Total revenue increased, the fair value of investment properties was
This is a summary of the January-September Interim Report, which is in its entirety attached to this release and can be downloaded from the company's website at www.kojamo.fi/investors.
Unless otherwise stated, the comparison figures in brackets refer to the corresponding period of the previous year. The figures in this Interim Report have not been audited.
Summary of July-
- Total revenue increased by 1.9 per cent to
EUR 98.1 (96.3) million -
Net rental income increased by 4.9 per cent totalling
EUR 72.2 (68.9) million. Net rental income represented 73.6 (71.5) per cent of revenue -
Profit before taxes was
EUR 69.3 (72.8) million. The profit includesEUR 17.9 (25.8) million in net gain on the valuation of investment properties at fair value. Earnings per share wasEUR 0.22 (0.24) -
Funds From Operations (FFO) increased by 7.1 per cent and amounted to
EUR 45.0 (42.0) million -
Gross investments totalled
EUR 81.6 (85.1) million, representing 83.2 (88.4) per cent of total revenue
Summary of January-
- Total revenue increased by 1.8 per cent to
EUR 292.0 (286.8) million -
Net rental income increased by 1.5 per cent to
EUR 196.7 (193.8) million. Net rental income was 67.4 (67.6) per cent of total revenue -
Profit before taxes was
EUR 616.0 (198.0) million. The profit includesEUR 484.1 (74.1) million in net gain on the valuation of investment properties at fair value andEUR 0.3 (-0.7) million in profits and losses from the sale of investment properties. Earnings per share wasEUR 2.00 (0.64) -
Funds From Operations (FFO) increased by 1.1 per cent to
EUR 114.5 (113.3) million -
The fair value of investment properties was
EUR 7.6 (6.6) billion at the end of the review period, includingEUR 1.1 (2.4) million in Investment properties held for sale - The financial occupancy rate was 94.0 (96.3) per cent for the review period
-
Gross investments amounted to
EUR 258.1 (264.1) million, or 88.4 (92.1) per cent of total revenue -
Equity per share was
EUR 15.08 (12.76) and return on equity was 18.7 (6.8) per cent. Return on investment was 13.1 (5.3) per cent -
EPRA NRV (Net Reinstatement Value) per share grew by 17.6 per cent to
EUR 19.32 (16.43) - There were 2,624 (2,532) Lumo apartments under construction at the end of the review period
Key figures
7-9/2021 | 7-9/2020 | Change % | 1-9/2021 | 1-9/2020 | Change % | 2020 | |
Total revenue, ME | 98.1 | 96.3 | 1.9 | 292.0 | 286.8 | 1.8 | 383.9 |
Net rental income, ME * | 72.2 | 68.9 | 4.9 | 196.7 | 193.8 | 1.5 | 257.6 |
Net rental income margin, % * | 73.6 | 71.5 | 67.4 | 67.6 | 67.1 | ||
Profit before taxes, ME * | 69.3 | 72.8 | -4.8 | 616.0 | 198.0 | 211.1 | 391.2 |
EBITDA, ME * | 83.2 | 87.2 | -4.6 | 656.3 | 240.8 | 172.6 | 447.6 |
EBITDA margin, % * | 84.8 | 90.6 | 224.7 | 84.0 | 116.6 | ||
Adjusted EBITDA, ME * | 65.2 | 61.4 | 6.3 | 171.5 | 167.5 | 2.4 | 222.6 |
Adjusted EBITDA margin, % * | 66.5 | 63.8 | 58.7 | 58.4 | 58.0 | ||
Funds From Operations (FFO), ME * ¹⁾ | 45.0 | 42.0 | 7.1 | 114.5 | 113.3 | 1.1 | 151.4 |
FFO margin, % * | 45.9 | 43.7 | 39.2 | 39.5 | 39.5 | ||
FFO excluding non-recurring costs, ME * | 45.0 | 42.0 | 7.1 | 114.5 | 113.3 | 1.1 | 151.4 |
Investment properties, ME ²⁾ | 7,606.7 | 6,597.8 | 15.3 | 6,863.1 | |||
Financial occupancy rate, % | 94.0 | 96.3 | 96.4 | ||||
Interest-bearing liabilities, ME * | 3,351.1 | 3,137.6 | 6.8 | 3,053.3 | |||
Return on equity (ROE), % * | 18.7 | 6.8 | 9.8 | ||||
Return on investment (ROI), % * | 13.1 | 5.3 | 7.4 | ||||
Equity ratio, % * | 46.2 | 44.1 | 45.6 | ||||
Loan to Value (LTV), % * ³⁾ | 41.0 | 42.1 | 41.4 | ||||
EPRA Reinstatement value (NRV), ME | 4,775.1 | 4,060.4 | 17.6 | 4,254.6 | |||
Gross investments, ME * | 81.6 | 85.1 | -4.0 | 258.1 | 264.1 | -2.3 | 371.2 |
Number of personnel, end of the period | 316 | 309 | 317 | ||||
Key figures per share, E | 7-9/2021 | 7-9/2020 | Change % | 1-9/2021 | 1-9/2020 | Change % | 2020 |
FFO per share * | 0.18 | 0.17 | 5.9 | 0.46 | 0.46 | 0.0 | 0.61 |
Earnings per share | 0.22 | 0.24 | -8.3 | 2.00 | 0.64 | 212.5 | 1.27 |
EPRA NRV per share | 19.32 | 16.43 | 17.6 | 17.21 | |||
Equity per share | 15.08 | 12.76 | 18.2 | 13.39 | |||
* In accordance with the guidelines issued by the | |||||||
¹⁾ The formula used in the calculation was changed during the review period regarding current taxes from disposals. The comparison figures for 2020 have been adjusted to reflect the current calculation method | |||||||
²⁾ Including Non-current assets held for sale | |||||||
³⁾ Excluding Non-current assets held for sale |
Outlook for
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 also takes into account that delays in lifting COVID-19 restrictions affect the rate at which migration recovers to the level seen before the COVID-19 pandemic. 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.
CEO's review
Our total revenue and net rental income grew during the first nine months of the year. Funds From Operations (FFO) also developed favourably, especially in the third quarter. Our financial position was strong at the end of September, with our equity ratio and Loan to Value (LTV) being in line with our strategic targets.
Despite the good progress with vaccinations, the COVID-19 pandemic, the related restrictions and the uncertainty around the lifting of the restrictions have had a temporary impact on migration. This, together with the increased supply, continued to affect our operations especially in the capital region, and our financial occupancy rate decreased during the period under review. The recovery of migration is a key factor in the recovery of demand. According to the current estimate, COVID-19 restrictions and recommendations will be lifted in
There are signs of a recovery and the lifting of the restrictions has already begun. For example, the national remote work recommendation was lifted in mid-October and universities have announced they will increase the proportion of contact instruction during the remainder of the year. The number of job vacancies in the capital region increased significantly in the third quarter. The prevailing labour shortages in the service industry are slowing down the recovery of that sector. However, decision-making has been somewhat slow and uncertain, and the effects of lifting the restrictions will be reflected in the recovery of migration with a delay. These uncertainties have slowed down the migration of labour to the
We are in a good position to respond to the recovery of demand and we expect urbanisation to continue in line with forecasts. We focus on creating long-term growth in the regions where future demand will be concentrated. The 36,484 apartments in our portfolio are located in
Our investments have progressed in line with our strategic targets during the year. The substantial increase in construction costs in the market has not affected us significantly, as our contracts have been signed at fixed prices. Approximately 800 apartments have already been completed this year and their development margin has been at a very good level.
CEO
News conference and webcast
The event can also be followed as a live webcast. A recording of the webcast will be available later on the company website at https://kojamo.fi/en/investors/releases-and-publications/financial-reports/.
The news conference can be followed online at https://kojamo.videosync.fi/2021-q3-results.
You can also participate in the press conference by calling:
FI: +358 981 710 310
SE: +46 856 642 651
US: +1 631 913 1422
Please use the following PIN code to participate in the press conference by telephone: 66303324#.
For more information, please contact
Maija Hongas, Manager, Investor Relations,
Jakelu:
Nasdaq
https://news.cision.com/kojamo-oyj/r/kojamo-plc-s-interim-report-1-january-30-september-2021,c3446866
https://mb.cision.com/Public/18367/3446866/8aee8b7d819e28c7.pdf
https://mb.cision.com/Public/18367/3446866/8fdff072944db0fc.pdf
(c) 2021 Cision. All rights reserved., source