Outlook and strategic targets

Kojamo’s outlook for 2023

As stated in the Kojamo plc’s Financial Statements Release 1 January–31 December 2022

Kojamo estimates that in 2023, the Group’s total revenue will increase by 7–10 per cent year-on-year. In addition, Kojamo estimates that the Group’s FFO for 2023 will amount to between EUR 153–165 million, excluding non-recurring items.

The outlook is based on the management’s assessment of total revenue, property maintenance costs and repairs, 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 or disposals on total revenue and FFO, nor the impact on FFO of potential premature funding of the Eurobond due in 2024.

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 202220212020 Target
Annual growth of total revenue, % 5.52.02.3 4–5
Annual investments, M€ 501.6356.9 371.2 200–400
FFO/total revenue, % 38.939.1 39.5 > 36
Loan to Value (LTV), % 43.737.7 41.4 < 50
Equity ratio, % 45.349.0 45.6 > 40
Net Promoter Score (NPS)* 452036 40
*The calculation method has changed during the review period for example including digital services in calculation. Target and actual for years 2021 and 2020 have not been adjusted to reflect the current calculation method.

Strategic targets until 2020

FINANCIAL TARGETS Actual 2019 Actual 2018 Actual 2017 Actual 2016 Actual 2015
Equity ratio over 40% 46.9% 43.0% 41.3% 40.7% 41.1%
Loan to Value (LTV) less than 50% 40.5% 45.9% 46.0% 47.1% 39.8%
Funds from Operations (FFO) over 32% of total revenue 37.5% 32.4% 32.0% 31.9% 34.9%

OPERATING TARGETS 		Actual 2019 Actual 2018 Actual 2017 Actual 2016 Actual 2015
Fair value of investment property portfolio EUR 6 billion 5.1 5.1 4.7 4.3 4.0
Number of apartments appr. 38,000 35,272 34,713 34,383 34,974 41,153

Net Promoter Score: 40 		3335

Page updated 21 February 2023