Outlook and strategic targets
Kojamo’s outlook for 2021
As stated in the January-December 2020 Financial Statements Release
Kojamo estimates that in 2021, the Group’s total revenue will increase by 3–5 per cent year-on-year. In addition, Kojamo estimates that the Group’s FFO for 2021 will amount to between EUR 150–163 million, excluding non-recurring items.
The outlook is based on the management’s assessment of total revenue, net rental income, administrative expenses, financial expenses, taxes to be paid and new development to be completed, as well as the management’s view on future developments in the operating environment.
The outlook takes into account the estimated occupancy rate and rises in rents as well as the number of apartments to be completed. The outlook does not take into account the impact of potential acquisitions on total revenue and FFO.
The outlook is also based on the estimate that sufficient vaccination coverage will be achieved in the summer and that migration will gradually recover to pre-pandemic levels thereafter. Migration sustains strong demand, which will increase Like-for-Like rental income. However, due to the impacts of the pandemic on the operating environment, the Group expects the development of Like-for-Like rental income to be moderate during the first half of the year.
The management can influence total revenue and FFO through the company’s business operations. In contrast, the management has no influence over market trends, the regulatory environment or the competitive landscape.
Strategic targets 2020–2023
| Strategic targets 2020–2023 | 2020 | Target |
| Annual growth of total revenue, % | 2.3 | 4–5 |
| Annual investments, M€ | 371.2 | 200–400 |
| FFO/total revenue, % | 39.5 | > 36 |
| Loan to Value (LTV), % | 41.4 | < 50 |
| Equity ratio, % | 45.6 | > 40 |
| Net Promoter Score (NPS) | 36 | 40 |
Previous strategic targets
| FINANCIAL TARGETS | Actual Jan–Sep 2019 | Actual 2018 | Actual 2017 | Actual 2016 | Actual 2015 |
| Equity ratio over 40% | 42.0% | 43.0% | 41.3% | 40.7% | 41.1% |
| Loan to Value (LTV) less than 50% | 46.7% | 45.9% | 46.0% | 47.1% | 39.8% |
| Funds from Operations (FFO) over 32% of total revenue | 37.9% | 32.4% | 32.0% | 31.9% | 34.9% |
| OPERATING TARGETS | Actual Jan–Jun 2019 | Actual 2018 | Actual 2017 | Actual 2016 | Actual 2015 |
| Fair value of investment property portfolio EUR 6 billion | 5.4 | 5.1 | 4.7 | 4.3 | 4.0 |
| Number of apartments appr. 38,000 | 35,061 | 34,713 | 34,383 | 34,974 | 41,153 |
| Net Promoter Score: 40 | 33 | 35 |
Page updated 18 February 2021