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Kojamo Oyj
Quarterly Report • Feb 13, 2025
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Quarterly Report
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Financial Statements Release 1 January–31 December 2024
24
Kojamo plc's Financial Statements Release 1 January–31 December 2024
Total revenue and net rental income grew in 2024, the fair value of investment properties remained at previous year's level
Unless otherwise stated, the comparison figures in brackets refer to the corresponding period of the previous year. The information in the Financial Statements Release is based on the Kojamo plc's audited Financial Statements for the year 2024. The quarterly figures are unaudited.
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 Financial Statements Release, the Finnish version is the official one.
Summary of October–December 2024
- Total revenue increased by 0.1 per cent to EUR 113.6 (113.5) million.
- Net rental income decreased by 1.5 per cent totalling EUR 74.4 (75.5) million. Net rental income represented 65.5 (66.5) per cent of revenue.
- Result before taxes was EUR 40.7 (-119.5) million. The result includes EUR 3.9 (-158.7) million in net result on the valuation of investment properties at fair value. Earnings per share was EUR 0.13 (-0.38).
- Funds From Operations (FFO) decreased by 10.0 per cent and amounted to EUR 34.5 (38.3) million.
- Gross investments totalled EUR 31.3 (29.5) million, representing 27.5 (26.0) per cent of total revenue.
Summary of January–December 2024
Hallituksen toimintakertomus ja tilinpäätös • Total revenue increased by 2.3 per cent to EUR 452.4 (442.2) million.
- Net rental income increased by 1.9 per cent, totalling EUR 302.9 (297.2) million. Net rental income represented 66.9 (67.2) per cent of revenue.
- Result before taxes was EUR 26.3 (-112.3) million. The result includes EUR -134.0 (-295.4) million in net result on the valuation of investment properties at fair value and EUR -0.8 (0.2) million in profit/loss from the sale of investment properties. Earnings per share was EUR 0.09 (-0.36).
- Funds From Operations (FFO) decreased by 11.4 per cent and amounted to EUR 148.2 (167.2) million.
- The fair value of investment properties was EUR 8.0 (8.0) billion at the end of the financial year.
- The financial occupancy rate stood at 91.5 (93.0) per cent during the financial year.
- Gross investments totalled EUR 52.8 (190.7) million, representing 11.7 (43.1) per cent of total revenue.
- Equity per share was EUR 14.68 (14.67) and return on equity was 0.6 (-2.4) per cent. Return on investment was 2.0 (-0.4) per cent.
- EPRA NRV per share (net reinstatement value) increased by 0.3 per cent and amounted to EUR 18.51 (18.45).
- At the end of the financial year, there were 119 (354) Lumo apartments under construction.
- The Board of Directors' dividend proposal is that no dividend be paid for 2024.
Kojamo owned 40,973 (40,619) rental apartments at the end of the financial year. In 2024, Kojamo completed 354 (1,450) apartments, sold 0 (73) apartments and demolished or otherwise altered 0 (11) apartments.
Hallituksen toimintakertomus ja tilinpäätös
Outlook for 2025
Kojamo estimates that in 2025, the Group's total revenue will increase by 1–4 per cent yearon-year. In addition, Kojamo estimates that the Group's FFO for 2025 will amount to between EUR 135–145 million, excluding non-recurring costs.
The outlook is based on the management's assessment of total revenue, property maintenance expenses and repairs, administrative expenses, financial expenses and taxes to be paid as well as the management's view on future developments in the operating environment.
The outlook takes into account the estimated occupancy rate and development of rents. The outlook does not take into account the impact of potential acquisitions or disposals on total revenue and FFO.
The management can influence total revenue and FFO through the company's business operations. In contrast, the management has no influence over market trends, the regulatory environment or the competitive landscape.
Saving programme
In August 2023, Kojamo launched a saving programme with measures aimed at maintaining the company's profitability and safeguarding credit rating. With the programme, the company targeted total savings of approximately EUR 43 million in costs and investments during 2024, of which the share of costs was estimated to be approximately EUR 18 million.
The saving programme was implemented according to the plan. With the programme, we achieved the planned savings, and we enhanced our operations in order to address the challenges of the operating environment. We were successful in safeguarding our investmentgrade credit rating: in the autumn, Moody's confirmed our previous credit rating of Baa2 with a negative outlook.
During the year, we did not make new investment decisions, and we focused repairs to support renting of apartments. As a result of the saving programme, there have been changes to our personnel, which are still in effect. The Annual General Meeting decided in the spring 2024 that no dividend be paid for 2023.
Key figures
| 10–12/2024 | 10–12/2023 | Change % | 2024 | 2023 | Change % | |
|---|---|---|---|---|---|---|
| Total revenue, M€ | 113.6 | 113.5 | 0.1 | 452.4 | 442.2 | 2.3 |
| Net rental income, M€ * | 74.4 | 75.5 | -1.5 | 302.9 | 297.2 | 1.9 |
| Net rental income margin, % * | 65.5 | 66.5 | 66.9 | 67.2 | ||
| Profit/loss before taxes, M€ * | 40.7 | -119.5 | 134.0 | 26.3 | -112.3 | 123.4 |
| EBITDA, M€ * |
68.3 | -94.8 | 172.1 | 131.3 | -39.9 | 429.5 |
| EBITDA margin, % * | 60.1 | -83.5 | 29.0 | -9.0 | ||
| Adjusted EBITDA, M€ * |
64.5 | 63.3 | 1.8 | 266.2 | 255.1 | 4.3 |
| Adjusted EBITDA margin, % * |
56.7 | 55.8 | 58.8 | 57.7 | ||
| Funds From Operations (FFO), M€ * | 34.5 | 38.3 | -10.0 | 148.2 | 167.2 | -11.4 |
| FFO margin, % * | 30.3 | 33.7 | 32.8 | 37.8 | ||
| FFO excluding non-recurring costs, M€ * |
35.2 | 38.3 | -8.0 | 149.0 | 167.2 | -10.9 |
| Investment properties, M€ | 7,960.0 | 8,038.8 | -1.0 | |||
| Financial occupancy rate, % | 91.5 | 93.0 | ||||
| Interest-bearing liabilities, M€ * |
3,827.9 | 3,600.4 | 6.3 | |||
| Return on equity (ROE), % * | 0.6 | -2.4 | ||||
| Return on investment (ROI), % * | 2.0 | -0.4 | ||||
| Equity ratio, % * | 43.2 | 44.5 | ||||
| Loan to Value (LTV), % * | 43.9 | 44.6 | ||||
| EPRA Net Reinstatement value (NRV), M€ | 4,573.4 | 4,558.8 | 0.3 | |||
| Gross investments, M€ * |
31.3 | 29.5 | 6.0 | 52.8 | 190.7 | -72.3 |
| Number of personnel, end of the period | 256 | 288 |
| Key figures per share, € | 10–12/2024 | 10–12/2023 | Change % | 2024 | 2023 | Change % |
|---|---|---|---|---|---|---|
| FFO per share * | 0.14 | 0.15 | -6.7 | 0.60 | 0.68 | -11.8 |
| Earnings per share | 0.13 | -0.38 | 134.2 | 0.09 | -0.36 | 125.0 |
| EPRA NRV per share | 18.51 | 18.45 | 0.3 | |||
| Equity per share | 14.68 | 14.67 | 0.1 | |||
| Dividend per share ¹⁾ | - | - | - |
Hallituksen toimintakertomus ja tilinpäätös
* 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 section hereinafter
¹⁾ 2024: The Board of Directors proposes to the Annual General Meeting that no dividend be paid
CEO's review
Total revenue and net rental income grew in 2024, and the fair value of our investment properties stayed at the previous year's level. FFO decreased due to rising financial and maintenance expenses. Our balance sheet remained solid.
The oversupply of rental apartments continued, especially in the capital region. However, the rental market is expected to balance out as the number of new residential start-ups is historically low while population growth has accelerated in big cities. Since the summer, we have taken several measures to respond to the intense competitive situation. In the autumn, we achieved a clear turn for the better in renting, despite the usual seasonal variation. The occupancy rate in the last quarter of the year improved by 0.3 percentage points from the previous quarter and was 91.6%. In the coming year, our focus continues to be on improving the occupancy rate.
The saving programme was implemented according to the plan. The programme was started in the autumn of 2023 when we wanted to react to the changed operating environment and to take proactive measures in order to safeguard the company's strong financial situation and investment grade credit rating. We achieved savings in accordance with the targets from administrative expenses and repairs. Additionally, we significantly reduced investments. Due to the measures taken, our financial situation has remained good, and our credit rating has remained unchanged.
We did not make any new investment decisions last year. In the first half of the year, yet another 354 apartments were completed from previously started projects, and our apartment portfolio grew to 40,973 apartments. In the autumn, we started one development project based on a previously signed preliminary agreement, and we are building 119 apartments in Helsinki. For the time being, we are not acquiring new properties. Instead, we are focusing on increasing total revenue in the existing housing stock.
To support the maintenance of investment grade credit rating, Kojamo's Board of Directors proposes to the Annual General Meeting in spring that no dividend will be paid for 2024. The company aims to carry out property sales. The funds obtained from the possible sales will be used to repay loans. They may also be used to repurchase own shares and to pay dividends.
Our financial position and liquidity situation remained strong throughout the year. We successfully made financing arrangements totalling EUR 600 million by utilising diverse sources of funding. In addition to the bond tap issuance and bank loan made at the beginning of the year, we concluded a financing agreement of EUR 150 million with a new financier in December. Our financial position is secured, and the loans maturing this year have been covered. The next financing arrangements will be for maturities in 2026.
Developing the customer experience is one of our key focus areas. The Net Promoter Score (NPS), which measures customer satisfaction, was 54 at the end of the year, showing a fourpoint improvement from the previous year. The positive development was especially due to the determined efforts to improve the multichannel capabilities and the efficiency of Lumo service centre as well as due to the development of close collaboration with our new property maintenance partners. For our residents, these efforts have been reflected in a faster and smoother service.
The operating environment remained challenging, but we developed our operations with determination and strived to respond actively to the market situation. I would like to thank the personnel for their exceptional work and ability to renew our operations. I also thank all customers, partners and shareholders for their cooperation and trust in the company.
Erik Hjelt
Interim CEO
Operating environment
General operating environment
As Kojamo operates in the residential real estate sector, the company is affected particularly by the situation in the residential property market and development in Finnish growth centres. The company is also affected by financial market situation and interest rates, as well as macroeconomic factors, such as economic growth, employment, disposable income, inflation, regional population growth and household sizes.
Operating environment key figures
| % | 2025E | 2024E |
|---|---|---|
| GDP growth | 1.6 | -0.3 |
| Unemployment | 8.4 | 8.3 |
| Inflation | 1.1 | 1.6 |
Source: Ministry of Finance, Economic survey 12/2024
According to the economic survey published by the Ministry of Finance in December, the outlook for the global economy is cautiously optimistic but is overshadowed by significant risks. Growth has remained fairly strong despite trade policy and geopolitical tensions. In the United States, growth continues, but future trade policy poses a risk to the global economy. In the United States, the strong employment situation is sustaining private consumption, although very rapid growth will slow down. The euro area's economy is recovering, but challenges in Germany's industry weaken growth prospects. Slowing inflation, real income growth, and declining interest rates support the euro area's recovery.
The situation in the financial markets has remained stable despite various tensions. Market interest rates have fallen as central banks have started monetary policy easing. Central banks are expected to continue lowering rates this year.
The Finnish economy is recovering from the downturn. Although gross domestic product remained slightly lower in 2024 compared to the previous year, the economy turned to growth. The gross domestic product is expected to increase moderately in the coming years. The increase of Finnish exports will be particularly driven by the services, but the subdued economic growth in the euro area will slow down the goods exports. Inflation has slowed down, and interest rates have fallen, which is expected to turn consumption and investments to growth. Employment has weakened, and the turnaround in the labour market has been delayed.
Industry operating environment
Industry key figures
Hallituksen toimintakertomus ja tilinpäätös
| 2025E | 2024E | |
|---|---|---|
| Residential start-ups, units | 20,000 | 17,000 |
| of which non-subsidised apartments | 7,500 | 2,000 |
| Building permits granted, annual, units * | n/a | 16,318 |
| Construction costs, change % ** | n/a | 0.3 |
* Rolling 12 months, November 2024, ** 2024E: building cost index, December 2024 Sources: Confederation of Finnish Construction Industries (CFCI), economic forecast September 2024; Statistics Finland, Building and dwelling production; Statistics Finland, Building cost index
According to the Confederation of Finnish Construction Industries CFCI's economic forecast published in September, construction is recovering slowly. In 2025, the number of residential start-ups is expected to rise to a maximum of 20,000 apartments, with more significant growth in non-subsidised new construction starting only in the latter half of the year.
The Ministry of Finance estimates in its the economic survey published in December that in the coming year, residential construction will recover as falling interest rates boost the housing market. The recovery of residential construction is slow, as there are still a lot of new apartments available on the market. The number of market-based residential start-ups will remain exceptionally low, and currently state-subsidised construction maintains new residential construction. According to the Ministry of Finance, the current construction activity is clearly below the level required to meet long-term needs.
Effects of urbanisation
| Population growth | Share of rental household | ||
|---|---|---|---|
| forecast, % | dwelling units, % | ||
| Area | 2022–2040 | 2010 | 2023 |
| Helsinki | 22.4 | 47.1 | 50.5 |
| Capital region ¹⁾ | 25.9 | 41.9 | 47.0 |
| Helsinki region ²⁾ | n/a | 37.7 | 42.9 |
| Jyväskylä | 8.0 | 40.2 | 46.4 |
| Kuopio | 3.5 | 36.5 | 42.4 |
| Lahti | -0.2 | 37.3 | 42.2 |
| Oulu | 9.6 | 36.7 | 43.6 |
| Tampere | 17.6 | 42.2 | 52.2 |
| Turku | 18.1 | 43.0 | 52.7 |
| Other areas | n/a | 23.8 | 27.1 |
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 2023; MDI population forecast 2040 (urbanisation scenario), September 2023
According to the population forecast published by MDI in September 2024, population growth continues supported by significantly increased immigration and is strongly concentrated in the largest cities. The recent rise in immigration is explained by an increase in the number of immigrants from East and Southeast Asia, as well as the Indian subcontinent, which is strengthening particularly the working-age population in the Helsinki region. Migration within the country has returned to its pre-pandemic trend, concentrating the population in major urban areas.
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 financial year, Kojamo's property portfolio comprised 40,973 (40,619) rental apartments. The fair value of Kojamo's investment properties amounted to EUR 8.0 (8.0) billion at the end of the financial year. Investment properties include completed apartments as well as development projects and land areas.
Measured at fair value on 31 December 2024, 97.5 per cent of Kojamo's rental apartments were located in the seven largest Finnish growth centres, 86.6 per cent in the Helsinki, Tampere and Turku regions and 73.8 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 October–December 2024
Total revenue
Kojamo's total revenue increased to EUR 113.6 (113.5) million. Total revenue is generated entirely by income from rental operations.
Total revenue increased especially due to the rental apartments completed in 2023 and 2024 by around EUR 2.3 million. The development of rents and the financial occupancy rate weakened total revenue by around EUR 2.4 million.
Result and profitability
Hallituksen toimintakertomus ja tilinpäätös
Net rental income decreased to EUR 74.4 (75.5) million, which corresponds to 65.5 (66.5) per cent of total revenue. The net rental income decreased due to an increase in maintenance expenses by 1.8 million, and it grew due to higher revenue by EUR 0.1 million and lower repair expenses by EUR 0.5 million.
Result before taxes was EUR 40.7 (-119.5) million. The result includes EUR 3.9 (-158.7) million in net result on the valuation of investment properties at fair value. Result before taxes and excluding net result on the valuation of the investment properties at the fair value decreased by EUR 2.4 million. The decline was due in particular to increased financial and maintenance expenses from the comparison period.
Financial income and expenses totalled EUR -27.4 (-24.4) million. Financial income and expenses include EUR 0.0 (-1.3) million in unrealised changes in the fair value of derivatives.
Funds From Operations (FFO) amounted to EUR 34.5 (38.3) million. The decrease in FFO was particularly affected by increased financial and maintenance expenses in the review period.
Financial development January–December 2024
Total revenue
Kojamo's total revenue increased to EUR 452.4 (442.2) million. Total revenue is generated entirely by income from rental operations.
Total revenue increased especially due to the rental apartments completed in 2023 and 2024 by around EUR 14.2 million. The development of rents and the financial occupancy rate weakened total revenue by around EUR 5.0 million.
Result and profitability
Net rental income increased to EUR 302.9 (297.2) million, which corresponds to 66.9 (67.2) per cent of total revenue. The growth in net rental income was positively impacted by EUR 10.2 million increase in total revenue and by EUR 5.2 million decrease in repair expenses and negatively impacted by EUR 9.8 million increase in property maintenance expenses. Of the increase in maintenance expenses, EUR 0.6 million was due to the growth of property portfolio, EUR 3.9 million due to increase in heating and water costs and EUR 1.4 million due to increase in property taxes. The increase in heating costs was influenced particularly by cold start of the year.
Result before taxes was EUR 26.3 (-112.3) million. The result includes EUR -134.0 (-295.4) million net result on the valuation of investment properties at fair value and EUR -0.8 (0.2) million profit/loss from the sale of investment properties. The net result on the valuation of the investment properties at fair value was negatively impacted by the change in yield requirements by EUR -165.9 million and the decrease in net rental income by EUR -6.4 million. Other items impacted the net result positively by EUR 38.3 million of which the most significant part came from restrictions ending. The yield requirements and other input data are based on market observations and the best available market information. This information includes the opinion of an external independent valuer. Result before taxes and excluding the net valuation gain on the fair value assessment of investment properties decreased by EUR 22.7 million and was EUR 160.3 (183.1) million. The decline was in particular due to increased financial and maintenance expenses from the comparison period.
Financial income and expenses totalled EUR -103.8 (-71.3) million. Financial income and expenses increased by EUR 32.5 million from the comparison period. Interest expenses increased by EUR 35.8 million compared to the comparison period due to the higher amount of interest-bearing liabilities and the increase in interest rates. In addition, in the comparison period, a profit of EUR 8.7 million was recorded in financial income as the difference between the nominal value of the repurchased bonds and their purchase prices. Gain/loss on the valuation of investments amounted to EUR -0.1 (1.1) million and the unrealised change in the fair value of derivatives EUR 0.7 (-0.9) million.
Funds From Operations (FFO) amounted to EUR 148.2 (167.2) million. The decrease in FFO was particularly affected by increased financial and maintenance expenses in the review period. The financial income of the comparison period includes the profit from the repurchase of bonds.
Balance sheet, cash flow and financing
| 31 Dec 2024 | 31 Dec 2023 | |
|---|---|---|
| Balance sheet total, M€ | 8,405.5 | 8,158.3 |
| Equity, M€ | 3,629.2 | 3,625.9 |
| Equity per share, € | 14.68 | 14.67 |
| Equity ratio, % | 43.2 | 44.5 |
| Return on equity (ROE), % | 0.6 | -2.4 |
| Return on investment (ROI), % | 2.0 | -0.4 |
| Interest-bearing liabilities, M€ ¹⁾ |
3,827.9 | 3,600.4 |
| Loan to Value (LTV), % | 43.9 | 44.6 |
| Coverage ratio | 2.6 | 3.6 |
| Average interest rate of loan portfolio, % ²⁾ | 3.0 | 2.4 |
| Average loan maturity, years | 2.7 | 2.8 |
| Cash and cash equivalents, M€ | 333.6 | 15.0 |
¹⁾ Net debt on 31 December 2024 totalled 3,511.0 M€ and on 31 December 2023 3,585.5 M€ ²⁾ Includes interest rate derivatives
Kojamo's liquidity was good during the financial year. At the end of the financial year, Kojamo's cash and cash equivalents stood at EUR 333.6 (15.0) million and liquid financial assets at EUR 24.9 (3.3) million.
EUR 0.0 (39.7) million of the EUR 250 million commercial paper programme was in use at the end of the financial year. Kojamo has committed credit facilities of EUR 375 million and an uncommitted credit facility of EUR 5 million which were unused at the end of the financial year. In addition, the below mentioned EUR 50 million term loan signed in December was undrawn at the end of the financial year.
The following financing arrangements were made during the financial year:
Hallituksen toimintakertomus ja tilinpäätös
In January, Kojamo plc issued EUR 200 million unsecured green notes as a private placement. The new notes were issued under the company's EMTN programme as an increase to the company's notes maturing on 28 May 2029. The proceeds of the issue were used for the refinancing of projects in accordance with the company's Green Finance Framework.
In March, Kojamo plc signed a new EUR 250 million term loan facility agreement linked to its sustainability targets together with three relationship banks. The loan is secured and has a maturity of five years. The loan was drawn in June, and it will be used for the refinancing of company's existing indebtedness as well as for the group's general financing needs.
In December, Kojamo plc signed a new unsecured EUR 150 million long-term credit facility agreement with SMBC Bank EU AG. The financing arrangement consists of a EUR 100 million revolving credit facility and a EUR 50 million term loan. The financing will be used for the group's general financing needs, and its margin is linked to Kojamo's key sustainability targets.
Real estate property and fair value
| M€ | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Fair value of investment properties on 1 Jan | 8,038.8 | 8,150.2 |
| Acquisition of investment properties | 52.9 | 165.1 |
| Modernisation investments | 4.1 | 26.7 |
| Disposals of investment properties | -2.5 | -12.0 |
| Capitalised borrowing costs | 0.6 | 4.2 |
| Transfer from financial assets | 0.0 | - |
| Profit/loss on fair value of investment properties | -134.0 | -295.4 |
| Fair value of investment properties at the end of the period | 7,960.0 | 8,038.8 |
Kojamo owned a total of 40,973 (40,619) rental apartments at the end of the financial year.
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 Dec 2024. The criteria for determining fair value are presented in the Notes to the Financial Statements.
At the end of the financial year, the plot and real estate development reserve held by the Group totalled about 176,000 (211,000) floor sq.m. The fair value of the plot and real estate
Kojamo's property portfolio by region as at 31 December 2024
development reserve (including the Metropolia properties) was EUR 153.0 (178.1) million at the end of the financial year.
Rental housing
| Apartments | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Number of apartments | 40,973 | 40,619 |
| Average rent, €/m²/month | 17.95 | 17.81 |
| Average rent, €/m²/month, yearly average | 17.98 | 17.74 |
Kojamo responds to the trends of urbanisation, digitalisation and communality in accordance with its strategy, providing its customers with apartments with good locations and services that make daily life easier, increase the attractiveness of housing and improve the sense of community. Kojamo's properties form a networked service platform that enables agile innovation implementation in cooperation with other operators.
All Lumo rental apartments are also easily available for rent on our webstore.
Rental housing key figures
| % | 1–12/2024 | 1–12/2023 |
|---|---|---|
| Financial occupancy rate | 91.5 | 93.0 |
| Tenant turnover rate, excluding internal turnover | 29.7 | 29.5 |
| Like-for-Like rental income growth * | -1.4 | 1.9 |
| Rent receivables in proportion to revenue | 1.5 | 1.6 |
* Change of rental income for properties owned for two consecutive years in the past 12 months compared to the previous 12-month period.
The full-year financial occupancy rate was 91.5 (93.0) per cent. At year-end, 0 (133) apartments were vacant due to renovations.
| Helsinki | Tampere | Turku | Kuopio | Lahti | ||||
|---|---|---|---|---|---|---|---|---|
| % | region | region | region | Oulu | Jyväskylä | region | region | Others |
| Distribution by number of apartments | 62.7 | 9.6 | 5.2 | 5.4 | 5.0 | 4.1 | 3.5 | 4.5 |
| Distribution by fair value | 73.8 | 8.5 | 4.3 | 3.1 | 3.2 | 2.5 | 2.1 | 2.5 |
| Hallituksen toimintakertomus ja tilinpäätös | ||||||||
| Number of | Number of commercial | Financial | |||||
|---|---|---|---|---|---|---|---|
| apartments, | and other leased | Fair value, | Fair value, | Fair value, | occupancy | ||
| Area | units | premises, units | M€ | € 1.000/unit | €/m² | rate, % ³⁾ | |
| Helsinki region | 25,686 | 490 | 5,701.5 | 218 | 4,079 | 90.3 | |
| Tampere region | 3,949 | 111 | 656.9 | 162 | 3,168 | 94.1 | |
| Turku region | 2,122 | 25 | 331.6 | 154 | 2,909 | 94.4 | |
| Other | 9,216 | 136 | 1,031.3 | 110 | 2,092 | 94.0 | |
| Total | 40,973 | 762 | 7,721.2 | 1) | 185 | 3,491 | 91.5 |
| Other | 238.7 | 2) | |||||
| Total portfolio | 40,973 | 762 | 7,960.0 |
Information on the property portfolio as at 31 December 2024
¹⁾ The figures reflect income-generating portfolio assets, which excludes new projects under constructions, plots owned by the company and ownership of certain assets through shares
²⁾ Fair value of ongoing projects under constructions, 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 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Acquisition of investment properties * | 48.1 | 159.9 |
| Modernisation investments | 4.1 | 26.7 |
| Capitalised borrowing costs | 0.6 | 4.2 |
| Total | 52.8 | 190.7 |
| Repair expenses, M€ | 24.1 | 29.3 |
* Not including leases for plots of land
Number of apartments
Hallituksen toimintakertomus ja tilinpäätös
| Units | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Apartments at the start of the financial year | 40,619 | 39,231 |
| Divestments | - | -73 |
| Completed | 354 | 1,450 |
| Demolished or altered | - | 11 |
| Apartments at the end of the financial year | 40,973 | 40,619 |
| Started during the financial year | 119 | - |
| Under construction at the end of the financial year | 119 | 354 |
| Preliminary agreements for new construction | - | 119 |
No apartments were acquired nor sold during the financial year.
Of the apartments under construction, 119 (354) are located in Helsinki. A total of 354 (1,450) apartments were completed during the financial year.
Modernisation investments during the financial year amounted EUR 4.1 (26.7) million and repair costs totalled EUR 24.1 (29.3) million.
Binding acquisition agreements for new development
| M€ | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Actual costs incurred from new construction in progress | 12.3 | 84.8 |
| Cost of completing new construction in progress | 11.7 | 10.0 |
| Total | 24.0 | 94.9 |
Plots and real estate development sites owned by the company
| 31 Dec 2024 M€ 1,000 fl.sq.m |
31 Dec 2023 | |||||
|---|---|---|---|---|---|---|
| M€ 1,000 fl.sq.m |
||||||
| Plots | 29.8 | 50 | 30.9 | 51 | ||
| Plots and existing residential building | 50.4 | 59 | 74.5 | 93 | ||
| Conversions | 72.8 | 67 | 72.8 | 67 | ||
| Total * | 153.0 | 176 | 178.1 | 211 |
* The management's estimate of the fair value and building rights of the plots
Strategic targets and their achievement
Strategic targets
| 2024 | 2023 | 2022 | 2021 | 2020 | Target | |
|---|---|---|---|---|---|---|
| Annual growth of total revenue, % | 2.3 | 7.0 | 5.5 | 2.0 | 2.3 | 4–5 |
| Annual investments, M€ | 52.8 | 190.7 | 501.6 | 356.9 | 371.2 | 200–400 |
| FFO/total revenue, % | 32.8 | 37.8 | 38.9 | 39.1 | 39.5 | > 36 |
| Loan to Value (LTV), % | 43.9 | 44.6 | 43.7 | 37.7 | 41.4 | < 50 |
| Equity ratio, % | 43.2 | 44.5 | 45.3 | 49.0 | 45.6 | > 40 |
| Net Promoter Score (NPS) * | 54 | 50 | 45 | 20 | 36 | 40 |
* The calculation method has changed for example including digital services in calculation. Actual for years 2021 and 2020 have not been adjusted to reflect the current calculation method.
Kojamo's objective is to be a stable dividend payer whose annual dividend payment will be at least 60 per cent of FFO, provided that the Group's equity ratio is 40 per cent or more and taking account of the company's financial position.
Binding preliminary agreements and provisions for plots and real estate development
| 31 Dec 2024 M€ 1,000 fl.sq.m |
31 Dec 2023 M€ 1,000 fl.sq.m |
|
|---|---|---|
| Preliminary agreements for new | ||
| construction ¹⁾ | - | 24.7 |
| Estimate of the share of plots of preliminary | ||
| agreements for new development ²⁾ | - - |
4.2 5 |
| Preliminary agreements and | ||
| reservations for plots ²⁾ | 26.6 32 |
34.9 45 |
¹⁾ Including plots
Hallituksen toimintakertomus ja tilinpäätös
²⁾ The management's estimate of the fair value and building rights of the plots
Shares and shareholders
Issued shares and share capital
Kojamo's share capital on 31 December 2024 was EUR 58,025,136 and the number of shares at the end of the review period totalled 247,144,399.
Kojamo has a single series of shares, and each share entitles its holder to one vote in the general meeting of shareholders of the company. There are no voting restrictions related to the shares. The shares have no nominal value. The company shares belong to the book-entry system.
The trading code of the shares is KOJAMO and the ISIN code is FI4000312251.
Trading in the company's share
Kojamo's shares are listed on the official list of Nasdaq Helsinki.
Share price and trading
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Lowest price, € | 8.70 | 7.41 | 11.62 | |
| Highest price, € | 12.00 | 15.71 | 22.10 | |
| Average price, € | 10.11 | 10.29 | 16.98 | |
| Closing price, € | 9.39 | 11.90 | 13.80 | |
| Market value of share capital, end of period, M€ | 2,320.7 | 2,941.0 | 3,410.6 | |
| Share trading, million units | 81.9 | 103.8 | 86.5 | |
| Share trading of total share stock, % | 33.2 | 42.0 | 35.0 | |
| Share trading, M€ | 828.3 | 1,068.6 | 1,471.8 |
In addition to the Nasdaq Helsinki stock exchange, Kojamo shares were traded on other marketplaces. During 1 January–31 December 2024, approximately 170 (approximately 215) million Kojamo shares were traded on alternative marketplaces, corresponding to approximately 70 (approximately 70) per cent of the total trading volume (source: Modular Finance).
Own shares
Kojamo did not hold any of its own shares during or at the end of the review period.
Dividend
In accordance with the Board of Directors' proposal, the Annual General Meeting on 14 March 2024 decided that no dividend be paid for the financial year 2023.
Shareholders
At the end of the review period, the number of registered shareholders was 15,137, including nominee-registered shareholders. The proportion of nominee-registered and direct foreign shareholders was 52.7 per cent of the company's shares at the end of the review period. The 10 largest shareholders owned in aggregate 53.7 per cent of Kojamo's shares at the end of the review period.
The list of Kojamo's shareholders is based on information provided by Euroclear Finland Ltd.
The Board of Directors' authorisations
Kojamo's Annual General Meeting on 14 March 2024 authorised the Board of Directors to decide on the repurchase and/or acceptance as pledge of an aggregate maximum of 24,714,439 of the company's own shares according to the proposal of the Board of Directors. The proposed amount of shares corresponds to approximately 10 per cent of all the shares of the company. The authorisation will remain in force until the closing of the next Annual General Meeting, however, no longer than until 30 June 2025.
The Board of Directors was also authorised to decide on the issuance of shares and the issuance of special rights entitling to shares as referred to in Chapter 10, Section 1 of the Companies Act according to the proposal of the Board of Directors. The number of shares to be issued on the basis of the authorisation shall not exceed an aggregate maximum of 24,714,439 shares, which corresponds to approximately 10 per cent of all the shares of the company. The authorisation applies to both the issuance of new shares and the conveyance of own shares held by the company. The authorisation will remain in force until the closing of the next Annual General Meeting, however, no longer than until 30 June 2025.
The Board has not used authorisations.
Flagging notifications
Hallituksen toimintakertomus ja tilinpäätös
Kojamo has not received any flagging notification pursuant to Chapter 9, Section 5 of the Securities Market Act in 2024.
Managers' transactions and shareholdings
Managers' transactions at Kojamo in 2024 have been published as stock exchange releases and they are available on the Kojamo website at https://kojamo.fi/en/news-releases/.
The members of the Board of Directors or corporations over which they exercise control owned a total of 63,876 (57,783) shares and share-based rights in the company or in companies belonging to the same Group as the company. The members of the Management Team or corporations over which they exercise control owned a total of 52,732 (163,115) shares and share-based rights in the company or in companies belonging to the same Group as the company. These shares represent 0.05 (0.09) per cent of the company's entire share capital.
Governance
Annual General Meeting
Kojamo's Annual General Meeting (AGM) of 14 March 2024 adopted the financial statements for the financial year 2023 and discharged the members of the Board of Directors and the CEO from liability. The AGM also decided that no dividend be paid for the financial year 2023, the number of members of the Board of Directors, the Board of Director's remuneration and composition and the election and remuneration of the auditor. The AGM approved the Remuneration Report for the year 2023 and Remuneration Policy for the members of the Board of Directors, the CEO and the Deputy CEO. The AGM authorised the Board of Directors to resolve on one or more share issues or the issuance of special rights entitling to shares, as referred to in Chapter 10, Section 1 of the Companies Act. The minutes of the AGM are available at https://kojamo.fi/en/investors/corporate-governance/annual-general-meeting/annualgeneral-meeting-2024/.
Board of Directors and auditors
The members of Kojamo's Board of Directors are Mikael Aro (Chairman), Mikko Mursula (Vice-Chairman), Kari Kauniskangas, Anne Koutonen, Veronica Lindholm, Andreas Segal and Annica Ånäs. The company's auditor is KPMG Oy Ab, with Authorised Public Accountant Petri Kettunen as the auditor with principal responsibility.
Board committees
Kojamo's Board of Directors has established two permanent committees, an Audit Committee and a Remuneration Committee. Anne Koutonen (Chairman), Mikko Mursula, Andreas Segal and Annica Ånäs serve in the Audit Committee. Kari Kauniskangas (Chairman), Mikael Aro and Veronica Lindholm serve in the Remuneration Committee.
Nomination Board
A stock exchange release was issued on 13 September 2024 announcing the composition of Kojamo plc's Nomination Board. Kojamo's three largest shareholders nominated the following members to the Shareholders' Nomination Board: Christian Fladeland, Co-CEO, Heimstaden AB; Jouko Pölönen, CEO, Ilmarinen Mutual Pension Insurance Company; and Risto Murto, CEO, Varma Mutual Pension Insurance Company. In addition, the Chairman of Kojamo's Board of Directors serves as an expert member of the Nomination Board.
The Shareholders' Nomination Board is a body established by the Annual General Meeting consisting of shareholders, with the task of annually preparing and presenting proposals for the General Meeting concerning the number, composition and Chairman of the Board of Directors, remuneration of the Board of Directors and remuneration of the members of the Board Committees.
The proposal of the Nomination Board to the Annual General Meeting were published as a stock exchange release on 18 December 2024.
CEO
Until 7 October 2024, the CEO was Jani Nieminen (M.Sc. Tech., MBA). The Board of Directors appointed the company's CFO and Deputy CEO, Erik Hjelt (LL.Lic., EMBA), as Kojamo's interim CEO.
The company published a stock exchange release on 28 November 2024, announcing that the Board of Directors of Kojamo plc has appointed Reima Rytsölä (M.Soc.Sc.) President and CEO of Kojamo plc. He will start in his position latest on 1 June 2025.
Management Team
Hallituksen toimintakertomus ja tilinpäätös
At the end of the review period, the members of the Management Team were Erik Hjelt, Interim CEO, CFO; Ville Raitio, Chief Investment Officer; and Janne Ojalehto, Executive Vice President, Housing.
Description of corporate governance
The description of Kojamo's administration and the Corporate Governance Statement are publicly available on Kojamo's website at https://kojamo.fi/en/investors/releases-and-publications/financial-reports/.
Personnel
At the end of 2024, Kojamo had a total of 256 (288) employees, of who 245 (271) were on permanent contracts and 11 (17) were on temporary contracts. The average number of personnel during the year was 276 (315). The average length of service was 9.5 (9.3) years. Personnel turnover in 2024 was 17.6 (11.8) per cent. The company hired about 35 summer employees in 2024.
The salaries and fees paid during the financial year totalled EUR 17.4 (18.8) million.
Annual performance bonus and incentive system
Kojamo's employees are included in an annual performance bonus system which is based on the achievement of the company's general targets as well as personal targets.
Kojamo also has a long-term share-based incentive plan for the Group's key personnel. The reward is based on reaching the targets set for Kojamo's key business criteria in relation to the Group's strategic goals. Three performance periods were ongoing at the end of the review period: 2022–2024, 2023–2025 and 2024–2026.
On 15 February 2024, Kojamo's Board of Directors resolved on the long-term incentive plan's performance period of 2024–2026. The possible rewards for the performance period are based on the Group's revenue (%), Funds From Operations (FFO) per share, Long-Term Investment Grade Rating and apartment-specific CO2 emission reduction target for years 2024– 2026. The rewards to be paid on the basis of the performance period correspond to the value of a maximum total of 214,200 shares including the proportion to be paid in cash.
If the three ongoing earning periods were accrued in full, the maximum bonus would be a sum corresponding to 480,018 Kojamo shares, of which part of would be paid in Kojamo shares and part of in cash. More information on the long-term incentive plan is provided in Kojamo's Remuneration Report for 2024.
On 15 February 2024, Kojamo's Board of Directors approved to establish a new restricted share programme for the years 2024–2026. The programme will be used in specific situations decided by the Board of Directors separately. The programme consists of individual, annually commencing maximum three-year long restricted share plans within which the participants have the opportunity to receive a fixed number of shares as a long-term incentive and retention award.
2024–2026 commitment period will last until the end of 2026 and the possible reward will be paid during the year following the expiry of the period in shares in the company. The maximum number of shares to be granted is 65,000 shares.
A new restricted share programme for the years 2024–2026 has not been used in 2024.
Sustainability
Our sustainability programme
Responsibility and sustainable development are among Kojamo's strategic focus areas. Our sustainability programme documents the priorities of our sustainability efforts by focus areas: sustainable cities, the best customer experience, the most competent personnel and a dynamic place to work, and a responsible corporate citizen. Read more about our sustainability programme from our 2023 sustainability report which is included in our Annual Report.
We have committed to the UN Sustainable Development Goals. We continue to develop transparency of our sustainability reporting, and we currently report according to GRI and EPRA sBPR frameworks. We have also participated yearly in GRESB (Global Real Estate Sustainability Benchmark) survey. From 2022, we have reported information on risks related to climate change according to the TCFD framework.
Sustainable cities
Hallituksen toimintakertomus ja tilinpäätös
All of our newly constructed properties are situated in growth centres, in locations that are close to good transport connections and services. The goal is for our property portfolio to be carbon-neutral in terms of energy consumption by 2030. We have signed the Net Zero Carbon Buildings Commitment of the World Green Building Council. We will increase the efficiency of our energy consumption by 7.5% by 2025, using 2016 as the baseline (VAETS II). All Kojamo offices are WWF Green Office certified.
The best customer experience
We want to deliver the best customer experience. We create safe and comfortable homes that provide our customers with a 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. Almost 300 Lumo teams made up of active residents have been established. All of Kojamo's properties use carbon-neutral property electricity. In addition, carbonneutral district heating is used at 173 of our properties. We offer all residents of Lumo homes the opportunity to use shared cars. We have installed charging station for electric cars already in about 1,700 parking spaces.
The most competent personnel and a dynamic place to work
The most important areas for our personnel responsibility are equality and equity for personnel, the health and well-being of personnel, as well as good management and leadership.
Through competence development, we ensure our future competitiveness and offer an employee experience that attracts the best talent in the industry. We 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.
A responsible corporate citizen
Our Code of Conduct documents the sustainable operating practices we apply in our interactions with our stakeholders, society and the environment. We also require our partners to operate sustainably, and our Supplier Code of Conduct has been an integral part of all of our partnership agreements starting from the beginning of 2021.
Events during the review period
In February, we updated our Green Finance Framework to align future financing activities with market best practices and standards. Sustainalytics has given the framework an independent, external evaluation.
We have implemented an AI-powered sustainability and energy management system which provides up-to-date information to support decision-making and enables the quicker response to consumption deviations. The system will significantly improve our energy management.
The Rescue Act was revised in the beginning of 2024, and as a result, the responsibility for the functionality and maintenance of smoke detectors will be transferred from the resident to the owner of the building by the end of 2025. We conducted an investigation into the procurement of smoke detectors for apartments that do not have smoke detectors connected to the electricity network. We tendered the procurement of smoke detectors, and the new smoke detectors will be installed within the transition period during 2025.
We have prepared for reporting in accordance with the EU Corporate Sustainability Reporting Directive, which will apply to Kojamo from 2025. We conducted a double materiality analysis and a gap analysis comparing our current sustainability reporting with the reporting requirements of the sustainability reporting directive. Based on the results of the gap analysis, we developed the content of our reporting to cover the sustainability topics according to the materiality analysis and improved our reporting processes.
In response to residents' wishes, all new tenancy agreements will be made smoke-free from 1 June 2024 onwards. Lumo homes will become smoke-free one apartment at a time in the buildings that are not already completely smoke-free. All Lumo buildings built or renovated after 2017 are smoke-free: there are about 200 buildings with close to 11,000 apartments, where smoking is already prohibited indoors as well as on the balconies and apartment courtyards.
Well-functioning recycling and sorting options are an important part of everyday responsibility. During the summer, we visited the waste disposal facilities of Lumo houses to ensure that our residents have up-to-date sorting instructions and sorting options that support proper recycling.
The European Public Real Estate Association (EPRA) has awarded Kojamo's financial statements and sustainability report for 2023 with the highest possible recognition, a gold award. The assessment compares the companies' reporting with EPRA's reporting standards and best practices recommendations. We aim at high quality and comprehensive reporting going forward as well.
In 2024, we participated in the real estate sector's international GRESB Sustainability Assessment for the fifth time and achieved a good result: 74 out of 100 points, the Green Star recognition, and two stars. We performed particularly well in sections related to measuring and management of social responsibility. High scores were also achieved in areas related to sustainability management, risk management and stakeholder engagement.
We conducted an annual survey among our residents to find out their views on the sustainability of Lumo living. 79% of respondents felt that Lumo is a sustainable or extremely sustainable landlord. The proportion of respondents who consider their landlord sustainable increased significantly from the previous year, and the importance of safety in housing was emphasised in the residents' responses. The work on the themes important to our residents will continue in the coming year.
Near-term risks and uncertainties
Kojamo estimates that the most significant near-term risks and uncertainties arise from the uncertain situation in property markets and the development of housing demand-supply situation. Although urbanisation is expected to continue in the longer term, there is uncertainty with the recovery of the property market. The oversupply of rental apartments may continue in the main areas in which Kojamo operates, and the changes in supply and demand could have an impact on Kojamo's rents, tenant turnover or the financial occupancy rate and, thereby, rental income.
Geopolitical tensions, including Russia's war of aggression in Ukraine and the conflict in the Middle East, continue to cause economic uncertainty. The future trade policy of the United States may also have broader implications for the global economy, accelerating inflation and affecting central banks' interest rate decisions. These factors can also have impacts on Finnish housing and property markets, including apartment prices, rents and yield requirements as well as on the operations of the construction companies. The increased costs and persistently high loan interest rates may affect Kojamo's result and cash flow as well as the fair value of apartments.
Hallituksen toimintakertomus ja tilinpäätös The development of the Finnish economy may affect the housing and financial markets as well as the demand of rental apartments. These factors may have an impact on Kojamo's
profit and cash flow as well as the fair value of apartments. A general downturn may lead to unemployment and reduce household purchasing power, which in turn may affect the ability of residents to pay rent and, subsequently, the company's rental income.
The weakening of the property and financial markets or the increase of market interest rates may lower Kojamo's credit rating and increase the price of financing as well as weaken financial key figures. These factors may affect Kojamo's profit and cash flow as well as the fair value of the apartments.
Cyber attacks and various other data security threats have generally increased. These data security breaches could impact Kojamo's business operations and the reliability of information systems.
Kojamo's most significant risks are described in more detail in the report on non-financial information.
Proposal by the Board of Directors for the distribution of profits
The parent company Kojamo plc's distributable unrestricted equity on 31 Dec 2024 was EUR 155,176,224.36, of which the loss for the financial year amounted to EUR -645,904.19. No significant changes have taken place in the company's financial position since the end of the financial year.
The company's Board of Directors proposes to the Annual General Meeting in the spring of 2025 that no dividend be paid for 2024.
Helsinki, 13 February 2025
Kojamo plc Board of Directors
Further information:
Niina Saarto, Director, Treasury & Investor Relations, Kojamo plc, tel. +358 20 508 3283
Erik Hjelt, Interim CEO, Kojamo plc, tel. +358 20 508 3225
Events after the review period
There were no significant events after the review period.
News conference and webcast
Hallituksen toimintakertomus ja tilinpäätös
Kojamo will hold a news conference for institutional investors, analysts and media on 13 February 2025 at 10:00 a.m. EET at its headquarters at Mannerheimintie 168A, Helsinki, Finland. The event will be held in English. After the event, the media has a possibility to ask questions also in Finnish.
The event can be followed as a live webcast. No registration for the webcast in advance is needed. The event will be accessible at https://kojamo.videosync.fi/q4-2024.
It is also possible to join the news conference via phone. Accessing the teleconference requires registration by clicking the following link: https://player.videosync.fi/kojamo/q4- 2024/dial-in. After the registration you will be provided phone numbers and a conference ID to access the conference.
A recording of the webcast will be available later at the company's website at https://kojamo.fi/en/investors/releases-and-publications/financial-reports/.
Key figures
| Formula | 10–12/2024 | 10–12/2023 | 2024 | 2023 |
|---|---|---|---|---|
| Total revenue, M€ | 113.6 | 113.5 | 452.4 | 442.2 |
| Net rental income, M€ 1 |
74.4 | 75.5 | 302.9 | 297.2 |
| Net rental income margin, % 2 |
65.5 | 66.5 | 66.9 | 67.2 |
| Profit/loss before taxes, M€ 3 |
40.7 | -119.5 | 26.3 | -112.3 |
| EBITDA, M€ 4 |
68.3 | -94.8 | 131.3 | -39.9 |
| EBITDA margin, % 5 |
60.1 | -83.5 | 29.0 | -9.0 |
| Adjusted EBITDA, M€ 6 |
64.5 | 63.3 | 266.2 | 255.1 |
| Adjusted EBITDA margin, % 7 |
56.7 | 55.8 | 58.8 | 57.7 |
| Funds From Operations (FFO), M€ 8 |
34.5 | 38.3 | 148.2 | 167.2 |
| FFO margin, % 9 |
30.3 | 33.7 | 32.8 | 37.8 |
| Funds From Operations (FFO) per share, € 10 |
0.14 | 0.15 | 0.60 | 0.68 |
| FFO excluding non-recurring costs, M€ 11 |
35.2 | 38.3 | 149.0 | 167.2 |
| Adjusted Funds From Operations (AFFO), M€ 12 |
32.9 | 32.2 | 144.1 | 140.5 |
| Investment properties, M€ | 7,960.0 | 8,038.8 | ||
| Financial occupancy rate, % 26 |
91.5 | 93.0 | ||
| Interest-bearing liabilities, M€ 13 |
3,827.9 | 3,600.4 | ||
| Return on equity, % (ROE) 14 |
0.6 | -2.4 | ||
| Return on investment, % (ROI) 15 |
2.0 | -0.4 | ||
| Equity ratio, % 16 |
43.2 | 44.5 | ||
| Loan to Value (LTV), % 17 |
43.9 | 44.6 | ||
| Unencumbered asset ratio, % 18 |
71.5 | 74.7 | ||
| Coverage ratio 19 |
2.6 | 3.6 | ||
| Solvency ratio 20 |
0.42 | 0.44 | ||
| Secured solvency ratio 21 |
0.17 | 0.10 | ||
| Earnings per share, € | 0.13 | -0.38 | 0.09 | -0.36 |
| Dividend/share, € ¹⁾ | - | - | ||
| Dividend/earnings, % 22 |
- | - | ||
| Price/Earnings ratio (P/E) 23 |
104.3 | - | ||
| Effective dividend yield, % 24 |
- | - | ||
| Equity per share, € | 14.68 | 14.67 | ||
| Gross investments, M€ 25 |
31.3 | 29.5 | 52.8 | 190.7 |
| Number of personnel, end of the accounting period | 256 | 288 |
Hallituksen toimintakertomus ja tilinpäätös
¹⁾ 2024: The Board of Directors proposes to the Annual General Meeting that no dividend be paid
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
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 margin, % = Net rental income x 100 Total revenue This figure reflects the ratio between net rental income and total revenue. Net rental income - Administrative expenses + Other operating income - Other operating expenses +/- Profit/loss on sales of 3) Profit/loss before taxes = investment properties +/- Profit/loss on sales of trading properties +/- Profit/loss on fair value of investment properties - Depreciation, amortisation and impairment losses +/- Financial income and expenses +/- Share of result from associated companies Profit/loss before taxes measures profitability after operative costs and financial expenses. 4) EBITDA = Profit/loss for the period + Depreciation, amortisation and impairment losses -/+ Financial income and expenses -/+ Share of result from associated companies + Current tax expense + Change in deferred taxes EBITDA measures operative profitability before financial expenses, taxes and depreciation. 5) EBITDA margin, % = EBITDA x 100 Total revenue EBITDA margin discloses EBITDA in relation to net sales. Profit/loss for the period + Depreciation, amortisation and impairment losses -/+ Profit/loss on sales of investment properties 6) Adjusted EBITDA = -/+ Profit/loss on sales of trading properties -/+ Profit/loss on sales of other non-current assets -/+ Profit/loss on fair value of investment properties 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.
Hallituksen toimintakertomus ja tilinpäätös
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.
| 7) | Adjusted EBITDA margin, % | = | Adjusted EBITDA x 100 |
|---|---|---|---|
| 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. |
|||
| 9) | FFO margin, % | = | FFO x 100 |
| Total revenue | |||
| 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. | |||
| (Profit before taxes + Interests and other financial expenses) (annualised) | |||
| 15) | Return on investment, % (ROI) | = | x 100 (Total assets - Non-interest-bearing liabilities), average during the period |
| ROI measures the financial result in relation to invested capital. This APM illustrates Kojamo's ability to generate a return on the invested funds. |
| 16) | Equity ratio, % | = | Total equity x 100 Balance sheet total - Advances received 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 struc ture. |
|---|---|---|---|
| 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 ratio, % | = | Unencumbered assets x 100 Assets total This APM illustrates the amount of unencumbered assets relative to total assets. |
| 19) | Coverage ratio | = | Adjusted EBITDA, rolling 12 months Adjusted net financial expenses, rolling 12 months 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) | Dividend/earnings, % | = | Dividend per share x 100 Earnings per share Dividend/earnings measures the ratio of dividends to earnings. This APM illustrates how large a proportion of its earnings the Group distributes to its shareholders. |
| 23) | Price/Earnings ratio (P/E) | = | Closing price of the share Earnings per share The P/E ratio illustrates the ratio between the share price and earnings per share. This APM illustrates the share's payback period based on the closing price and current earnings. |
| Dividend per share | ||||
|---|---|---|---|---|
| 24) | Effective dividend yield, % | = | Closing price of the share | x 100 |
| Effective dividend yield illustrates the ratio between earnings per share and the share price. | ||||
| 25) | 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. | ||||
| Other performance measures | ||||
| 26) | Financial occupancy rate, % | = | Rental income | x 100 |
Potential rental income at full occupancy
Reconciliation of key figures
| M€ | 10–12/2024 | 10–12/2023 | 2024 | 2023 |
|---|---|---|---|---|
| Profit/loss for the period | 32.7 | -94.7 | 21.2 | -89.0 |
| Depreciation, amortisation and impairment losses | 0.3 | 0.3 | 1.2 | 1.3 |
| Profit/loss on sales of investment properties | 0.0 | -0.3 | 0.8 | -0.2 |
| Profit/loss on sales of other non-current assets | - | -0.2 | 0.0 | -0.2 |
| Profit/loss on fair value of investment properties | -3.9 | 158.7 | 134.0 | 295.4 |
| Financial income | -3.8 | -0.4 | -15.7 | -13.5 |
| Financial expenses | 31.2 | 24.9 | 119.4 | 84.8 |
| Share of result from associated companies | 0.0 | -0.1 | 0.0 | -0.1 |
| Current tax expense | 2.7 | 1.6 | 13.5 | 16.5 |
| Change in deferred taxes | 5.2 | -26.4 | -8.4 | -39.8 |
| Adjusted EBITDA | 64.5 | 63.3 | 266.2 | 255.1 |
| Financial income and expenses | -27.4 | -24.4 | -103.8 | -71.3 |
| Profit/loss on fair value measurement of financial assets | 0.0 | 1.4 | -0.6 | -0.2 |
| Adjusted net interest charges | -27.4 | -23.0 | -104.4 | -71.5 |
| Current tax expense | -2.7 | -1.6 | -13.5 | -16.5 |
| Current taxes from disposals | 0.2 | -0.4 | 0.0 | 0.1 |
| FFO | 34.5 | 38.3 | 148.2 | 167.2 |
| Non-recurring costs | 0.8 | - | 0.8 | - |
| FFO excluding non-recurring costs | 35.2 | 38.3 | 149.0 | 167.2 |
| M€ | 2024 | 2023 |
|---|---|---|
| Equity | 3,629.2 | 3,625.9 |
| Assets total | 8,405.5 | 8,158.3 |
| Advances received | -7.5 | -6.2 |
| Equity ratio, % | 43.2 | 44.5 |
| Unencumbered investment properties | 5,504.5 | 5,918.2 |
| Non-current assets, other than investment properties | 119.4 | 125.7 |
| Current assets | 383.2 | 46.9 |
| Unencumbered assets total | 6,007.0 | 6,090.8 |
| Total assets | 8,405.5 | 8,158.3 |
| Unencumbered asset ratio, % | 71.5 | 74.7 |
| M€ | 2024 | 2023 |
|---|---|---|
| Adjusted EBITDA, rolling 12 months | 266.2 | 255.1 |
| Adjusted net interest charges, rolling 12 months | -104.4 | -71.5 |
| Coverage ratio | 2.6 | 3.6 |
| Interest-bearing liabilities | 3,827.9 | 3,600.4 |
| Deferred purchase price due after 90 days | 16.7 | - |
| Cash and cash equivalents | 333.6 | 15.0 |
| Total indebtedness - Cash and cash equivalents |
3,511.0 | 3,585.5 |
| Total assets | 8,405.5 | 8,158.3 |
| Solvency ratio | 0.42 | 0.44 |
| Secured loans | 1,399.8 | 839.3 |
| Total assets | 8,405.5 | 8,158.3 |
| Secured solvency ratio | 0.17 | 0.10 |
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
EPRA performance measures
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.
| 10–12/2024 | 10–12/2023 | 2024 | 2023 | |
|---|---|---|---|---|
| EPRA Earnings, M€ | 34.2 | 38.0 | 145.5 | 159.9 |
| EPRA Earnings per share (EPS), € | 0.14 | 0.15 | 0.59 | 0.65 |
| EPRA Net Reinstatement Value (NRV), M€ | 4,573.4 | 4,558.8 | ||
| EPRA NRV per share, € | 18.51 | 18.45 | ||
| EPRA Net Initial Yield (NIY), % | 3.8 | 4.0 | ||
| EPRA 'topped-up' NIY, % | 3.8 | 4.0 | ||
| EPRA Vacancy Rate, % | 8.5 | 7.1 | ||
| EPRA Cost Ratio (including direct vacancy costs), % | 12.1 | 14.7 | 10.2 | 12.7 |
| EPRA Cost Ratio (excluding direct vacancy costs), % | 7.5 | 11.5 | 5.8 | 9.2 |
EPRA Earnings
| M€ | 10–12/2024 | 10–12/2023 | 2024 | 2023 |
|---|---|---|---|---|
| Earnings per IFRS income statement | 32.7 | -94.7 | 21.2 | -89.0 |
| (i) Change in value of investment properties, development properties held for investment and other interests |
-3.9 | 158.7 | 134.0 | 295.4 |
| (ii) Profits or losses on disposal of investment properties, development properties held for investment and other interests |
0.0 | -0.5 | 0.8 | -0.4 |
| (iv) Tax on profits or losses on disposals | 0.2 | -0.4 | 0.0 | -0.2 |
| (vi) Changes in fair value of financial instruments | - | 1.3 | -0.7 | 0.9 |
| (vi) Early close-out costs/gains of financial instrument and debt | - | - | -1.8 | -8.7 |
| (viii) Deferred tax in respect of EPRA adjustments | 5.2 | -26.4 | -8.1 | -38.1 |
| EPRA Earnings | 34.2 | 38.0 | 145.5 | 159.9 |
| Average number of shares, million | 247.1 | 247.1 | 247.1 | 247.1 |
| EPRA Earnings per share (EPS), € | 0.14 | 0.15 | 0.59 | 0.65 |
EPRA Net Reinstatement Value
| M€ | 2024 | 2023 |
|---|---|---|
| IFRS Equity attributable to shareholders | 3,629.2 | 3,625.9 |
| Diluted NAV | 3,629.2 | 3,625.9 |
| Diluted NAV at Fair Value | 3,629.2 | 3,625.9 |
| Exclude: | ||
| (v) Deferred tax in relation to fair value gains | 815.5 | 825.4 |
| (vi) Fair value of financial instruments | 9.3 | -13.1 |
| Include: | ||
| (xi) Real estate transfer tax | 119.4 | 120.6 |
| EPRA Net Reinstatement Value (NRV) | 4,573.4 | 4,558.8 |
| Number of shares, million | 247.1 | 247.1 |
| EPRA NRV per share, € | 18.51 | 18.45 |
EPRA Vacancy Rate
| M€ | 2024 | 2023 | |
|---|---|---|---|
| Estimated rental value of vacant space * | A | 39.4 | 31.3 |
| Estimated rental value of the whole portfolio * | B | 462.5 | 444.4 |
| EPRA Vacancy Rate, % | A/B | 8.5 | 7.1 |
* Including rental value of apartments
Hallituksen toimintakertomus ja tilinpäätös
EPRA Net Initial Yield (NIY) and EPRA "topped-up" NIY
| M€ | 2024 | 2023 | |
|---|---|---|---|
| Investment property | 7,960.0 | 8,038.8 | |
| Developments | -110.1 | -179.8 | |
| Completed property portfolio | 7,849.8 | 7,859.0 | |
| Allowance for estimated purchasers' costs | 117.7 | 117.9 | |
| Gross up completed property portfolio valuation | B | 7,967.6 | 7,976.9 |
| Annualised cash passing rental income | 453.9 | 464.2 | |
| Property outgoings | -151.4 | -146.7 | |
| Annualised net rents | A | 302.5 | 317.5 |
| Notional rent expiration of | |||
| rent-free periods or other lease incentives | - | - | |
| Topped-up net annualised rent | C | 302.5 | 317.5 |
| EPRA Net Initial Yield (NIY), % | A/B | 3.8 | 4.0 |
| EPRA 'topped-up' NIY, % | C/B | 3.8 | 4.0 |
EPRA Cost Ratios
| M€ | 10–12/2024 | 10–12/2023 | 2024 | 2023 |
|---|---|---|---|---|
| Include: | ||||
| (i) Administrative expense line per IFRS income statement | 11.1 | 13.2 | 39.4 | 45.6 |
| (i) Maintenance expense line per IFRS income statement | 31.7 | 30.0 | 125.5 | 115.7 |
| (i) Repair expense line per IFRS income statement | 7.5 | 8.0 | 24.1 | 29.3 |
| (ii) Net service charge costs/fees | -4.4 | -4.1 | -17.4 | -15.8 |
| (iii) Management fees less actual/estimated profit element | -0.1 | 0.0 | -0.2 | -0.2 |
| (iv) Other operating income/recharges intended to cover overhead expenses less any related profits | -0.1 | -0.1 | -0.3 | -0.3 |
| Exclude: | ||||
| (vii) Ground rent costs | -0.2 | -0.1 | 0.0 | -0.1 |
| (viii) Service charge costs recovered through rents but not separately invoiced | -36.9 | -36.1 | -141.2 | -137.5 |
| EPRA Costs (including direct vacancy costs) A |
8.7 | 10.7 | 29.8 | 36.7 |
| (ix) Direct vacancy costs | -3.3 | -2.3 | -12.8 | -10.2 |
| EPRA Costs (excluding direct vacancy costs) B |
5.4 | 8.4 | 17.0 | 26.5 |
| (x) Gross Rental Income less ground rent costs - per IFRS |
108.9 | 109.2 | 434.3 | 425.7 |
| (xi) Service fee and service charge costs components of Gross Rental Income | -36.9 | -36.1 | -141.2 | -137.5 |
| Gross Rental Income C |
72.0 | 73.0 | 293.1 | 288.1 |
| EPRA Cost Ratio (including direct vacancy costs), % A/C |
12.1 | 14.7 | 10.2 | 12.7 |
| EPRA Cost Ratio (excluding direct vacancy costs), % B/C |
7.5 | 11.5 | 5.8 | 9.2 |
Condensed consolidated income statement
| M€ Note |
10–12/2024 | 10–12/2023 | 1–12/2024 | 1–12/2023 |
|---|---|---|---|---|
| Total revenue | 113.6 | 113.5 | 452.4 | 442.2 |
| Maintenance expenses | -31.7 | -30.0 | -125.5 | -115.7 |
| Repair expenses | -7.5 | -8.0 | -24.1 | -29.3 |
| Net rental income | 74.4 | 75.5 | 302.9 | 297.2 |
| Administrative expenses | -11.1 | -13.2 | -39.4 | -45.6 |
| Other operating income | 1.2 | 1.4 | 3.9 | 4.0 |
| Other operating expenses | 0.0 | -0.2 | -1.3 | -0.3 |
| Profit/loss on sales of investment properties | 0.0 | 0.3 | -0.8 | 0.2 |
| Profit/loss on fair value of investment properties 3 |
3.9 | -158.7 | -134.0 | -295.4 |
| Depreciation, amortisation and impairment losses | -0.3 | -0.3 | -1.2 | -1.3 |
| Operating profit/loss | 68.0 | -95.2 | 130.1 | -41.1 |
| Financial income | 3.8 | 0.4 | 15.7 | 13.5 |
| Financial expenses | -31.2 | -24.9 | -119.4 | -84.8 |
| Total amount of financial income and expenses | -27.4 | -24.4 | -103.8 | -71.3 |
| Share of result from associated companies | 0.0 | 0.1 | 0.0 | 0.1 |
| Profit/loss before taxes | 40.7 | -119.5 | 26.3 | -112.3 |
| Current tax expense | -2.7 | -1.6 | -13.5 | -16.5 |
| Change in deferred taxes | -5.2 | 26.4 | 8.4 | 39.8 |
| Profit/loss for the period | 32.7 | -94.7 | 21.2 | -89.0 |
| Profit/loss for the financial period attributable to | ||||
| shareholders of the parent company | 32.7 | -94.7 | 21.2 | -89.0 |
| Other comprehensive income | ||||
| Items that may be reclassified subsequently to profit or loss | ||||
| Cash flow hedges | -1.5 | -39.1 | -23.2 | -39.8 |
| Deferred taxes | 0.3 | 7.8 | 4.6 | 8.0 |
| Items that may be reclassified subsequently to profit or loss | -1.2 | -31.3 | -18.6 | -31.8 |
| Total comprehensive income for the period | 31.5 | -126.0 | 2.6 | -120.8 |
| Total comprehensive income attributable to | ||||
| shareholders of the parent company | 31.5 | -126.0 | 2.6 | -120.8 |
| Earnings per share based on profit attributable to shareholders of the parent company | ||||
| Basic, € | 0.13 | -0.38 | 0.09 | -0.36 |
| Diluted, € | 0.13 | -0.38 | 0.09 | -0.36 |
| Average number of shares, million 8 |
247.1 | 247.1 | 247.1 | 247.1 |
Condensed consolidated balance sheet
| M€ | Note | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Intangible assets | 0.5 | 0.6 | |
| Investment properties | 3 | 7,960.0 | 8,038.8 |
| Property, plant and equipment | 4 | 27.4 | 28.0 |
| Investments in associated companies | 2.2 | 2.0 | |
| Financial assets | 7 | 0.8 | 0.8 |
| Non-current receivables | 6.4 | 6.5 | |
| Derivatives | 6, 7 | 15.3 | 29.8 |
| Deferred tax assets | 9.9 | 4.9 | |
| Total non-current assets | 8,022.3 | 8,111.4 | |
| Current assets | |||
| Derivatives | 6, 7 | 0.6 | 0.6 |
| Current tax assets | 9.4 | 11.1 | |
| Trade and other receivables | 14.6 | 17.0 | |
| Financial assets | 7 | 24.9 | 3.3 |
| Cash and cash equivalents | 333.6 | 15.0 | |
| Total current assets | 383.2 | 46.9 | |
| Total assets | 8,405.5 | 8,158.3 |
| M€ Note |
31 Dec 2024 | 31 Dec 2023 | |
|---|---|---|---|
| Shareholders' equity and liabilities | |||
| Equity attributable to shareholders of the parent company | |||
| Share capital | 58.0 | 58.0 | |
| Share issue premium | 35.8 | 35.8 | |
| Fair value reserve | -7.4 | 11.2 | |
| Invested non-restricted equity reserve | 164.4 | 164.4 | |
| Retained earnings | 3,378.3 | 3,356.4 | |
| Equity attributable to shareholders of the parent company | 3,629.2 | 3,625.9 | |
| Total equity | 3,629.2 | 3,625.9 | |
| Liabilities | |||
| Non-current liabilities | |||
| Loans and borrowings | 5, 7 | 3,338.9 | 3,007.2 |
| Deferred tax liabilities | 821.2 | 829.3 | |
| Derivatives | 6, 7 | 25.1 | 17.3 |
| Provisions | - | 0.1 | |
| Other non-current liabilities | 4.4 | 4.9 | |
| Total non-current liabilities | 4,189.6 | 3,858.9 | |
| Current liabilities | |||
| Loans and borrowings | 5, 7 | 489.0 | 593.2 |
| Derivatives | 6, 7 | 0.0 | - |
| Current tax liabilities | 11.5 | 4.9 | |
| Trade and other payables | 86.1 | 75.4 | |
| Total current liabilities | 586.6 | 673.5 | |
| Total liabilities | 4,776.2 | 4,532.4 | |
| Total equity and liabilities | 8,405.5 | 8,158.3 |
Consolidated statement of cash flows
| M€ | 1–12/2024 | 1–12/2023 |
|---|---|---|
| Cash flow from operating activities | ||
| Profit for the period | 21.2 | -89.0 |
| Adjustments | 246.3 | 345.0 |
| Change in net working capital | ||
| Change in trade and other receivables | 1.1 | -0.5 |
| Change in trade and other payables | 2.7 | -0.6 |
| Interest paid | -109.5 | -79.4 |
| Interest received | 5.0 | 2.3 |
| Other financial items | -3.3 | -3.4 |
| Taxes paid | -5.3 | -21.2 |
| Net cash flow from operating activities | 158.2 | 153.3 |
| Cash flow from investing activities | ||
| Acquisition of investment properties | -43.5 | -201.3 |
| Acquisition of associated companies | -0.2 | -0.6 |
| Acquisition of property, plant and equipment and intangible assets | -0.1 | -0.3 |
| Proceeds from sale of investment properties | 1.6 | 5.1 |
| Proceeds from sale of associated companies | 0.0 | 0.3 |
| Purchases of financial assets | -189.7 | -55.0 |
| Proceeds from sale of financial assets | 169.3 | 157.1 |
| Non-current loans, granted | -0.1 | 0.0 |
| Repayments of non-current loan receivables | 0.2 | 0.2 |
| Interest and dividends received on investments | 8.7 | 0.9 |
| Net cash flow from investing activities | -53.8 | -93.6 |
| M€ | 1–12/2024 | 1–12/2023 |
|---|---|---|
| Cash flow from financing activities | ||
| Non-current loans and borrowings, raised | 831.8 | 500.0 |
| Non-current loans and borrowings, repayments | -570.2 | -574.5 |
| Current loans and borrowings, raised | 19.8 | 135.8 |
| Current loans and borrowings, repayments | -65.4 | -127.2 |
| Repayments of lease liabilities | -1.8 | -1.8 |
| Dividends paid | - | -96.4 |
| Net cash flow from financing activities | 214.2 | -164.1 |
| Change in cash and cash equivalents | 318.7 | -104.4 |
| Cash and cash equivalents at the beginning of the period | 15.0 | 119.4 |
| Cash and cash equivalents at the end of the period | 333.6 | 15.0 |
Condensed consolidated statement of changes in equity
| Reserve for | Equity attribut | ||||||
|---|---|---|---|---|---|---|---|
| invested | able to share | ||||||
| Share issue | Fair value | unrestricted | Retained | holders of the | Total | ||
| M€ | Share Capital | premium | reserve | equity | earnings | parent company | Equity |
| Equity at 1 Jan 2024 | 58.0 | 35.8 | 11.2 | 164.4 | 3,356.4 | 3,625.9 | 3,625.9 |
| Comprehensive income | |||||||
| Cash flow hedging | -18.6 | -18.6 | -18.6 | ||||
| Profit for the period | 21.2 | 21.2 | 21.2 | ||||
| Total comprehensive income for the period | -18.6 | 21.2 | 2.6 | 2.6 | |||
| Transactions with shareholders | |||||||
| Share-based incentive scheme | 0.7 | 0.7 | 0.7 | ||||
| Total transactions with shareholders | 0.7 | 0.7 | 0.7 | ||||
| Total change in equity | -18.6 | 21.9 | 3.3 | 3.3 | |||
| Equity at 31 Dec 2024 | 58.0 | 35.8 | -7.4 | 164.4 | 3,378.3 | 3,629.2 | 3,629.2 |
| Reserve for | Equity attribut | ||||||
|---|---|---|---|---|---|---|---|
| invested | able to share | ||||||
| Share issue | Fair value | unrestricted | Retained | holders of the | Total | ||
| M€ | Share Capital | premium | reserve | equity | earnings | parent company | Equity |
| Equity at 1 Jan 2023 |
58.0 | 35.8 | 43.0 | 164.4 | 3,541.4 | 3,842.7 | 3,842.7 |
| Comprehensive income | |||||||
| Cash flow hedging | -31.8 | -31.8 | -31.8 | ||||
| Profit for the period | -89.0 | -89.0 | -89.0 | ||||
| Total comprehensive income for the period | -31.8 | -89.0 | -120.8 | -120.8 | |||
| Transactions with shareholders | |||||||
| Share-based incentive scheme | 0.4 | 0.4 | 0.4 | ||||
| Dividend payment | -96.4 | -96.4 | -96.4 | ||||
| Total transactions with shareholders | -96.0 | -96.0 | -96.0 | ||||
| Total change in equity | -31.8 | -185.0 | -216.8 | -216.8 | |||
| Equity at 31 Dec 2023 |
58.0 | 35.8 | 11.2 | 164.4 | 3,356.4 | 3,625.9 | 3,625.9 |
Condensed notes to the consolidated financial statements
Basic information about the Group
Kojamo plc is Finland's largest market-based, private housing investment company that offers rental apartments and housing services in Finnish growth centres. Its range of apartments is extensive. On 31 Dec 2024, Kojamo owned 40,973 rental apartments across Finland.
The Group's parent company, Kojamo plc, is a Finnish public company domiciled in Helsinki. Its registered address is Mannerheimintie 168, 00300 Helsinki, Finland. A copy of the consolidated financial statements is available at www.kojamo.fi/en/ or the parent company's head office.
Trading in Kojamo's shares commenced on the pre-list of Nasdaq Helsinki on 15 June 2018 and on the official list of 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 four 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 Financial Statement Release for publication at its meeting on 13 February 2025. Kojamo's Financial Statements and the Report of the Board of Directors as well as Corporate Governance Statement and Remuneration Report 2024will be published as a stock exchange release on 13 February 2025, since when the documents are available at Kojamo's website at www.kojamo.fi/en/.
1. Accounting policies
Basis for preparation
This 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 financial statements release have not been audited.
The figures for 2024 are based on Kojamo plc's audited financial statements for 2024. The figures in brackets refer to the corresponding period in 2023, and the comparison period is the corresponding period the year before, unless otherwise stated.
Hallituksen toimintakertomus ja tilinpäätös The preparation of the financial statements release in accordance with IFRS requires application of judgement by Kojamo's management to make estimates and assumptions that
affect the reported amounts of assets and liabilities on the balance sheet date and the reported amounts of income and expenses for the period. Management must also make judgements when applying the Group's accounting policies. Actual results may differ from the estimates and assumptions used. The most significant items of this financial statements 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 financial year, are the same as those presented in the consolidated financial statements for the 2024 financial year. Of these, the most important are the determination of the fair values of investment properties and financial instruments.
2. Specification of revenue
| M€ | 1–12/2024 | 1–12/2023 |
|---|---|---|
| Revenue from lease agreements | 451.9 | 441.7 |
| Other income from revenue | 0.5 | 0.5 |
| Total revenue | 452.4 | 442.2 |
Specification of revenue from lease agreements
| M€ | 1–12/2024 | 1–12/2023 |
|---|---|---|
| Rental income | 434.3 | 425.7 |
| Water fees | 16.6 | 15.0 |
| Sauna fees | 0.8 | 0.8 |
| Other income from service sales | 0.2 | 0.2 |
| Total | 451.9 | 441.7 |
Revenue consists primarily of rental income based on tenancy agreements. In the Group's business, the scope of IFRS 15 includes maintenance and service revenue, which include usebased charges collected from tenants.
3. Investment properties
| M€ | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Fair value of investment properties on 1 Jan | 8,038.8 | 8,150.2 |
| Acquisition of investment properties | 52.9 | 165.1 |
| Modernisation investments | 4.1 | 26.7 |
| Disposals of investment properties | -2.5 | -12.0 |
| Capitalised borrowing costs | 0.6 | 4.2 |
| Transfer from financial assets | 0.0 | - |
| Profit/loss on fair value of investment properties | -134.0 | -295.4 |
| Fair value of investment properties at the end of the period | 7,960.0 | 8,038.8 |
¹⁾ Includes leases for plots of land. The net result on the valuation of investment properties at fair value was mainly attributable to changes in yields.
²⁾ Includes the existing apartment stock and the acquisition costs of new projects under construction
Profit/loss on fair value of investment properties
| M€ | 1–12/2024 | 1–12/2023 |
|---|---|---|
| Changes in yield requirement | -165.9 | -815.5 |
| Change in net rental income | -6.4 | 305.9 |
| Changes in inflation, rents and expense growth assumptions | - | 181.7 |
| Other | 38.3 | 32.5 |
| Profit/loss on fair value of investment properties | -134.0 | -295.4 |
Right-of-use assets included in the fair values of investment properties (plots of land)
| M€ | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Fair value on 1 Jan | 77.8 | 73.8 |
| Increases/decreases | 4.8 | 5.2 |
| Profit/loss on fair value of investment properties | -1.4 | -1.3 |
| Fair value at the end of the period | 81.2 | 77.8 |
Modernisation investments are often significant and they are primarily related to repairs and renovations of plumbing, facades, roofs, windows and balconies. The expected average technical useful lives of the plumbing systems, facades, roofs and balconies of residential properties are taken into consideration in the planning of modernisation investments.
Capitalised borrowing costs totalled EUR 0.6 (4.2) million. The interest rate applied to capitalised borrowing costs was 3.4 (2.5) per cent.
Fair value of investment properties by valuation method
| M€ | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Yield value | 7,685.9 | 7,656.3 |
| Acquisition cost | 192.9 | 304.7 |
| Right-of-use assets (plots of land) | 81.2 | 77.8 |
| Total | 7,960.0 | 8,038.8 |
| Number of apartments | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Yield value | 40,598 | 39,390 |
| Acquisition cost ¹⁾ | 375 | 1,229 |
| Total | 40,973 | 40,619 |
¹⁾ Includes 4 apartments as part of development projects
Average valuation parametres
| 31 Dec 2024 | 31 Dec 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| Capital | Other regions | Group | Other regions | Group | ||||
| region | of Finland | total | region | of Finland | total | |||
| Unobservable inputs: | ||||||||
| Yield requirement cash flow, weighted, % * | 4.23 | 5.11 | 4.51 | 4.11 | 5.00 | 4.40 | ||
| Exit capitalisation rate, weighted, % * | 4.38 | 5.26 | 4.66 | 4.26 | 5.15 | 4.55 | ||
| Cash flow discount rate, weighted, % * | 6.23 | 7.11 | 6.51 | 6.11 | 7.00 | 6.40 | ||
| Inflation assumption, % | 2.0 | 2.0 | 2.0 | 2.0 | 2.0 | 2.0 | ||
| Market rents, weighted by square metres, €/m²/month | 20.47 | 16.08 | 18.48 | 20.55 | 16.13 | 18.54 | ||
| Property maintenance expenses, repairs and modernisation investments €/m²/month | 6.69 | 6.41 | 6.56 | 6.67 | 6.41 | 6.56 | ||
| 10-year average financial occupancy rate, % | 97.5 | 96.6 | 97.2 | 97.5 | 96.6 | 97.2 | ||
| Rent increase assumption, % | 2.7 | 2.4 | 2.6 | 2.7 | 2.4 | 2.6 | ||
| Expense increase assumption, % | 2.5 | 2.5 | 2.5 | 2.5 | 2.5 | 2.5 |
* Yield requirement for net rental income
Climate-related matters have not had a significant impact on the fair value measurement of investment properties so far.
The sensitivity analysis presents the impact of changes in key parameters on the fair value of investment properties valued using the income value method when only one parameter is changed at a time. However, it is important to note that changes in the real estate market often affect multiple variables simultaneously.
Sensitivity analysis for measuring the fair value of investment properties
| Properties measured at yield value | 31 Dec 2024 | 31 Dec 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Change % (relative) | -10% | -5% | 0% | 5% | 10% | -10% | -5% | 0% | 5% | 10% |
| Change, M€ | ||||||||||
| Yield requirement | 866.7 | 410.4 | -370.9 | -707.8 | 860.3 | 407.3 | -368.2 | -702.7 | ||
| Market rents | -952.1 | -476.1 | 476.1 | 952.1 | -944.8 | -472.4 | 472.4 | 944.8 | ||
| Maintenance costs | 312.9 | 156.4 | -156.4 | -312.9 | 310.0 | 155.0 | -155.0 | -310.0 | ||
| Change % (absolute) | -2% | -1% | 0% | 1% | 2% | -2% | -1% | 0% | 1% | 2% |
| Change, M€ | ||||||||||
| Financial occupancy rate | -195.8 | -97.9 | 97.9 | 195.8 | -194.4 | -97.2 | 97.2 | 194.4 |
Fair value measurement of investment
Kojamo's fair value of investment properties is based on IFRS 13 Fair Value Measurement standard and IAS 40 Investment Property -standard. The valuation is carried out on quarterly basis and are reviewed by external independent valuation expert. The results of the assessment are reported to the Management Group, Audit Committee and Board of Directors. The measurement process, market conditions and other factors affecting the assessment of the fair value of properties are reviewed quarterly with the CEO and CFO in accordance with Kojamo's reporting schedule. Each quarter, an external independent expert issues a statement on the valuation methods applied in the valuation of rental apartments and business premises owned by Kojamo as well as on the quality and reliability of the valuation. A statement on the situation as at 31 Dec 2024 is available on Kojamo's website.
According to IFRS 13 Fair value Measurement -standard is the price that would be received to sell an asset or paid to transfer liability in an orderly transaction between market participants at the measurement date. However, determining the fair values of investment properties requires significant management estimates and assumptions especially when the level of transaction activity is significantly decreased. Estimates and assumptions are especially related to the yield requirements, occupancy rate and market rent levels. Kojamo strives to use as much relevant observable input data as possible and as little non-observable input data as possible.
The yield requirements are analysed quarterly in connection with the valuation. The yield requirements and other input data used are based on market observations and the best information available under current conditions. The information includes the opinion of an external independent expert as well as Kojamo's own information.
Fair value is the price that would be received from the sale of an asset or paid for the transfer of a liability between market parties in a normal transaction on the valuation date.
During the year, the number of transactions observed from the market is limited and the comparability of the transactions is weak. In addition, the transaction prices partly indicate that the sales have been highly motivated. The price indications of buyers appearing in the market are very opportunistic and therefore do not represent genuine price formation.
When deciding on the yield requirements used in the valuation in an environment where transaction data is limited, the company's management has taken into account the views of an external expert, the deals completed in the market, discussions with various market participants, interest rates and interest rate views, as well as the company's own information about the market and its real estate portfolio. The yield requirements have also been evaluated in relation to other valuation parameters and the 10-year calculation period. Most relevant other valuation parameters are inflation assumption, rent increase assumption and expense increase assumption, which the company's management has estimated based on the current market views.
Kojamo uses valuation techniques that are appropriate under those circumstances, and for which sufficient data is available to measure fair value.
Investment properties
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 comprehensive 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 propertyspecific 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
Hallituksen toimintakertomus ja tilinpäätös 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 either directly attributable costs accrued on the funds borrowed for a construction project or costs attributable to a construction project.
After initial recognition, investment property is measured at fair value and the changes in fair value are recognised through profit or loss in the period in which they are observed. Fair value gains and losses are presented netted as a separate line item in the comprehensive income statement. 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.
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
Hallituksen toimintakertomus ja tilinpäätös
Age of the property or the number of years since
| the completion of the most recent renovation | Provision (€/m²/month) |
|---|---|
| 0–10 years | 0.25 |
| 11–30 years | 1.00 |
| 31–40 years | 1.50 |
| >40 years | 2.00 |
Provisions for modernisation investments are used in 10-year discounted cash flow calculations.
Acquisition cost (balance sheet value)
The balance sheet value is used for the measurement of residential and commercial properties whose disposal price is restricted under the legislation governing state-subsidised rental properties, meaning that their disposal price cannot be determined freely. In addition, the setting of rents for such properties is, as a rule, based on the cost principle, which means that the rent levels cannot be determined freely.
The balance sheet value method is used to measure the value of properties that belong to the following restriction groups: ARAVA (state-subsidised rental properties), and 40-year interest subsidy.
The fair value of property development projects, the plot reserve and shares and holdings related to investment properties is their original acquisition cost.
Business combinations and asset acquisition
Acquisitions of investment properties by Kojamo are accounted for as an acquisition of asset or a group of assets, or a business combination within the scope of IFRS 3 Business Combinations. Reference is made to IFRS 3 to determine whether a transaction is a business combination. This requires the management's judgment
IFRS 3 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.
4. Property, plant and equipment
| M€ | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Carrying value, beginning of period | 28.0 | 28.4 |
| Increases | 0.3 | 0.7 |
| Depreciation for the period | -1.0 | -1.0 |
| Carrying value, end of period | 27.4 | 28.0 |
Property, plant and equipment consist of assets held and used by the company, mainly buildings and land areas, as well as machinery and equipment. The right-of-use asset item includes car leasing agreements in accordance with IFRS 16 Leases.
Right-of-use assets included in property, plant and equipment
| M€ | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Carrying value, beginning of period | 0.8 | 0.8 |
| Increases/decreases | 0.3 | 0.5 |
| Depreciation for the period | -0.4 | -0.5 |
| Carrying value, end of period | 0.7 | 0.8 |
5. Interest-bearing liabilities
| M€ | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Non-current liabilities | ||
| Bonds | 1,309.2 | 1,558.7 |
| Loans from financial institutions | 1,931.5 | 1,353.3 |
| Interest subsidy loans | 18.6 | 18.8 |
| Lease liability | 79.6 | 76.4 |
| Non-current liabilities total | 3,338.9 | 3,007.2 |
| Current liabilities | ||
| Bonds | 415.5 | 434.5 |
| Loans from financial institutions | 70.9 | 110.6 |
| Interest subsidy loans | 0.2 | 0.2 |
| Commercial papers | - | 39.7 |
| Other loans | 0.0 | 6.0 |
| Lease liability | 2.3 | 2.2 |
| Current liabilities total | 489.0 | 593.2 |
| Total interest-bearing liabilities | 3,827.9 | 3,600.4 |
The following financing arrangements were made during the financial year:
In January, Kojamo plc issued EUR 200 million unsecured green notes as a private placement. The new notes were issued under the company's EMTN programme as an increase to the company's notes maturing on 28 May 2029.
In March, Kojamo plc signed a new secured EUR 250 million term loan facility agreement linked to its sustainability targets with three relationship banks. The loan was drawn in June.
EUR 425 million loan signed in October 2023 was drawn in April.
In June, Kojamo plc repaid EUR 434.5 million bond.
In December, Kojamo plc signed a new unsecured EUR 150 million long-term credit facility agreement with SMBC Bank EU AG. The financing arrangement is linked to sustainability targets and consists of a EUR 100 million revolving credit facility and a EUR 50 million term loan, which remained undrawn at the end of the financial year.
6. Derivative instuments
Fair values of derivative instruments
| 31 Dec | 31 Dec 2023 | |||
|---|---|---|---|---|
| M€ | Positive | Negative | Net | Net |
| Interest rate derivatives | ||||
| Interest rate swaps, cash flow hedging | 15.9 | -25.1 | -9.3 | 13.8 |
| Interest rate swaps, not in hedge account ing |
- | - | - | -0.7 |
| Total | 15.9 | -25.1 | -9.3 | 13.1 |
Nominal values of derivative instruments
Hallituksen toimintakertomus ja tilinpäätös
| M€ | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Interest rate derivatives | ||
| Interest rate swaps, cash flow hedging | 1,703.1 | 1,141.0 |
| Interest rate swaps, not in hedge accounting | - | 40.0 |
| Total | 1,703.1 | 1,180.9 |
During the financial year, EUR -23.2 (-39.8) million was recognised in the fair value reserve from interest rate derivatives classified as cash flow hedges. The interest rate derivatives mature between 2025 and 2035. At the end of the review period, the average maturity of interest rate swaps was 2.8 (3.7) years.
7. Financial assets and liabilities by valuation category
| 31 Dec 2024 | 31 Dec 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Carrying | Fair value | Carrying | Fair value | |||||||
| M€ | value total | Level 1 | Level 2 | Level 3 | total | value total | Level 1 | Level 2 | Level 3 | total |
| Financial assets | ||||||||||
| Measured at fair value | ||||||||||
| Interest rate derivatives | 15.9 | 15.9 | 15.9 | 30.4 | 30.4 | 30.4 | ||||
| Financial assets recognised at fair value | ||||||||||
| through profit or loss | 25.7 | 0.0 | 24.8 | 0.8 | 25.7 | 4.1 | 3.3 | - | 0.8 | 4.1 |
| Measured at amortised cost | ||||||||||
| Cash and cash equivalents | 333.6 | 333.6 | 333.6 | 15.0 | 15.0 | 15.0 | ||||
| Trade receivables | 7.2 | 7.2 | 7.5 | 7.5 | ||||||
| Financial liabilities | ||||||||||
| Measured at fair value | ||||||||||
| Interest rate derivatives | 25.1 | 25.1 | 25.1 | 17.3 | 17.3 | 17.3 | ||||
| Measured at amortised cost | ||||||||||
| Other interest-bearing liabilities | 2,103.2 | 2,105.0 | 2,105.0 | 1,607.3 | 1,604.7 | 1,604.7 | ||||
| Bonds | 1,724.7 | 1,690.8 | 1,690.8 | 1,993.2 | 1,831.5 | 1,831.5 | ||||
| Trade payables | 11.3 | 11.3 | 1.8 | 1.8 |
There were no transfers between the hierarchy levels in 2024. 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 longlasting. 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
Hallituksen toimintakertomus ja tilinpäätös
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 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Beginning of period | 0.8 | 0.7 |
| Change | 0.0 | 0.1 |
| End of period | 0.8 | 0.8 |
Investments measured at fair value through profit or loss on hierarchy level 3 are investments in unlisted securities and they are mainly measured at acquisition cost, as their fair value cannot be reliably measured in the absence of an active market. For these items, the acquisition cost is evaluated to be an appropriate estimate of fair value.
8. Earnings per share
| 1–12/2024 | 1–12/2023 | |
|---|---|---|
| Profit for the period attributable to shareholders | ||
| of the parent company, M€ | 21.2 | -89.0 |
| Weighted average number of shares during the period (million) | 247.1 | 247.1 |
| Earnings per share | ||
| Basic, € | 0.09 | -0.36 |
| Diluted, € | 0.09 | -0.36 |
The company has no diluting instruments.
9. Guarantees and commitments
| M€ | 31 Dec 2024 | 31 Dec 2023 |
|---|---|---|
| Loans covered by pledges on property and shares as collateral | 1,399.8 | 839.3 |
| Pledges given | 1,932.9 | 1,691.6 |
| Shares ¹⁾ | 395.0 | 293.2 |
| Pledged collateral, total | 2,327.9 | 1,984.9 |
| Other collaterals given | ||
| Mortgages and shares | 7.6 | 8.1 |
| Guarantees ²⁾ | 642.3 | 723.5 |
| Pledged deposits | 0.0 | 0.0 |
| Other collateral, total | 650.0 | 731.6 |
¹⁾ Pledged mortgages and shares relate in some cases to the same properties
²⁾ Guarantees given mainly relate to parent company guarantees given on behalf of Group companies' loans and some of these loans have also mortgages or shares as collaterals
10. Non-current assets held for sale
Kojamo had no non-current assets held for sale at 31 December 2024 or 31 December 2023.
11. Events after the review period
There were no significant events after the review period.