Near-term risks and uncertainties

As stated in the Half-Year Financial Report January-June 2021

There were no significant changes in Kojamo’s near-term risks and uncertainties during the review period.

Kojamo estimates that the most significant risks and uncertainties in the current review period are related to the development of the Finnish economy. The near-term risks arise particularly from the COVID-19 pandemic. The risks and their magnitude are affected particularly by the development of the pandemic as well as the scope and duration of the measures introduced to limit the pandemic. Delays in COVID-19 vaccinations or in achieving a sufficient vaccination coverage and the potential acceleration of the pandemic could prolong the pandemic and its impacts.

The development of the Finnish economy may affect the housing and financial markets in exceptional ways. These factors may have an impact on Kojamo’s profit and cash flow as well as the fair value of apartments. A general economic downturn may lead to unemployment, which can affect the ability of residents to pay rent and, subsequently, the company’s rental income. The development of rental receivables and credit losses is actively monitored.

Urbanisation is expected to continue in the longer term. However, the pandemic and related restrictions may, in the short term, affect people’s willingness to relocate and reduce migration.

The supply of rental apartments may increase locally in the main areas in which Kojamo operates, and the changes in supply and demand could have an impact on Kojamo’s tenant turnover or the financial occupancy rate and, thereby, rental income.

If prolonged, the pandemic may have an impact on the operations of construction companies, which could result in delays in projects. The prolongation of the pandemic could also have broader impacts on the housing market and property market, including apartment prices, rents and yield requirements.

A more detailed description of Kojamo’s strategic risks and uncertainties is provided in the Financial Statements 2020.

Read more about Kojamo’s risk management here.

Page updated 19 August 2021