Kojamo plc's Financial Statements Release 1 January-31 December 2021
HELSINKI, Feb. 17, 2022 /PRNewswire/ -- Total revenue increased, the fair value of investment properties grew to EUR 8.3 billion
This is a summary of the 2021 Financial Statements Release, which is in its entirety attached to this release and can be downloaded from the company's website at www.kojamo.fi/investors.
Unless otherwise stated, the comparison figures in brackets refer to the corresponding period of the previous year. The information in the financial statements release is based on the Kojamo plc's audited financial statements for the year 2021. The quarterly figures are unaudited.
Summary of October–December 2021
- Total revenue increased by 2.6 per cent to EUR 99.6 (97.1) million.
- Net rental income increased by 2.6 per cent totalling EUR 65.5 (63.8) million. Net rental income represented 65.8 (65.7) per cent of revenue.
- Profit before taxes was EUR 662.9 (193.2) million. The profit includes EUR 621.6 (151.7) million in net gain on the valuation of investment properties at fair value. Earnings per share was EUR 2.15 (0.62).
- Funds From Operations (FFO) increased by 1.1 per cent and amounted to EUR 38.6 (38.2) million.
- Gross investments totalled EUR 98.7 (107.2) million, representing 99.1 (110.3) per cent of total revenue.
- Summary of January–December 2021
- Total revenue increased by 2.0 per cent to EUR 391.7 (383.9) million.
- Net rental income increased by 1.8 per cent, totalling EUR 262.3 (257.6) million. Net rental income represented 67.0 (67.1) per cent of revenue.
- Profit before taxes was EUR 1,278.9 (391.2) million. The profit includes EUR 1,105.7 (225.8) million in net gain on the valuation of investment properties at fair value and EUR 0.3 (-0.7) million in profits and losses from the sale of investment properties. Earnings per share was EUR 4.14 (1.27).
- Funds From Operations (FFO) increased by 1.1 per cent and amounted to EUR 153.1 (151.4) million.
- The fair value of investment properties was 8.3 (6.9) billion at the end of the financial year, including EUR 1.1 (2.4) million in investment properties held for sale.
- The financial occupancy rate stood at 93.9 (96.4) per cent during the financial year.
- Gross investments totalled EUR 356.9 (371.2) million, representing 91.1 (96.7) per cent of total revenue.
- Equity per share was EUR 17.25 (13.39) and return on equity was 27.0 (9.8) per cent. Return on investment was 19.2 (7.4) per cent.
- EPRA NRV per share (net reinstatement value) grew by 28.1 per cent and amounted to EUR 22.04 (17.21).
- At the end of the financial year, there were 2,675 (2,624) Lumo apartments under construction.
- The Board of Directors' dividend proposal is EUR 0.38 per share.
Kojamo owned 36,897 (35,802) rental apartments at the end of the financial year. In 2021, Kojamo acquired 0 (71) apartments, completed 1,282 (532) apartments, sold 0 (18) apartments and demolished or otherwise altered -187 (-55) apartments.
Key figures
10–12/2021 |
10–12/2020 |
Change % |
2021 |
2020 |
Change % |
|
Total revenue, M€ |
99.6 |
97.1 |
2.6 |
391.7 |
383.9 |
2.0 |
Net rental income, M€ * |
65.5 |
63.8 |
2.6 |
262.3 |
257.6 |
1.8 |
Net rental income margin, % * |
65.8 |
65.7 |
67.0 |
67.1 |
||
Profit before taxes, M€ * |
662.9 |
193.2 |
243.2 |
1,278.9 |
391.2 |
226.9 |
EBITDA, M€ * |
678.5 |
206.9 |
228.0 |
1,334.8 |
447.6 |
198.2 |
EBITDA margin, % * |
681.1 |
213.0 |
340.8 |
116.6 |
||
Adjusted EBITDA, M€ * |
57.0 |
55.2 |
3.3 |
228.5 |
222.6 |
2.6 |
Adjusted EBITDA margin, % * |
57.2 |
56.8 |
58.3 |
58.0 |
||
Funds From Operations (FFO), M€ *¹⁾ |
38.6 |
38.2 |
1.1 |
153.1 |
151.4 |
1.1 |
FFO margin, % * |
38.7 |
39.3 |
39.1 |
39.5 |
||
FFO excluding non-recurring costs, M€ * |
38.6 |
38.2 |
1.1 |
153.1 |
151.4 |
1.1 |
Investment properties, M€ ²⁾ |
8,327.5 |
6,863.1 |
21.3 |
|||
Financial occupancy rate, % |
93.9 |
96.4 |
||||
Interest-bearing liabilities, M€ * |
3,334.5 |
3,053.3 |
9.2 |
|||
Return on equity (ROE), % * |
27.0 |
9.8 |
||||
Return on investment (ROI), % * |
19.2 |
7.4 |
||||
Equity ratio, % * |
49.0 |
45.6 |
||||
Loan to Value (LTV), % * ³⁾ |
37.7 |
41.4 |
||||
EPRA Reinstatement value (NRV), M€ |
5,447.9 |
4,254.6 |
28.0 |
|||
Gross investments, M€ * |
98.7 |
107.2 |
-7.9 |
356.9 |
371.2 |
-3.9 |
Number of personnel, end of the period |
325 |
317 |
||||
Key figures per share, € |
10–12/2021 |
10–12/2020 |
Change % |
2021 |
2020 |
Change % |
FFO per share * |
0.16 |
0.15 |
6.7 |
0.62 |
0.61 |
1.6 |
Earnings per share |
2.15 |
0.62 |
246.8 |
4.14 |
1.27 |
226.0 |
EPRA NRV per share |
22.04 |
17.21 |
28.1 |
|||
Equity per share |
17.25 |
13.39 |
28.8 |
|||
Dividend per share ⁴⁾ |
0.38 |
0.37 |
2.7 |
|||
* In accordance with the guidelines issued by the European Securities and Markets Authority (ESMA), Kojamo provides an account of the Alternative Performance Measures used by the Group in the Key figures, the formulas used in their calculation, and reconciliation calculations in accordance with ESMA guidelines section of the Financial Statements |
||||||
¹⁾ The formula used in the calculation was changed during the review period regarding current taxes from disposals. The comparison figures for 2020 have been adjusted to reflect the current calculation method |
||||||
²⁾ Including Non-current assets held for sale |
||||||
³⁾ Excluding Non-current assets held for sale |
||||||
⁴⁾ 2021: The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.38 per share be paid |
Outlook for 2022
Kojamo estimates that in 2022, the Group's total revenue will increase by 3–6 per cent year-on-year. In addition, Kojamo estimates that the Group's FFO for 2022 will amount to between EUR 153–165 million, excluding non-recurring items.
The outlook is based on the management's assessment of total revenue, property maintenance costs and repairs, administrative expenses, financial expenses, taxes to be paid and new development to be completed, as well as the management's view on future developments in the operating environment.
The outlook takes into account the estimated occupancy rate and rises in rents as well as the number of apartments to be completed. 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 COVID-19 restrictions, market trends, the regulatory environment or the competitive landscape.
CEO's review
We have made steady progress in implementing our strategy and we were able to achieve profitable growth in 2021 in spite of the challenging circumstances. Our total revenue and net rental income increased. The value of our investment properties increased significantly due to our investments and lower yield requirements in the market. Our financial position has remained strong.
Our occupancy rate was lower than in the previous year, as work-related immigration has temporarily slowed down due to the COVID-19 pandemic. During 2021, there were already positive signs of recovery in the Tampere and Turku regions, where the rental market has returned almost to normal levels. In the capital region, however, the recovery in work-related migration has been slower, although labour shortages were observed especially in the services sector towards the end of the year. It is clear that the uncertainty around the duration of the pandemic and the related restrictions will continue to affect the market this year as well.
We are a long-term operator and the impact of the decisions we make today will be felt for decades. We are confident that the impact of the pandemic on the market will remain temporary and that urbanisation will continue strongly after the pandemic.
Our investments in future growth continued as planned. We started construction of more than 1,300 apartments, and there were 2,675 apartments under construction at the end of the year. Last year, we literally elevated rental housing to a new level as construction of Lumo One, Finland's first and tallest skyscraper intended for rental use, reached rooftop height in Helsinki's Kalasatama district. The rental of the apartments completed on top of the Redi shopping centre during 2022 started in January.
In this year, we also expect construction to begin on the first properties under the Metropolia real estate development project. The Metropolia real estate development project will see us develop as many as 1,000 new apartments in excellent locations in Helsinki in the coming years.
During the year, we invested in building a future customer experience, and updated our brand strategy. Lumo focuses primarily on growing the target group, which chooses rental housing over owner-occupied housing. Lumo – Easily best living, will offer customers a better urban life by investing in the housing experience and providing services together with its extensive partner network.
More than a year has passed since the publication of our sustainability programme, and our sustainability work has continued as planned in several areas. One significant step on the sustainable finance front was the Green Finance Framework, which we published in the spring. In this context, we issued our first green bond. The proceeds from the issue will be used to finance the construction of nearly zero-energy buildings. During the year, we also created a carbon-neutral roadmap that guides us towards our goal of achieving carbon-neutral energy consumption in our properties by 2030. We have set an annual apartment-specific emission reduction target of a minimum 4% reduction in CO2 emissions until the end of 2025, and we will also introduce solutions that support carbon neutrality to our customers.
I want to take this opportunity to thank all Kojamo employees, our customers and partners for the good cooperation during the last year.
Jani Nieminen
CEO
News conference as a webcast
Kojamo will hold a news conference for institutional investors, analysts and media on 17 February 2022 at 10:00 a.m. EET as a webcast. The event will be held in English.
A recording of the webcast will be available later on the company's website at https://kojamo.fi/en/investors/releases-and-publications/financial-reports/.
The news conference can be streamed online at https://kojamo.videosync.fi/q4-2021.
You can also participate in the press conference by calling:
FI: +358 981 710 310
SE: +46 856 642 651
UK: +44 333 300 0804
US: +1 631 913 1422
Please use the following PIN code to participate in the press conference by telephone: 96038349#
For more information, please contact:
Niina Saarto, Group Treasurer, Investor Relations, Kojamo plc, tel. +358 20 508 3283, niina.saarto@kojamo.fi
Erik Hjelt, CFO, Kojamo plc, tel. +358 20 508 3225, erik.hjelt@kojamo.fi
Distribution:
Nasdaq Helsinki, Irish Stock Exchange, key media
Kojamo is Finland's largest private residential real estate company and one of the biggest investors in Finland. Our mission is to create better urban housing. Lumo offers environmentally friendly housing and services for the city dweller who appreciates quality and effortlessness. We actively develop the value of our investment properties by developing new properties and our existing property portfolio. We want to be the property market frontrunner and the number one choice for our customers. Kojamo's shares are listed on the official list of Nasdaq Helsinki. For more information, please visit https://kojamo.fi/en/
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
https://mb.cision.com/Public/18367/3508598/a9b1b48febf8897c.pdf |
Kojamo Financial Statements Release 2021 |
https://mb.cision.com/Public/18367/3508598/942ae745da511a38.pdf |
Kojamo Financial Statements Release 2021 presentation |
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