Kojamo plc Surges in Financial Performance in Mid-2025 Review
Kojamo plc Exhibiting Robust Financial Growth
Kojamo plc has released its Half-Year Financial Report for the period from January to June 2025, underscoring a robust growth trajectory amidst evolving market conditions.
Continued Upsurge in Occupancy Rates
During the first half of 2025, Kojamo witnessed a notable improvement in its occupancy rates, which indicates the company’s ongoing efforts to enhance its residential offerings. The financial occupancy rate rose to 93.6%, compared to 91.7% in the previous year, showcasing the unwavering demand for quality rental properties.
Financial Highlights for April to June 2025
The second quarter figures reflected a steady increase in total revenue, which escalated by 2.9% to reach EUR 115.6 million. Notably, the net rental income climbed 0.9%, amounting to EUR 82.8 million, demonstrating resilience in revenue generation despite industry pressures. The net rental income formed 71.7% of the total revenue for this timeframe.
Key Financial Metrics from Q2 2025
- Result before taxes posted at EUR -12.7 million, a significant improvement over the corresponding period last year of EUR -104.3 million.
- Funds From Operations (FFO) also noted a decrease, totaling EUR 38.8 million, declining by 9.3% year-on-year.
- The gross investments during this quarter came to EUR 10.1 million, which accounted for 8.8% of total revenue.
Six-Month Financial Overview for 2025
Reflecting on the first half of 2025, the total revenue increased by 1.9% to EUR 229.9 million. The net rental income climbed 2.0% to EUR 145.6 million, and it comprised the entirety of 63.3% of total revenue. Despite these gains, the result before taxes was EUR -23.8 million, which included substantial impacts from property valuations.
Investment Properties and Future Prospects
The fair value of Kojamo’s investment properties stood at EUR 7.9 billion at the close of the review period, inclusive of EUR 272.8 million in properties held for sale. Furthermore, the company is engaged in the construction of 119 Lumo apartments to cater to growing housing needs.
Currently, there are 40,946 rental apartments owned by Kojamo, slightly fewer than the previous year, which highlights the company’s strategic pruning of its portfolio to optimize performance and focus on valuable assets.
Outlook for 2025
Kojamo has revised its outlook for 2025, estimating total revenue growth of 0-2%, and projecting the Group’s FFO to reach between EUR 135-141 million, excluding non-recurring costs. This outlook takes into consideration the ongoing developments in property management and customer demand.
CEO Insights on Company Direction
CEO Reima Rytsölä expressed optimism regarding the company’s growth and strategic direction. He noted the improvements in occupancy rates and the effectiveness of customer experience initiatives, which have led to a heightened Net Promoter Score (NPS) of 58.
Additionally, the successful sale of 1,944 apartments in June reflects Kojamo’s strategic focus on strengthening its core portfolio in Finland’s growth centres. This transaction signals a commitment to reducing debt and enhancing shareholder value which is integral to the company’s long-term strategy.
Moreover, Kojamo’s financial position remains healthy with strategic refinancing activities for its bank loans, enhancing liquidity and reducing interest expenses, further solidifying the company's pathway towards sustainable growth.
Looking ahead, the company is poised to navigate the rental market challenges by continuing to focus on customer satisfaction and maintaining a robust portfolio that aligns with its growth vision. With a focus on innovative solutions, Kojamo aims to cater to urban housing needs effectively.
Frequently Asked Questions
What is the current financial occupancy rate for Kojamo?
The financial occupancy rate for Kojamo in the first half of 2025 is 93.6%.
How much did Kojamo’s total revenue grow in Q2 2025?
Kojamo’s total revenue in Q2 2025 grew by 2.9%, reaching EUR 115.6 million.
What are the projected funds from operations (FFO) for 2025?
Kojamo projects that the Group’s FFO for 2025 will range between EUR 135–141 million, excluding non-recurring costs.
How many rental apartments does Kojamo currently own?
Kojamo currently owns 40,946 rental apartments as of mid-2025.
What strategic actions is Kojamo taking to improve its market position?
Kojamo is actively focusing on improving customer experience, refinancing loans, and strategically selling properties not aligned with its core growth objectives.
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