Outlook and financial targets

Kojamo’s outlook for 2020

As given in the Financial Statements Release 2019

Kojamo estimates that in 2020, the Group’s total revenue will increase by 2–6 per cent year-on-year. In addition, the company estimates that the Group’s FFO for 2020 will amount to between EUR 142–156 million, excluding one-off items.

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.

Strategic targets 2020–2023

Kojamo published updated strategic targets in connection with Financial Statements Release 2019 on 13 February 2020.

Strategic targets 2020–2023 Target
Annual growth of total revenue, % 4–5%
Annual investments, M€ 200–400 M€ /year
FFO/total revenue, % > 36
Loan to Value (LTV), % < 50
Equity ratio, % > 40
Net Promoter Score (NPS) 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
3335

Page updated 13 February 2020