Kojamo Oyj

Quarterly Report • Aug 15, 2024

Half-Year Financial Report 1 January–30 June 2024

Half-Year Financial Report 1 January–30 June 2024 1

Kojamo plc's Half-Year Financial Report 1 January–30 June 2024

Total revenue and net rental income increased, renting was impacted by the continued abundant supply on the market

Unless otherwise stated, the comparison figures in brackets refer to the corresponding period of the previous year. The figures in this Half-Year Financial Report have not been audited.

All statements made in this report regarding the company or its business are based on the views of the management, and the

sections addressing the general macro-economic or industry situation are based on third-party information.

If there are differences between different language versions of the Half-Year Financial Report, the Finnish version is the official one.

Summary of April–June 2024

• Total revenue increased by 3.1 per cent to EUR 112.3 (108.9) million
• Net rental income increased by 3.9 per cent totalling EUR 82.1 (79.0) million. Net rental income represented 73.1 (72.6) per cent of total revenue
• Result before taxes was EUR -104.3 (71.7) million. The result includes EUR -149.9 (14.0) million net result on the

Summary of January–June 2024

• Total revenue increased by 3.9 per cent to EUR 225.6 (217.1) million.
• Net rental income increased by 3.0 per cent to EUR 142.7 (138.5) million. Net rental income was 63.3 (63.8) per cent of total revenue.
• Result before taxes was EUR -65.0 (95.7) million. The result includes EUR -138.8 (5.1) million net result on the valuation of investment properties at fair value and EUR -0.8 (-0.1) million in profit/loss from the sale of investment properties. Earnings per share was EUR -0.21 (0.31).
• Funds From Operations (FFO) decreased by 15.3 per cent to EUR 68.2 (80.5) million.
• The fair value of investment properties was EUR 7.9 (8.3) billion at the end of the review period, including EUR 1.3 (0.0) million in Investment properties held for sale.

valuation of investment properties at fair value. Earnings per share was EUR -0.34 (0.23)

• Funds From Operations (FFO) decreased by 17.4 per cent and amounted to EUR 42.7 (51.7) million
• Gross investments totalled EUR 10.9 (61.3) million, representing 9.7 (56.3) per cent of total revenue
• The financial occupancy rate was 91.7 (92.2) per cent for the review period.
• Gross investments amounted to EUR 19.3 (116.3) million, representing 8.6 (53.5) per cent of total revenue.
• Equity per share was EUR 14.50 (15.46), and return on equity was -2.9 (4.0) per cent. Return on investment was -0.2 (3.6) per cent.
• EPRA NRV (Net Reinstatement Value) per share fell by 6.9 per cent to EUR 18.16 (19.50).
• There were 0 (1,152) Lumo apartments under construction at the end of the review period.

Kojamo owned 40,973 (39,819) rental apartments at the end of the review period. Since June of last year, Kojamo has completed 1,152 (1,216) apartments, sold 0 (73) and demolished or otherwise altered 2 (9) apartments.

Outlook for Kojamo in 2024

Kojamo reiterates its outlook issued on July 15, 2024, in which Kojamo estimates that in 2024, the Group's total revenue will increase by 2–4 per cent (previously 4–7 per cent) year-onyear. In addition, Kojamo estimates that the Group's FFO for 2024 will amount to between EUR 142–152 million, excluding non-recurring costs (previously EUR 152–164 million).

The outlook is based on the management's assessment of total revenue, property maintenance expenses and repairs, administrative expenses, financial expenses and taxes to be paid 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. The outlook does not take into account the

impact of potential acquisitions or disposals on total revenue and FFO.

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.

Saving programme

In August 2023, Kojamo launched a saving programme where the company targets total savings of approximately EUR 43 million in costs and investments during 2024, of which the share of costs is estimated to be approximately EUR 18 million. The measures of the programme aim at maintaining the company's profitability and safeguarding credit rating.

The saving programme has progressed according to the plan. For the time being, we have refrained from making new investments and we have reduced repairs other than those supporting renting of apartments. Our last ongoing development project was completed in June. As a part of the saving programme, change negotiations were conducted last autumn, and the layoffs that began afterward are still in effect. The Annual General Meeting decided in the spring that no dividend be paid for 2023. We may also carry out property sales during 2024.

Key figures

	4–6/2024	4–6/2023	Change %	1–6/2024	1–6/2023	Change %	2023
Total revenue, M€	112.3	108.9	3.1	225.6	217.1	3.9	442.2
Net rental income, M€ *	82.1	79.0	3.9	142.7	138.5	3.0	297.2
Net rental income margin, % *	73.1	72.6		63.3	63.8		67.2
Profit/loss before taxes, M€ *	-104.3	71.7	-245.5	-65.0	95.7	-167.9	-112.3
EBITDA, M€ *	-78.0	82.0	-195.1	-15.9	122.9	-112.9	-39.9
EBITDA margin, % *	-69.4	75.3		-7.1	56.6		-9.0
Adjusted EBITDA, M€ *	71.9	68.0	5.7	123.8	118.0	4.9	255.1
Adjusted EBITDA margin, % *	64.0	62.5		54.9	54.3		57.7
Funds From Operations (FFO), M€ *	42.7	51.7	-17.4	68.2	80.5	-15.3	167.2
FFO margin, % *	38.0	47.5		30.2	37.1		37.8
FFO excluding non-recurring costs, M€ *	42.7	51.7	-17.4	68.2	80.5	-15.3	167.2
Investment properties, M€ ¹⁾				7,922.6	8,268.1	-4.2	8,038.8
Financial occupancy rate, %				91.7	92.2		93.0
Interest-bearing liabilities, M€ *				3,861.4	3,658.8	5.5	3,600.4
Return on equity (ROE), % *				-2.9	4.0		-2.4
Return on investment (ROI), % *				-0.2	3.6		-0.4
Equity ratio, % *				43.0	45.3		44.5
Loan to Value (LTV), % *²⁾				45.0	43.8		44.6
EPRA Net Reinstatement Value (NRV), M€				4,487.0	4,819.9	-6.9	4,558.8
Gross investments, M€ *	10.9	61.3	-82.2	19.3	116.3	-83.4	190.7
Number of personnel, end of the period				299	344		288

Key figures per share, €	4–6/2024	4–6/2023	Change %	1–6/2024	1–6/2023	Change %	2023
FFO per share *	0.17	0.21	-19.1	0.28	0.33	-15.2	0.68
Earnings per share	-0.34	0.23	-247.8	-0.21	0.31	-167.7	-0.36
EPRA NRV per share				18.16	19.50	-6.9	18.45
Equity per share				14.50	15.46	-6.2	14.67

* In accordance with the guidelines issued by the European Securities and Markets Authority (ESMA), Kojamo provides an account of the Alternative Performance Measures used by the Group in the Key figures, the formulas used in their calculation, and reconciliation calculations in accordance with ESMA guidelines section of the Half-Year Financial Report

¹⁾ Including Non-current assets held for sale

²⁾ Excluding Non-current assets held for sale

CEO's review

Total revenue and net rental income grew in the first half of the year. FFO decreased compared to the comparison period due to an increase in financial and maintenance expenses. Our financial key figures and liquidity situation have remained good.

The market situation was reflected in a decrease in our occupancy rate and affected the rent increases. The supply of apartments remains plentiful, and the competition for good residents has been intense. A number of previously started projects were completed, and in addition, unsold new owneroccupied housing has been moved into the rental market, delaying the correction of the supply situation. Although urbanisation continued to be strong, the oversupply situation did not start to dissipate yet in the spring.

The number of residential start-ups has been very low for a long time, and the number of granted building permits has declined further from the previous year. There is no clear sign of construction activity picking up, which is why the number of market-based apartments to be completed in the next couple of years will be very limited. At the same time, urbanisation is progressing. Population growth has remained strong in Helsinki, Tampere and Turku regions due to internal migration and immigration. These factors are still expected to balance

the demand and supply of rental apartments and to lead to a reduction in the supply of rental apartments in the market. Our renting in July and at the beginning of August has been supportive for the guidance.

At the beginning of the year, few significant residential real estate transactions were made in Finland. However, in the second quarter, we increased the yield requirements for investment properties to reflect the completed transactions. The decrease in interest rates reduces the pressure to change yield requirements in the near future.

The saving programme launched last autumn has progressed according to the plan. Our goal is to maintain the company's strong financial position and adapt our operations to the challenges brought by the uncertainty in the real estate market and the higher interest rate environment. Investments this year will be exceptionally low. No new modernisation investments have been started, and we have reduced repairs other than those supporting renting of apartments. The personnel layoffs are still in effect, and in addition, we have brought efficiency to our operations by renewing our organisation. The savings in administrative and marketing expenses have been significant. Also, the decision made in the spring not to pay the dividend will help to keep the capital structure strong.

The last apartments under construction were completed at the end of June. We have a binding preliminary agreement for only one property. The situation is entirely exceptional in the company's history. In the short term, we focus on managing the existing housing portfolio and are not currently planning any new investments. In this way, we want to ensure that our financial situation will remain strong, our existing business will strengthen, and the goals of the saving programme will be achieved.

Positive signs in the operating environment are visible. Inflation has slowed down, and the decline in market interest rates seems to have started, although a rapid decrease in interest rates has not occurred. Due to the successful financing arrangements made in the early part of the year, our financial position is solid, which allows us to patiently await improvements in market conditions.

Jani Nieminen

CEO

Operating environment

General operating environment

As Kojamo operates in the residential real estate sector, the company is affected particularly by the situation in the residential property market and development in Finnish growth centres. The company is also affected by financial market situation and interest rates, as well as macroeconomic factors, such as economic growth, employment, disposable income, inflation, regional population growth and household sizes.

Operating environment key figures

%	2024E	2023
GDP growth	0.0	-1.0
Unemployment	7.9	7.2
Inflation	1.8	6.2

Sources: Ministry of Finance, Economic survey 6/2024

According to the economic survey published by the Ministry of Finance in June, the outlook for the global economy is improving as inflation is slowing and real incomes are growing. Strong economic growth in the United States continues. Growth in the euro area remains weak this year, especially in Germany, which is an important market for Finland, but growth in the euro area is also expected to pick up next year.

The Finnish economy is not expected to grow on an annual level from last year, but economic growth is about to start. The subdued growth at the beginning of the year is estimated to strengthen at the end of the year. The fairly good development

Industry operating environment

Industry key figures

of household income, the slowing inflation, and the decrease in interest rates will increase households' disposable income and consumption. Employment will decrease slightly this year but will grow from next year, supported by the increased demand and the government's employment measures.

The European Central Bank's decision to cut key interest rates bolsters confidence in economic development in the euro area.

	2024E	2023
Residential start-ups, units	16,500	17,500
of which non-subsidised block-of-flats	2,000	3,600
start-ups in the capital region	n/a	8,513
Building permits granted, annual, units *	18,422	21,097
Construction costs, change % **	0.5	1.1
Prices of old apartments in the whole country, change, %	0.5	-7.0
Prices of old apartments in the capital region, change, %	-1.1- 1.7	-8.8- -7.9
Rents of non-subsidised apartments in the whole country, change, %	2.0	1.4
Rents of non-subsidised apartments in the capital region, change, %	1.2-1.6	0.4-1.0

* Rolling 12 months, May 2024; ** Rolling 12 months, June 2024

Sources: Confederation of Finnish Construction Industries (CFCI), economic forecast March 2024; Housing production information of the municipalities in the capital region; Statistics Finland, Building and dwelling production, Building cost index; Pellervo Economic Research PPT, Housing 2024 forecast

The number of residential start-ups plummeted last year to an estimated 17,500 apartments, which is almost 20,000 apartments less than the previous year. According to the Confederation of Finnish Construction Industries CFCI's economic forecast published in March, housing starts are predicted to continue to decline in 2024 and to turn to weak growth only in 2025.

The slowdown in residential construction still continues which will affect future supply in the next few years. According to Nordea's Housing review published in May, the number of residential building permits applied for in the early part of the year was 50% lower than in the previous year and 70% lower than two years ago. As construction will pick up, it will take about 18 months before new apartments are completed.

There is still oversupply in the rental market. However, according to Nordea, the number of rental ads has no longer grown during the past six months. The number of completed apartments has begun to decline, and the supply coming to the

market is now decreasing sharply as population growth has remained brisk in growth centres. According to Nordea's assessment, the oversupply is starting to dissipate.

Effects of urbanisation

	Population		Share of rental household dwelling units, %
	growth
	forecast, %
Area	2022–2040	2010	2022
Helsinki	22.4	47.1	50.4
Capital region ¹⁾	25.9	41.9	46.6
Helsinki region ²⁾	n/a	37.7	42.6
Jyväskylä	8.0	40.2	46.0
Kuopio	3.5	36.5	42.1
Lahti	-0.2	37.3	42.0
Oulu	9.6	36.7	43.3
Tampere	17.6	42.2	51.5
Turku	18.1	43.0	51.8
Other areas	n/a	23.8	26.8

¹⁾ Helsinki, Espoo, Kauniainen, Vantaa

²⁾ Capital region, Hyvinkää, Järvenpää, Kerava, Kirkkonummi, Mäntsälä, Nurmijärvi, Pornainen, Porvoo, Riihimäki, Sipoo, Tuusula, Vihti Sources: Statistics Finland, Dwellings and Housing Conditions 2022; MDI, Population forecast 2040 (urbanisation scenario), September 2023

According to the population forecast published by MDI in September 2023, urbanisation continues strongly, and regional differences are increasing. In the future, the population will be concentrated in large city areas largely with the rest of Finland weakening. In addition to migration within the country, immigration growth in the 2020s will advance urbanisation. Immigration is strong to the capital region as well other large cities.

In the beginning of the year, population growth has remained close to last year's level, and the population is still strongly

concentrating in the capital region and other large cities. According to Statistics Finland's preliminary population statistics, Helsinki, Espoo, Vantaa, Tampere and Turku were Finland's most growing municipalities during the first half of the year. Strong net immigration was the most significant factor in terms of population growth in both the entire country and in the above-mentioned municipalities. Migration between municipalities played a big role in the growth of especially Helsinki.

Business operations

Kojamo is the largest private residential real estate company in Finland measured by the fair value of investment properties. Kojamo offers rental apartments and housing services for residents in Finnish growth centres. At the end of the review period, Kojamo's property portfolio comprised 40,973 (39,819) rental apartments. The fair value of Kojamo's investment properties at the end of the review period was EUR 7.9 (8.3) billion. Investment properties include completed apartments as well as development projects and land areas.

Measured at fair value on 30 June 2024, 97.5 per cent of Kojamo's rental apartments were located in the seven largest Finnish growth centres, 86.7 per cent in the Helsinki, Tampere and Turku regions and 73.9 per cent in the Helsinki region.

Kojamo's share of the country's entire rental housing market is about four per cent.

Kojamo aims to create the best customer service experience for its customers, which is why the company has made significant investments in services. The Lumo webstore allows customers to rent a suitable apartment by paying the first month's rent, after which they can move into their new home as soon as the next day. Kojamo's resident cooperation model gives the residents an opportunity to influence the development of housing and Lumo services. Lumo apartments offer a range of different services, such as broadband internet connection included in the rent and a car sharing service.

Financial development April–June 2024

Total revenue

Kojamo's total revenue increased to EUR 112.3 (108.9) million. Total revenue is generated entirely by income from rental operations.

Total revenue increased especially due to the rental apartments completed in 2023 and 2024 by around EUR 4.2 million. The development of rents and the financial occupancy rate weakened total revenue by around EUR 1.1 million.

Result and profitability

Net rental income increased to EUR 82.1 (79.0) million, which corresponds to 73.1 (72.6) per cent of total revenue. The growth in net rental income was positively impacted by EUR 3.4 million increase in total revenue and EUR 2.1 million decrease in repair expenses and negatively impacted by EUR 2.4 million increase in maintenance expenses.

Result before taxes was EUR -104.3 (71.7) million. The result includes EUR -149.9 (14.0) million net result on the valuation of investment properties at fair value. The net result on the valuation of the investment properties at fair value was negatively impacted by the change in yield requirements by EUR -165.9 million and the decrease in net rental income by EUR -15.1 million. Other items impacted the net result positively by EUR 31.0 million of which the most significant part came from restrictions ending. Result before taxes and excluding the net valuation result on the fair value assessment of investment properties decreased by EUR 12.1 million. The decline was due in particular to increased financial and maintenance expenses from the comparison period.

Financial income and expenses totalled EUR -26.0 (-10.0) million. In the comparison period, a profit of EUR 8.9 million was recorded in financial income as the difference between the nominal value of the repurchased bonds and their purchase prices. Financial income and expenses include EUR -0.3 (0.3) million in unrealised changes in the fair value of derivatives.

Funds From Operations (FFO) amounted to EUR 42.7 (51.7) million. The decrease in FFO was particularly affected by increased financial and maintenance expenses in the review period. The financial income of the comparison period includes the profit from the repurchase of bonds.

Financial development January–June 2024

Total revenue

Kojamo's total revenue increased to EUR 225.6 (217.1) million. Total revenue is generated entirely by income from rental operations.

Total revenue increased especially due to the rental apartments completed in 2023 and 2024 by around EUR 8.4 million. The development of rents and the financial occupancy rate weakened total revenue by around EUR 0.6 million.

Result and profitability

Net rental income increased to EUR 142.7 (138.5) million, which corresponds to 63.3 (63.8) per cent of total revenue. The growth in net rental income was positively impacted by EUR 8.5 million growth in total revenue and by EUR 2.4 million decrease in repair expenses and negatively impacted by EUR 6.7 million increase in property maintenance expenses. Of the increase in maintenance expenses, EUR 2.2 million was due to the growth of property portfolio, EUR 3.0 million due to increase in heating and water costs and EUR 1.1 million due to increase in property taxes. The increase in heating costs was influenced particularly by cold start of the year.

Result before taxes was EUR -65.0 (95.7) million. The result includes EUR -138.8 (5.1) million net result on the valuation of investment properties at fair value and EUR -0.8 (-0.1) million profit/loss from the sale of investment properties. The net result on the valuation of the investment properties at fair value was negatively impacted by the change in yield requirements

by EUR -165.9 million and the decrease in net rental income by EUR -7.3 million. Other items impacted the net result positively by EUR 34.3 million of which the most significant part came from restrictions ending. The yield requirements and other input data are based on market observations and the best available market information. This information includes the opinion of an external independent valuer. Result before taxes and excluding the net valuation gain on the fair value assessment of investment properties decreased by EUR 16.8 million and was EUR 73.9 (90.7) million. The decline was in particular due to increased financial and maintenance expenses from the comparison period.

Financial income and expenses totalled EUR -48.5 (-26.6) million. Financial income and expenses increased by EUR 21.9 million from the comparison period. Interest expenses increased by EUR 16.4 million compared to the comparison period due to the higher amount of interest-bearing liabilities and the increase in interest rates. In addition, in the comparison period, a profit of EUR 8.9 million was recorded in financial income as the difference between the nominal value of the repurchased bonds and their purchase prices. Gain/loss on the valuation of investments amounted to EUR -0.1 (0.9) million and the unrealised change in the fair value of derivatives EUR 0.7 (0.3) million.

Funds From Operations (FFO) amounted to EUR 68.2 (80.5) million. The decrease in FFO was particularly affected by increased financial and maintenance expenses in the review period. The financial income of the comparison period includes the profit from the repurchase of bonds.

Balance sheet, cash flow and financing

	30 Jun 2024	30 Jun 2023	31 Dec 2023
Balance sheet total, M€	8,340.2	8,453.2	8,158.3
Equity, M€	3,582.9	3,821.8	3,625.9
Equity per share, €	14.50	15.46	14.67
Equity ratio, %	43.0	45.3	44.5
Return on equity (ROE), %	-2.9	4.0	-2.4
Return on investment (ROI), %	-0.2	3.6	-0.4
Interest-bearing liabilities, M€ ¹⁾	3,861.4	3,658.8	3,600.4
Loan to Value (LTV), %	45.0	43.8	44.6
Coverage ratio	2.8	4.1	3.6
Average interest rate of loan portfolio, % ²⁾	3.2	2.3	2.4
Average loan maturity, years	3.1	3.2	2.8
Cash and cash equivalents, M€	300.1	38.1	15.0

¹⁾ Net debt on 30 June 2024 totalled 3,561.3 M€, on 30 June 2023 3,620.8 M€ and on 31 December 2023 3,585.5 M€

²⁾ Includes interest rate derivatives

Kojamo's liquidity was very good during the review period. At the end of the period, Kojamo's cash and cash equivalents stood at EUR 300.1 (38.1) million and liquid financial assets at EUR 27.9 (32.7) million.

EUR 250 million commercial paper programme was unused at the end of the review period. Additionally, Kojamo has committed credit facilities of EUR 275 million and an uncommitted credit facility of EUR 5 million which were also unused. EUR 425 million loan signed in October 2023 was drawn in April.

The following financing arrangements were made during the review period:

In January Kojamo plc issued EUR 200 million unsecured green notes as a private placement. The new notes were issued under the company's EMTN programme as an increase to the company's notes maturing on 28 May 2029. The proceeds of the issue will be used for the refinancing of projects in accordance with the company's Green Finance Framework.

In March Kojamo plc signed a new EUR 250 million term loan facility agreement linked to its sustainability targets together with three relationship banks. The loan is secured and has a maturity of five years. The loan was drawn in June, and it will be used for the refinancing of company's existing indebtedness as well as for the group's general financing needs.

Real estate property and fair value

M€	30 Jun 2024	30 Jun 2023	31 Dec 2023
Fair value of investment properties on 1 Jan	8,038.8	8,150.2	8,150.2
Acquisition of investment properties	21.9	106.5	165.1
Modernisation investments	1.3	11.6	26.7
Disposals of investment properties	-1.2	-7.5	-12.0
Capitalised borrowing costs	0.6	2.3	4.2
Profit/loss on fair value of investment properties	-138.8	5.1	-295.4
Fair value of investment properties at the end of the period	7,922.6	8,268.1	8,038.8

The value of investment properties on 30 June 2024 includes EUR 1.3 million in Investment properties held for sale

Kojamo owned a total of 40,973 (39,819) rental apartments at the end of the review period.

The fair value of Kojamo's investment properties is determined quarterly on the basis of the company's own evaluation. An external expert gives a statement on the valuation of Kojamo's investment properties. The latest valuation statement was issued on the situation as at 30 June 2024. The criteria for determining fair value are presented in the Notes to the Financial Statements.

At the end of the review period, the plot and real estate development reserve held by the Group totalled about 211,000 floor sq.m (198,000 floor sq.m). The fair value of the plot and real estate development reserve (including the Metropolia properties) was EUR 176.9 (179.1) million at the end of the review period.

Rental housing

Apartments	30 Jun 2024	30 Jun 2023	31 Dec 2023
Number of apartments	40,973	39,819	40,619
Average rent, €/m²/month	18.01	17.70	17.81
Average rent, €/m²/month, yearly average	17.95	17.66	17.74

Kojamo responds to the trends of urbanisation, digitalisation and communality in accordance with its strategy, providing its customers with apartments with good locations and services that make daily life easier, increase the attractiveness of housing and improve the sense of community. Kojamo's properties form a networked service platform that enables agile innovation implementation in cooperation with other operators.

All Lumo rental apartments are also easily available for rent on our webstore.

Rental housing key figures

%	1–6/2024	1–6/2023	1–12/2023
Financial occupancy rate	91.7	92.2	93.0
Tenant turnover rate, excluding internal turnover	15.4	14.6	29.5
Like-for-Like rental income growth *	0.9	1.4	1.9
Rent receivables in proportion to revenue	1.7	1.4	1.6

* Change of rental income for properties owned for two consecutive years in the past 12 months compared to the previous 12-month period

The financial occupancy rate was 91.7 (92.2) per cent for the review period. At the end of the period, 73 (212) apartments were vacant due to renovations.

Kojamo's property portfolio by region as at 30 June 2024

	Helsinki	Tampere	Turku			Kuopio	Lahti
%	region	region	region	Oulu	Jyväskylä	region	region	Others
Distribution by
number of apartments	62.7	9.6	5.2	5.4	5.0	4.1	3.5	4.5
Distribution by
fair value	73.9	8.6	4.3	3.0	3.1	2.5	2.2	2.5

Information on the property portfolio as at 30 June 2024

		Number of
	Number of	commercial and				Financial
	apartments,	other leased	Fair value,	Fair value,	Fair value,	occupancy
Area	units	premises, units	M€	€ 1,000/unit	€/m²	rate, % ³⁾
Helsinki region	25,686	489	5,686.4	217	4,068	90.4
Tampere region	3,949	111	658.3	162	3,175	94.0
Turku region	2,122	25	327.3	152	2,872	94.6
Other	9,216	145	1,025.5	110	2,079	94.3
Total	40,973	770	7,697.6 1)	184	3,479	91.7
Other			225.0 2)
Total portfolio	40,973	770	7,922.6

¹⁾ The figures reflect income-generating portfolio assets, which excludes new projects under construction, plots owned by the group and ownership of certain assets through shares

²⁾ Fair value of ongoing projects under construction, plots owned by the group and ownership of certain assets through shares and fair value of right-of-use assets

³⁾ 1–6/2024 the financial occupancy rate does not include commercial premises and other leased premises

Investments, divestments and real estate development

Investments

M€	30 Jun 2024	30 Jun 2023	31 Dec 2023
Acquisition of investment properties *	17.4	102.3	159.9
Modernisation investments	1.3	11.6	26.7
Capitalised borrowing costs	0.6	2.3	4.2
Total	19.3	116.3	190.7
Repair expenses, M€	11.8	14.2	29.3

* Not including leases for plots of land

Number of apartments

Units	30 Jun 2024	30 Jun 2023	31 Dec 2023
Apartments at the start of the period	40,619	39,231	39,231
Divestments	-	-73	-73
Completed	354	652	1,450
Demolished or altered	-	9	11
Apartments at the end of the period	40,973	39,819	40,619
Under construction at the end of the period	-	1,152	354
Preliminary agreements for new construction	119	119	119

No apartments were acquired nor sold during the period under review.

A total of 354 (652) apartments were completed during the review period, and no apartments were under construction at the end of the review period. The last ongoing development project was completed in June.

Modernisation investments during the review period amounted to EUR 1.3 (11.6) million and repair costs totalled EUR 11.8 (14.2) million.

Binding acquisition agreements for new development

M€	30 Jun 2024	30 Jun 2023	31 Dec 2023
Actual costs incurred from new construction in progress	-	236.4	84.8
Cost of completing new construction in progress	-	56.5	10.0
Total	-	292.9	94.9

Plots and real estate development sites owned by the company

	30 Jun 2024		30 Jun 2023		31 Dec 2023
	M€	1,000 fl.sq.m	M€	1,000 fl.sq.m	M€	1,000 fl.sq.m
Plots	30.9	51	36.7	58	30.9	51
Plots with existing residential building	73.3	93	70.2	74	74.5	93
Conversions	72.8	67	72.3	67	72.8	67
Total ¹⁾	176.9	211	179.1	198	178.1	211

¹⁾ The management's estimate of the fair value and building rights of the plots

Binding preliminary agreements and provisions for plots and real estate development

	30 Jun 2024		30 Jun 2023		31 Dec 2023
	M€	1,000 fl.sq.m	M€	1,000 fl.sq.m	M€	1,000 fl.sq.m
Preliminary agreements for new construction ¹⁾	23.5		23.2		24.7
Estimate of the share of plots of preliminary
agreements for new development ²⁾	4.2	5	4.2	5	4.2	5
Preliminary agreements and reservations for plots ²⁾	27.8	34	34.9	45	34.9	45

¹⁾ Including plots

²⁾ The management's estimate of the fair value and building rights of the plots

Strategic targets and their achievement

Strategic targets

	1–6/2024	2023	2022	2021	2020	Target
Annual growth of total revenue, %	3.9	7.0	5.5	2.0	2.3	4–5
Annual investments, M€	19.3	190.7	501.6	356.9	371.2	200–400
FFO/total revenue, % *	30.2	37.8	38.9	39.1	39.5	> 36
Loan to Value (LTV), %	45.0	44.6	43.7	37.7	41.4	< 50
Equity ratio, %	43.0	44.5	45.3	49.0	45.6	> 40
Net Promoter Score (NPS) **	53	50	45	20	36	40

*Actual 1−6/2024: The whole year's property taxes are recognized in Q1's result.

**The calculation method has changed in 2022 for example including digital services in calculation. Target and actual for years 2021 and 2020 have not been adjusted to reflect the current calculation method.

Kojamo's objective is to be a stable dividend payer whose annual dividend payment will be at least 60 per cent of FFO, provided that the Group's equity ratio is 40 per cent or more and taking account of the company's financial position.

Shares and shareholders

Issued shares and share capital

Kojamo's share capital on 30 June 2024 was EUR 58,025,136 and the number of shares at the end of the review period totalled 247,144,399.

Kojamo has a single series of shares, and each share entitles its holder to one vote in the general meeting of shareholders of the company. There are no voting restrictions related to the

shares. The shares have no nominal value. The company shares belong to the book-entry system.

The trading code of the shares is KOJAMO and the ISIN code is FI4000312251.

Trading in the company's share

Kojamo's shares are listed on the official list of Nasdaq Helsinki.

Share price and trading

	1–6/2024	1–6/2023	1–12/2023
Lowest price, €	9.12	8.43	7.41
Highest price, €	12.00	15.71	15.71
Average price, €	10.44	11.52	10.29
Closing price, €	9.615	8.62	11.90
Market value of share capital, end of period, M€	2,376.3	2,130.4	2,941.0
Share trading, million units	49.0	46.3	103.8
Share trading of total share stock, %	19.8	18.7	42.0
Share trading, M€	511.8	533.4	1,068.6

In addition to the Nasdaq Helsinki stock exchange, Kojamo shares were traded on other marketplaces. During 1 January– 30 June 2024, approximately 105 (approximately 90) million Kojamo shares were traded on alternative marketplaces, corresponding to approximately 70 (approximately 70) per cent of the total trading volume (source: Modular Finance).

Own shares

Kojamo did not hold any of its own shares during or at the end of the review period.

Dividend

In accordance with the Board of Directors' proposal, the Annual General Meeting on 14 March 2024 decided that no dividend be paid for the financial year 2023.

Shareholders

At the end of the review period, the number of registered shareholders was 15,361, including nominee-registered shareholders. The proportion of nominee-registered and direct foreign shareholders was 52.4 per cent of the company's shares at the end of the review period. The 10 largest shareholders owned in aggregate 54.3 per cent of Kojamo's shares at the end of the review period.

The list of Kojamo's shareholders is based on information provided by Euroclear Finland Ltd.

The Board of Directors' authorisations

Kojamo's Annual General Meeting on 14 March 2024 authorised the Board of Directors to decide on the repurchase and/or acceptance as pledge of an aggregate maximum of 24,714,439 of the company's own shares according to the proposal of the Board of Directors. The proposed amount of shares corresponds to approximately 10 per cent of all the shares of the company. The authorisation will remain in force until the closing of the next Annual General Meeting, however, no longer than until 30 June 2025.

The Board of Directors was also authorised to decide on the issuance of shares and the issuance of special rights entitling to shares as referred to in Chapter 10, Section 1 of the Companies Act according to the proposal of the Board of Directors. The number of shares to be issued on the basis of the authorisation shall not exceed an aggregate maximum of 24,714,439 shares, which corresponds to approximately 10 per cent of all the shares of the company. The authorisation applies to both the issuance of new shares and the conveyance of own shares held by the company. The authorisation will remain in force until the closing of the next Annual General Meeting, however, no longer than until 30 June 2025.

Flagging notifications

Kojamo did not receive any notifications pursuant to the Finnish Securities Market Act regarding changes in holdings in Kojamo shares during the review period.

Managers' transactions and shareholdings

Managers' transactions at Kojamo in 2024 are published as stock exchange releases, and they are available on the Kojamo website at https://kojamo.fi/en/news-releases/.

Governance

Annual General Meeting

Kojamo's Annual General Meeting (AGM) of 14 March 2024 adopted the financial statements for the financial year 2023 and discharged the members of the Board of Directors and the CEO from liability. The AGM also decided that no dividend be paid for the financial year 2023, the number of members of the Board of Directors, the Board of Director's remuneration and composition and the election and remuneration of the auditor. The AGM approved the Remuneration Report for the year 2023 and Remuneration Policy for the members of the Board of Directors, the CEO and the Deputy CEO. The AGM authorised the Board of Directors to resolve on one or more share issues or the issuance of special rights entitling to shares, as referred to in Chapter 10, Section 1 of the Companies Act. The minutes of the AGM are available at https://kojamo.fi/en/investors/corporate-governance/annual-general-meeting/annualgeneral-meeting-2024/.

Board of Directors and auditors

The members of Kojamo's Board of Directors are Mikael Aro (Chairman), Mikko Mursula (Vice-Chairman), Kari Kauniskangas, Anne Koutonen, Veronica Lindholm, Andreas Segal and Annica Ånäs. The company's auditor is KPMG Oy Ab, with Authorised Public Accountant Petri Kettunen as the auditor with principal responsibility.

Board committees

Kojamo's Board of Directors has established two permanent committees, an Audit Committee and a Remuneration Committee. Anne Koutonen (Chairman), Mikko Mursula, Andreas Segal and Annica Ånäs serve in the Audit Committee. Kari Kauniskangas (Chairman), Mikael Aro and Veronica Lindholm serve in the Remuneration Committee.

Personnel

At the end of the review period, Kojamo had a total of 299 (344) employees. The average number of personnel during the review period was 285 (319).

The salaries and fees paid during the review period totalled EUR 8.7 (9.8) million.

Annual performance bonus and incentive system

Kojamo's employees are included in an annual performance bonus system which is based on the achievement of the company's general targets as well as personal targets.

Kojamo also has a long-term share-based incentive plan for the Group's key personnel. The reward is based on reaching the targets set for Kojamo's key business criteria in relation to the Group's strategic goals. Three performance periods were ongoing at the end of the review period: 2022–2024, 2023– 2025 and 2024–2026.

Nomination Board

A stock exchange release was issued on 13 September 2023 announcing the composition of Kojamo plc's Nomination Board. Kojamo's three largest shareholders nominated the following members to the Shareholders' Nomination Board: Christian Fladeland, CIO, Heimstaden AB; Jouko Pölönen, CEO, Ilmarinen Mutual Pension Insurance Company; and Risto Murto, CEO, Varma Mutual Pension Insurance Company. In addition, the Chairman of Kojamo's Board of Directors serves as an expert member of the Nomination Board.

The Shareholders' Nomination Board is a body established by the Annual General Meeting consisting of shareholders, with the task of annually preparing and presenting proposals for the General Meeting concerning the number, composition and Chairman of the Board of Directors, remuneration of the Board of Directors and remuneration of the members of the Board Committees.

CEO

Jani Nieminen, M.Sc. (Tech.), MBA was CEO during the review period. The CEO's deputy was CFO Erik Hjelt, Licentiate in Laws, EMBA.

Management Team

At the end of the review period, the members of the Management Team were Jani Nieminen, CEO; Erik Hjelt, CFO; Janne Ojalehto, Executive Vice President, Housing and Ville Raitio, Executive Vice President, Investments & Portfolio Management.

On 15 February 2024, Kojamo's Board of Directors resolved on the long-term incentive plan's performance period of 2024– 2026. The possible rewards for the performance period are based on the Group's revenue (%), Funds From Operations (FFO) per share, Long-Term Investment Grade Rating and apartment-specific CO2 emission reduction target for years 2024–2026. The rewards to be paid on the basis of the performance period correspond to the value of a maximum total of 214,200 shares including the proportion to be paid in cash.

If the three ongoing earning periods were accrued in full, the maximum bonus would be a sum corresponding to 480,018 Kojamo shares, of which part of would be paid in Kojamo shares and part of in cash. More information on the long-term incentive plan is provided in Kojamo's Remuneration Report for 2023.

On 15 February 2024, Kojamo's Board of Directors approved to establish a new restricted share programme for the years 2024–2026. The programme will be used in specific situations decided by the Board of Directors separately. The programme consists of individual, annually commencing maximum three-

year long restricted share plans within which the participants have the opportunity to receive a fixed number of shares as a long-term incentive and retention award.

Responsibility

Our sustainability programme

Responsibility and sustainable development are among Kojamo's strategic focus areas. Our sustainability programme documents the priorities of our sustainability efforts by focus areas: sustainable cities, the best customer experience, the most competent personnel and a dynamic place to work, and a responsible corporate citizen. Read more about our sustainability programme from our 2023 sustainability report which is included in our Annual Report.

We have committed to the UN Sustainable Development Goals. We continue to develop transparency of our sustainability reporting, and we currently report according to GRI, and EPRA sBPR frameworks. We also participate yearly in GRESB (Global Real Estate Sustainability Benchmark) survey. From 2022, we have also reported information on risks related to climate change according to the TCFD framework.

Sustainable cities

All of our newly constructed properties are situated in growth centres, in locations that are close to good transport connections and services. The goal is for our property portfolio to be carbon-neutral in terms of energy consumption by 2030. We have signed the Net Zero Carbon Buildings Commitment of the World Green Building Council. We will increase the efficiency of our energy consumption by 7.5% by 2025, using 2016 as the baseline (VAETS II). All Kojamo offices are WWF Green Office certified.

The best customer experience

We want to deliver the best customer experience in housing. We create safe and comfortable homes that provide our customers with a strong sense of community, sustainable housing and services that make life easier. The operating model Through the Customer's Eyes has become an established practice for us. Over 400 Lumo teams made up of active residents have already been established. All of Kojamo's properties use carbon-neutral property electricity. In addition, carbonneutral district heating is used at almost 150 of our properties. We offer all residents of Lumo homes the opportunity to use shared cars. Currently, we have installed charging station for electric cars in more than 1,500 car parks.

The most competent personnel and a dynamic place to work

The most important areas for our personnel responsibility are equality and equity for personnel, the health and well-being of personnel, as well as good management and leadership. We ensure our future competitiveness through competence development and offer an employee experience that attracts the best talent in the industry. We also work continuously to pro2024–2026 commitment period will last until the end of 2026 and the possible reward will be paid during the year following the expiry of the period in shares in the company. The maximum number of shares to be granted is 65,000 shares.

mote our corporate culture and the well-being of our personnel. Our corporate culture is based on Kojamo's shared values: Happy to serve, Strive for success and Courage to change.

A responsible corporate citizen

Our Code of Conduct documents the sustainable operating practices we apply in our interactions with our stakeholders, society and the environment. We also require our partners to operate sustainably, and our Supplier Code of Conduct has been an integral part of all of our partnership agreements starting from the beginning of 2021.

Measures during the review period

In February, we updated our Green Finance Framework to align future financing activities with market best practices and standards. Sustainalytics has given the framework an independent, external evaluation.

In order to strengthen our energy management, we are implementing an AI-powered sustainability and energy management system which provides up-to-date information to support decision-making and enables the quicker response to consumption deviations. It will significantly improve our energy management. During the review period, we have been preparing for the phased implementation of the tool. For example, we have updated the mobile data connections for remote water measurement and ensured the process related to the measurement. The system has been in use since the beginning of May.

The Rescue Act has been revised, and the responsibility for the functionality and maintenance of fire alarms will be transferred from the resident to the owner of the building by the end of 2025. We have initiated an investigation into the procurement of smoke detectors for apartments that do not have smoke detectors connected to the electricity network. The procurement will cover approximately 25,000 apartments, and the new smoke detectors will be installed within the transition period.

We have started preparing for reporting in accordance with the EU sustainability reporting directive, which will apply to Kojamo from 2025. We have conducted a double materiality analysis and worked on a gap analysis comparing our current sustainability reporting with the reporting requirements of the sustainability reporting directive. Based on the results of the gap analysis, we will develop the content of our reporting to cover the sustainability topics according to the materiality analysis and improve our reporting processes.

In response to residents' wishes, all new tenancy agreements will be made smoke-free from 1 June 2024 onwards. Lumo homes will become smoke-free one apartment at a time in the buildings that are not already completely smoke-free. All Lumo buildings built or renovated after 2017 are smoke-free, i.e.

there are currently about 200 buildings, comprising close to 11,000 apartments, where smoking is already prohibited indoors as well as on the balconies and apartment courtyards.

Near-term risks and uncertainties

Kojamo estimates that the most significant near-term risk and uncertainty is caused by the uncertain situation in property markets and the development of housing supply situation. Urbanisation is expected to continue in the longer term. The supply of rental apartments may increase locally in the main areas in which Kojamo operates, and the changes in supply and demand could have an impact on Kojamo's rents, tenant turnover or the financial occupancy rate and, thereby, rental income.

Geopolitical tensions, including Russia's war of aggression in Ukraine and the conflict in the Middle East, have still caused economic uncertainty and impacted inflation and market interest rates. The uncertainty can also have impacts on the housing and property markets, including apartment prices, rents and yield requirements as well as on the operations of the construction companies. If inflation does not decrease as predicted, the decrease in interest rates may be postponed. The increased costs could affect Kojamo's result and cash flow as well as the fair value of apartments.

The development of the Finnish economy may affect the housing and financial markets in exceptional ways. These factors may have an impact on Kojamo's profit and cash flow as well as the fair value of apartments. A general downturn may lead to unemployment and reduce household purchasing power, which in turn may affect the ability of residents to pay rent and, subsequently, the company's rental income.

News conference and webcast

Kojamo will hold a news conference for institutional investors, analysts and media on 15 August 2024 at 10.00 a.m. EEST at the company's head office at Mannerheimintie 168A, Helsinki. The event will be held in English. After the event, the media has a possibility to ask questions also in Finnish.

The event can also be followed as a live webcast through which it is possible to ask questions. No registration for the The weakening of the property and financial markets as well as the changes in market interest rates may lower Kojamo's credit rating and increase the price of financing as well as weaken financial key figures. These factors may affect Kojamo's profit and cash flow as well as the fair value of the apartments.

Cyber attacks and various other data security threats have increased. These data security breaches could impact Kojamo's business operations and the reliability of information systems.

Helsinki, 15 August 2024

Kojamo plc Board of Directors

Further information:

Niina Saarto, Director, Treasury & Investor Relations, Kojamo plc, tel. +358 20 508 3283

Erik Hjelt, CFO, Kojamo plc, tel. +358 20 508 3225

webcast in advance is needed. The event will be accessible at https://kojamo.videosync.fi/q2-2024.

A recording of the webcast will be available later at the company's website at https://kojamo.fi/en/investors/releases-andpublications/financial-reports/.

EPRA performance measures

EPRA (European Public Real Estate Association) is an advocacy organisation for publicly listed European property investment companies. Kojamo is a member of EPRA. As part of its activities, the organisation promotes financial reporting in the industry and the adoption of best practices to ensure the quality of information provided to investors and improve comparability between companies. Kojamo follows EPRA recommendations in its reporting practices. This section covers EPRA performance measures and their calculation. More information on EPRA and EPRA recommendations is available on the EPRA website at www.epra.com.

EPRA performance measures

	4–6/2024	4–6/2023	1–6/2024	1–6/2023	2023
EPRA Earnings, M€	40.8	44.3	66.0	73.3	159.9
EPRA Earnings per share (EPS), €	0.17	0.18	0.27	0.30	0.65
EPRA Net Reinstatement Value (NRV), M€			4,487.0	4,819.9	4,558.8
EPRA NRV per share, €			18.16	19.50	18.45
EPRA Net Initial Yield (NIY), %			3.9	3.7	4.0
EPRA 'topped-up' NIY, %			3.9	3.7	4.0
EPRA Vacancy Rate, %			8.4	7.9	7.1
EPRA Cost Ratio (including direct vacancy costs), %	10.0	12.7	10.7	13.1	12.7
EPRA Cost Ratio (excluding direct vacancy costs), %	6.5	9.7	5.7	8.5	9.2

EPRA Earnings

M€	4–6/2024	4–6/2023	1–6/2024	1–6/2023	2023
Earnings per IFRS income statement	-83.4	57.3	-51.9	76.5	-89.0
(i) Change in value of investment properties,
development properties held for investment and other interests	149.9	-14.0	138.8	-5.1	295.4
(ii) Profits or losses on disposal of investment properties,
development properties held for investment and other interests	0.0	0.1	0.8	0.1	-0.4
(iv) Tax on profits or losses on disposals	0.0	0.2	-0.2	0.2	-0.2
(vi) Changes in fair value of financial instruments	0.3	-0.3	-0.7	-0.3	0.9
(vi) Early close-out cost/gains
of financial instruments and debt	-1.8	-8.9	-1.8	-8.9	-8.7
(viii) Deferred tax in respect of EPRA adjustments	-24.2	10.0	-19.1	10.8	-38.1
EPRA Earnings	40.8	44.3	66.0	73.3	159.9
Average number of shares, million	247.1	247.1	247.1	247.1	247.1
EPRA Earnings per share (EPS), €	0.17	0.18	0.27	0.30	0.65

EPRA Net Reinstatement Value

M€	1–6/2024	1–6/2023	2023
IFRS Equity attributable to shareholders	3,582.9	3,821.8	3,625.9
Diluted NAV	3,582.9	3,821.8	3,625.9
Diluted NAV at Fair Value	3,582.9	3,821.8	3,625.9
Exclude:
(v) Deferred tax in relation to fair value gains	809.7	884.7	825.4
(vi) Fair value of financial instruments	-24.4	-52.0	-13.1
Include:
(xi) Real estate transfer tax	118.8	165.4	120.6
EPRA Net Reinstatement Value (NRV)	4,487.0	4,819.9	4,558.8
Number of shares, million	247.1	247.1	247.1
EPRA NRV per share, €	18.16	19.50	18.45

EPRA Net Initial Yield (NIY) and EPRA "topped-up" NIY

M€		1–6/2024	1–6/2023	2023
Investment property		7,922.6	8,268.1	8,038.8
Trading property		-	0.1	-
Developments		-96.0	-339.4	-179.8
Completed property portfolio		7,826.6	7,928.8	7,859.0
Allowance for estimated purchasers' costs		117.4	158.6	117.9
Gross up completed property portfolio valuation	B	7,944.0	8,087.4	7,976.9
Annualised cash passing rental income		454.9	445.2	464.2
Property outgoings		-149.3	-144.8	-146.7
Annualised net rents	A	305.6	300.4	317.5
Notional rent expiration of rent-free periods or other lease incentives		-	-	-
Topped-up net annualised rent	C	305.6	300.4	317.5
EPRA Net Initial Yield (NIY), %	A/B	3.9	3.7	4.0
EPRA 'topped-up' NIY, %	C/B	3.9	3.7	4.0

EPRA Vacancy Rate

M€		1–6/2024	1–6/2023	2023
Estimated rental value of vacant space *	A	19.3	17.3	31.3
Estimated rental value of the whole portfolio *	B	230.2	219.7	444.4
EPRA Vacancy Rate, %	A/B	8.4	7.9	7.1

* Including rental value of apartments

EPRA Cost Ratios

M€		4–6/2024	4–6/2023	1–6/2024	1–6/2023	2023
Include:
(i) Administrative expense line per IFRS income statement		10.4	12.0	19.5	21.9	45.6
(i) Maintenance expense line per IFRS income statement		24.4	22.0	71.1	64.4	115.7
(i) Repair expense line per IFRS income statement		5.8	7.9	11.8	14.2	29.3
(ii) Net service charge costs/fees		-4.3	-3.9	-8.7	-7.7	-15.8
(iii) Management fees less actual/estimated profit element		-0.1	0.0	-0.1	-0.1	-0.2
(iv) Other operating income/recharges intended
to cover overhead expenses less any related profits		-0.1	-0.1	-0.2	-0.1	-0.3
Exclude:
(vii) Ground rent costs		0.1	0.0	0.1	0.1	-0.1
(viii) Service charge costs recovered through rents
but not separately invoiced		-28.2	-28.1	-78.8	-75.1	-137.5
EPRA Costs (including direct vacancy costs)	A	8.0	9.8	14.8	17.5	36.7
(ix) Direct vacancy costs		-2.8	-2.3	-7.0	-6.2	-10.2
EPRA Costs (excluding direct vacancy costs)	B	5.2	7.4	7.9	11.3	26.5
(x) Gross Rental Income
less ground rent costs - per IFRS		107.8	104.9	216.7	209.2	425.7
(xi) Service fee and service charge costs
components of Gross Rental Income		-28.2	-28.1	-78.8	-75.1	-137.5
Gross Rental Income	C	79.7	76.8	137.9	134.1	288.1
EPRA Cost Ratio
(including direct vacancy costs), %	A/C	10.0	12.7	10.7	13.1	12.7
EPRA Cost Ratio
(excluding direct vacancy costs), %	B/C	6.5	9.7	5.7	8.5	9.2

Condensed consolidated income statement

M€ Note	4–6/2024		4–6/2023 1–6/2024	1–6/2023	1–12/2023
Total revenue	112.3	108.9	225.6	217.1	442.2
Maintenance expenses	-24.4	-22.0	-71.1	-64.4	-115.7
Repair expenses	-5.8	-7.9	-11.8	-14.2	-29.3
Net rental income	82.1	79.0	142.7	138.5	297.2
Administrative expenses	-10.4	-12.0	-19.5	-21.9	-45.6
Other operating income	0.9	0.8	1.6	1.6	4.0
Other operating expenses	-0.8	0.2	-1.1	-0.2	-0.3
Profit/loss on sales of investment properties	0.0	-0.1	-0.8	-0.1	0.2
Profit/loss on fair value of investment properties	3 -149.9	14.0	-138.8	5.1	-295.4
Depreciation, amortisation and impairment losses	-0.3	-0.3	-0.6	-0.6	-1.3
Operating profit/loss	-78.3	81.7	-16.5	122.3	-41.1
Financial income	5.1	10.2	7.7	11.8	13.5
Financial expenses	-31.2	-20.2	-56.2	-38.4	-84.8
Total amount of financial income and expenses	-26.0	-10.0	-48.5	-26.6	-71.3
Share of result from associated companies	-	-	-	0.0	0.1
Profit/loss before taxes	-104.3	71.7	-65.0	95.7	-112.3
Current tax expense	-3.6	-6.2	-6.4	-10.2	-16.5
Change in deferred taxes	24.6	-8.2	19.5	-9.0	39.8
Profit/loss for the period	-83.4	57.3	-51.9	76.5	-89.0
Profit/loss for the financial period attributable to
shareholders of the parent company	-83.4	57.3	-51.9	76.5	-89.0
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Cash flow hedges	2.5	2.7	10.4	-1.5	-39.8
Deferred taxes	-0.5	-0.5	-2.1	0.3	8.0
Items that may be reclassified subsequently to profit or loss	2.0	2.2	8.4	-1.2	-31.8
Total comprehensive income for the period	-81.4	59.4	-43.5	75.3	-120.8
Total comprehensive income attributable to
shareholders of the parent company	-81.4	59.4	-43.5	75.3	-120.8
Earnings per share based on profit/loss attributable
to shareholders of the parent company
Basic, €	-0.34	0.23	-0.21	0.31	-0.36
Diluted, €	-0.34	0.23	-0.21	0.31	-0.36
Average number of shares, million	8 247.1	247.1	247.1	247.1	247.1

Condensed consolidated balance sheet

M€ Note	30 Jun 2024	30 Jun 2023	31 Dec 2023
Assets
Non-current assets
Intangible assets	0.5	0.6	0.6
Investment properties 3	7,921.3	8,268.1	8,038.8
Property, plant and equipment 4	27.7	28.2	28.0
Investments in associated companies	2.2	1.4	2.0
Financial assets 7	0.8	0.7	0.8
Non-current receivables	6.4	6.6	6.5
Derivatives 6, 7	29.4	52.6	29.8
Deferred tax assets	4.6	4.4	4.9
Total non-current assets	7,992.8	8,362.7	8,111.4
Non-current assets held for sale 10	1.3	0.1	-
Current assets
Trading property	-	0.1	-
Derivatives 6, 7	0.6	0.1	0.6
Current tax assets	1.2	3.9	11.1
Trade and other receivables	16.4	15.6	17.0
Financial assets 7	27.9	32.7	3.3
Cash and cash equivalents	300.1	38.1	15.0
Total current assets	346.1	90.4	46.9
Total assets	8,340.2	8,453.2	8,158.3
Shareholders' equity and liabilities Equity attributable to shareholders of the parent company Share capital Share issue premium	58.0 35.8	58.0 35.8	58.0 35.8
Fair value reserve	19.5	41.8	11.2
Invested non-restricted equity reserve	164.4	164.4	164.4
Retained earnings	3,305.1	3,521.8	3,356.4
Equity attributable to shareholders of the parent company	3,582.9	3,821.8	3,625.9
Total equity	3,582.9	3,821.8	3,625.9
Liabilities Non-current liabilities
Loans and borrowings 5, 7	3,342.6	2,902.1	3,007.2
Deferred tax liabilities	811.6	885.3	829.3
Derivatives 6, 7	5.6	0.7	17.3
Provisions	0.1	0.2	0.1
Other non-current liabilities	4.7	5.0	4.9
Total non-current liabilities	4,164.6	3,793.3	3,858.9
Current liabilities
Loans and borrowings 5, 7	518.8	756.7	593.2
Derivatives 6, 7 Current tax liabilities	- 1.1	0.0 2.8	- 4.9
Trade and other payables	72.7	78.6	75.4
Total current liabilities	592.6	838.0	673.5
Total liabilities	4,757.3	4,631.4	4,532.4
Total equity and liabilities	8,340.2	8,453.2	8,158.3

Consolidated statement of cash flows

M€	1–6/2024	1–6/2023	1–12/2023
Cash flow from operating activities
Profit for the period	-51.9	76.5	-89.0
Adjustments	176.9	41.8	345.0
Change in net working capital
Change in trade and other receivables	-1.4	-1.2	-0.5
Change in trade and other payables	13.6	8.3	-0.6
Interest paid	-68.7	-49.8	-79.4
Interest received	3.8	-2.4	2.3
Other financial items	1.3	-0.8	-3.4
Taxes paid	-0.3	-9.9	-21.2
Net cash flow from operating activities	73.3	62.6	153.3
Cash flow from investing activities
Acquisition of investment properties	-21.5	-112.9	-201.3
Acquisition of associated companies	-0.1	-0.1	-0.6
Acquisition of property, plant and equipment and intangible assets	-	-0.1	-0.3
Proceeds from sale of investment properties	0.3	0.3	5.1
Proceeds from sale of associated companies	-	-	0.3
Purchases of financial assets	-83.4	-50.0	-55.0
Proceeds from sale of financial assets	59.3	122.3	157.1
Non-current loans, granted	-	0.0	0.0
Repayments of non-current loan receivables	0.1	0.1	0.2
Interest and dividends received on investments	3.2	0.7	0.9
Net cash flow from investing activities	-42.2	-39.6	-93.6
Cash flow from financing activities
Non-current loans and borrowings, raised	831.8	300.0	500.0
Non-current loans and borrowings, repayments	-531.4	-305.8	-574.5
Current loans and borrowings, raised	19.8	59.5	135.8
Current loans and borrowings, repayments Repayments of lease liabilities	-65.3 -0.9	-60.7 -0.9	-127.2 -1.8
Dividends paid	-	-96.4	-96.4
Net cash flow from financing activities	253.9	-104.3	-164.1
Change in cash and cash equivalents	285.1	-81.3	-104.4
Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period	15.0 300.1	119.4 38.1	119.4 15.0

Condensed consolidated statement of changes in equity

M€	Share capital	Share issue premium	Fair value reserve	Invested non restricted reserve equity	Retained earnings	parent company Equity attribut holders of the able to share	equity Total
Equity at 1 Jan 2024	58.0	35.8	11.2	164.4	3,356.4	3,625.9	3,625.9
Comprehensive income
Cash flow hedging			8.4			8.4	8.4
Profit for the period					-51.9	-51.9	-51.9
Total comprehensive income for the period			8.4		-51.9	-43.5	-43.5
Transactions with shareholders
Share-based incentive scheme					0.5	0.5	0.5
Total transactions with shareholders					0.5	0.5	0.5
Total change in equity			8.4		-51.3	-43.0	-43.0
Equity at 30 Jun 2024	58.0	35.8	19.5	164.4	3,305.1	3,582.9	3,582.9
M€	Share capital	Share issue premium	Fair value reserve	Invested non restricted reserve equity	Retained earnings	parent company Equity attribut holders of the able to share	equity Total
Equity at 1 Jan 2023	58.0	35.8	43.0	164.4	3,541.4	3,842.7	3,842.7

Comprehensive income
Cash flow hedging			-1.2			-1.2	-1.2
Profit for the period					76.5	76.5	76.5
Total comprehensive income for the period			-1.2		76.5	75.3	75.3
Transactions with shareholders
Share-based incentive scheme					0.3	0.3	0.3
Dividend payment					-96.4	-96.4	-96.4
Total transactions with shareholders					-96.1	-96.1	-96.1
Total change in equity			-1.2		-19.7	-20.9	-20.9
Equity at 30 Jun 2023	58.0	35.8	41.8	164.4	3,521.8	3,821.8	3,821.8

M€	Share capital	Share issue premium	Fair value reserve	Invested non restricted reserve equity	Retained earnings	parent company Equity attribut holders of the able to share	equity Total
Equity at 1 Jan 2023	58.0	35.8	43.0	164.4	3,541.4	3,842.7	3,842.7
Comprehensive income
Cash flow hedging			-31.8			-31.8	-31.8
Profit for the period					-89.0	-89.0	-89.0
Total comprehensive income for the period			-31.8		-89.0	-120.8	-120.8
Transactions with shareholders
Share-based incentive scheme					0.4	0.4	0.4
Dividend payment					-96.4	-96.4	-96.4
Total transactions with shareholders					-96.0	-96.0	-96.0
Total change in equity			-31.8		-185.0	-216.8	-216.8
Equity at 31 Dec 2023	58.0	35.8	11.2	164.4	3,356.4	3,625.9	3,625.9

Condensed notes to the consolidated financial statements

Basic information about the Group

Kojamo plc is Finland's largest market-based, private housing investment company that offers rental apartments and housing services in Finnish growth centres. Its range of apartments is extensive. On 30 June 2024, Kojamo owned 40,973 rental apartments across Finland.

The Group's parent company, Kojamo plc, is a Finnish public company domiciled in Helsinki. Its registered address is Mannerheimintie 168, 00300 Helsinki, Finland.

Trading in Kojamo's shares commenced on the pre-list of Nasdaq Helsinki on 15 June 2018 and on the official list of

1. Accounting policies

Basis for preparation

This Half-Year Financial Report was prepared in accordance with IAS 34 Interim Financial Reporting as well as by applying the same accounting policies as in the previous annual financial statements, excluding the exceptions described below. The figures of the Half-Year Financial Report have not been audited.

The figures for 2023 are based on Kojamo plc's audited Financial Statements for 2023. The figures in brackets refer to the corresponding period in 2023, and the comparison period is the corresponding period the year before, unless otherwise stated.

The preparation of the Half-Year Financial Report in accordance with IFRS requires application of judgement by Kojamo's

2. Specification of revenue

Nasdaq Helsinki on 19 June 2018. The Group's four bonds are listed on the official list of the Irish Stock Exchange. The Group has chosen Finland as its home state for the disclosure of periodic information pursuant to Chapter 7, Section 3 of the Finnish Securities Market Act.

Kojamo plc's Board of Directors approved this Half-Year Financial Report for publication at its meeting on 15 August 2024.

management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the balance sheet date and the reported amounts of income and expenses for the period. Management must also make judgements when applying the Group's accounting policies. Actual results may differ from the estimates and assumptions used. The most significant items of this Half-Year Financial Report where judgement has been applied by management, as well as the assumptions about the future and other key uncertainty factors in estimates at the end of the reporting period that create a significant risk of change in the carrying amounts of Kojamo's assets and liabilities within the next review period, are the same as those presented in the consolidated financial statements for the 2023 financial year. Of these, the most important are the determination of the fair values of investment properties and financial instruments.

M€	1–6/2024	1–6/2023	1–12/2023
Revenue from contracts with customers	225.3	216.9	441.7
Other income from revenue	0.3	0.2	0.5
Total revenue	225.6	217.1	442.2

Specification of revenue from contracts with customers

M€	1–6/2024	1–6/2023	1–12/2023
Rental income	216.6	209.1	425.7
Water fees	8.3	7.3	15.0
Sauna fees	0.4	0.4	0.8
Other income from service sales	0.1	0.1	0.2
Total	225.3	216.9	441.7

Revenue consists primarily of rental income based on tenancy agreements. In the Group's business, the scope of IFRS 15 includes maintenance and service revenue, which include usebased charges collected from tenants.

3. Investment properties

M€	30 Jun 2024	30 Jun 2023	31 Dec 2023
Fair value of investment properties on 1 Jan	8,038.8	8,150.2	8,150.2
Acquisition of investment properties	21.9	106.5	165.1
Modernisation investments	1.3	11.6	26.7
Disposals of investment properties	-1.2	-7.5	-12.0
Capitalised borrowing costs	0.6	2.3	4.2
Profit/loss on fair value of investment properties	-138.8	5.1	-295.4
Fair value of investment properties at the end of the period	7,922.6	8,268.1	8,038.8

The value of investment properties on 30 June 2024 includes EUR 1.3 million in Investment properties held for sale

Profit/loss on fair value of investment properties

M€	1–6/2024	1–6/2023	1–12/2023
Changes in yield requirement	-165.9	-	-815.5
Change in net rental income	-7.3	-25.9	305.9
Changes in inflation, rents and expense growth assumptions	-	-	181.7
Other	34.3	30.9	32.5
Profit/loss on fair value of investment properties	-138.8	5.1	-295.4

Right-of-use assets included in the fair values of investment properties (plots of land)

M€	30 Jun 2024	30 Jun 2023	31 Dec 2023
Fair value on 1 Jan	77.8	73.8	73.8
Increases/decreases	4.5	4.2	5.2
Profit/loss on fair value of investment properties	-0.7	-0.7	-1.3
Fair value at the end of the period	81.5	77.3	77.8

Modernisation investments are often significant and they are primarily related to repairs and renovations of plumbing, facades, roofs, windows and balconies. The expected average technical useful lives of the plumbing systems, facades, roofs and balconies of residential properties are taken into consideration in the planning of modernisation investments.

Capitalised borrowing costs totalled EUR 0.6 (2.3) million. The interest rate applied to capitalised borrowing costs was 2.6 (2.0) per cent at the end of the review period.

Fair value of investment properties by valuation method

M€	30 Jun 2024	30 Jun 2023	31 Dec 2023
Yield value	7,642.0	7,721.2	7,656.3
Acquisition cost	199.1	469.6	304.7
Right-of-use assets (plots of land)	81.5	77.3	77.8
Total	7,922.6	8,268.1	8,038.8
Number of apartments	30 Jun 2024	30 Jun 2023	31 Dec 2023
Yield value	40,194	38,449	39,390
Acquisition cost ¹⁾ ²⁾	779	1,370	1,229
Total	40,973	39,819	40,619

¹⁾ Includes 4 apartments as part of development projects

²⁾ From 404 apartments coming out of restriction, there will be an expected uplift in the fair value of EUR 20-40 million by the end of 2024

Average valuation parameters for yield-based valued items

	Capital	Other regions	Group
	region	of Finland	total
Unobservable inputs:
Yield requirement cash flow, weighted, % *	4.22	5.09	4.50
Exit capitalisation rate, weighted, % *	4.37	5.24	4.65
Cash flow discount rate, weighted, % *	6.22	7.09	6.50
Inflation assumption, %	2.0	2.0	2.0
Market rents, weighted by square meters, €/m²/month	20.53	16.12	18.54
Property maintenance expenses, repairs and modernisation investments €/m²/month	6.69	6.44	6.58
10-year average financial occupancy rate, %	97.5	96.6	97.2
Rent increase assumption, %	2.7	2.4	2.6
Expense increase assumption, %	2.5	2.5	2.5

* Yield requirement for net rental income

		30 Jun 2023	Group total
	Capital region	Other regions
		of Finland
Unobservable inputs:
Yield requirement cash flow, weighted, % *	3.56	4.92	3.96
Exit capitalisation rate, weighted, % *	3.71	5.07	4.11
Cash flow discount rate, weighted, % *	5.36	6.72	5.76
Inflation assumption, %	1.8	1.8	1.8
Market rents, weighted by square meters, €/m²/month	20.10	15.51	17.98
Property maintenance expenses, repairs and modernisation investments €/m²/month	6.76	6.54	6.66
10-year average financial occupancy rate, %	97.5	96.6	97.2
Rent increase assumption, %	2.3	2.0	2.2
Expense increase assumption, %	2.3	2.3	2.3

* Yield requirement for net rental income

		31 Dec 2023	Group
	Capital	Other regions
	region	of Finland	total
Unobservable inputs:
Yield requirement cash flow, weighted, % *	4.11	5.00	4.40
Exit capitalisation rate, weighted, % *	4.26	5.15	4.55
Cash flow discount rate, weighted, % *	6.11	7.00	6.40
Inflation assumption, %	2.0	2.0	2.0
Market rents, weighted by square meters, €/m²/month	20.55	16.13	18.54
Property maintenance expenses, repairs and modernisation investments €/m²/month	6.67	6.41	6.56
10-year average financial occupancy rate, %	97.5	96.6	97.2
Rent increase assumption, %	2.7	2.4	2.6
Expense increase assumption, %	2.5	2.5	2.5

* Yield requirement for net rental income

Sensitivity analysis for measuring the fair value of investment properties

Properties measured at yield value	30 Jun 2024
Change % (relative)	-10%	-5%	0%	5%	10%
Change, M€
Yield requirement	860.8	407.6		-368.4	-703.0
Market rents	-946.8	-473.4		473.4	946.8
Maintenance expenses	310.5	155.2		-155.2	-310.5
Change % (absolute)	-2%	-1%	0%	1%	2%
Change, M€
Financial occupancy rate	-194.8	-97.4		97.4	194.8

Properties measured at yield value	30 Jun 2023
Change % (relative)	-10%	-5%	0%	5%	10%
Change, M€
Yield requirement	861.1	407.7		-368.6	-703.5
Market rents	-983.7	-491.8		491.8	983.7
Maintenance expenses	337.3	168.7		-168.7	-337.3
Change % (absolute)	-2%	-1%	0%	1%	2%
Change, M€
Financial occupancy rate	-202.3	-101.1		101.1	202.3

Properties measured at yield value	31 Dec 2023
Change % (relative)	-10%	-5%	0%	5%	10%
Change, M€
Yield requirement	860.3	407.3		-368.2	-702.7
Market rents	-944.8	-472.4		472.4	944.8
Maintenance expenses	310.0	155.0		-155.0	-310.0
Change % (absolute)	-2%	-1%	0%	1%	2%
Change, M€
Financial occupancy rate	-194.4	-97.2		97.2	194.4

Fair value measurement of investment property

Kojamo's fair value of investment properties is based on IFRS 13 Fair Value Measurement -standard and IAS 40 Investment Property -standard. The valuation is carried out on quarterly basis and are reviewed by external independent valuation expert. The results of the assessment are reported to the Management Group, Audit Committee and Board of Directors. The measurement process, market conditions and other factors affecting the assessment of the fair value of properties are reviewed quarterly with the CEO and CFO in accordance with Kojamo's reporting schedule. Each quarter, an external independent expert issues a statement on the valuation methods applied in the valuation of rental apartments and business premises owned by Kojamo as well as on the quality and reliability of the valuation.

According to IFRS 13 Fair value Measurement -standard is the price that would be received to sell an asset or paid to transfer liability in an orderly transaction between market participants at the measurement date. However, determining the fair values of investment properties requires significant management estimates and assumptions especially when the level of transaction activity is significantly decreased. Estimates and assumptions are especially related to the yield requirements, occupancy rate and market rent levels. Kojamo strives to use as much relevant observable input data as possible and as little non-observable input data as possible.

The yield requirements are analysed quarterly in connection with the valuation. The yield requirements and other input data used are based on market observations and the best information available under current conditions. The information includes the opinion of an external independent expert as well as Kojamo's own information.

Fair value is the price that would be received from the sale of an asset or paid for the transfer of a liability between market parties in a normal transaction on the valuation date.

The number of transactions observed from the market is limited and the comparability of the transactions is weak. In addition, the transaction prices partly indicate that the sales have been motivated. The price indications of buyers appearing in the market are opportunistic and therefore do not represent genuine price formation.

When deciding on the yield requirements used in the valuation in an environment where transaction data is limited, the company's management has taken into account the views of an external expert, the deals completed in the market, discussions with various market participants, interest rates and interest rate views, as well as the company's own information about the market and its real estate portfolio. The yield requirements have also been evaluated in relation to other valuation parameters and the 10-year calculation period. Most relevant other valuation parameters are inflation assumption, rent increase assumption and expense increase assumption, which the company's management has estimated based on the current market views.

Kojamo uses valuation techniques that are appropriate under those circumstances, and for which sufficient data is available to measure fair value.

Investment property

Investment property refers to an asset (land, building or part of a building) that Kojamo retains to earn rental income or capital appreciation, or both. An investment property can be owned directly or through an entity. Properties used for administrative purposes are owner-occupied property and included in the balance sheet line item "Property, plant and equipment". An investment property generates cash flows largely independently of the other assets held by an entity. This distinguishes investment property from owner-occupied property.

Kojamo's investment property portfolio consists of the completed properties, properties under construction and renovation, leased plots (right-of-use assets) and the plot reserve. Properties classified as trading properties as well as properties classified as held for sale are included in the Group's property portfolio but excluded from the balance sheet item "Investment properties". A property is reclassified from "Investment properties" under "Trading properties" in the event of a change in the use of the property, and under "Investment property held for sale", when the sale of an investment property is deemed highly probable.

An investment property is derecognised from the balance sheet on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. Capital gains and losses on disposals are presented netted as a separate line item in the income statement.

Restrictions on investment properties

Some of the investment properties are subject to legislative divestment and usage restrictions. The so-called non-profit restrictions apply to the owning company, and the so-called property-specific restrictions apply to the investment owned. The non-profit restrictions include, among other things, permanent restrictions on the company's operations, distribution of profit, lending and provision of collateral, and the divestment of investments. The property-specific restrictions include fixedterm restrictions on the use of apartments, the selection of residents, the determination of rent and the divestment of apartments.

Measurement of investment property

Investment property is measured initially at acquisition cost, including related transaction costs, such as transfer taxes and professional fees, as well as capitalised expenditure arising from eligible modernisation. The acquisition cost also includes related borrowing costs, such as interest costs and arrangement fees, directly attributable to the acquisition or construction of an investment property. The capitalisation of borrowing costs is based on the fact that an investment property is a qualifying asset, i.e. an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. The capitalisation commences when the construction of a new building or extension begins, and continues until such time as the asset is substantially ready for its intended use or sale. Capitalisable borrowing costs are directly attributable costs accrued on the funds borrowed for a construction project or costs attributable to a construction project.

After initial recognition, investment property is measured at fair value and the changes in fair value are recognised through profit or loss in the period in which they are observed. Fair value gains and losses are presented netted as a separate line item in the comprehensive income statement. The valuation techniques used by Kojamo are described below.

Fair value of investment properties by valuation method

Inputs used in determining fair values (used in the valuation techniques) are classified on three levels in the fair value hierarchy. The fair value hierarchy is based on the source of inputs.

Level 1 inputs

Quoted prices (unadjusted) in active markets for identical investment property.

Level 2 inputs

Inputs other than quoted prices included within Level 1 that are observable for the investment property, either directly or indirectly.

Level 3 inputs

Unobservable inputs for investment property.

An investment property measured at fair value is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The fair value measurement for all of the investment property of Kojamo has been categorised as a Level 3 fair value, as observable market information for the determination of fair values has not been available.

Fair value of investment properties by valuation method

The fair values of investment properties measured by Kojamo are based on transaction value or balance sheet value (acquisition cost).

Income value (yield value)

The measurement of value is based on 10-year discounted cash flow (DCF), in which the terminal value of the property is calculated based on direct capitalisation and net yield in year 11. The discount rate is the 10-year cash flow yield requirement plus inflation.

On completion, newly developed properties are moved from balance sheet value measurement to yield value measurement in the quarter they are completed in. The development margin, if any, is recognised as income in connection with this transition.

Completed properties acquired by the Group are measured in their first quarter using the acquisition cost and subsequently using the yield value method.

The yield value method is used to measure the value of properties that are not subject to restrictions.

The yield value method is also used to measure the value of properties that can be sold as entire properties but not apartment by apartment due to restrictions stipulated by the legislation concerning state-subsidised rental housing. The disposal of such properties is only possible when the entire property is sold, and it must be sold to a party that will continue to use the property for the provision of rental housing until the restrictions expire. The rents for such properties can be set freely. The yield value method is used to measure the value of properties that belong to the following restriction groups: free of restrictions, subject to extension restrictions, 20-year interest subsidy, 10-year interest subsidy.

The yield requirements are analysed on a quarterly basis in connection with valuation. The determination of the yield requirement is based on the size of the municipality. In larger cities, several area-specific yield requirements are determined while, in smaller cities, the yield requirement is set at the municipal level. The yield requirement for terraced houses is increased by 20 basis points. Properties with a particularly large proportion of premises that are not in residential use (in excess of 40% of the total floor area) are analysed separately.

The change in yield requirement based on the age of the property is as follows: more than 15 years from completion or renovation +12.5%, more than 30 years from completion or renovation +22.5%.

Provision for modernisation investments:

Age of the property or the number of years since the completion of the most re cent renovation	Provision (€/m²/month)
0–10 years	0.25
11–30 years	1.00
31–40 years	1.50
>40 years	2.00

Provisions for modernisation investments are used in 10-year discounted cash flow calculations.

Acquisition cost (balance sheet value)

The balance sheet value is used for the measurement of residential and commercial properties whose disposal price is restricted under the legislation governing state-subsidised rental properties, meaning that their disposal price cannot be determined freely. In addition, the setting of rents for such properties is, as a rule, based on the cost principle, which means that the rent levels cannot be determined freely.

The balance sheet value method is used to measure the value of properties that belong to the following restriction groups: ARAVA (state-subsidised rental properties), and 40-year interest subsidy.

The fair value of property development projects, the plot reserve and shares and holdings related to investment properties is their original acquisition cost.

Business combinations and asset acquisition

Acquisitions of investment properties by Kojamo are accounted for as an acquisition of asset or a group of assets, or a business combination within the scope of IFRS 3 Business Combinations. Reference is made to IFRS 3 to determine whether a transaction is a business combination. This requires the management's judgment.

IFRS 3 Business Combinations is applied to the acquisition of investment property when the acquisition is considered to constitute an entity that is treated as a business. Usually, a single property and its rental agreement does not constitute a business entity. To constitute a business entity, the acquisition of the property should include acquired operations and people carrying out these operations, such as marketing of properties, management of tenancies and property repairs and renovation.

The consideration transferred in the business combination and the detailed assets and accepted liabilities of the acquired entity are measured at fair value on the acquisition date. Goodwill is recognised at the amount of consideration transferred, interest of non-controlling shareholders in the acquiree and previously held interest in the acquiree deducted by Kojamo's share of the fair value of the acquired net assets. Goodwill is not amortised, but it is tested for impairment at least annually.

Acquisitions that do not meet the definition of business in accordance with IFRS 3 Business Combinations are accounted for as asset acquisitions. In this event, goodwill or deferred taxes etc. are not recognised.

4. Property, plant and equipment

M€	30 Jun 2024	30 Jun 2023	31 Dec 2023
Carrying value, beginning of period	28.0	28.4	28.4
Increases	0.2	0.3	0.7
Depreciation for the period	-0.5	-0.5	-1.0
Carrying value, end of period	27.7	28.2	28.0

Property, plant and equipment consist of assets held and used by the company, mainly buildings and land areas, as well as

machinery and equipment. The right-of-use asset item includes car leasing agreements in accordance with IFRS 16 Leases.

Right-of-use assets included in property, plant and equipment

M€	30 Jun 2024	30 Jun 2023	31 Dec 2023
Carrying value, beginning of period	0.8	0.8	0.8
Increases/decreases	0.2	0.3	0.5
Depreciation for the period	-0.2	-0.2	-0.5
Carrying value, end of period	0.8	0.8	0.8

5. Interest-bearing liabilities

M€	30 Jun 2024	30 Jun 2023	31 Dec 2023
Non-current liabilities
Bonds	1,304.1	1,557.0	1,558.7
Loans from financial institutions	1,939.7	1,250.2	1,353.3
Interest subsidy loans	18.7	19.0	18.8
Lease liabilities	80.1	76.0	76.4
Non-current liabilities total	3,342.6	2,902.1	3,007.2
Current liabilities
Bonds	415.5	634.4	434.5
Loans from financial institutions	100.7	84.0	110.6
Interest subsidy loans	0.2	0.2	0.2
Commercial papers	-	29.8	39.7
Other loans	0.1	6.1	6.0
Lease liabilities	2.3	2.2	2.2
Current liabilities total	518.8	756.7	593.2
Total interest-bearing liabilities	3,861.4	3,658.8	3,600.4

The following financing arrangements were made during the review period:

In January, Kojamo plc issued EUR 200 million unsecured green notes as a private placement. The new notes were issued under the company's EMTN programme as an increase to the company's notes maturing on 28 May 2029.

In March, Kojamo plc signed a new EUR 250 million term loan facility agreement linked to its sustainability targets together

6. Derivative instruments

Fair values of derivative instruments

	30 Jun 2024			30 Jun 2023	31 Dec 2023
M€	Positive	Negative	Net	Net	Net
Interest rate derivatives
Interest rate swaps, cash flow hedging	30.0	-5.6	24.4	51.6	13.8
Interest rate swaps, not in hedge accounting	-	-	-	0.4	-0.7
Total	30.0	-5.6	24.4	52.0	13.1

with three relationship banks. The loan is secured and has a maturity of five years. The loan was drawn in June.

EUR 425 million loan signed in October 2023 was drawn in April.

In June, the bond issued by Kojamo plc in 2017 was repaid. The outstanding amount of the bond at maturity was EUR 434.5 million.

Nominal values of derivative instruments

M€	30 Jun 2024	30 Jun 2023	31 Dec 2023
Interest rate derivatives
Interest rate swaps, cash flow hedging	1,139.5	950.1	1,141.0
Interest rate swaps, not in hedge accounting	-	40.2	40.0
Total	1,139.5	990.3	1,180.9

During the review period, EUR 10.4 (-1.5) million was recognised in the fair value reserve from interest rate derivatives classified as cash flow hedges. The interest rate derivatives

mature between 2024 and 2035. At the end of the review period, the average maturity of interest rate swaps was 3.3 (4.1) years.

7. Financial assets and liabilities by valuation category

			30 Jun 2024
	Carrying				Fair value
M€	value total	Level 1	Level 2	Level 3	total
Financial assets
Measured at fair value
Interest rate derivatives	30.0		30.0		30.0
Financial assets recognised at fair value
through profit or loss	28.6	0.0	27.8	0.8	28.6
Measured at amortised cost
Cash and cash equivalents	300.1		300.1		300.1
Trade receivables	8.1				8.1
Financial liabilities
Measured at fair value
Interest rate derivatives	5.6		5.6		5.6
Measured at amortised cost
Other interest-bearing liabilities	2,141.8		2,141.1		2,141.1
Bonds	1,719.7	1,641.9			1,641.9
Trade payables	11.7				11.7

	Carrying				Fair value
M€	value total	Level 1	Level 2	Level 3	total
Financial assets
Measured at fair value
Interest rate derivatives	30.4		30.4		30.4
Financial assets recognised at fair value
through profit or loss	4.1	3.3	-	0.8	4.1
Measured at amortised cost
Cash and cash equivalents	15.0		15.0		15.0
Trade receivables	7.5				7.5
Financial liabilities
Measured at fair value
Interest rate derivatives	17.3		17.3		17.3
Measured at amortised cost
Other interest-bearing liabilities	1,607.3		1,604.7		1,604.7
Bonds	1,993.2	1,831.5			1,831.5
Trade payables	1.8				1.8

There were no transfers between the hierarchy levels during the review period. The fair value of floating rate loans is the same as their nominal value, as the margins of the loans correspond to the margins of new loans. The fair values of bonds are based on market price quotations. The fair value of other fixed-rate liabilities is based on discounted cash flows, in which market interest rates are used as input data.

If there is no active market for the financial instrument, judgment is required to determine fair value and impairment. External mark to market valuations may be used for some interest rate derivatives. Recognition of impairment is considered if the impairment is significant or long-lasting. If the amount of impairment loss decreases during a subsequent financial year and the decrease can be considered to be related to an event occurring after the recognition of impairment, the impairment loss will be reversed.

Financial assets and liabilities measured at fair value are classified into three fair value hierarchy levels in accordance with the reliability of the valuation technique:

Level 1:

The fair value is based on quoted prices for identical instruments in active markets.

Level 2:

A quoted market price exists in active markets for the instrument, but the price may be derived from directly or indirectly quoted market data. Fair values are measured using valuation techniques. Their inputs are based on quoted market prices, including e.g. market interest rates, credit margins and yield curves.

Level 3:

There is no active market for the instrument, the fair value cannot be reliably derived and input data used for the determination of fair value is not based on observable market data.

Level 3 reconciliation

Financial assets recognised at fair value through profit or loss

M€	30 Jun 2024	30 Jun 2023	31 Dec 2023
Beginning of period	0.8	0.7	0.7
Change	0.0	-	0.1
End of period	0.8	0.7	0.8

Investments measured at fair value through profit or loss on hierarchy level 3 are investments in unlisted securities and they are mainly measured at acquisition cost, as their fair value

cannot be reliably measured in the absence of an active market. For these items, the acquisition cost is evaluated to be an appropriate estimate of fair value.

8. Earnings per share

	1–6/2024	1–6/2023	1–12/2023
Profit for the period attributable to shareholders of the parent company, M€	-51.9	76.5	-89.0
Weighted average number of shares during the period (million)	247.1	247.1	247.1
Earnings per share
Basic, €	-0.21	0.31	-0.36
Diluted, €	-0.21	0.31	-0.36

The company has no diluting instruments.

9. Guarantees and commitments

M€	30 Jun 2024	30 Jun 2023	31 Dec 2023
Loans covered by pledges on property and shares as collateral	1,437.9	910.0	839.3
Pledges given	2,020.7	1,405.2	1,691.6
Shares ¹⁾	402.3	224.5	293.2
Pledged collateral, total	2,423.0	1,629.7	1,984.9
Other collaterals given
Mortgages and shares	8.1	8.1	8.1
Guarantees ²⁾	675.0	725.8	723.5
Pledged deposits	0.0	0.0	0.0
Other collateral, total	683.1	733.9	731.6

¹⁾ Pledged mortgages and shares relate in some cases to the same properties

²⁾ Guarantees given mainly relate to parent company guarantees given on behalf of Group companies' loans and some of these loans have also mortgages as collaterals

10. Non-current assets held for sale

On 30 June 2024 the net asset value of the non-current assets held for sale totalled EUR 1.3 million. The asset item in question consists of a commercial property.

On 30 June 2023 the net asset value of the non-current assets held for sale totalled EUR 0.1 million. The asset item in question consisted of an associated company. On 31 December 2023 Kojamo had no non-current assets held for sale.

The investment properties have been measured at fair value in the financial statements (fair value hierarchy level 3).

Non-current assets held for sale

M€	30 Jun 2024	30 Jun 2023	31 Dec 2023
Investment properties	1.3	-	-
Associated companies	-	0.1	-
Total assets	1.3	0.1	-
Net asset value	1.3	0.1	-

11. Events after the review period

With release on 15th July 2024, Kojamo lowered its outlook for 2024. The correction of the oversupply situation in rental market has been delayed especially due to the completion of previously started projects concentrating in the first half of the current year, and the unsold new apartments from owner-occupied housing having been moved into the rental market. The

market situation has an impact on Kojamo's total revenue growth and FFO. Additionally, FFO is affected by the cold weather at beginning of the year as well as the VAT increase taking effect in September.

Key figures, the formulas used in their calculation, and reconciliation calculations in accordance with ESMA guidelines

	Formula	4–6/2024	4–6/2023	1–6/2024	1–6/2023	2023
Total revenue, M€		112.3	108.9	225.6	217.1	442.2
Net rental income, M€	1	82.1	79.0	142.7	138.5	297.2
Net rental income margin, %	2	73.1	72.6	63.3	63.8	67.2
Profit/loss before taxes, M€	3	-104.3	71.7	-65.0	95.7	-112.3
EBITDA, M€	4	-78.0	82.0	-15.9	122.9	-39.9
EBITDA margin, %	5	-69.4	75.3	-7.1	56.6	-9.0
Adjusted EBITDA, M€	6	71.9	68.0	123.8	118.0	255.1
Adjusted EBITDA margin, %	7	64.0	62.5	54.9	54.3	57.7
Funds From Operations (FFO), M€	8	42.7	51.7	68.2	80.5	167.2
FFO margin, %	9	38.0	47.5	30.2	37.1	37.8
Funds From Operations (FFO) per share, €	10	0.17	0.21	0.28	0.33	0.68
FFO excluding non-recurring costs, M€	11	42.7	51.7	68.2	80.5	167.2
Adjusted Funds From Operations (AFFO), M€	12	41.9	44.7	66.8	68.8	140.5
Investment properties, M€ ¹⁾				7,922.6	8,268.1	8,038.8
Financial occupancy rate, %	23			91.7	92.2	93.0
Interest-bearing liabilities, M€	13			3,861.4	3,658.8	3,600.4
Return on equity, % (ROE)	14			-2.9	4.0	-2.4
Return on investment, % (ROI)	15			-0.2	3.6	-0.4
Equity ratio, %	16			43.0	45.3	44.5
Loan to Value (LTV), % ²⁾	17			45.0	43.8	44.6
Unencumbered asset ratio, %	18			69.7	80.1	74.7
Coverage ratio	19			2.8	4.1	3.6
Solvency ratio	20			0.43	0.43	0.44
Secured solvency ratio	21			0.17	0.11	0.10
Earnings per share, €		-0.34	0.23	-0.21	0.31	-0.36
Equity per share, €				14.50	15.46	14.67
Gross investments, M€	22	10.9	61.3	19.3	116.3	190.7
Number of personnel, end of the period				299	344	288

¹⁾ Including Non-current assets held for sale

²⁾ Excluding Non-current assets held for sale

Alternative Performance Measures

Kojamo presents Alternative Performance Measures to illustrate the financial development of its business operations and improve comparability between reporting periods. The Alternative Performance Measures, i.e. performance measures that

are not based on financial reporting standards, provide significant additional information for the management, investors, analysts and other parties. The Alternative Performance Measures should not be considered substitutes for IFRS performance measures.

Formulas used in the calculation of the key figures

Alternative Performance Measures specified in accordance with ESMA Guidelines

1)	Net rental income	= Total revenue - Maintenance expenses - Repair expenses
		Net rental income measures the profitability of the Group's rental business after the deduction of maintenance and repair costs.
2)	Net rental income	= Net rental income x 100
	margin, %	Total revenue
		This figure reflects the ratio between net rental income and total revenue.
3)	Profit/loss before taxes	Net rental income - Administrative expenses + Other operating income - Other operating = expenses +/- Profit/loss on sales of investment properties +/- Profit/loss on sales of trading properties +/- Profit/loss on fair value of investment properties - Depreciation, amortisation and impairment losses +/- Financial income and expenses +/- Share of result from associated companies
		Profit/loss before taxes measures profitability after operative costs and financial expenses.
4)	EBITDA	Profit/loss for the period + Depreciation, amortisation and impairment losses -/+ Financial = income and expenses -/+ Share of result from associated companies + Current tax expense + Change in deferred taxes
		EBITDA measures operative profitability before financial expenses, taxes and depreciation.
5)	EBITDA	= EBITDA x 100
	margin, %	Total revenue
		EBITDA margin discloses EBITDA in relation to net sales.
6)	Adjusted EBITDA	Profit/loss for the period + Depreciation, amortisation and impairment losses -/+ Profit/loss = on sales of investment properties -/+ Profit/loss on sales of trading properties -/+ Profit/loss on sales of other non-current assets -/+ Profit/loss on fair value of investment properties -/+ Financial income and expenses -/+ Share of result from associated companies + Current tax expense + Change in deferred taxes
		Adjusted EBITDA measures the profitability of the Group's underlying rental operations excluding gains/losses on sale of properties and unrealised value changes of investment properties.
7)	Adjusted EBITDA	= Adjusted EBITDA x 100
	margin, %	Total revenue
		Adjusted EBITDA margin discloses adjusted EBITDA in relation to total revenue.
8)	Funds From Operations (FFO)	= Adjusted EBITDA - Adjusted net interest charges - Current tax expense +/- Current taxes from disposals
		FFO measures cash flow before change in net working capital. The calculation of this APM takes into account financial expenses and current taxes but excludes items not directly connected to rental operations, such as unrealised value changes.

		= FFO
9)	FFO margin, %	Total revenue	x 100
		FFO margin discloses FFO in relation to total revenue.
10)	FFO per share	= FFO Weighted average number of shares outstanding during the financial period
		FFO per share illustrates FFO for an individual share.
11)	FFO excluding non-recurring costs	= FFO + non-recurring costs
		FFO measures cash flow before change in net working capital. The calculation of this APM takes into account financial expenses and current taxes but excludes items not directly connected to rental operations, such as unrealised value changes and non-recurring costs.
12)	Adjusted FFO (AFFO)	= FFO - Modernisation investments
		AFFO measures cash flow before change in net working capital, adjusted for modernisation investments. The calculation of this APM takes into account modernisation investments, financial expenses and current taxes but excludes items not directly connected to rental operations, such as unrealised value changes.
13)	Interest-bearing liabilities	= Non-current loans and borrowings + Current loans and borrowings
		Interest-bearing liabilities measures the Group's total debt.
14)	Return on	= Profit/loss for the period (annualised)	x 100
	equity, % (ROE)	Total equity, average during the period ROE measures the financial result in relation to equity. This APM illustrates Kojamo's ability to generate a return for the shareholders.
15)	Return on	= (Profit/loss before taxes + Interests and other financial expenses) (annualised)	x 100
	investment, % (ROI)	(Total assets - Non-interest-bearing liabilities), average during the period
		ROI measures the financial result in relation to invested capital. This APM illustrates Kojamo's ability to generate a return on the invested funds.
16)	Equity ratio, %	= Total equity Balance sheet total - Advances received	x 100
		Equity to assets is an APM for balance sheet structure that discloses the ratio of equity to total capital. This APM illustrates the Group's financing structure.
17)	Loan to Value (LTV), %	= Interest-bearing liabilities - Cash and cash equivalents	x 100
		Investment properties Loan to value discloses the ratio of net debt to investment properties. This APM illustrates the Group's indebtedness.
18)	Unencumbered asset	= Unencumbered assets	x 100
	ratio, %	Assets total
		This APM illustrates the amount of unencumbered assets relative to total assets.

		The ratio between EBITDA and net financial expenses. This APM illustrates the Group's ability to
		service its debts.
20)	Solvency ratio	= Interest-bearing debt* - Cash and cash equivalents
		Assets total
		The solvency ratio illustrates the ratio of net debt to total assets.
		*For this APM, interest-bearing debt includes interest-bearing liabilities, interest-bearing debt related to
		non-current assets held for sale and transaction prices due after more than 90 days.
21)	Secured solvency ratio	= Secured interest-bearing liabilities
		Assets total
		This APM illustrates the ratio of secured loans to total assets
22)	Gross investments	= Acquisition and development of investment properties + Modernisation investments +
		Capitalised borrowing costs
		This APM illustrates total investments including acquisitions, development investments, modernisation
		investments and capitalised interest.

23) Financial ⁼ Rental income x 100 occupancy rate, % Potential rental income at full occupancy

Reconciliation of key indicators

M€	4–6/2024	4–6/2023	1–6/2024	1–6/2023	2023
Profit/loss for the period	-83.4	57.3	-51.9	76.5	-89.0
Depreciation, amortisation and impairment losses	0.3	0.3	0.6	0.6	1.3
Profit/loss on sales of investment properties	0.0	0.1	0.8	0.1	-0.2
Profit/loss on sales of other non-current assets	0.0	-	0.0	-	-0.2
Profit/loss on fair value of investment properties	149.9	-14.0	138.8	-5.1	295.4
Financial income	-5.1	-10.2	-7.7	-11.8	-13.5
Financial expenses	31.2	20.2	56.2	38.4	84.8
Share of result from associated companies	-	-	-	0.0	-0.1
Current tax expense	3.6	6.2	6.4	10.2	16.5
Change in deferred taxes	-24.6	8.2	-19.5	9.0	-39.8
Adjusted EBITDA	71.9	68.0	123.8	118.0	255.1
Financial income and expenses	-26.0	-10.0	-48.5	-26.6	-71.3
Profit/loss on fair value measurement of financial assets	0.5	-0.6	-0.6	-1.2	-0.2
Adjusted net interest charges	-25.6	-10.6	-49.0	-27.8	-71.5
Current tax expense	-3.6	-6.2	-6.4	-10.2	-16.5
Current taxes from disposals	0.0	0.5	-0.2	0.5	0.1
FFO	42.7	51.7	68.2	80.5	167.2
FFO excluding non-recurring costs	42.7	51.7	68.2	80.5	167.2
Equity			3,582.9	3,821.8	3,625.9
Assets total			8,340.2	8,453.2	8,158.3
Advances received			-6.5	-7.0	-6.2
Equity ratio, %			43.0	45.3	44.5
Unencumbered investment properties			5,341.3	6,532.3	5,918.2
Non-current assets, other than investment properties			128.6	147.2	125.7
Current assets			346.1	90.4	46.9
Unencumbered assets total			5,816.0	6,769.9	6,090.8
Total assets			8,340.2	8,453.2	8,158.3
Unencumbered asset ratio, %			69.7	80.1	74.7
Adjusted EBITDA, rolling 12 months			260.9	247.9	255.1
Adjusted net interest charges, rolling 12 months			-92.8	-60.1	-71.5
Coverage ratio			2.8	4.1	3.6
Interest-bearing liabilities			3,861.4	3,658.8	3,600.4
Cash and cash equivalents			300.1	38.1	15.0
Total indebtedness - Cash and cash equivalents			3,561.3	3,620.8	3,585.5
Total assets			8,340.2	8,453.2	8,158.3
Solvency ratio			0.43	0.43	0.44
Secured loans			1,437.9	910.0	839.3
Total assets			8,340.2	8,453.2	8,158.3
Secured solvency ratio			0.17	0.11	0.10