Outlook and strategic targets

Kojamo’s outlook for 2021 (specified)

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

Kojamo estimates that in 2021, the Group’s total revenue will increase by 2–4 per cent (previously 3–5 per cent) year-on-year. In addition, Kojamo estimates that the Group’s FFO for 2021 will amount to between EUR 150–158 million, excluding non-recurring costs (previously EUR 150–163 million).

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 that migration will gradually recover to pre-pandemic levels after sufficient vaccination coverage has been achieved. The development of Like-for-Like rental income was moderate during the first half of the year as expected. During the summer, the authorities have risen their estimates of the level of sufficient vaccination coverage. Migration sustains strong demand, 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.

Strategic targets 2020–2023

Strategic targets 2020–2023 1–3/20212020 Target
Annual growth of total revenue, % 1.62.3 4–5
Annual investments, M€ 68.0 371.2 200–400
FFO/total revenue, % 28.4 39.5 > 36
Loan to Value (LTV), % 40.2 41.4 < 50
Equity ratio, % 45.5 45.6 > 40
Net Promoter Score (NPS) 2136 40

Strategic targets until 2020

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
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Page updated 19 August 2021