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Kojamo plc's Financial Statements Release for 2024

Kojamo plc has released its financial results for the year 2024, showcasing a modest yet steady growth trajectory. Total revenue rose by 2.3%, reaching EUR 452.4 million compared to EUR 442.2 million in the previous year. Despite the increase in revenue, net rental income experienced a slight rise of 1.9%, totaling EUR 302.9 million, indicating a solid performance in the housing sector.

The company's performance in the last quarter of 2024 exhibited mixed results. While total revenue saw a marginal increase of 0.1%, net rental income saw a decline of 1.5%. The key figures unveiled in the quarterly report showed that the net rental income accounted for 65.5% of total revenue, a decrease from 66.5% in the previous year. The financial results for October to December 2024 reported a profit before taxes of EUR 40.7 million, a significant improvement from a loss of EUR 119.5 million in 2023, showcasing effective cost management despite ongoing market flux.

The report indicated a financial occupancy rate of 91.5%, a slight decrease from 93.0% recorded in the previous year. This occupancy rate reflects ongoing challenges in the rental market, particularly in Finland's capital region, where the oversupply of rental units continues to affect the sector.

Kojamo's fair value of investment properties remained stable at EUR 8.0 billion, indicating the company's solid asset base. The Fund From Operations (FFO), however, decreased by 11.4%, coming in at EUR 148.2 million due to increasing financial and maintenance costs. This reduction necessitated a reassessment of the company’s investment strategies going forward.

The outlook for 2025 projects total revenue growth of 1-4% year-on-year and estimated FFO between EUR 135-145 million. The forecasts are influenced by management's assessment of occupancy rates and rent developments, although the projections do not account for potential property acquisitions or disposals.

In response to the changing market dynamics, Kojamo has implemented a savings program initiated in late 2023, aiming to strengthen the financial position of the company. This allowed them to manage operating costs effectively and sustain their investment-grade credit rating amidst a period of instability in the housing market. Notably, Kojamo completed 354 apartments in 2024, raising its portfolio to 40,973 rental units, while the Board has proposed no dividend payment for the fiscal year.

CEO Erik Hjelt highlighted the major achievements amid a challenging operating environment, emphasizing improvements in customer satisfaction as reflected in Net Promoter Score (NPS) metrics. The company's focus remains on enhancing the customer experience and responding proactively to market needs.

Kojamo's commitment to delivering quality urban housing solutions remains unwavering, with the company focusing on its existing portfolio rather than pursuing new acquisitions in the immediate future. As stakeholder sentiment continues to evolve, Kojamo plans to engage proactively with investors and the market to navigate the complexities of the current economic landscape.

For more insights and detailed analysis, please refer to the complete financial statements available on the Kojamo website.