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Kojamo Oyj
Quarterly Report • May 12, 2022
3225_ir_2022-05-12_a847068c-4139-45c4-a17f-74caa5269f7b.pdf
Quarterly Report
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Kojamo plc's Interim Report 1 January–31 March 2022
Total revenue increased, the number of apartments exceeded 37,000
Unless otherwise stated, the comparison figures in brackets refer to the corresponding period of the previous year. The figures in this Interim Report have not been audited.
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 Interim Report, the Finnish version is the official one.
Summary of January–March 2022
- Total revenue increased by 2.4 per cent to EUR 99.5 (97.2) million
- Net rental income increased by 2.8 per cent to EUR 57.0 (55.5) million. Net rental income was 57.3 (57.0) per cent of total revenue
- Profit before taxes was EUR 62.9 (177.1) million. The profit includes EUR 27.9 (143.5) million in net gain on the valuation of investment properties at fair value and EUR 0.0 (0.3) million in profits and losses from the sale of investment properties. Earnings per share was EUR 0.20 (0.57)
- Funds From Operations (FFO) increased by 3.6 per cent to EUR 28.9 (27.9) million
- The fair value of investment properties was EUR 8.4 (7.1) billion at the end of the review period, including EUR 1.1 (0.0) million in Investment properties held for sale
- The financial occupancy rate was 91.9 (94.9) per cent for the review period
- Gross investments amounted to EUR 48.9 (68.0) million, or 49.1 (69.9) per cent of total revenue
- Equity per share was EUR 17.18 (13.63) and return on equity was 4.7 (17.0) per cent. Return on investment was 4.0 (12.0) per cent
- EPRA NRV (Net Reinstatement Value) per share grew by 24.8 per cent to EUR 21.90 (17.55)
- There were 2,566 (2,619) Lumo apartments under construction at the end of the review period
Kojamo owned 37,168 (35,847) rental apartments at the end of the review period. Since March of last year, Kojamo has acquired 0 (71) apartments, completed 1,507 (458) apartments, sold 0 (15) apartments and demolished or otherwise altered - 186 (-59) apartments.
Effects of the war in Ukraine and the COVID-19 pandemic on Kojamo
Russia's attack on Ukraine in February 2022 has weakened Finland's economic outlook and increased economic uncertainty. The war is expected to have an impact on the availability of energy and raw materials as well as rising prices and accelerating inflation. The war did not have significant direct impacts on Kojamo's business operations in the review period.
The COVID-19 pandemic has had an impact on the housing market and the operating environment. The supply of rental
apartments has increased temporarily in the market. Restrictions related to COVID-19 have reduced labour migration and travel, and the rapid spread of the Omicron variant has increased general uncertainty. These factors have had a substantial effect on the Group's financial occupancy rate. The pandemic did not have a significant impact on the Group's profit, balance sheet or cash flow.
Outlook for Kojamo in 2022 unchanged
Kojamo estimates that in 2022, the Group's total revenue will increase by 3–6 per cent year-on-year. In addition, Kojamo estimates that the Group's FFO for 2022 will amount to between EUR 153–165 million, excluding non-recurring costs.
The outlook is based on the management's assessment of total revenue, property maintenance costs and repairs, administrative expenses, financial expenses, taxes to be paid and new development to be completed, as well as the management's view on future developments in the operating environment.
The outlook takes into account the estimated occupancy rate and rises in rents as well as the number of apartments to be completed. The outlook does not take into account the impact of potential acquisitions 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 COVID-19 restrictions, market trends, the regulatory environment or the competitive landscape.
Key figures
| 1–3/2022 | 1–3/2021 | Change % | 2021 | |
|---|---|---|---|---|
| Total revenue, M€ | 99.5 | 97.2 | 2.4 | 391.7 |
| Net rental income, M€ * | 57.0 | 55.5 | 2.8 | 262.3 |
| Net rental income margin, % * | 57.3 | 57.0 | 67.0 | |
| Profit before taxes, M€ * | 62.9 | 177.1 | -64.5 | 1,278.9 |
| EBITDA, M€ * | 75.6 | 190.2 | -60.3 | 1,334.8 |
| EBITDA margin, % * | 75.9 | 195.6 | 340.8 | |
| Adjusted EBITDA, M€ * | 47.7 | 46.4 | 2.7 | 228.5 |
| Adjusted EBITDA margin, % * | 47.9 | 47.7 | 58.3 | |
| Funds From Operations (FFO), M€ * ¹⁾ | 28.9 | 27.9 | 3.6 | 153.1 |
| FFO margin, % * | 29.1 | 28.7 | 39.1 | |
| FFO excluding non-recurring costs, M€ * | 28.9 | 27.9 | 3.6 | 153.1 |
| Investment properties, M€ ²⁾ | 8,406.6 | 7,072.3 | 18.9 | 8,327.5 |
| Financial occupancy rate, % | 91.9 | 94.9 | 93.9 | |
| Interest-bearing liabilities, M€ * | 3,622.3 | 3,034.2 | 19.4 | 3,334.5 |
| Return on equity (ROE), % * | 4.7 | 17.0 | 27.0 | |
| Return on investment (ROI), % * | 4.0 | 12.0 | 19.2 | |
| Equity ratio, % * | 46.9 | 45.5 | 49.0 | |
| Loan to Value (LTV), % * ³⁾ | 37.4 | 40.2 | 37.7 | |
| EPRA Net Reinstatement Value (NRV), M€ | 5,412.3 | 4,338.5 | 24.8 | 5,447.9 |
| Gross investments, M€ * | 48.9 | 68.0 | -28.2 | 356.9 |
| Number of personnel, end of the period | 315 | 312 | 325 | |
| Key figures per share, € | 1–3/2022 | 1–3/2021 | Change % | 2021 |
| FFO per share * | 0.12 | 0.11 | 9.1 | 0.62 |
|---|---|---|---|---|
| Earnings per share | 0.20 | 0.57 | -64.9 | 4.14 |
| EPRA NRV per share | 21.90 | 17.55 | 24.8 | 22.04 |
| Equity per share | 17.18 | 13.63 | 26.1 | 17.25 |
* 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 Interim Report
¹⁾ The formula used in the calculation was changed in 2021 regarding current taxes from disposals. The comparison figures for 1-3/2021 have been adjusted to reflect the current calculation method
²⁾ Including non-current assets held for sale
³⁾ Excluding non-current assets held for sale
CEO's review
Our operations remained stable and our financial position strong during the first quarter of the year. Total revenue and net rental income as well as FFO increased, and the fair value of our investment properties rose to EUR 8.4 billion.
In the early part of the year, the rental market was still clearly affected by the tighter COVID-19 restrictions introduced late last year and the related uncertainty. Consequently, our financial occupancy rate decreased year-on-year. Nearly all COVID-19 restrictions were lifted at the beginning of March, and we expect this to be favourably reflected in the rental market and the recovery of migration. As urbanisation continues in line with forecasts, the outlook for the demand for rental apartments is stable, especially in Finland's major growth centres. In the Helsinki region, the number of vacant rental apartments decreased in March–April, and Kojamo's number of new tenancy agreements began to grow in the same period.
The war in Ukraine has not had a direct impact on our business operations, as we operate only in Finland. Our current projects are primarily implemented on a fixed-price basis, and
the projects have progressed according to plan. Higher construction costs and problems associated with the availability of materials for construction companies are increasing uncertainty in the market, particularly with regard to new projects, and the number of new housing start-ups may be lower than previously predicted.
At the end of the review period, we had 2,566 apartments under construction, along with binding preliminary agreements for the construction of 636 apartments. In the first quarter, we started work on the renovation of Helsingin Bulevardi 31, which is the first part of the Metropolia real estate development project. The former chemistry laboratory and teaching facilities, known as Uusi kemia and Vanha kemia, will be renovated and converted into 77 premium apartments to be completed in autumn 2023. In the coming years, the Metropolia project will see us develop as many as 1,000 new apartments in central locations in Helsinki.
We continued to invest in the development of sustainability services for our customers. In the first quarter, we worked on a carbon footprint test for residents and the possibility to compensate for district heating emissions. The services will be launched at the beginning of May. In construction, we made decisions on the use of geothermal heating at seven of our properties in the capital region. We also started our first pilot project that adheres to the principles of Green Deal demolition. The property to be demolished is the old Puotila shopping centre in Helsinki, which will be replaced with residential and business premises.
Volatility in the financial markets has been high in the early part of the year, and market interest rates have continued to rise. In spite of the challenging market situation, we successfully issued a EUR 300 million green bond in late March. It is Kojamo's second green bond, and the proceeds will be used for energy-efficient real estate development projects. In addition, we signed a new EUR 100 million revolving credit facility linked to our sustainability targets in March. Our liquidity is very good, and the new financing agreements ensure our ability to continue our investments in line with our strategy.
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 macroeconomic factors,
Operating environment key figures
such as economic growth, employment, disposable income, inflation, regional population growth and development of household sizes.
| % | 2022E | 2021 |
|---|---|---|
| GDP growth | 1.5 | 3.5 |
| Unemployment | 7.2 | 7.7 |
| Inflation | 4.0 | 2.2 |
Source: Ministry of Finance, Economic Survey, spring 2022, 13 April 2022
According to the economic survey of the Ministry of Finance, global economic growth will slow down this year. Russia's invasion of Ukraine has cast a shadow on global economic outlook and the uncertainty relating to the war is undermining confidence, accelerating inflation and reducing investments. Accelerating inflation and expectations of tightening monetary policy have pushed up short-term market interest rates also in the euro area.
The Finnish economy performed well last year, and production reached the level seen before the COVID-19 pandemic. This year, the Ministry of Finance estimates that Finland's economic growth will slow down due to the war in Ukraine and the related sanctions. Inflation accelerated to almost 5.0 per cent even before Russia's invasion, and prices are expected to continue to increase. This reduces household purchasing power and the saving rate, which undermines the growth prospects for private consumption. However, private consumption as a whole will grow as the economy reopens and demand for services recovers.
Industry operating environment
Industry key figures
| 2022E | 2021 | |
|---|---|---|
| Residential start-ups, units | 40,000 | 44,000 |
| of which non-subsidised block-of-flats | 20,000 | 23,000 |
| start-ups in the Capital region | n/a | 16,947 |
| Building permits granted, annual, units | n/a | 44,921 |
| Construction costs, change % | n/a | 10.2 |
| Prices of old block-of-flats in the whole country, change, % | 2.5 | 4.0 |
| Prices of old block-of-flats in the capital region, change, % | 1.2-3.5 | 0.1-6.2 |
| Rents of non-subsidised apartments in the whole country, change, % | 1.3 | 0.8 |
| Rents of non-subsidised apartments in the capital region, change, % | 1.0-1.5 | 0.8 |
Sources: Housing production information of the municipalities in the capital region; Statistics Finland, Building and dwelling production, December 2021; Pellervo Economic Research PPT, Housing 2022 forecast; Etla Suhdanne, spring 2022.
In the Ministry of Finance's economic survey, housing startups are estimated to have reached record levels last year, and residential construction investments are estimated to have increased by 8.0 per cent. Housing investments are expected to slow down this year, but housing start-ups will remain at the relatively high level of 40,000 new apartments. In the coming years, the number of housing start-ups is expected to return closer to the long-term average.
According to Etla's economic forecast, the outlook for construction companies is being negatively affected by raw material prices – which increased construction costs by 10 per cent last year – and problems associated with the availability of skilled labour. Construction as a whole is predicted to grow this year at a slightly slower rate than in the previous year. Low interest rates have supported the demand for residential construction, but the uncertainty in the economy will also be reflected in residential construction.
Effects of urbanisation
| Population | Share of rental | |||
|---|---|---|---|---|
| growth | household dwelling units, % |
|||
| forecast, % | ||||
| Area | 2020-2040 | 2010 | 2020 | |
| Helsinki | 18.8 | 47.1 | 49.4 | |
| Capital region ¹⁾ | 21.1 | 41.9 | 45.6 | |
| Helsinki region ²⁾ | n/a | 37.7 | 41.6 | |
| Jyväskylä | 4.2 | 40.2 | 45.0 | |
| Kuopio | 0.0 | 36.5 | 40.5 | |
| Lahti | -1.1 | 37.3 | 41.1 | |
| Oulu | 5.0 | 36.7 | 42.3 | |
| Tampere | 11.1 | 42.2 | 49.4 | |
| Turku | 11.7 | 43.0 | 49.9 | |
| Other areas | n/a | 23.8 | 26.2 |
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 2020; MDI, New population forecast 2020-2040
According to the population forecast published by MDI in June 2021, the capital region will continue to attract people in the future. The forecasts present three growth scenarios that also take the impacts of the COVID-19 pandemic into account. The population of the capital region is predicted to grow by 13–21 per cent during the period 2020–2040 in the three scenarios. Turku and Tampere will also grow by more than 10 per cent in all three scenarios.
Nordea Bank's housing market review, published in April, predicts that the situation in the rental housing market will gradually improve. The lifting of COVID-19 restrictions will bring about a recovery of jobs in the service sector, and Russia's offensive war in Ukraine is not expected to have a major negative impact on this. At the same time, the recovery of tourism and events is expected to boost the short-term rental market, and students in several age groups are likely to return to the rental market next autumn. Higher interest rates also make rental housing more attractive in relative terms due to the increased costs of financing owner-occupied housing.
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 37,168 (35,847) rental apartments. The fair value of Kojamo's investment properties at the end of the review period was EUR 8.4 (7.1) billion. Investment properties include completed apartments as well as development projects and land areas.
Measured at fair value on 31 March 2022, 97.7 per cent of Kojamo's rental apartments were located in the seven largest Finnish growth centres, 88.2 per cent in the Helsinki, Tampere and Turku regions and 76.3 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 January–March 2022
Total revenue
Kojamo's total revenue increased to EUR 99.5 (97.2) million. Total revenue is generated entirely by income from rental operations.
The completion of rental apartments in 2021 and 2022 and rental growth had a positive impact and the decrease of financial occupancy rate had a negative impact on the total revenue.
Result and profitability
Net rental income increased to EUR 57.0 (55.5) million, which corresponds to 57.3 (57.0) per cent of total revenue. The growth of total revenue and the decrease of repair costs had a positive impact and higher property maintenance costs had a negative impact on the net rental income. Electricity costs, in particular, increased year-on-year due to the cold weather in the first quarter.
Profit before taxes was EUR 62.9 (177.1) million. The profit includes EUR 27.9 (143.5) million in net gain on the valuation of investment properties at fair value and EUR 0.0 (0.3) million in profits and losses from the sale of investment properties. Profit before taxes and excluding the net valuation gain on the fair value assessment of investment properties increased by EUR 1.4 million.
Financial income and expenses totalled EUR -12.3 (-12.8) million. Financial income and expenses decreased by EUR 0.5 million year-on-year. Gains and losses on the valuation of investments amounted to EUR -0.9 (0.1) million and the unrealised change in the fair value of derivatives EUR 3.0 (1.3) million. Interest expenses increased by EUR -0.6 million year-onyear due to the higher amount of interest-bearing liabilities.
Funds From Operations (FFO) amounted to EUR 28.9 (27.9) million. The increase in FFO was attributable to the improvement in net rental income during the review period.
Kojamo has assessed the impact of the COVID-19 pandemic on the Group's result and profitability and determined that the pandemic did not have a significant impact on these items during the review period.
Balance sheet, cash flow and financing
| 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 | |
|---|---|---|---|
| Balance sheet total, M€ | 9,053.0 | 7,410.3 | 8,716.8 |
| Equity, M€ | 4,246.8 | 3,367.7 | 4,263.3 |
| Equity per share, € | 17.18 | 13.63 | 17.25 |
| Equity ratio, % | 46.9 | 45.5 | 49.0 |
| Return on equity (ROE), % | 4.7 | 17.0 | 27.0 |
| Return on investment (ROI), % | 4.0 | 12.0 | 19.2 |
| Interest-bearing liabilities, M€ | 3,622.3 | 3,034.2 | 3,334.5 |
| Loan to Value (LTV), % | 37.4 | 40.2 | 37.7 |
| Average interest rate of loan portfolio, % * | 1.8 | 1.9 | 1.8 |
| Average loan maturity, years | 4.1 | 4.5 | 4.3 |
| Cash and cash equivalents, M€ | 478.2 | 189.9 | 197.0 |
* 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 478.2 (189.9) million and liquid financial assets at EUR 104.7 (81.6) million.
EUR 50.0 (50.0) million of the EUR 250 million commercial paper programme was in use at the end of the review period. In addition, Kojamo has committed credit facilities of EUR 300 million and an uncommitted credit facility of EUR 5 million that were unused at the end of the period.
The following financing arrangements were made during the review period:
In March, Kojamo plc signed a committed EUR 100 million Revolving Credit Facility with Swedbank AB (publ). The Revolving Credit Facility is unsecured and has a maturity of three years with two one-year extension options, and it is linked to Kojamo's sustainability targets. The credit facility will be used for general corporate purposes and it replaced EUR 100 million unsecured Revolving Credit Facility from Swedbank, maturing in 2022.
In March, Kojamo plc completed the issuance of EUR 300 million senior unsecured green bond. The maturity of the euro-denominated Notes is 4 years, and the maturity date is 31 March 2026. The Notes carry a fixed annual coupon of 2.0 per cent. This is the second green bond issued by the company. The Notes were issued under Kojamo plc's EUR 2,500,000,000 EMTN programme Base Prospectus dated 16 March 2022.
Real estate property and fair value
| M€ | 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| Fair value of investment properties on 1 Jan ¹⁾ | 8,327.5 | 6,863.1 | 6,863.1 |
| Acquisition of investment properties ¹⁾ ²⁾ | 48.3 | 64.9 | 343.7 |
| Modernisation investments | 1.6 | 1.8 | 11.9 |
| Disposals of investment properties | - | -2.4 | -2.5 |
| Capitalised borrowing costs | 1.2 | 1.3 | 5.4 |
| Profit/loss on fair value of investment properties ¹⁾ | 27.9 | 143.5 | 1,105.7 |
| Fair value of investment properties at the end of the period | 8,406.6 | 7,072.3 | 8,327.5 |
The value of investment properties on 31 March 2022 and 31 December 2021 includes EUR 1.1 million in Investment properties held for sale. ¹⁾ Includes IFRS 16 Leases
²⁾ Includes the existing apartment stock and the acquisition costs of new projects under construction
Kojamo owned a total of 37,168 (35,847) 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 31 March 2022. 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 165,000 floor sq.m (178,000 floor sq.m). The fair value of the plot and real estate development reserve (including the Metropolia properties) was EUR 133.8 (147.1) million at the end of the review period.
Rental housing
| Apartments | 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| Number of apartments | 37,168 | 35,847 | 36,897 |
| Average rent, €/m²/month | 17.12 | 16.62 | 16.95 |
| Average rent, €/m²/month, yearly average | 17.03 | 16.51 | 16.74 |
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 that become vacant are available for rent on the Lumo webstore, where customers can rent the apartment of their choice by using their online banking credentials and paying the first month's rent.
Rental housing key figures
| % | 1–3/2022 | 1–3/2021 | 1–12/2021 |
|---|---|---|---|
| Financial occupancy rate | 91.9 | 94.9 | 93.9 |
| Tenant turnover rate, excluding internal turnover | 8.5 | 8.6 | 33.3 |
| Like-for-Like rental income growth * | -0.2 | 0.2 | -0.3 |
| Rent receivables in proportion to revenue | 1.1 | 1.1 | 1.2 |
* 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 91.9 (94.9) per cent for the review period. The COVID-19 pandemic had a substantial effect on the Group's financial occupancy rate. At the end of the period, 213 (288) apartments were vacant due to renovations.
Kojamo's property portfolio by region as at 31 March 2022
| Helsinki | Tampere | Turku | Kuopio | Lahti | ||||
|---|---|---|---|---|---|---|---|---|
| % | region | region | region | Oulu | Jyväskylä | region | region | Others |
| Distribution by | ||||||||
| number of apartments | 60.4 | 10.5 | 5.0 | 6.0 | 4.8 | 4.5 | 3.9 | 5.0 |
| Distribution by | ||||||||
| fair value | 76.3 | 8.3 | 3.7 | 2.6 | 2.5 | 2.3 | 2.0 | 2.3 |
Information on the property portfolio as at 31 March 2022
| Number of apartments, |
Number of commercial premises and other leased |
Fair value, | Fair value, | Fair value, | Financial occupancy |
|
|---|---|---|---|---|---|---|
| Area | units | premises, units | M€ | € 1,000/unit | €/m² | rate, % ³⁾ |
| Helsinki region | 22,461 | 420 | 5,959.4 | 260 | 4,737 | 90.4 |
| Tampere region | 3,899 | 114 | 644.4 | 161 | 3,132 | 97.5 |
| Turku region | 1,856 | 19 | 287.6 | 153 | 2,705 | 95.5 |
| Other | 8,952 | 145 | 918.4 | 101 | 1,892 | 93.9 |
| Total | 37,168 | 698 | 7,809.8 1) | 206 | 3,799 | 91.9 |
| Other | 596.9 2) | |||||
| Total portfolio | 37,168 | 698 | 8,406.6 |
¹⁾ The figures reflect income-generating portfolio assets, which excludes ongoing projects, plots owned by the company and ownership
of certain assets through shares
²⁾ Fair value of ongoing projects, plots owned by the company and ownership of certain assets through shares and IFRS 16 right-of-use assets
³⁾ The financial occupancy rate does not include commercial premises and other leased premises
Investments, divestments and real estate development
Investments
| M€ | 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| Acquisition of investment properties * | 46.0 | 64.9 | 339.5 |
| Modernisation investments | 1.6 | 1.8 | 11.9 |
| Capitalised borrowing costs | 1.2 | 1.3 | 5.4 |
| Total | 48.9 | 68.0 | 356.9 |
| Repair expenses, M€ | 5.8 | 6.3 | 32.4 |
* Not including IFRS 16 Leases
Number of apartments
| Units | 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| Apartments at the start of the period | 36,897 | 35,802 | 35,802 |
| Divestments | - | - | - |
| Acquisitions | - | - | - |
| Completed | 270 | 45 | 1,282 |
| Demolished or altered | 1 | - | -187 |
| Apartments at the end of the period | 37,168 | 35,847 | 36,897 |
| Started during the review period | 161 | 40 | 1,333 |
| Under construction at the end of the period | 2,566 | 2,619 | 2,675 |
| Preliminary agreements for new construction | 636 | 957 | 636 |
Kojamo estimates that investments in development projects will amount to EUR 280–330 million in 2022.
No apartments were acquired during the period under review.
During the review period, Kojamo announced agreements on the construction of the following projects:
- 8 February 2022: an agreement with Marvea Oy on the construction of 49 new rental apartments in the centre of Tampere.
- 22 February 2022: an agreement with Jatke Länsi-Suomi Oy on the construction of 84 new rental apartments in Vasaramäki, Turku.
Binding acquisition agreements for new development
• 15 March 2022: an agreement with Jatke Toimitilat Oy on the construction of 77 new rental apartments on Bulevardi 31, Helsinki.
Of the apartments under construction, 2,433 (2,619) are located in the Helsinki region and 133 (0) in other Finnish growth centres. A total of 270 (45) apartments were completed during the review period.
Modernisation investments during the review period amounted to EUR 1.6 (1.8) million and repair costs totalled EUR 5.8 (6.3) million.
| M€ | 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| Actual costs incurred from new construction in progress | 388.7 | 416.4 | 392.1 |
| Cost of completing new construction in progress | 257.2 | 221.1 | 267.6 |
| Total | 645.8 | 637.5 | 659.6 |
Plots and real estate development sites owned by the company
| 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 | ||||
|---|---|---|---|---|---|---|
| M€ | 1,000 fl.sq.m | M€ | 1,000 fl.sq.m | M€ | 1,000 fl.sq.m | |
| Plots | 29.5 | 52 | 28.2 | 52 | 29.5 | 52 |
| Plots and existing residential building | 31.5 | 40 | 38.8 | 47 | 21.6 | 32 |
| Conversions | 72.9 | 74 | 80.0 | 79 | 80.0 | 78 |
| Total ¹⁾ | 133.8 | 165 | 147.1 | 178 | 131.1 | 162 |
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
| 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 | ||||
|---|---|---|---|---|---|---|
| M€ | 1,000 fl.sq.m | M€ | 1,000 fl.sq.m | M€ | 1,000 fl.sq.m | |
| Preliminary agreements for new construction ¹⁾ | 122.9 | 221.0 | 122.9 | |||
| Estimate of the share of plots of preliminary | ||||||
| agreements for new development ²⁾ | 20.9 | 30 | 40.2 | 53 | 20.9 | 30 |
| Preliminary agreements and reservations for plots ²⁾ | 23.4 | 38 | 29.9 | 46 | 23.8 | 39 |
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 2020–2023
| 1–3/2022 | 2021 | 2020 | Target | |
|---|---|---|---|---|
| Annual growth of total revenue, % | 2.4 | 2.0 | 2.3 | 4–5 |
| Annual investments, M€ | 48.9 | 356.9 | 371.2 | 200–400 |
| FFO/total revenue, % | 29.1 | 39.1 | 39.5 | > 36 |
| Loan to Value (LTV), % | 37.4 | 37.7 | 41.4 | < 50 |
| Equity ratio, % | 46.9 | 49.0 | 45.6 | > 40 |
| Net Promoter Score (NPS)* | 38 | 20 | 36 | 40 |
*The calculation method has changed during the review period 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. Actual 1-3/2022 calculated with old method does not significantly deviate from Q4/2021 actual
According to its strategy, Kojamo's operations are focused on the largest growth centres in Finland. As a part of implementing its strategy Kojamo's Board of Directors has decided to evaluate options for investment properties located outside of the key growth centres, including potential disposals of properties.
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 31 March 2022 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
| 1–3/2022 | 1–3/2021 | 1–12/2021 | |
|---|---|---|---|
| Lowest price, € | 19.35 | 15.64 | 15.64 |
| Highest price, € | 22.04 | 18.50 | 21.42 |
| Average price, € | 20.56 | 16.99 | 18.97 |
| Closing price, € | 21.78 | 16.68 | 21.24 |
| Market value of share capital, end of period, M€ | 5,382.8 | 4,122.4 | 5,249.3 |
| Share trading, million units | 23.9 | 31.2 | 125.0 |
| Share trading of total share stock, % | 9.7 | 12.6 | 50.6 |
| Share trading, M€ | 491.1 | 529.6 | 2,370.9 |
In addition to the Nasdaq Helsinki stock exchange, Kojamo shares were traded on other marketplaces, such as Cboe BXE, Cboe APA and Posit. During 1 January–31 March 2022, over 50 (over 50) million Kojamo shares were traded on alternative marketplaces, corresponding to approximately 70 (almost 60) per cent of the total trading volume (sources: Modular Finance, Fidessa, Refinitiv).
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 16 March 2022 decided that a dividend of EUR 0.38 per share, or EUR 93,914,871.62 in total, be paid for the financial year and that EUR 214,511,245.73 be retained in unrestricted equity. The dividend payment date was 5 April 2022.
Shareholders
At the end of the review period, the number of registered shareholders was 11,448, including nominee-registered shareholders. The proportion of nominee-registered and direct foreign shareholders was 53.6 per cent of the company's shares at the end of the review period. The 10 largest shareholders owned in aggregate 38.4 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 16 March 2022 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 2023.
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 2023.
Furthermore, the Annual General Meeting authorized the Board of Directors to resolve in its discretion on the payment of dividend as follows:
The amount dividend to be paid based on the authorization shall not exceed EUR 1.00 per share. The authorization is valid until 31 December 2022.
Flagging notifications
Flagging notification 1 March 2022
Kojamo plc has on 28 February 2022 received a notification pursuant to Chapter 9, Section 5 of the Securities Markets Act from Ivar Tollefsen (Heimstaden Bostad AB). According to the notification, the holding of Heimstaden Bostad AB in Kojamo's shares and votes has reached 15 per cent on 28 February 2022. This company holds a total of 37,076,482 shares corresponding to an ownership of 15.00 percent in Kojamo's shares and votes.
Managers' transactions and shareholdings
Managers' transactions at Kojamo in 2022 have been published as stock exchange releases and they are available on the Kojamo website at www.kojamo.fi/en/news.
Governance
Annual General Meeting
Kojamo's Annual General Meeting (AGM) of 16 March 2022 adopted the financial statements for the financial year 2021 and discharged the members of the Board of Directors and the CEO from liability. The AGM also decided on dividend payment, 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 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 www.kojamo.fi/agm.
Board of Directors and auditors
The members of Kojamo's Board of Directors are Mikael Aro (Chairman), Mikko Mursula (Vice-Chairman), Matti Harjuniemi, Kari Kauniskangas, Anne Leskelä, Reima Rytsölä and Catharina Stackelberg-Hammarén. The company's auditor is KPMG Oy Ab, with Authorised Public Accountant Esa Kailiala 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 Leskelä (Chairman), Kari Kauniskangas, Mikko Mursula and Catharina Stackelberg-Hammarén serve in the Audit Committee. Mikael Aro (Chairman), Matti Harjuniemi and Reima Rytsölä serve in the Remuneration Committee.
Personnel
At the end of the review period, Kojamo had a total of 315 (312) employees. The average number of personnel during the review period was 316 (311).
The salaries and fees paid during the review period totalled EUR 4.3 (4.6) 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
Nomination Board
A stock exchange release was issued on 6 September 2021 announcing the composition of Kojamo plc's Nomination Board. Kojamo's three largest shareholders nominated the following members to the Shareholders' Nomination Board: Riku Aalto, President, Finnish Industrial Union; 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; Irene Kantor, Marketing and Communications Director; Tiina Kuusisto, Chief Customer Officer; Katri Harra-Salonen, Chief Digital Officer; and Ville Raitio, Chief Investment Officer.
ongoing at the end of the review period: 2020–2022, 2021– 2023, 2022–2024.
On 17 February 2022, Kojamo's Board of Directors resolved on the long-term incentive plan's performance period of 2022– 2024. The possible rewards for the performance period are based on the Group's revenue (%), Funds From Operations (FFO) per share and apartment-specific CO2 emission reduction target. The rewards to be paid on the basis of the performance period correspond to the value of a maximum total of 104,934 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 309,453 Kojamo shares, of which 50 per cent would be paid in Kojamo shares and 50 per cent in cash. More information on the longterm incentive plan is provided in Kojamo's Remuneration Report for 2021.
Responsibility
Corporate responsibility and sustainable development is one of Kojamo's strategic focal points. Sustainability is integral to Kojamo's operations and corporate culture. Sustainability is part of our DNA and it plays an important role in the work of everyone at Kojamo.
Our sustainability programme
Our sustainability program documents the priorities of our sustainability efforts until 2023: sustainable cities, the best customer experience, the most competent personnel and a dynamic place to work, and a responsible corporate citizen. The focus areas of our sustainability program consist of sustainability themes that create added value in our business as well as related short-term and long-term targets and actions along with key performance indicators. In our sustainability program, we commit to the UN Sustainable Development Goals. We continue to develop transparency of our sustainability reporting, and currently report according to GRESB, GRI, and EPRA frameworks.
Sustainable cities
We are committed to improving the energy efficiency of our operations and reducing greenhouse gas emissions. Our 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. We invest in managing the energy consumption of the buildings in our property portfolio, and we have implemented various technical solutions to optimise heating at over 30,000 of our apartments. All of our newly constructed properties are situated in growth centers, in locations that are close to good transport connections and services. All Kojamo offices are WWF Green Office certified.
During the review period, we started a pilot project that adheres to the principles of Green Deal demolition. The old shopping centre in Puotila will be demolished and replaced with apartments and business premises. The goal of Green Deal demolition is to increase the material recovery rate of non-hazardous construction and demolition waste to above 70 per cent. We will start our second Green Deal demolition pilot project later in the year. We made decisions on geothermal heating investments in the first quarter. Geothermal heating will be installed at seven of our properties in the capital region. This is part of our action plan aimed at zero emissions for our properties by 2030. During the review period, we began transitioning to invoicing based on measured water consumption at part of our properties.
The best customer experience
We want to deliver the best customer experience in housing for our customers. 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. Nearly 500 Lumo teams made up of active residents have already been established.
All of Kojamo's properties use hydropower-certified property electricity. In addition, carbon-neutral district heating is used at 79 of our properties. We offer the residents of Lumo homes the opportunity to use shared cars. We continuously develop waste recycling and aim to provide our residents with comprehensive recycling opportunities.
During the period under review we have worked on two new sustainability related Lumo services. In the beginning of May we'll launch a service for our tenants, which makes it possible to acquire district heating based on carbon free energy. At the same time we are introducing a carbon footprint test that enables our residents to assess the sustainability of their lifestyle with regard to housing, consumption and mobility, for example. The carbon footprint will include tips and links to Lumo services that help residents reduce their carbon footprint. These two new services are part of our efforts to combat climate change throughout our value chain.
The most competent personnel and a dynamic place to work
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 promote 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.
During the review period, we continued to develop our internal offering on competence development by introducing new trainings on new ways of working, well-being at work and time management. As part of the update of supervisors' leadership principles (Leadership Steps), which began already in 2021, we continued to arrange trainings specifically for supervisors. Also, as part of a larger development project on data security and protection, we launched a new data security training, which all employees are expected to take.
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, which is why our Supplier Code of Conduct is an integral part of all of our partnership agreements starting from the beginning of 2021. The anti-grey economy models used by Kojamo exceed the legislative requirements in many respects.
Kojamo's sponsorship and grant programme provides financial support for young talents. The programme covers not only individual sports but also team sports. Grants have been awarded annually since 2012. The first scholarship application for 2022 was underway in March.
Near-term risks and uncertainties
There were no significant changes in Kojamo's near-term risks and uncertainties during the review period, except for the possible effects of the Ukrainian war.
Kojamo estimates that the most significant risks and uncertainties in the current review period are related to the effects of the war in Ukraine on the development of the Finnish economy. Russia's invasion of Ukraine and the resulting sanctions against Russia have weakened Finland's economic growth and created uncertainty about the economic outlook.
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, which can affect the ability of residents to pay rent and, subsequently, the company's rental income. Urbanisation is expected to continue in the longer term. However, the continued COVID-19 pandemic and the possible restrictions may, in the short term, affect people's willingness to relocate and reduce migration. 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 tenant turnover or the financial occupancy rate and, thereby, rental income.
The near-term risks arise particularly from the Ukrainian war, which can have impacts on the housing market and property market, including apartment prices, rents and yield require-
News conference and webcast
Kojamo will hold a news conference for institutional investors, analysts and media on 12 May 2022 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. Participants are asked to attend the event in person only if they are completely healthy.
The event can also be followed as a live webcast. A recording of the webcast will be available later on the company website at https://kojamo.fi/en/investors/releases-and-publications/financial-reports/.
The news conference can be followed online at https://kojamo.videosync.fi/q1-2022.
ments as well as on the operations of the construction companies. In addition, the economic sanctions and their extent may have an impact on the availability and prices of building materials. If inflation continues to accelerate or remains high for longer than previously estimated, costs will generally increase, which could affect Kojamo's result and cash flow as well as the fair value of apartments. Rising construction costs may have an impact on the profitability of new development projects and thereby slow down development investments.
The weakening of the financial markets could have a negative effect on the availability of financing or lead to a higher cost of financing. In addition, tightening monetary policy may increase financing costs.
Helsinki, 12 May 2022
Kojamo plc Board of Directors
Further information:
Niina Saarto, Group Treasurer, Investor Relations, Kojamo plc, tel. +358 20 508 3283
Erik Hjelt, CFO, Kojamo plc, tel. +358 20 508 3225
You can also participate in the news conference by calling:
FI: +358 981 710 310 SE: +46 856 642 651 UK: +44 333 300 0804
US: +1 631 913 1422
The participants joining the news conference will be asked to provide the following PIN code: 69956062#
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
| 1–3/2022 | 1–3/2021 | 2021 | |
|---|---|---|---|
| EPRA Earnings, M€ | 27.7 | 27.7 | 151.9 |
| EPRA Earnings per share (EPS), € | 0.11 | 0.11 | 0.61 |
| EPRA Net Reinstatement Value (NRV), M€ | 5,412.3 | 4,338.5 | 5,447.9 |
| EPRA NRV per share, € | 21.90 | 17.55 | 22.04 |
| EPRA Net Initial Yield (NIY), % | 3.4 | 4.1 | 3.5 |
| EPRA 'topped-up' NIY, % | 3.4 | 4.1 | 3.5 |
| EPRA Vacancy Rate, % | 8.1 | 5.1 | 6.2 |
| EPRA Cost Ratio (including direct vacancy costs), % | 13.5 | 14.7 | 11.9 |
| EPRA Cost Ratio (excluding direct vacancy costs), % | 7.2 | 10.7 | 8.8 |
EPRA Earnings
| M€ | 1–3/2022 | 1–3/2021 | 2021 |
|---|---|---|---|
| Earnings per IFRS income statement | 50.4 | 141.8 | 1,023.4 |
| (i) Change in value of investment properties, | |||
| development properties held for investment and other interests | -27.9 | -143.5 | -1,105.7 |
| (ii) Profits or losses on disposal of investment properties, | |||
| development properties held for investment and other interests | 0.0 | -0.3 | -0.6 |
| (iv) Tax on profits or losses on disposals | 0.0 | 0.3 | 1.1 |
| (vi) Changes in fair value of financial instruments and associated close-out costs | -3.0 | -1.3 | -3.0 |
| (viii) Deferred tax in respect of EPRA adjustments | 8.2 | 30.6 | 236.7 |
| EPRA Earnings | 27.7 | 27.7 | 151.9 |
| EPRA Earnings per share (EPS), € | 0.11 | 0.11 | 0.61 |
EPRA Net Reinstatement Value (NRV)
| M€ | 1–3/2022 | 1–3/2021 | 2021 |
|---|---|---|---|
| IFRS Equity attributable to shareholders | 4,246.8 | 3,367.7 | 4,263.3 |
| Diluted NAV | 4,246.8 | 3,367.7 | 4,263.3 |
| Diluted NAV at Fair Value | 4,246.8 | 3,367.7 | 4,263.3 |
| Exclude: | |||
| (v) Deferred tax in relation to fair value gains | 987.9 | 761.5 | 970.3 |
| (vi) Fair value of financial instruments | 9.4 | 67.9 | 47.7 |
| Include: | |||
| (xi) Real estate transfer tax | 168.1 | 141.4 | 166.6 |
| EPRA Net Reinstatement Value (NRV) | 5,412.3 | 4,338.5 | 5,447.9 |
| EPRA NRV per share | 21.90 | 17.55 | 22.04 |
EPRA Net Initial Yield (NIY) and EPRA "topped-up" NIY
| M€ | 1–3/2022 | 1–3/2021 | 2021 |
|---|---|---|---|
| Investment property | 8,406.6 | 7,072.3 | 8,327.5 |
| Trading property | 0.1 | 0.1 | 0.1 |
| Developments | -488.5 | -612.8 | -559.9 |
| Completed property portfolio | 7,918.3 | 6,459.6 | 7,767.7 |
| Allowance for estimated purchasers' costs | 158.4 | 129.2 | 155.4 |
| Gross up completed property portfolio valuation B |
8,076.7 | 6,588.8 | 7,923.1 |
| Annualised cash passing rental income | 404.1 | 392.1 | 407.9 |
| Property outgoings | -129.7 | -125.5 | -131.6 |
| Annualised net rents A |
274.4 | 266.6 | 276.3 |
| Notional rent expiration of rent-free periods or other lease incentives | - | - | - |
| Topped-up net annualised rent C |
274.4 | 266.6 | 276.3 |
| EPRA Net Initial Yield (NIY), % A/B |
3.4 | 4.1 | 3.5 |
| EPRA 'topped-up' NIY, % C/B |
3.4 | 4.1 | 3.5 |
EPRA Vacancy Rate
| 1–3/2022 | 1–3/2021 | 2021 |
|---|---|---|
| 8.2 | 4.9 | 24.2 |
| 101.2 | 95.8 | 390.5 |
| 8.1 | 5.1 | 6.2 |
* Including rental value of apartments.
EPRA Cost Ratios
| M€ | 1–3/2022 | 1–3/2021 | 2021 | |
|---|---|---|---|---|
| Include: | ||||
| (i) Administrative expense line per IFRS income statement | 9.6 | 9.3 | 37.3 | |
| (i) Maintenance expense line per IFRS income statement | 36.7 | 35.4 | 96.9 | |
| (i) Repair expense line per IFRS income statement | 5.8 | 6.3 | 32.4 | |
| (ii) Net service charge costs/fees | -3.2 | -2.6 | -11.3 | |
| (iii) Management fees less actual/estimated profit element | 0.0 | 0.0 | -0.2 | |
| (iv) Other operating income/recharges intended | ||||
| to cover overhead expenses less any related profits | -0.1 | -0.1 | -0.3 | |
| Exclude: | ||||
| (vii) Ground rent costs | 0.0 | 0.0 | 0.0 | |
| (viii) Service charge costs recovered through rents but not separately invoiced | -41.4 | -40.5 | -124.6 | |
| EPRA Costs (including direct vacancy costs) | A | 7.4 | 7.9 | 30.4 |
| (ix) Direct vacancy costs | -3.5 | -2.1 | -8.0 | |
| EPRA Costs (excluding direct vacancy costs) | B | 3.9 | 5.8 | 22.3 |
| (x) Gross Rental Income less ground rent costs - per IFRS | 96.2 | 94.5 | 379.6 | |
| (xi) Service fee and service charge costs components of Gross Rental Income | -41.4 | -40.5 | -124.6 | |
| Gross Rental Income | C | 54.8 | 54.0 | 255.1 |
| EPRA Cost Ratio (including direct vacancy costs), % | A/C | 13.5 | 14.7 | 11.9 |
| EPRA Cost Ratio (excluding direct vacancy costs), % | B/C | 7.2 | 10.7 | 8.8 |
Condensed consolidated income statement
| M€ Note |
1–3/2022 | 1–3/2021 | 1–12/2021 |
|---|---|---|---|
| Total revenue | 99.5 | 97.2 | 391.7 |
| Maintenance expenses | -36.7 | -35.4 | -96.9 |
| Repair expenses | -5.8 | -6.3 | -32.4 |
| Net rental income | 57.0 | 55.5 | 262.3 |
| Administrative expenses | -9.6 | -9.3 | -37.3 |
| Other operating income | 0.7 | 0.6 | 4.6 |
| Other operating expenses | -0.5 | -0.4 | -0.7 |
| Profit/loss on sales of investment properties | - | 0.3 | 0.3 |
| Profit/loss on fair value of investment properties | 3 27.9 |
143.5 | 1,105.7 |
| Depreciation, amortisation and impairment losses | -0.3 | -0.3 | -1.2 |
| Operating profit | 75.3 | 189.9 | 1,333.7 |
| Financial income | 2.6 | 1.6 | 4.8 |
| Financial expenses | -14.9 | -14.4 | -59.7 |
| Total amount of financial income and expenses | -12.3 | -12.8 | -54.9 |
| Share of result from associated companies | - | - | 0.1 |
| Profit before taxes | 62.9 | 177.1 | 1,278.9 |
| Current tax expense | -4.3 | -4.7 | -18.8 |
| Change in deferred taxes | -8.2 | -30.6 | -236.7 |
| Profit for the period | 50.4 | 141.8 | 1,023.4 |
| Profit for the financial period attributable to | |||
| shareholders of the parent company | 50.4 | 141.8 | 1,023.4 |
| Other comprehensive income | |||
| Items that may be reclassified subsequently to profit or loss | |||
| Cash flow hedges | 35.0 | 11.6 | 29.1 |
| Deferred taxes | -7.0 | -2.3 | -5.8 |
| Items that may be reclassified subsequently to profit or loss | 28.0 | 9.3 | 23.3 |
| Total comprehensive income for the period | 78.5 | 151.2 | 1,046.7 |
| Total comprehensive income attributable to shareholders of the parent company |
78.5 | 151.2 | 1,046.7 |
| Earnings per share based on profit attributable to | |||
| shareholders of the parent company | |||
| Basic, € | 0.20 | 0.57 | 4.14 |
| Diluted, € | 0.20 | 0.57 | 4.14 |
| Average number of shares, million | 8 247.1 |
247.1 | 247.1 |
Condensed consolidated balance sheet
| M€ Note |
31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Intangible assets | 0.7 | 0.4 | 0.8 |
| Investment properties 3 |
8,405.6 | 7,072.3 | 8,326.4 |
| Property, plant and equipment 4 |
28.7 | 29.6 | 28.8 |
| Investments in associated companies | 1.5 | 1.1 | 1.5 |
| Financial assets 7 |
0.6 | 0.7 | 0.7 |
| Non-current receivables | 6.9 | 7.8 | 6.9 |
| Derivatives 6, 7 |
5.9 | - | - |
| Deferred tax assets | 6.0 | 15.2 | 10.1 |
| Total non-current assets | 8,455.9 | 7,127.1 | 8,375.2 |
| Non-current assets held for sale 10 |
1.1 | - | 1.1 |
| Current assets | |||
| Trading property | 0.1 | 0.1 | 0.1 |
| Derivatives 6, 7 |
0.7 | 0.3 | 0.4 |
| Current tax assets | 2.3 | 1.1 | 5.2 |
| Trade and other receivables | 9.9 | 10.2 | 8.9 |
| Financial assets 7 |
104.7 | 81.6 | 128.8 |
| Cash and cash equivalents | 478.2 | 189.9 | 197.0 |
| Total current assets | 596.0 | 283.2 | 340.5 |
| Total assets | 9,053.0 | 7,410.3 | 8,716.8 |
| Shareholders' equity and liabilities Equity attributable to shareholders of the parent company Share capital |
58.0 | 58.0 | 58.0 |
| Share issue premium | 35.8 | 35.8 | 35.8 |
| Fair value reserve | -2.9 | -44.9 | -31.0 |
| Invested non-restricted equity reserve | 164.4 | 164.4 | 164.4 |
| Retained earnings Equity attributable to shareholders of the parent company |
3,991.4 4,246.8 |
3,154.3 3,367.7 |
4,036.0 4,263.3 |
| Total equity | 4,246.8 | 3,367.7 | 4,263.3 |
| Liabilities Non-current liabilities |
|||
| Loans and borrowings 5, 7 |
3,508.2 | 2,863.5 | 3,234.8 |
| Deferred tax liabilities | 992.1 | 776.5 | 981.0 |
| Derivatives 6, 7 |
16.0 | 67.5 | 47.9 |
| Provisions | 0.4 | 0.4 | 0.4 |
| Other non-current liabilities | 5.2 | 5.0 | 5.1 |
| Total non-current liabilities | 4,521.9 | 3,712.9 | 4,269.3 |
| Current liabilities Loans and borrowings 5, 7 |
114.1 | 170.8 | 99.7 |
| Derivatives 6, 7 |
0.1 | 0.7 | 0.3 |
| Current tax liabilities | 2.9 | 1.2 | 5.5 |
| Trade and other payables | 167.3 | 157.0 | 78.7 |
| Total current liabilities | 284.4 | 329.7 | 184.2 |
| Total liabilities | 4,806.3 | 4,042.6 | 4,453.5 |
| Total equity and liabilities | 9,053.0 | 7,410.3 | 8,716.8 |
Consolidated statement of cash flows
| M€ | 1–3/2022 | 1–3/2021 | 1–12/2021 |
|---|---|---|---|
| Cash flow from operating activities | |||
| Profit for the period | 50.4 | 141.8 | 1,023.4 |
| Adjustments | -3.8 | -97.1 | -795.7 |
| Change in net working capital | |||
| Change in trade and other receivables | -1.0 | -0.5 | 0.5 |
| Change in trade and other payables | 7.8 | 8.0 | 0.0 |
| Interest paid | -16.4 | -16.6 | -56.6 |
| Interest received | 0.2 | 0.2 | 0.8 |
| Other financial items | -2.1 | -0.6 | -4.0 |
| Taxes paid | -4.0 | -3.1 | -17.1 |
| Net cash flow from operating activities | 31.1 | 32.2 | 151.4 |
| Cash flow from investing activities | |||
| Acquisition of investment properties | -59.9 | -72.4 | -344.4 |
| Acquisition of associated companies | - | - | -0.3 |
| Acquisition of property, plant and equipment and intangible assets | 0.0 | 0.0 | -0.7 |
| Proceeds from sale of investment properties | - | 2.7 | 2.8 |
| Proceeds from sale of property, plant and equipment and intangible assets | - | - | 0.8 |
| Purchases of financial assets | -32.0 | -11.0 | -95.6 |
| Proceeds from sale of financial assets | 55.3 | 47.0 | 84.5 |
| Non-current loans, granted | 0.0 | - | - |
| Repayments of non-current loan receivables | 0.0 | 0.0 | 0.9 |
| Interest and dividends received on investments | 0.0 | 0.0 | 0.2 |
| Net cash flow from investing activities | -36.6 | -33.6 | -351.8 |
| Cash flow from financing activities | |||
| Non-current loans and borrowings, raised | 300.0 | 100.0 | 534.0 |
| Non-current loans and borrowings, repayments | -12.9 | -119.0 | -254.2 |
| Current loans and borrowings, raised | 50.0 | 50.0 | 200.0 |
| Current loans and borrowings, repayments | -50.0 | -50.0 | -200.0 |
| Repayments of lease liabilities | -0.4 | -0.4 | -1.4 |
| Dividends paid | - | - | -91.4 |
| Net cash flow from financing activities | 286.8 | -19.3 | 186.9 |
| Change in cash and cash equivalents | 281.2 | -20.7 | -13.5 |
| Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period |
197.0 478.2 |
210.5 189.9 |
210.5 197.0 |
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 2022 | 58.0 | 35.8 | -31.0 | 164.4 | 4,036.0 | 4,263.3 | 4,263.3 |
| Comprehensive income | |||||||
| Cash flow hedging | 28.0 | 28.0 | 28.0 | ||||
| Profit for the period | 50.4 | 50.4 | 50.4 | ||||
| Total comprehensive income for the period | 28.0 | 50.4 | 78.5 | 78.5 | |||
| Transactions with shareholders | |||||||
| Share-based incentive scheme | -1.0 | -1.0 | -1.0 | ||||
| Dividend payment | -93.9 | -93.9 | -93.9 | ||||
| Total transactions with shareholders | -95.0 | -95.0 | -95.0 | ||||
| Total change in equity | 28.0 | -44.5 | -16.5 | -16.5 | |||
| Equity at 31 Mar 2022 | 58.0 | 35.8 | -2.9 | 164.4 | 3,991.4 | 4,246.8 | 4,246.8 |
| 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 2021 | 58.0 | 35.8 | -54.2 | 164.4 | 3,105.5 | 3,309.5 | 3,309.5 |
| Comprehensive income | |||||||
| Cash flow hedging | 9.3 | 9.3 | 9.3 | ||||
| Profit for the period | 141.8 | 141.8 | 141.8 | ||||
| Total comprehensive income for the period | 9.3 | 141.8 | 151.2 | 151.2 | |||
| Transactions with shareholders | |||||||
| Share-based incentive scheme | -1.6 | -1.6 | -1.6 | ||||
| Dividend payment | -91.4 | -91.4 | -91.4 | ||||
| Total transactions with shareholders | -93.0 | -93.0 | -93.0 | ||||
| Total change in equity | 9.3 | 48.8 | 58.1 | 58.1 | |||
| Equity at 31 Mar 2021 | 58.0 | 35.8 | -44.9 | 164.4 | 3,154.3 | 3,367.7 | 3,367.7 |
| 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 2021 | 58.0 | 35.8 | -54.2 | 164.4 | 3,105.5 | 3,309.5 | 3,309.5 |
| Comprehensive income | |||||||
| Cash flow hedging | 23.3 | 23.3 | 23.3 | ||||
| Profit for the period | 1,023.4 | 1,023.4 | 1,023.4 | ||||
| Total comprehensive income for the period | 23.3 | 1,023.4 | 1,046.7 | 1,046.7 | |||
| Transactions with shareholders | |||||||
| Share-based incentive scheme | -1.5 | -1.5 | -1.5 | ||||
| Dividend payment | -91.4 | -91.4 | -91.4 | ||||
| Total transactions with shareholders | -92.9 | -92.9 | -92.9 | ||||
| Total change in equity | 23.3 | 930.5 | 953.8 | 953.8 | |||
| Equity at 31 Dec 2021 | 58.0 | 35.8 | -31.0 | 164.4 | 4,036.0 | 4,263.3 | 4,263.3 |
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 31 March 2022, Kojamo owned 37,168 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
These interim financial statements were 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 interim financial statements have not been audited.
The figures for 2021 are based on Kojamo plc's audited financial statements for 2021. The figures in brackets refer to the corresponding period in 2021, and the comparison period is the corresponding period the year before, unless otherwise stated.
The preparation of the interim financial statements in accordance with IFRS requires application of judgement by Kojamo's management to make estimates and assumptions that affect
2. Revenue
Specification of revenue from contracts with customers
Nasdaq Helsinki on 19 June 2018. In addition, a bond issued by Kojamo in 2016 is listed on the official list of Nasdaq Helsinki Ltd. The Group's five other 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 Interim Report for publication at its meeting on 12 May 2022.
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 Interim 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 2021 financial year. Of these, the most important are the determination of the fair values of investment properties and financial instruments. The ongoing war in Ukraine and the COVID-19 pandemic 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.
| M€ | 1–3/2022 | 1–3/2021 | 1–12/2021 |
|---|---|---|---|
| Rental income | 96.1 | 94.5 | 379.7 |
| Water fees | 3.0 | 2.4 | 10.7 |
| Sauna fees | 0.2 | 0.2 | 0.6 |
| Other income from service sales | 0.0 | 0.0 | 0.2 |
| Total | 99.4 | 97.1 | 391.1 |
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€ | 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| Fair value of investment properties on 1 Jan ¹⁾ | 8,327.5 | 6,863.1 | 6,863.1 |
| Acquisition of investment properties ¹⁾ ²⁾ | 48.3 | 64.9 | 343.7 |
| Modernisation investments | 1.6 | 1.8 | 11.9 |
| Disposals of investment properties | - | -2.4 | -2.5 |
| Capitalised borrowing costs | 1.2 | 1.3 | 5.4 |
| Profit/loss on fair value of investment properties ¹⁾ | 27.9 | 143.5 | 1,105.7 |
| Fair value of investment properties at the end of the period | 8,406.6 | 7,072.3 | 8,327.5 |
The value of investment properties on 31 March 2022 and 31 December 2021 includes EUR 1.1 million in Investment properties held for sale. ¹⁾ Includes IFRS 16 Leases
²⁾ Includes the existing apartment stock and the acquisition costs of new projects under construction
Right-of-use assets included in the fair values of investment properties
| M€ | 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| Fair value on 1 Jan | 70.6 | 67.4 | 67.4 |
| Increases/decreases | 2.4 | 0.1 | 4.2 |
| Profit/loss on fair value of investment properties | -0.3 | -0.3 | -1.0 |
| Fair value at the end of the period | 72.7 | 67.2 | 70.6 |
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 1.2 (1.3) million. The interest rate applied to capitalised borrowing costs was 1.8 (1.9) per cent at the end of the review period.
Fair value of investment properties by valuation method
| M€ | 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| Yield value * | 7,705.0 | 6,321.6 | 7,610.3 |
| Acquisition cost | 628.9 | 683.4 | 646.5 |
| Right-of-use assets | 72.7 | 67.2 | 70.6 |
| Total | 8,406.6 | 7,072.3 | 8,327.5 |
* Including properties valued at the cash flow based valuation method (DCF) EUR 7,691.4 million and other yield-based valued items EUR 13.6 million.
| Number of apartments | 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| Yield value | 35,314 | 33,724 | 34,858 |
| Acquisition cost * | 1,854 | 2,123 | 2,039 |
| Total | 37,168 | 35,847 | 36,897 |
* 31 March 2022 and 31 December 2021 include 4 apartments as part of development projects
Average valuation parameters for yield-based valued items
| Capital | Other regions | Group | |
|---|---|---|---|
| region | of Finland | total | |
| Unobservable inputs: | |||
| Yield requirement, weighted, % | 3.25 | 4.61 | 3.66 |
| Inflation assumption, % | 1.5 | 1.5 | 1.5 |
| Market rents, weighted by square meters, €/m²/month | 19.44 | 15.03 | 17.34 |
| Property maintenance expenses, repairs and modernisation investments €/m²/month | 6.24 | 6.12 | 6.18 |
| 10-year average financial occupancy rate, % | 97.5 | 96.6 | 97.2 |
| Rent increase assumption, % | 2.0 | 1.7 | 1.9 |
| Expense increase assumption, % | 2.0 | 2.0 | 2.0 |
| 31 Mar 2021 | |||
|---|---|---|---|
| Capital | Other regions | Group | |
| region | of Finland | total | |
| Unobservable inputs: | |||
| Yield requirement, weighted, % | 3.76 | 4.90 | 4.14 |
| Inflation assumption, % | 1.5 | 1.5 | 1.5 |
| Market rents, weighted by square meters, €/m²/month | 18.89 | 14.63 | 16.79 |
| Property maintenance expenses, repairs and modernisation investments €/m²/month | 6.11 | 6.06 | 6.09 |
| 10-year average financial occupancy rate, % | 97.5 | 96.6 | 97.2 |
| Rent increase assumption, % | 2.0 | 1.7 | 1.9 |
| Expense increase assumption, % | 2.0 | 2.0 | 2.0 |
| Capital | 31 Dec 2021 Other regions |
Group | |
|---|---|---|---|
| region | of Finland | total | |
| Unobservable inputs: | |||
| Yield requirement, weighted, % | 3.25 | 4.62 | 3.67 |
| Inflation assumption, % | 1.5 | 1.5 | 1.5 |
| Market rents, weighted by square meters, €/m²/month | 19.40 | 15.03 | 17.31 |
| Property maintenance expenses, repairs and modernisation investments €/m²/month | 6.22 | 6.09 | 6.16 |
| 10-year average financial occupancy rate, % | 97.5 | 96.6 | 97.2 |
| Rent increase assumption, % | 2.0 | 1.7 | 1.9 |
| Expense increase assumption, % | 2.0 | 2.0 | 2.0 |
Sensitivity analysis for measuring the fair value of investment properties
| Properties measured at yield value | 31 Mar 2022 | ||||
|---|---|---|---|---|---|
| Change % (relative) | -10% | -5% | 0% | 5% | 10% |
| Change, M€ | |||||
| Yield requirement | 862.0 | 408.2 | -369.1 | -704.4 | |
| Market rents | -970.0 | -485.0 | 485.0 | 970.0 | |
| Maintenance costs | 308.9 | 154.4 | -154.4 | -308.9 | |
| Change % (absolute) | -2% | -1% | 0% | 1% | 2% |
| Change, M€ | |||||
| Financial occupancy rate | -199.5 | -99.8 | 99.8 | 199.5 |
| Properties measured at yield value | 31 Mar 2021 | ||||
|---|---|---|---|---|---|
| Change % (relative) | -10% | -5% | 0% | 5% | 10% |
| Change, M€ | |||||
| Yield requirement | 697.0 | 330.0 | -298.3 | -569.3 | |
| Market rents | -787.5 | -393.7 | 393.7 | 787.5 | |
| Maintenance costs | 258.4 | 129.2 | -129.2 | -258.4 | |
| Change % (absolute) | -2% | -1% | 0% | 1% | 2% |
| Change, M€ | |||||
| Financial occupancy rate | -162.1 | -81.0 | 81.0 | 162.1 |
| Properties measured at yield value | 31 Dec 2021 | ||||
|---|---|---|---|---|---|
| Change % (relative) | -10% | -5% | 0% | 5% | 10% |
| Change, M€ | |||||
| Yield requirement | 845.3 | 400.3 | -361.9 | -690.7 | |
| Market rents | -950.0 | -475.0 | 475.0 | 950.0 | |
| Maintenance costs | 304.1 | 152.1 | -152.1 | -304.1 | |
| Change % (absolute) | -2% | -1% | 0% | 1% | 2% |
| Change, M€ | |||||
| Financial occupancy rate | -195.4 | -97.7 | 97.7 | 195.4 | |
Fair value measurement of investment property
In Kojamo's consolidated financial statements, the determination of the fair value of investment property is the area that involves the most significant uncertainty factors arising from the estimates and assumptions that have been used. The determination of the fair value of investment property requires significant management discretion and assumptions, particularly with respect to market prices and amounts of future rental income. Estimates and assumptions are particularly related to the future development of yield requirements, vacancy rates and rent levels.
Kojamo uses valuation techniques that are appropriate under those circumstances, and for which sufficient data is available to measure fair value. Kojamo aims to maximise the use of relevant observable inputs and minimise the use of unobservable inputs.
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 income statement. Fair value refers to the price that would be received from selling an asset, or paid for transferring a liability, in an ordinary transaction between market participants on the measurement date. The valuation techniques used by Kojamo are described below.
The value of investment properties is assessed internally at Kojamo on a quarterly basis. 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.
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 |
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:
4. Property, plant and equipment
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 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 are accounted for as asset acquisitions. In this event, goodwill or deferred taxes etc. are not recognised.
| M€ | 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| Carrying value, beginning of period | 28.8 | 29.8 | 29.8 |
| Increases | 0.1 | 0.1 | 0.6 |
| Decreases | - | - | -0.5 |
| Depreciation for the period | -0.3 | -0.3 | -1.0 |
| Carrying value, end of period | 28.7 | 29.6 | 28.8 |
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€ | 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| Carrying value, beginning of period | 0.9 | 1.0 | 1.0 |
| Increases/decreases | 0.1 | 0.1 | 0.4 |
| Depreciation for the period | -0.1 | -0.1 | -0.4 |
| Carrying value, end of period | 0.9 | 0.9 | 0.9 |
5. Interest-bearing liabilities
| M€ | 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| Non-current liabilities | |||
| Bonds | 2,335.7 | 1,689.1 | 2,037.2 |
| Loans from financial institutions | 1,074.5 | 1,081.1 | 1,101.5 |
| Interest subsidy loans | 26.5 | 26.8 | 26.5 |
| Lease liability | 71.6 | 66.5 | 69.7 |
| Non-current liabilities total | 3,508.2 | 2,863.5 | 3,234.8 |
| Current liabilities | |||
| Loans from financial institutions | 55.4 | 100.5 | 41.1 |
| Interest subsidy loans | 0.3 | 9.8 | 0.3 |
| Commercial papers | 50.0 | 50.0 | 50.0 |
| Other loans | 6.4 | 8.8 | 6.4 |
| Lease liability | 1.9 | 1.6 | 1.8 |
| Current liabilities total | 114.1 | 170.8 | 99.7 |
| Total interest-bearing liabilities | 3,622.3 | 3,034.2 | 3,334.5 |
6. Derivative instruments
Fair values of derivative instruments
| 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 | |||
|---|---|---|---|---|---|
| M€ | Positive | Negative | Net | Net | Net |
| Interest rate derivatives | |||||
| Interest rate swaps, cash flow hedging | 5.8 | -11.8 | -5.9 | -59.5 | -41.2 |
| Interest rate swaps, not in hedge accounting | 0.1 | -4.4 | -4.3 | -8.6 | -6.9 |
| Electricity derivatives | 0.7 | - | 0.7 | 0.2 | 0.4 |
| Total | 6.7 | -16.1 | -9.4 | -67.9 | -47.7 |
Nominal values of derivative instruments
| M€ | 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| Interest rate derivatives | |||
| Interest rate swaps, cash flow hedging | 791.1 | 850.1 | 806.9 |
| Interest rate swaps, not in hedge accounting | 41.0 | 41.7 | 41.3 |
| Total | 832.1 | 891.8 | 848.2 |
| Electricity derivatives, MWh | 9,902 | 58,788 | 13,140 |
During the review period, EUR 35.0 (11.6) million was recognised in the fair value reserve from interest rate derivatives classified as cash flow hedges. The interest rate derivatives mature between 2022 and 2035. At the end of the review period, the average maturity of interest rate swaps was 4.5 (5.2) years.
Electricity derivatives hedge against increases in electricity prices and mature in 2022. Electricity derivatives are not included in hedge accounting. The unrealised gains and losses from their measurement are presented in the balance sheet under current and non-current assets or liabilities in the item Derivative instruments.
7. Financial assets and liabilities by valuation category
| 31 Mar 2022 | |||||
|---|---|---|---|---|---|
| Carrying | Fair value | ||||
| M€ | value total | Level 1 | Level 2 | Level 3 | total |
| Financial assets | |||||
| Measured at fair value | |||||
| Electricity derivatives | 0.7 | 0.7 | 0.7 | ||
| Financial assets recognised at fair value | |||||
| through profit or loss | 105.4 | 102.7 | 2.0 | 0.6 | 105.4 |
| Measured at amortised cost | |||||
| Cash and cash equivalents | 478.2 | 478.2 | 478.2 | ||
| Trade receivables | 5.2 | 5.2 | |||
| Financial liabilities | |||||
| Measured at fair value | |||||
| Interest rate derivatives | 10.2 | 10.2 | 10.2 | ||
| Measured at amortised cost | |||||
| Other interest-bearing liabilities | 1,286.6 | 1,284.1 | 1,284.1 | ||
| Bonds | 2,335.7 | 2,310.8 | 2,310.8 | ||
| Trade payables | 7.4 | 7.4 |
| 31 Dec 2021 | |||||
|---|---|---|---|---|---|
| Carrying | Fair value | ||||
| M€ | value total | Level 1 | Level 2 | Level 3 | total |
| Financial assets | |||||
| Measured at fair value | |||||
| Electricity derivatives | 0.4 | 0.4 | 0.4 | ||
| Financial assets recognised at fair value | |||||
| through profit or loss | 129.5 | 128.8 | 0.0 | 0.7 | 129.5 |
| Measured at amortised cost | |||||
| Cash and cash equivalents | 197.0 | 197.0 | 197.0 | ||
| Trade receivables | 4.9 | 4.9 | |||
| Financial liabilities | |||||
| Measured at fair value | |||||
| Interest rate derivatives | 48.1 | 48.1 | 48.1 | ||
| Measured at amortised cost | |||||
| Other interest-bearing liabilities | 1,297.3 | 1,299.6 | 1,299.6 | ||
| Bonds | 2,037.2 | 2,110.3 | 2,110.3 | ||
| Trade payables | 26.5 | 26.5 | |||
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€ | 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| Beginning of period | 0.7 | 0.7 | 0.7 |
| Change | -0.1 | - | 0.0 |
| End of period | 0.6 | 0.7 | 0.7 |
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
| 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 | |
|---|---|---|---|
| Profit for the period attributable to shareholders of the parent company, M€ | 50.4 | 141.8 | 1,023.4 |
| Weighted average number of shares during the period (million) | 247.1 | 247.1 | 247.1 |
| Earnings per share | |||
| Basic, € | 0.20 | 0.57 | 4.14 |
| Diluted, € | 0.20 | 0.57 | 4.14 |
The company has no diluting instruments.
9. Guarantees, commitments and contingent liabilities
| M€ | 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 |
|---|---|---|---|
| Loans covered by pledges on property and shares as collateral | 802.5 | 935.1 | 809.5 |
| Pledges given | 903.4 | 1,012.8 | 907.4 |
| Shares ¹⁾ | 109.2 | 156.8 | 117.3 |
| Pledged collateral, total | 1,012.6 | 1,169.6 | 1,024.7 |
| Other collaterals given | |||
| Mortgages and shares | 8.0 | 5.9 | 7.6 |
| Guarantees ²⁾ | 666.1 | 607.2 | 672.9 |
| Pledged deposits | 0.0 | 0.0 | 0.0 |
| Other collateral, total | 674.1 | 613.2 | 680.6 |
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 or shares as collaterals.
10. Non-current assets held for sale
On 31 March 2022 and on 31 December 2021 Kojamo had EUR 1.1 million non-current assets held for sale. The asset item in question consisted of one plot of land. On 31 March 2021 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).
11. Effects of the Ukrainian war and the COVID-19 pandemic
Kojamo has assessed the impact of the ongoing war in Ukraine and the COVID-19 pandemic on the Group's profit, balance sheet and cash flow and determined that they did not
12. Events after the review period
There were no significant events after the review period.
have a significant impact on the items in question during the review period.
Key figures, the formulas used in their calculation, and reconciliation calculations in accordance with ESMA guidelines
| Formula | 1–3/2022 | 1–3/2021 | 2021 | |
|---|---|---|---|---|
| Total revenue, M€ | 99.5 | 97.2 | 391.7 | |
| Net rental income, M€ | 1 | 57.0 | 55.5 | 262.3 |
| Net rental income margin, % | 2 | 57.3 | 57.0 | 67.0 |
| Profit before taxes, M€ | 3 | 62.9 | 177.1 | 1,278.9 |
| EBITDA, M€ | 4 | 75.6 | 190.2 | 1,334.8 |
| EBITDA margin, % | 5 | 75.9 | 195.6 | 340.8 |
| Adjusted EBITDA, M€ | 6 | 47.7 | 46.4 | 228.5 |
| Adjusted EBITDA margin, % | 7 | 47.9 | 47.7 | 58.3 |
| Funds From Operations (FFO), M€ ¹⁾ | 8 | 28.9 | 27.9 | 153.1 |
| FFO margin, % | 9 | 29.1 | 28.7 | 39.1 |
| Funds From Operations (FFO) per share, € | 10 | 0.12 | 0.11 | 0.62 |
| FFO excluding non-recurring costs, M€ | 11 | 28.9 | 27.9 | 153.1 |
| Adjusted Funds From Operations (AFFO), M€ | 12 | 27.3 | 25.8 | 141.1 |
| Investment properties, M€ ²⁾ | 8,406.6 | 7,072.3 | 8,327.5 | |
| Financial occupancy rate, % | 23 | 91.9 | 94.9 | 93.9 |
| Interest-bearing liabilities, M€ | 13 | 3,622.3 | 3,034.2 | 3,334.5 |
| Return on equity, % (ROE) | 14 | 4.7 | 17.0 | 27.0 |
| Return on investment, % (ROI) | 15 | 4.0 | 12.0 | 19.2 |
| Equity ratio, % | 16 | 46.9 | 45.5 | 49.0 |
| Loan to Value (LTV), % ³⁾ | 17 | 37.4 | 40.2 | 37.7 |
| Unencumbered asset ratio, % | 18 | 87.1 | 81.7 | 86.3 |
| Coverage ratio | 19 | 3.9 | 4.0 | 3.9 |
| Solvency ratio | 20 | 0.35 | 0.38 | 0.36 |
| Secured solvency ratio | 21 | 0.09 | 0.13 | 0.09 |
| Earnings per share, € | 0.20 | 0.57 | 4.14 | |
| Equity per share, € | 17.18 | 13.63 | 17.25 | |
| Gross investments, M€ | 22 | 48.9 | 68.0 | 356.9 |
| Number of personnel, end of the period | 315 | 312 | 325 |
¹⁾ The formula used in the calculation was changed in 2021 regarding current taxes from disposals. The comparison figures for 1-3/2021 have been adjusted to reflect the current calculation method
²⁾ Including non-current assets held for sale
³⁾ Excluding non-current assets held for sale
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 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 before taxes measures profitability after operative costs and financial expenses. | ||
| 4) | EBITDA | Profit for the period + Depreciation, amortisation and impairment losses -/+ Financial income = 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. | ||
| EBITDA | = EBITDA | |
| 5) | margin, % | x 100 Total revenue |
| EBITDA margin discloses EBITDA in relation to net sales. | ||
| 6) | Adjusted EBITDA |
Profit 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 profit for the period -/+ 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. The formula used in the calculation was changed during the review period regarding current taxes from disposals. |
| = 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 equity, % (ROE) |
= Profit for the period (annualised) | x 100 |
| 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 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. |
|||
| = Total equity | |||
| 16) | Equity ratio, % | 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€ | 1–3/2022 | 1–3/2021 | 2021 |
|---|---|---|---|
| Profit for the period | 50.4 | 141.8 | 1,023.4 |
| Depreciation, amortisation and impairment losses | 0.3 | 1.2 | |
| Profit/loss on sales of investment properties | - | -0.3 | -0.3 |
| Profit/loss on sales of other non-current assets | 0.0 | - | -0.3 |
| Profit/loss on fair value of investment properties | -27.9 | -143.5 | -1,105.7 |
| Financial income | -2.6 | -1.6 | -4.8 |
| Financial expenses | 14.9 | 14.4 | 59.7 |
| Share of result from associated companies | - | - | -0.1 |
| Current tax expense | 4.3 | 4.7 | 18.8 |
| Change in deferred taxes | 8.2 | 30.6 | 236.7 |
| Adjusted EBITDA | 47.7 | 46.4 | 228.5 |
| Financial income and expenses | -12.3 | -12.8 | -54.9 |
| Profit/loss on fair value measurement of financial assets | -2.1 | -1.3 | -3.2 |
| Adjusted net interest charges | -14.4 | -14.1 | -58.1 |
| Current taxes from disposals | 0.0 | 0.3 | 1.5 |
| Current tax expense | -4.3 | -4.7 | -18.8 |
| FFO | 28.9 | 27.9 | 153.1 |
| FFO excluding non-recurring costs | 28.9 | 27.9 | 153.1 |
| Equity | 4,246.8 | 3,367.7 | 4,263.3 |
| Assets total | 9,053.0 | 7,410.3 | 8,716.8 |
| Advances received | -6.5 | -6.6 | -6.6 |
| Equity ratio, % | 46.9 | 45.5 | 49.0 |
| Unencumbered investment properties | 7,188.7 | 5,677.8 | 7,084.2 |
| Non-current assets, other than investment properties | 96.6 | 94.2 | |
| Current assets | 283.2 | 340.5 | |
| Unencumbered assets total | 7,882.6 | 6,057.7 | 7,518.8 |
| Total assets | 9,053.0 | 7,410.3 | 8,716.8 |
| Unencumbered asset ratio, % | 87.1 | 81.7 | 86.3 |
| Adjusted EBITDA, rolling 12 months | 229.8 | 222.6 | 228.5 |
| Adjusted net interest charges, rolling 12 months | -58.4 | -55.9 | -58.1 |
| Coverage ratio | 3.9 | 4.0 | 3.9 |
| Interest-bearing liabilities | 3,622.3 | 3,034.2 | 3,334.5 |
| Deferred purchase price due after 90 days | 0.4 | - | |
| Cash and cash equivalents | 189.9 | 197.0 | |
| Total indebtedness- Cash and cash equivalents | 2,844.7 | 3,137.5 | |
| Total assets | 7,410.3 | 8,716.8 | |
| Solvency ratio | 0.38 | 0.36 | |
| 0.35 | |||
| Secured loans | 802.5 | 935.1 | 809.5 |
| Total assets | 7,410.3 | 8,716.8 | |
| Secured solvency ratio | 9,053.0 0.09 |
0.13 | 0.09 |