CEO’s review

According to the Kojamo plc’s Interim Report 1 January – 31 March 2025

Total revenue and net rental income grew in the first quarter of the year. The growth in net rental income was especially impacted by improved occupancy rate, the rental apartments completed last year and the decrease in maintenance expenses as the heating costs were lower due to the weather being milder than last year. FFO decreased from the comparison period which was affected by increased financial expenses. Our balance sheet has remained strong, and our liquidity is good.

Currently, we are focusing on improving the occupancy rate, and the rent increases are moderate for now. Our occupancy rate has improved since last autumn. The increase accelerated during the first quarter of the year despite the oversupply of apartments and the typical seasonality. We succeeded in increasing the occupancy rate by 1.2 percentage points compared to the previous quarter, and the first quarter occupancy rate was 92.8%. Our occupancy rate for March was already 93.5%.

The fair value of investment properties remained at year-end level. The transaction market was still muted in the beginning of the year but there is interest towards the Finnish residential market. As stated previously, the company’s goal is to carry out moderate property sales. The proceeds from the sales are intended to be used primarily for loan repayments as well as possibly also for share buybacks and payment of dividends

Our financing situation has remained strong. Following the successful issuance of the EUR 500 million bond in March, our loans maturing in 2026 are also covered. The seven-year bond extends the maturity profile of our loans. In connection with the issuance of the new bond, we repurchased the company’s bond maturing in 2026 with EUR 165 million.

Enhancing customer experience is one of our most important focus areas. The Net Promoter Score, which measures customer satisfaction, continued to improve and was 57 at the end of March. We have successfully developed the operations of Lumo service centre and the cooperation with our property maintenance partners, resulting in faster and more effortless service for our customers.

The geopolitical tensions grew significantly in the beginning of the year. The uncertainty caused by the trade war and tariffs is also reflected in the development of Finland’s economy. Kojamo has business operations only in Finland, and we do not have any export or import so the tariffs do not have a direct impact on our company. Although market uncertainty naturally impacts the operating environment, the supply and demand situation in the rental market has a greater impact on the company’s operations.

Erik Hjelt
Interim CEO

Page updated 8 May 2025