Outlook and financial targets

Kojamo’s outlook (specified)

As given in the Half-Year Financial Report January–June 2019

Kojamo estimates that in 2019, the Group’s total revenue will increase by 3–5 per cent year-on-year (previously 2–7 per cent). In addition, the company estimates that the Group’s FFO for 2019 will amount to between EUR 134–144 million, excluding one-off items (previously EUR 130–143 million). Investments in new development and housing stock acquisitions are forecast to amount to approximately, or exceed, EUR 300 million (previously to exceed EUR 300 million). Achieving the level of EUR 300 million would require acquisitions of residential properties during the second half of the year.

The outlook takes into account the effects of the completed housing divestments and acquisitions, the estimated occupancy rate and rises in rents, as well as the number of apartments to be completed. 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.

Additionally, the outlook is based on strong demand sustained by migration, which will increase like-for-like rental income. 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.

Operating and financial targets by the end of 2021

Kojamo’s Board of Directors has set the following operating and financial targets.

FINANCIAL TARGETS Actual Jan–Jun 2019 Actual 2018 Actual 2017 Actual 2016 Actual 2015
Equity ratio over 40% 41.9% 43.0% 41.3% 40.7% 41.1%
Loan to Value (LTV) less than 50% 46.9% 45.9% 46.0% 47.1% 39.8%
Funds from Operations (FFO) over 32% of total revenue 36.0% 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 5.3 5.1 4.7 4.3 4.0
Number of apartments appr. 38,000 35,194 34,713 34,383 34,974 41,153

Net Promoter Score: 40
3235

Page updated 23 August 2019