Kojamo as an investment

Kojamo is Finland’s largest private residential real estate investment company measured by fair value of investment properties. In our view, the combination of our property portfolio’s growth target and yield potential makes us an attractive investment target.

The company has a strong role in the digital transformation of the housing industry and is continuously examining new possibilities to expand its digital and other housing services to create an attractive service offering. The fair value of Kojamo’s property investments was EUR 8.2 billion in 31 December 2022.

Why invest in Kojamo?

Urbanisation, smaller family sizes and the growing popularity of rental housing support our business

Urbanisation sees people move to large growth centres in search of work and study opportunities as well as services. The popularity of rental housing has grown steadily in major cities and continues to grow. The popularity of rental housing is also supported by the decrease in the average size of households and the flexibility of rental housing in different life situations. We respond to the demand driven by megatrends by providing apartments in central locations, close to good services and transport connections.

We offer the opportunity to invest in a large, decentralised and professionally managed housing portfolio in Finland’s largest growth centres

Through Kojamo, it is possible to invest in thousands of centrally located and well-maintained apartments that generate steady cash flow. We actively develop the value and number of our investment properties by developing new properties as well as our existing property portfolio. We have over 300 professionals responsible for investments, repairs and maintenance, financing and delivering an excellent customer experience. The economies of scale we enjoy as a large company reduce our operational risks and enable us to operate cost-effectively.

We invest to create strong growth from multiple sources with the help of our competencies and strong balance sheet

Our strategic target is to increase total revenue by 4–5% and invest EUR 200–400 million per year. Our growth does not rely on a single source. Instead, we have the capacity to create growth through investments in new development, buying entire properties or portfolios, and by converting properties into residential use. Our strong balance sheet and diverse financing structure enable growth and the ability to move quickly when necessary. Our target is to maintain an equity ratio of over 40% and Loan to Value (LTV) of less than 50%.

We offer a combination of stable dividends and capital growth

Our objective is to create profitable growth. With its combination of a growth target and yield potential, our property portfolio makes us an attractive investment. Our target is to distribute dividends corresponding to 60% of Funds From Operations (FFO), and we have achieved this target every year since going public. The remainder of our FFO is retained in the company to support growth. Equity is also increased by the development margins from development projects and value gains from assets that still involve valuation-related limitations. We can carry out our growth investments in line with our strategy without new equity. As we grow in accordance with our target, our FFO – which is the basis of our dividend distribution – also grows.

We create added value for our customers by taking advantage of digital solutions and offering diverse services

We differentiate ourselves from our competitors by providing easy and effortless housing customers. All of our apartments are available for rent through our webstore, and our customers can handle all of their
housing-related affairs through the My Lumo service. We also offer a wide range of services that make housing easier, from key deliveries to moving-out cleaning. Our customers have access to an extensive network of shared cars. We also use digital solutions in property maintenance; for example, we control the heating of 28,000 apartments with the help of an AI-based application.

We are a responsible builder of sustainable cities

Sustainability is a strategic priority for Kojamo and a key element of our operations from the customer, employee, social, environmental and governance perspectives. In our sustainability programme, published in 2020, we set carbon-neutral energy consumption for our entire property portfolio by 2030 as our target. We report in accordance with the property industry’s key sustainability indicators, such as EPRA Best Practices, and participate in GRESB, the most important international sustainability benchmark in our industry.

Page updated 21 February 2023