Kojamo Revises 2025 Outlook Lower Following Residential Property Sales

Kojamo Adjusts Revenue Forecast for 2025

In a recent announcement, Kojamo plc, the largest private residential real estate company in Finland, has revised its forecast for total revenue in 2025 due to a significant transaction involving the sale of residential properties. On July 31, 2025, the company declared a reduction in their outlook that is expected to influence overall financial performance in the coming year.

Details of the Property Sale

Kojamo has completed the sale of 44 rental housing properties, encompassing a total of 1,944 apartments distributed among eight municipalities in Finland. The decision to offload these assets was made public earlier in the day, indicating a strategic movement in the company's portfolio management. According to preliminary estimates, the transaction will lead to a decrease of approximately EUR 9.2 million in total revenue and a reduction of around EUR 2.9 million in funds from operations (FFO) for the financial year of 2025.

The sale price was reported to be approximately 10% lower than the balance sheet value for 2024, raising some questions about asset valuation strategies within the company. Despite this decrease, Kojamo reassures stakeholders that the transaction won’t significantly affect the fair values of the remaining investment properties. Additionally, the occupancy rate impact is projected to be marginal. Another key aspect of the transaction is the tax implication, with an estimated EUR 25 million due in January 2026.

Revised Financial Outlook

As a result of these developments, Kojamo has updated its forecast for total revenue growth in 2025 to a modest 0-2% year-on-year increase, down from its previous expectation of 1-4% growth. The updated FFO for 2025 is now projected to be between EUR 135 million and EUR 141 million, not accounting for any non-recurring costs. This change reflects the expectation of steady occupancy and rental income, while factoring in the implications of the recent property sale.

Interestingly, the previous outlook was based on a more optimistic view and did not consider the future acquisitions or disposals that could also influence revenue. This revision serves as a cautionary note for investors and analysts alike, indicating a shift in the company’s operational focus amid changing market conditions.

Kojamo's Strategic Direction

Kojamo has embarked on a strategy to streamline its property portfolio by divesting from non-core residential assets. This direction is in line with the company's broader goals for the current fiscal year, aimed at enhancing the overall quality and performance of its housing offerings. Understanding market demands and aligning with sustainability principles are also crucial components of Kojamo's long-term objectives.

Kojamo's mission remains focused on delivering better urban housing experiences through sustainable practices, aiming to meet the needs of those who value high-quality living environments. The company continues to invest in its existing properties while exploring opportunities for new developments to enhance its market position.

Conclusion

As a publicly listed entity on Nasdaq Helsinki, Kojamo's operational adjustments and revised forecasts will be closely monitored by industry stakeholders and investors. The recent property sale, while lowering immediate revenues, could strategically position the company for longer-term growth through improved asset management and a strengthened rental portfolio. Kojamo's proactive measures in refining its business strategy underscore the company's commitment to navigating Finland's evolving real estate landscape.

For inquiries regarding this announcement or further financial details, interested parties may contact Reima Rytsölä, CEO at Kojamo plc, or Erik Hjelt, CFO, through their respective phone contacts provided in the public statement.