Glossary for investors

There are several field-specific performance measures illustrating Kojamo’s operations and result, which are particularly interesting for investors. On this page we explain some of the key terms and figures.

Gross investments

Gross investments illustrate the total volume of investments, including investments in new development, converting properties for residential purposes, housing stock acquisitions, modernisation investments and capitalised borrowing costs.


We are a member of the Finnish Climate Leadership Coalition (CLC), which encourages its members as well as other companies and organisations to move towards operating methods that are carbon-neutral and promote the sustainable use of natural resources.

Energy-efficient construction

All of our new development projects based on our own land are built in accordance with the nearly zero-energy building (nZEB) specification. In accordance with the specification, the level is measured by each building’s
E-value, which is a computational comparison figure of energy efficiency.


EPRA (European Public Real Estate Association) has developed performance measures, Best Practices Recommendations Guidelines, for the comparable analysis of property investment companies. More information
on the EPRA indicators is provided in the Financial Statements.


EPRA supports the sustainability reporting of companies in the real estate industry and has created industry-specific sustainability indicators known as the Sustainability Best Practices Recommendations (EPRA sBPR). Kojamo has reported in accordance with EPRA sBPR since 2019.

EU taxonomy

The taxonomy is the European Union’s sustainable finance regulation, which establishes financing and investment targets that can be considered sustainable. Kojamo reports on the taxonomy compliance of its business operations in the Board of Directors’ report.


GRESB, or the Global Real Estate Sustainability Benchmark, is a global sustainability assessment and benchmark in the real estate industry. Kojamo participated in GRESB for the first time in 2020.


GRI (Global Reporting Initiative) is an internationally used standard for sustainability reporting. It is aimed at describing operations from the perspectives of environmental responsibility, social responsibility and governance. Kojamo has reported in accordance with GRI Standards Core framework since 2020.

Carbon footprint

Our carbon footprint includes the Scope 1 and Scope 2 carbon dioxide emissions of our operations. Our carbon footprint reflects the total carbon dioxide emissions generated by our operations in the area of property maintenance and ownership, i.e. the amount of carbon dioxide emissions generated during the use of our properties.

Funds From Operations (FFO)

Funds From Operations (FFO) is an indicator of profitability. Unlike operating profit, FFO does not take into account changes in fair value or the gains and losses arising from asset sales. FFO is one of the two indicators used in our guidance for 2022. The dividend payout objective is also linked to this performance indicator.

Property maintenance and repair expenses

Property maintenance and repair expenses arise from the regular and continuous maintenance of properties, and they are recognised in the income statement above net rental income. Maintenance expenses are primarily related to heating, electricity, waste management, water, estate management, property taxes, real estate insurance and other maintenance costs. Modernisation investments that improve the revenue-generating capacity of properties, such as pipe renovation projects, are recognised in gross investments and their impacts are reflected in fair value changes in the income statement.

Total revenue

Total revenue comprises rental income and charges for utilities collected by Kojamo, with the latter mainly consisting of water and sauna fees as well as fees for parking spaces. Total revenue is one of the two performance indicators referred to in our guidance for 2022.

Operating profit

Operating profit includes net rental income as well as other other operating income and expenses, capital gains and losses, fair value changes and administrative expenses as well as depreciation and impairment.

Like-for-Like rental growth (LfL)

Like-for-Like growth (LfL) illustrates the change in rental income for apartments owned for two consecutive years in the past 12 months compared to the previous 12-month period. LfL rental growth is influenced by changes in the financial occupancy rate, rent increases, the rents of new tenancy agreements compared to concluded agreements and the period of time between new and concluded tenancy agreements. LfL growth is also affected by changes in maintenance and repair expenses.

Loan to Value (LTV)

Loan to Value (LTV) (%) is an indicator of indebtedness. It is calculated by dividing net debt by the value of investment properties. The figure illustrates the amount of debt the Group has in relation to the fair value of its investment properties. Our strategic objective is to keep Loan to Value below 50%.

Net rental income

Net rental income illustrates what is left of the rental income after deducting the maintenance and repair expenses of the properties.

Net Promoter Score (NPS)

NPS is an indicator of customer satisfaction. We ask customers at various stages of the customer relationship to indicate how likely they would be to recommend the company on a scale of 1–10. Scores of 1–6 have a negative effect on NPS, scores of 7–8 have no effect and scores of 9–10 have a positive effect. The overall score thus obtained can range from -100 to 100. Our strategic objective is to achieve a Net Promoter Score of 40.

Net Zero Carbon Buildings commitment

In 2020, we signed the World Green Building Council commitment, under which our goal is to achieve carbon-neutral energy consumption for our entire property portfolio by 2030.

Specific consumption

Specific consumption measures the consumption of electricity or water, for example, per square metre or cubic metre. As the housing portfolio grows, specific consumption is a better illustration of the efficiency of electricity or water consumption and changes therein.

Investment properties

Investment properties comprise apartments, business premises, land plots and ongoing projects and certain assets owned through shares, such as parking spaces, that are owned by us.

Fair value change of investment properties

The fair value of investment properties is changed by the acquisition and sale of investment properties as well as modernisation investments, capitalised borrowing costs, transfers to own use and valuation gains or losses on fair value measurement. The value of investment properties is assessed on quarterly basis, and an external independent expert issues a statement on the valuation.

Financial occupancy rate

The financial occupancy rate is calculated by dividing actual rental income by potential rental income.

TR index

TR index is a means of observing occupational safety at construction sites, with the aim of monitoring key factors affecting on-site accidents.


We are committed to the voluntary national energy efficiency agreement known as the Rental Property Action Plan Second Phase (VAETS II), under which our target is to increase the efficiency of our energy consumption by 7.5% during the period 2017–2025, using 2016 as the baseline.

Tax footprint

The tax footprint illustrates the distribution of the taxes and tax-like charges paid by the Group. Kojamo pays all of its taxes to Finland.

Green bond

The proceeds from a green bond issue are used to finance or refinance investments that promote the energy efficiency of buildings in accordance with Kojamo’s Green Finance Framework.

Green Finance Framework

Kojamo launched a framework in 2021, which sets up the criteria for investments that can be financed of refinanced with green bonds, green loans or other green debt instruments.

Profit/loss on fair value of investment properties

Investment properties are initially measured at their acquisition cost. Subsequently, they are measured at fair value, and the resulting changes in fair value are recognised in profit or loss as they arise. In our reporting, fair value refers to the price that would be received from selling an asset, or paid to transfer a liability, in an ordinary transaction between market participants on the measurement date. Fair value is determined quarterly. More information on fair value measurement principles is provided in the Financial Statements.

UN Sustainable Development Goals

In 2015, UN member states agreed on Sustainable Development Goals and an action plan aimed at guiding the world’s development efforts until 2030. Kojamo is committed to eight of the SDGs that we have identified as areas we can influence the most through our business operations.

Page updated 2 March 2022