Kojamo Oyj

Quarterly Report • Feb 13, 2025

Financial Statements Release 2024 13 February 2025 Erik Hjelt, Interim CEO

Kojamo plc

Agenda

• Summary of January– December 2024
• Financial development
• Outlook and financial targets

Summary of January– December 2024

Total revenue and net rental income grew, the fair value of investment properties at previous year's level

• Total revenue and net rental income grew in 2024
• Cumulative occupancy rate decreased from the previous year. In the autumn, we achieved a clear turn for the better in renting when occupancy rate in the fourth quarter improved by 0.3 percentage points compared to the third quarter despite seasonal variation
• The oversupply of rental apartments continued especially in the capital region, but the market is expected to balance out
• FFO decreased due to rising financial expenses and maintenance expenses
• The saving programme was implemented according to the plan
• Financial position is secured, and liquidity situation has remained strong. The next financing arrangements will be for maturities in 2026

Operating environment

General operating environment

• The outlook for the global economy is cautiously optimistic. In the United States, growth continues, but future trade policy poses a risk to the global economy
• The euro area's economy is recovering. Challenges in Germany's industry weaken growth prospects but slowing inflation, real income growth, and declining interest rates support the euro area's recovery
• The Finnish economy turned to growth. It is expected to increase moderately in the coming years
• Employment has weakened, and the turnaround in the labour market has been delayed
• Central banks are expected to continue lowering rates this year

Operating environment key figures

	2025E	2024E
GDP growth, %	1.6	-0.3
Unemployment, %	8.4	8.3
Inflation, %	1.1	1.6

Sources: Ministry of Finance, Economic Survey,12/2024

Operating environment

Housing production

• Construction is recovering slowly. The number of residential start-ups this year is expected to rise to a maximum of 20,000 apartments in whole of Finland
• The number of market-based residential start-ups is still exceptionally low, and currently, social housing construction maintains new residential construction
• The current construction activity is clearly below the level required to meet long-term needs

Housing production need 2020–2040, % Residential start-ups in Finland 2015–2025E

Industry key figures

	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; **Rolling 12 months, December 2024

Kojamo plc's Financial Statements Release 2024 6 Sources: CFCI's economic forecast, September 2024; Ministry of Finance, Economic Survey,12/2024; Statistics Finland, Building and dwelling production, Building cost index; Housing production need: VTT, Need for housing 2020-2040

Operating environment

Rental market situation

• The oversupply of rental apartments has continued, especially in the capital region
• Urbanisation and decreasing average household size support the long-term demand
• Population growth continues supported significantly by increased immigration and will be strongly concentrated in the largest cities
• Migration within the country has returned to its prepandemic trend, concentrating the population in major urban areas

Development of household sizes

Population growth forecast 2022–2040, %

Development of rental household-dwelling units (% of all households)

Kojamo plc's Financial Statements Release 2024 7 * Helsinki, Espoo, Kauniainen, Vantaa ** Capital region, Hyvinkää, Järvenpää, Kerava, Kirkkonummi, Mäntsälä, Nurmijärvi, Pornainen, Porvoo, Riihimäki, Sipoo, Tuusula, Vihti Sources: MDI, Population forecast 2040, September 2024; MDI, Population forecast 2040 (urbanisation scenario), September 2023; Statistics Finland, Dwellings and housing conditions 2023;

Key figures 1–12/2024

Financial development

Kojamo plc's Financial Statements Release 2024 9

Total revenue and net rental income increased

• Total revenue was positively impacted by the growth of housing stock, and it was weakened by the development of rents and the financial occupancy rate
• Net rental income was positively impacted by higher total revenue and lower repair expenses, and it was negatively impacted by increase in property maintenance expenses, which was caused by the growth of property portfolio, increased heating and water costs and the increase in property taxes

Kojamo plc's Financial Statements Release 2024

Profit before taxes and FFO

• FFO decreased, which was particularly affected by higher financial and maintenance expenses. Financial income of the comparison period includes a profit of EUR 8.7 million from the repurchase of bonds
• Administrative expenses and repair expenses decreased by EUR 11.5 million

Profit excluding changes in value Changes in value*

Profit before taxes, M€

* Changes in value = Profit/loss on fair value of investment properties The formula used in the calculation was changed in 2021 regarding current taxes from disposals. The comparison figures for 2020 have been adjusted to reflect the current calculation method

Funds From Operations (FFO), M€ and € / share

-11.4%

Financial occupancy rate

• Cumulative occupancy rate was 91.5 (93.0) per cent. Despite seasonal variation, occupancy rate in the fourth quarter improved by 0.3 percentage points compared to the third quarter, and it was 91.6%
• Tenant turnover was at previous year's level
• Renting was impacted by the abundant supply of rental apartments in the market

Financial occupancy rate, %

Tenant turnover, % excluding internal turnover

Financial occupancy rate = (rental income / potential rental income at full occupancy) * 100. Financial occupancy rate does not include apartments under renovation Tenant turnover = (terminated rental agreements under the period / number of apartments) * 100

Development of Like-for-Like rental income

The past 12 months compared to the previous 12-month period

Development of Like-for-Like rental income as at 31 December 2024

As a part of the saving programme, investments decreased significantly

• During the year, we did not make new investment decisions, and we focused repairs to support renting of apartments
• In the autumn, we started one development project based on a previously signed preliminary agreement, and we are building 119 apartments in Helsinki

Gross investments and sales of investment properties, M€

Modernisation investments and repairs, M€

The value of investment properties was EUR 8.0 billion

• The fair values did not change significantly from the end of the previous year. The valuation yield requirements of the investment properties were not changed in the last quarter
• During the review period, the fair value change of the investment properties was EUR -134.0 million
• Full-year net result on the valuation of the investment properties 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, and other items impacted positively by EUR 38.3 million

Changes in fair value

M€	1–12/2024	1–12/2023
Change in yield requirement	-165.9	-815.5
Change in net rental income	-6.4	305.9
Change 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

Fair value of investment properties, M€ *

* Investment properties include completed apartments, development projects and land areas as well as investment properties held for sale

Equity ratio and Loan to Value (LTV) at a strong level

• Equity ratio and Loan to Value (LTV) have remained strong
• There's a significant buffer to LTV upper threshold of 50 per cent

Loan to Value (LTV), %

Equity ratio, %

Loans maturing in 2025 are covered

• In December, we signed a new unsecured 150 M€ long-term credit facility agreement that consists of a 100 M€ revolving credit facility and a 50 M€ term loan. The loan remained undrawn at the end of the review period
• Our liquidity situation is good, and the next financing arrangements will be for loans maturing in 2026. Net debt 3,511.0 (3,585.5) M€ decreased from the comparison period.
• In the autumn, Moody's confirmed Kojamo's previous Baa2 (negative) credit rating

The Group's liquidity, M€ Financing key figures

	31 Dec 2024
Interest-bearing liabilities, M€	3,827.9
Hedging ratio, % ¹⁾	93
Average interest rate, % ²⁾	3.0
Coverage ratio ³⁾	2.6
Average loan maturity, years	2.7
Average interest rate fixing period, years	2.5

¹⁾ Bonds maturing within 12 months are included in fixed rate loans

²⁾ Includes interest rate derivatives

³⁾ All maintenance expenses and repairs are recorded in the income statement

Distribution of the Group's loan maturities, M€

Kojamo plc's Financial Statements Release 2024

• Key figures per share remained at previous year's level

Kojamo plc's Financial Statements Release 2024

Outlook and financial targets

Kojamo estimates that in 2025, the Group's total revenue will increase by 1–4 per cent year-on-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.

M€	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 in 2022 for example including digital services in calculation. Actual for 2021 and 2020 have not been adjusted to reflect the current calculation method.

Total revenue and net rental income increased

Summary

FFO decreased due to increased financial and maintenance expenses

Although financial occupancy rate decreased from the previous year, a clear turn for the better in renting was achieved in the autumn

Saving programme was implemented according to the plan

Our financial position is good, and our credit rating remained unchanged

Kojamo plc's Financial Statements Release 2024 22

Thank you!

Contact details:

Interim CEO Erik Hjelt, tel. +358 20 508 3225

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

www.kojamo.fi

Interim Report January-March 2025 to be published on 8 May 2025

23

Appendix

Strategic focal points

Delivering the best customer experience	We offer easy and effortless services for our customers and create added value through services	Growth	For now, we focus on growing total revenue in the existing apartment portfolio
Operational excellence	We create competitiveness and profitability through industry-leading operating models	Responsibility and sustainable development	Responsibility plays important role in the work of everyone at Kojamo
The most competent personnel and a dynamic place to work	We are known for dynamic and effective corporate culture. We ensure our future competitiveness through competence development and employee experience	Renewal through digital solutions	We improve our business and create added value to our customers by taking advantage of solutions enabled by digitalisation

Lumo – Easily best living

Kojamo plc's Financial Statements Release 2024

Kojamo's apartment portfolio

Apartment distribution, % Fair value distribution, %

Jyväskylä

Kuopio region

Lahti region Others

Region	Number of apartments, units	Number of commercial and other leased premises, units	Fair value, M€	Fair value, € 1,000/unit	Fair value, €/m²	Financial occupancy rate, % ³⁾	Share of revenue, %
Helsinki region	25,686	490	5,701	218	4,079	90.3	67
Tampere region	3,949	111	657	162	3,168	94.1	9
Turku region	2,122	25	332	154	2,909	94.4	5
Others	9,216	136	1,031	110	2,092	94.0	19
Total	40,973	762	7,721 ¹⁾	185	3,491	91.5	100
Others			239 ²⁾
Total portfolio	40,973	762	7,960			91.5

1) The figures reflect income-generating portfolio assets, which excludes new projects under construction, plots owned by the group and ownership of certain assets through shares Kojamo plc's Financial Statements Release 2024 29

2) Fair value of ongoing projects under construction, plots owned by the group and ownership of certain assets through shares and fair value of right-of-use assets 3) Financial occupancy rate does not include commercial premises and other leased premises

Housing stock and customer distribution

• Kojamo's housing stock meets the demand nicely
• All age groups are well represented among the tenants

Customers by household

Housing stock by apartment Customers by age group, %

Topical with our sustainability work

• We updated our Green Finance Framework to align future financing activities with market best practices and standards
• 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
• 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
• EPRA has awarded Kojamo's financial statements and sustainability report for 2023 with the highest possible recognition, a gold award. Additionally, we achieved a good result in GRESB Sustainability Assessment: 74 out of 100 points, the Green Star recognition, and two stars
• According to our annual survey, 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

Key figures of sustainability 1–12/2024

* The calculation method has been specified in 2024, and the actual

2023 was changed to correspond the current method.

Sustainability is visible in our every day life

n/a 100%

*

100%

31,000

54 39%

88% 79%

Kojamo plc's Financial Statements Release 2024 33

3%

0.6 (-22.9%)

28%

* In 2024, one own development project under construction with E-value ≤80 that entered the planning phase before 2021

7.5% 100%

61/39%

96.1

2,640 5

69 M€ 55

Sustainability commitments and reporting

Our sustainability commitments

Our target is carbonneutral energy use in our properties by 2030

We are committed to complying with the UN Sustainable Development Goals

We are committed to improve our energy efficiency by 7.5% during 2017–2025

Our sustainability reporting and recognitions Our

sustainability assessment

We communicate transparently about sustainability-related topics and have received the ESG Transparency Partner recognition from Nasdaq.

We have been awarded a Prime rating in the ISS ESG Corporate Rating assessment.

We participated in the global GRESB

We apply EPRA's Best Practice Recommendations in our reporting

We report on our sustainability work with reference to GRI Standards

memberships

We are a member of FIBS, the largest corporate responsibility network in the Nordic countries, accelerating sustainable and responsible business.

Kojamo plc's Financial Statements Release 2024 34

Dividend policy

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

To support the maintenance of IG credit rating, Kojamo's Board of Directors proposes to the Annual General Meeting in the spring of 2025 that no dividend be paid for 2024

Dividend history

Kojamo's ten largest shareholders (as at 31 December 2024)

		Number of
	Shareholder	shares	% of shares
	Nominee-registered shareholders	80,865,344	32.7
1.	Heimstaden Bostad AB	49,389,283	20.0
2.	Ilmarinen Mutual Pension Insurance Company	20,537,814	8.3
3.	Varma Mutual Pension Insurance Company	19,362,375	7.8
4.	The Finnish Industrial Union	15,788,503	6.4
5.	Trade Union of Education in Finland	10,914,417	4.4
6.	Trade Union PRO	4,904,150	2.0
7.	Elo Mutual Pension Insurance Company	3,946,000	1.6
8.	Finnish Construction Trade Union	3,868,575	1.6
9.	OP-Finland Fund	2,141,973	0.9
10.	The State Pension Fund of Finland	1,900,000	0.8
	Other shareholders	33,525,965	13.6
	Total	247,144,399	100.0

Development of the number of the shareholders

	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
Gross investments, M€	31.3	29.5	6.0	52.8	190.7	-72.3
Funds From Operations (FFO), M€	34.5	38.3	-10.0	148.2	167.2	-11.4
FFO per share, €	0.14	0.15	-6.7	0.60	0.68	-11.8
Financial occupancy rate, %				91.5	93.0
Fair value of investment properties, Bn€				8.0	8.0	-1.0
Number of apartments				40,973	40,619
Number of apartments under construction				119	354
EPRA NRV per share, €				18.51	18.45	0.3
Equity ratio, %				43.2	44.5
Loan to Value (LTV), %				43.9	44.6

Consolidated income statement

M€	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 and expenses	1.1	1.1	2.7	3.7
Profit/loss on sales of investment properties	0.0	0.3	-0.8	0.2
Profit/loss on fair value of investment properties	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
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

Balance sheet

M€	31 Dec 2024	31 Dec 2023
Non -current assets
Intangible assets	0.5	0.6
Investment properties	7,960.0	8,038.8
Property, plant and equipment	27.4	28.0
Investments in associated companies	2.2	2.0
Financial assets	0.8	0.8
Non -current receivables	6.4	6.5
Derivatives	15.3	29.8
Deferred tax assets	9.9	4.9
Total non -current assets	8,022.3	8,111.4
Current assets
Derivatives	0.6	0.6
Current tax assets	9.4	11.1
Trade and other receivables	14.6	17.0
Financial assets	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€	31 Dec 2024	31 Dec 2023
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
Non -current liabilities
Loans and borrowings	3,338.9	3,007.2
Deferred tax liabilities	821.2	829.3
Derivatives	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	489.0	593.2
Derivatives	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

Financial key figures

	31 Dec 2024	30 Sep 2024	30 Jun 2024	31 Mar 2024	31 Dec 2023
Equity ratio, %	43.2	43.1	43.0	44.3	44.5
Interest cover	2.3	2.5	2.7	3.0	3.2
Coverage ratio	2.6	2.7	2.8	3.3	3.6
Loan to Value (LTV), %	43.9	44.7	45.0	44.5	44.6
Hedging ratio, % ¹⁾	93	93	78	94	93
Average interest rate, % ²⁾	3.0	3.0	3.2	2.6	2.4
Average loan maturity, years	2.7	2.9	3.1	2.8	2.8
Average interest rate fixing period, years	2.5	2.7	2.5	2.8	2.9

¹⁾ Bonds maturing within 12 months are included in fixed rate loans

²⁾ Includes interest rate derivatives

Important information

This presentation shall not constitute an offer to sell or the solicitation of an offer to buy securitites in any jurisdiction. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision.

This presentation includes forward-looking statements, which include statements regarding the Kojamo's business strategy, operating and financial targets, financial condition, profitability, results of operations and market data, as well as other statements that are not historical facts. Words such as "believe," "anticipate," "plan," "expect," "target," "estimate," "project," "predict," "forecast," "guideline," "should," "aim," "continue," "could," "guidance," "may," "potential," "will," as well as similar expressions and the negative of such expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying these statements. By their nature, forwardlooking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. Undue reliance should not be placed on these forward-looking statements. Except for any ongoing disclosure obligation as required by applicable law, Kojamo does not have any intention or obligation to publicly update or revise any forward-looking statements, whether to reflect any future events or circumstances or otherwise.