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13.1.2020 | Investor newsletters

Investor newsletter, January 2020

Kojamo’s investor newsletter is primarily published always after an Interim Report and the subsequent roadshow before the beginning of the silent period. The purpose of the newsletter is to discuss the topical issues and themes related to Kojamo as an investment that are relevant for investors. It does not contain new, unpublished information. The newsletter is available on Kojamo’s investor pages or you can subscribe to it via e-mail.

Q3/2019

The Interim Report January–September 2019 was published on 6 November 2019. We are making strong progress with the implementation of our strategy, as evidenced by the positive development of our key figures. In connection with the publication of interim report, we specified the outlook for 2019. The Interim Report, related presentation, webcast recording from the news conference as well as transcript of the event are available at Kojamo’s Investors website.

Roadshows and investor meetings

During November and December, Kojamo met investors in Amsterdam and took part in Kempen’s seminar in London and EPRA’s Corporate Access Day in London.

In the recent meetings there has been a lot of discussion especially regarding our new valuation method. Prior to publication of the Interim Report January–September 2019 we announced that the change in the valuation technique used to assess the fair value of investment properties will improve Kojamo’s result for 2019.   If the fair value of Kojamo’s investment properties were to be assessed using the new valuation technique at the end of September 2019, the fair value would be an estimated EUR 760–840 million higher than it is under the technique used currently.

There has been questions regarding the impact of the change on our financial targets, among others. Our target is to keep equity level above 40% and Loan to Value (LTV) below 50%. Financial targets will be evaluated as a part of our ongoing strategy process, and so there are no changes in this connection.

We have also told that in our portfolio, there are apartments (properties with so called yield value or balance sheet value) with restrictions in valuation. We expect value uplifts of EUR 250–300 million when the restrictions of the valuation will end by 2025. We have been asked how the change of the valuation technique will influence this. Moneywise, we expect the impact to be the same. This is because the impact of the ending restrictions will come from smaller number of apartments which means that impact per apartment will be bigger.

In addition to the change in valuation technique, we have had a lot of discussion regarding the Finnish market. We have received questions regarding the potential portfolios to be acquired and our growth opportunities. We want to create sustainable growth, and when we make an investment, it has to meet our criteria not only for price but also regarding location, micro location, apartment size, condition and number of rooms, among others. Thanks to our strong financial situation we have good possibilities to react quickly when a good opportunity appears. It is also important to be able to grow via different channels in the competitive market. For example, in August we announced agreements with SRV and Hausia on construction of over 900 apartments as a result of reverse tendering process. This will strengthen our growth in the coming years.

In addition to roadshows, Kojamo participated events for private investors arranged by Finnish Foundation For Share Promotion in Oulu on 19 November and in Helsinki on 25 November. Kojamo also participated Sijoitus Invest event in Helsinki on 26 November, when it was possible to meet the company representative at and fair stand. CEO Jani Nieminen had a presentation at the event as well. The presentation materials are available at Kojamo’s website.

Other topical matters

Carnegie started the coverage on Kojamo at the end of November. Subsequently, as far as Kojamo knows, it is now followed by 7 analysts.

In October we announced the appointment of Katri Harra-Salonen as Chief Digital Officer (CDO) and a member of Management team at Kojamo. She will be responsible for digital solutions to improve customer experience and business operations, coordination of business development projects and ICT and development function at Kojamo. She started in her position on 7 January 2020.

On 28 October we published a flagging notification, according to which the holding of Ammattiliitto Pro Ry in the Company’s shares and votes has fallen below 5 per cent.

In November we announced to have agreed with Hausia on construction of 47 rental apartments in Espoon keskus. This is the first completed transaction under the cooperation agreement signed by Kojamo and Hausia on 30 August 2019, valued at approximately EUR 90 million. The apartments will be completed at the end of 2020. In addition, in December we announced to have agreed with Peab Oy on the construction of 64 rental apartments in Sompasaari, Helsinki. The project will be completed during 2020 and 2021.

We actively promote sustainability in our operations. In November we announced, that Fortum’s carbon-neutral district heating will be introduced in approximately 4,000 Lumo apartments in Helsinki region. In addition, carbon-neutral hydropower-certified property electricity is used in all of Kojamo’s properties.

On 10 January Nasdaq announced the results of Semi-Annual Review of the OMX Helsinki 25 Index. As a result, Kojamo will be added to the index. The change will become effective with the market open on Monady, 3 February 2020.

Future events

Kojamo’s silent period will start on Tuesday, 14 January 2020. The Financial Statements Release 1 January – 31 December 2020 will be published on 13 February 2020. You can find information about future events and roadshows in Kojamo’s investor calendar.

Maija Hongas, Manager, Investor Relations, Kojamo plc, maija.hongas@kojamo.fi, tel. +358 20 508 3004

Kojamo is Finland’s largest private residential real estate company and a frontrunner in the housing business. Our mission is to create better urban housing. The Lumo brand provides environmental-friendly housing and services in Finland’s biggest growth centres. We actively develop the value of our investment properties by developing new properties and our existing property portfolio. We want to be the property market frontrunner and the number one choice for our customers. Kojamo’s shares are listed on the official list of Nasdaq Helsinki. For more information, please visit kojamo.fi/en/

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