet remained strong.
During the summer and autumn, the rental market has been active as expected, and our cumulative occupancy rate improved. In the third quarter of the year, our occupancy rate rose to above 94 per cent. A large number of rental and owner-occupied apartments from construction projects started in previous years are being completed in the market still this year. Owner-occupied housing sales are subdued, increasing the number of unsold new apartments, and investors' interest for new rental housing investments is very low. The supply of completed rental apartments will continue to be high until the beginning of next year but will decrease sharply after that.
The outlook for construction has become bleaker. The number of new residential start-ups has collapsed during this year, and there are currently no signs of a significant increase in the number of start-ups next year. This will be reflected in the entire housing market in the next few years as a very low amount of new supply.
The shrinking supply and the continuation of urbanization and immigration are expected to have a positive effect on the rental market. The shrinking supply and the increased maintenance and financing costs will likely be reflected in the market during 2024-2025 as more strongly increasing rents.
Our saving programme announced in August is progressing according to the plan. Our goal is to achieve total savings of
With regards to other savings, the plan is ready and its implementation has started. For the time being, we are not launching new development projects or modernization projects, and we are focusing our repairs to support renting. At the end of the review period, we still had 779 apartments under construction, most of which will be completed this year. As part of measures to strengthen the company's financial situation, the company's Board of Directors decided that it will propose to the spring 2024 general meeting that no dividend for 2023 be paid.
We were able to utilize our development contributions from previous years when we made a demand response agreement with Vantaan Energia regarding district heating for the majority of our properties located in Vantaa. The room temperatures of
After the review period, we signed a
The uncertainty in the financial and real estate transaction markets has continued, and interest rates are not expected to decline in the near future. There were limited number of transactions in the market, and we have based the yield requirement increase of 0.07 percentage points on the opinion on an external expert. Adapting to the challenging situation and the new interest rate environment is still in progress for many players. I believe that with active and proactive measures, we can ensure a strong position and our ability to grow in the future as the market situation turns more favourable again.
CEO
News conference as a 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/q3-2023.
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
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