Near-term risks and uncertainties

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

Kojamo estimates that the most significant near-term risks and uncertainties arise from the uncertain situation in property markets and the development of housing demand-supply situation. Although urbanisation is expected to continue in the longer term, there is uncertainty with the recovery of the property market. The oversupply of rental apartments may continue in the main areas in which Kojamo operates, and the changes in supply and demand could have an impact on Kojamo’s rents, tenant turnover or the financial occupancy rate and, thereby, rental income.

Geopolitical tensions are causing significant economic uncertainty. The trade war initiated by the United States, tariff policies, and potential other measures, along with countermeasures from other countries, significantly increase risks and slow down global economic growth. These factors can also accelerate inflation. All the aforementioned factors can influence central banks’ interest rate decisions and other measures. Although housing markets are local, risk factors can also impact Finland’s economic development and the housing and property markets, including apartment prices, rents and yield requirements as well as on the operations of the construction companies. Increased costs and persistently high loan interest rates may affect Kojamo’s result and cash flow as well as the fair value of apartments.

The development of the Finnish economy may affect the housing and financial markets as well as the demand of rental apartments. These factors may have an impact on Kojamo’s profit and cash flow as well as the fair value of apartments. A general downturn may lead to unemployment and reduce household purchasing power, which in turn may affect the ability of residents to pay rent and, subsequently, the company’s rental income.

The weakening of the property and financial markets or the increase of market interest rates may lower Kojamo’s credit rating and increase the price of financing as well as weaken financial key figures. These factors may affect Kojamo’s profit and cash flow as well as the fair value of the apartments.

Cyber attacks and various other data security threats have generally increased. These data security breaches could impact Kojamo’s business operations and the reliability of information systems.

Kojamo’s most significant risks are described in more detail in the report on non-financial information.

A more detailed description of Kojamo’s strategic risks and uncertainties is provided in the Financial Statements 2024.

Read more about Kojamo’s risk management here.

Page updated 8 May 2025