CEO’s review
According to the Kojamo plc’s Half-Year Financial Report 1 January – 30 June 2025
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
Page updated 21 August 2025