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Kojamo plc's 2025 Financial Statements Overview

Kojamo plc has provided substantial insights into its financial performance for the year 2025, showcasing resilience in a challenging market. The company recorded a marginal increase in total revenue and net rental income, indicating a positive trend despite the ongoing property sales. The full occupancy rate also experienced improvement throughout the year, a notable achievement considering the fluctuating rental market dynamics.

Key Financial Highlights

Kojamo's total revenue for 2025 reached EUR 455.2 million, marking a 0.6% rise compared to the previous year. Notably, the net rental income incremented by 1.6%, totaling EUR 307.7 million. This favorable growth suggests that despite certain property disposals, the firm's core leasing strategy has maintained its effectiveness.

In the fourth quarter alone, the company recorded a slight decline in revenue by 1.8%, totaling EUR 111.7 million, but significantly improved its net rental income by 2.2%, reaching EUR 76.0 million. This demonstrates the company's effective management in fluctuating conditions, allowing for sustained income generation even amidst a backdrop of property sales.

The financial occupancy rate also reflected a strong upward trend, closing the year at 94.8%, which is a significant increase from 91.5% in the previous year. This growth illustrates Kojamo's success in maintaining tenant satisfaction and attracting new residents, particularly in the face of increased competition and supply in the rental market.

Challenges and Financial Outlook

Despite the positive achievements, including an improved occupancy rate, Kojamo's earnings before taxes saw a decline, sliding down to EUR 26.8 million, up from EUR 26.3 million in 2024. The valuation of investment properties faced challenges, weighing on results with a negative impact noted at EUR -120.4 million. Moreover, the Funds From Operations (FFO) experienced a decrease of 4.9%, totaling EUR 140.9 million, which further emphasizes the fluctuating market pressures on costs and operational management.

Looking ahead to 2026, Kojamo has set ambitious targets, estimating total revenue between EUR 484–497 million, accompanied by an FFO forecast of EUR 147–157 million. The expectation hinges on operational management's ability to navigate the evolving market landscape while leveraging occupancy rates and rental growth trends effectively.

Strategic Initiatives and Customer Experience

In light of ongoing strategic initiatives, Kojamo's commitment to enhancing customer experiences has resulted in a notable increase in customer recommendation rates, as evidenced by a rising Net Promoter Score (NPS) of 57 — a three-point improvement from last year. This focus on customer satisfaction is critical as it not only reflects quality living environments but also aims to reduce tenant turnover, a vital aspect of the rental business model.

The company plans to continue capitalizing on the integration of technology and data in the customer service space to further enhance resident engagement and satisfaction. Although no new development projects were initiated in 2025, the focus remained on optimizing existing properties with the intent to improve overall housing quality.

Acquisition of New Properties

In a significant strategic move post-review period, Kojamo has announced the acquisition of a prime housing portfolio consisting of 4,761 apartments. This acquisition is aligned with their strategy to bolster growth within urban centers and is anticipated to contribute positively to cash flow in the upcoming years while reinforcing Kojamo's position as a leader in residential real estate.

Moreover, the company remains devoted to progressing towards carbon neutrality, with plans firmly in place to decrease the carbon footprint of its portfolio. The management's commitment to sustainability aims to achieve carbon-neutral energy consumption for properties by 2030, reflecting a forward-thinking approach to corporate responsibility and environmental stewardship.

Conclusion

As Kojamo plc moves into 2026, the company is well-positioned to harness the opportunities presented by the evolving rental market, underpinned by its strong financial performance in 2025. The emphasis on customer experience, strategic acquisitions, and sustainable development will play pivotal roles in steering the company towards its objectives, affirming its status as a premier player in Finland's residential real estate landscape.