CEO’s review
According to the Kojamo plc’s Interim Report 1 January – 30 September 2025
Our operations developed as anticipated during the third quarter. Total revenue and net rental income grew from last year. FFO decreased due to higher financial and repair expenses compared to the previous year. Our balance sheet is strong, and there were no significant changes in the fair values of investment properties.
The strong development in the occupancy rate continued in the third quarter. Our financial occupancy rate was 94.4 per cent cumulatively since the beginning of the year. Following the busy summer months, renting continued at a good level into early autumn, and the occupancy rate for the third quarter rose to 96.1 per cent, up from 94.4 per cent in the second quarter. Tenant turnover decreased compared to last year, which in part supports the development of the occupancy rate. Customer satisfaction has also remained at the record level reached during the summer.
The balancing of the rental market continues. In the capital region, there is still oversupply, but the cities are at different stages in terms of balancing. New development is no longer adding to supply as the volume of residential construction remains at the low level similar to last year. In Tampere and Turku, the rental market is already close to normal, with no signs of similar oversupply.
At the end of July, we completed the sale of 44 residential properties, comprising a total of 1,944 apartments. We used EUR 200 million of the proceeds to repay loans, and in late August, we launched a share buyback programme, which has progressed as planned. We will use up to EUR 75 million for the buybacks, which will be concluded by early March latest. Following the portfolio transaction, we still have a few individual properties classified in Assets held for sale, and their sales processes will be advanced during the autumn.
Our financing position has remained good. In September, Moody’s affirmed Kojamo’s Baa2 credit rating and upgraded the outlook to stable. During the third quarter, we refinanced a EUR 100 million loan maturing in 2026 from OP and a EUR 75 million revolving credit facility from Danske Bank. Proceeds from the residential portfolio sale completed in July were used to repay loans, and our net debt decreased. Our liquidity position is strong. As previously stated, our next financing arrangements related to loans maturing in 2027 will likely take place during the first half of next year.
This autumn, we initiated a strategy review that focuses on updating our existing strategy. Our aim is to complete the strategy work so that we can provide further information in connection with the publication of the financial statements.
Reima Rytsölä
CEO
Page updated 30 October 2025