Effects of the COVID-19 pandemic on Kojamo

Kojamo takes the coronavirus seriously and is committed to looking after the health and well-being of the Group’s employees, customers and partners. Kojamo monitors the recommendations issued by the authorities and complies with them.

In spite of the pandemic, Kojamo’s management expects the Group’s operating activities to continue undisrupted for the most part. The webstore enables the renting of apartments to continue almost as normal. The pandemic has not led to an increase in the Group’s rental receivables or credit losses, and they are not expected to grow significantly in the near future. The development of rental receivables and credit losses is actively monitored. Efforts are made to prevent increases in rental receivables through active resident advisory services as well as payment plans and arrangements agreed on with customers.

Kojamo’s management estimates that the demand for rental apartments will remain strong going forward. The restrictions implemented in response to the pandemic may, in the short term, affect people’s willingness to relocate as well as prevent both migration within the country and work-related immigration. Economic uncertainty may influence people’s willingness to take housing loans, which may increase the popularity of rental housing. On the other hand, supply in the rental housing market has increased as apartments intended for short-term rentals have moved to the long-term leasing market following restrictions on travel.

Kojamo will continue to implement its growth strategy. All development projects have progressed as planned thus far. However, challenges potentially faced by construction companies due to the pandemic may result in delays to Kojamo’s projects. In Kojamo’s construction contracts, the construction company takes on the overall responsibility for the entire construction project and payments are made in accordance with the degree of completion. Kojamo’s management estimates that potential delays in projects will not have a material impact on the Group’s total revenue and FFO for the year.

Kojamo’s financial position and liquidity are good. Thanks to the Group’s diverse financing structure, Kojamo has been able to carry out financing arrangements without disruptions.

Read also more, how the effects of COVID-19 pandemic have been taken into consideration in Kojamo’s outlook and near-term risks and uncertainties.

Page updated 20 August 2020