18.02.2021 07:24:00
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Kojamo plc's Financial Statements Release 1 January-31 December 2020
HELSINKI, Finland, Feb. 18, 2021 /PRNewswire/ -- Profitability and growth despite of exceptional year
This is a summary of the 2020 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 2020. The quarterly figures are unaudited.
Summary of October-December 2020
- Total revenue increased by 2.2 per cent to EUR 97.1 (95.1) million
- Net rental income increased by 6.2 per cent, totalling EUR 63.8 (60.1) million. Net rental income represented 65.7 (63.3) per cent of revenue
- Profit before taxes was EUR 193.2 (839.9) million. The profit includes EUR 151.7 (801.4) million in net gain on valuation of investment properties at fair value and EUR 0.0 (-0.1) million in profits and losses from the sale of investment properties. During the comparison period, the Group adopted a yield-based valuation technique, which had a positive effect of approximately EUR 800 million on the fair value of investment properties in the comparison period. Earnings per share was EUR 0.62 (2.72)
- Funds From Operations (FFO) increased by 9.7 per cent and amounted to EUR 38.0 (34.6) million.
- Gross investments totalled EUR 107.2 (84.3) million, representing 110.3 (88.7) per cent of total revenue
Summary of January-December 2020
· Total revenue increased by 2.3 per cent to EUR 383.9 (375.3) million.
· Net rental income increased by 4.2 per cent, totalling EUR 257.6 (247.3) million. Net rental income represented 67.1 (65.9) per cent of revenue.
- Profit before taxes was EUR 391.2 (1,031.3) million. The profit includes EUR 225.8 (872.4) million in net gain on the valuation of investment properties at fair value and EUR -0.7 (0.1) million in profits and losses from the sale of investment properties. During the comparison period, the Group adopted a yield-based valuation technique, which had a positive effect of approximately EUR 800 million on the fair value of investment properties in the comparison period. Earnings per share was EUR 1.27 (3.34).
- Funds From Operations (FFO) increased by 7.7 per cent and amounted to EUR 151.5 (140.7) million.
- The fair value of investment properties was EUR 6.9 (6.3) billion at the end of the financial year.
- The financial occupancy rate stood at 96.4 (97.2) per cent during the financial year.
- Gross investments totalled EUR 371.2 (259.9) million, representing 96.7 (69.2) per cent of total revenue.
- Equity per share was EUR 13.39 (12.51) and return on equity was 9.8 (30.3) per cent. Return on investment was 7.4 (20.5) per cent.
- EPRA NRV per share (net asset value) grew by 7.6 per cent and amounted to EUR 17.21 (16.00).
- At the end of the financial year, there were 2,624 (1,316) Lumo apartments under construction.
- The Board of Directors' dividend proposal is EUR 0.37 per share.
Kojamo owned 35,802 (35,272) rental apartments at the end of the financial year. In 2020, Kojamo acquired 71 (260) apartments, completed 532 (816) apartments, sold 18 (520) apartments and demolished or otherwise altered -55 (3) apartments.
Key figures
10–12/2020 | 10–12/2019 | Change% | 2020 | 2019 | Change% | |
Total revenue, M€ | 97.1 | 95.1 | 2.2 | 383.9 | 375.3 | 2.3 |
Net rental income, M€ * | 63.8 | 60.1 | 6.2 | 257.6 | 247.3 | 4.2 |
Net rental income margin, % * | 65.7 | 63.3 | 67.1 | 65.9 | ||
Profit before taxes, M€ * | 193.2 | 839.9 | -77.0 | 391.2 | 1,031.3 | -62.1 |
EBITDA, M€ * | 206.9 | 851.5 | -75.7 | 447.6 | 1,083.1 | -58.7 |
EBITDA margin, % * | 213.0 | 895.7 | 116.6 | 288.6 | ||
Adjusted EBITDA, M€ * | 55.2 | 50.0 | 10.2 | 222.6 | 210.3 | 5.8 |
Adjusted EBITDA margin, % * | 56.8 | 52.6 | 58.0 | 56.0 | ||
Funds From Operations (FFO), M€ * | 38.0 | 34.6 | 9.7 | 151.5 | 140.7 | 7.7 |
FFO margin, % * | 39.1 | 36.4 | 39.5 | 37.5 | ||
FFO excluding non-recurring costs, M€ * | 38.0 | 34.6 | 9.7 | 151.5 | 140.7 | 7.7 |
Investment properties, M€ | 6,863.1 | 6,260.8 | 9.6 | |||
Financial occupancy rate, % | 96.4 | 97.2 | ||||
Interest-bearing liabilities, M€ * | 3,053.3 | 2,674.2 | 14.2 | |||
Return on equity (ROE), % * | 9.8 | 30.3 | ||||
Return on investment (ROI), % * | 7.4 | 20.5 | ||||
Equity ratio, % * | 45.6 | 46.9 | ||||
Loan to Value (LTV), % * | 41.4 | 40.5 | ||||
EPRA Reinstatement value (NRV), M€ | 4,254.6 | 3,953.3 | 7.6 | |||
Gross investments, M€ * | 107.2 | 84.3 | 27.1 | 371.2 | 259.9 | 42.9 |
Number of personnel, end of the period | 317 | 296 | ||||
Key figures per share, € | 10–12/2020 | 10–12/2019 | Change% | 2020 | 2019 | Change% |
FFO per share * | 0.15 | 0.14 | 7.1 | 0.61 | 0.57 | 7.0 |
Earnings per share | 0.62 | 2.72 | -77.2 | 1.27 | 3.34 | -62.0 |
EPRA NRV per share | 17.21 | 16.00 | 7.6 | |||
Equity per share | 13.39 | 12.51 | 7.0 | |||
Dividend per share ¹⁾ | 0.37 | 0.34 | 8.8 | |||
* 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 its financial statements. | ||||||
¹⁾ Including non-current assets held for sale | ||||||
²⁾ Excluding non-current assets held for sale or liabilities related to non-current assets held for sale. | ||||||
³⁾ 2020: The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.37 per share be paid. |
Outlook for 2021
Kojamo estimates that in 2021, the Group's total revenue will increase by 3-5 per cent year-on-year. In addition, Kojamo estimates that the Group's FFO for 2021 will amount to be-tween EUR 150-163 million, excluding non-recurring items.
The outlook is based on the management's assessment of total revenue, net rental income, 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 on total revenue and FFO.
The outlook is also based on the estimate that sufficient vac-cination coverage will be achieved in the summer and that migration will gradually recover to pre-pandemic levels thereafter. Migration sustains strong demand, which will increase Like-for-Like rental income. However, due to the impacts of the pandemic on the operating environment, the Group expects the development of Like-for-Like rental income to be moderate during the first half of the year.
The management can influence total revenue and FFO through the company's business operations. In contrast, the management has no influence over market trends, the regu-latory environment or the competitive landscape.
CEO's review
We were successful in implementing our strategy and making progress towards our key targets in 2020 in spite of the exceptional circumstances. Our total revenue, net rental income and Funds From Operations (FFO) increased. The fair value of our investment properties rose to EUR 6.9 billion and the number of apartments we own increased by more than 500 Lumo homes during the year.
We enter 2021 with confidence. We expect the strong trend of urbanisation to continue after the COVID-19 pandemic. The appeal of cities as providers of jobs and services on the one hand, and the decreasing average size of households on the other hand, create a need for new apartments in growth centres. We are making significant investments in order to respond to this demand.
The pandemic affected the housing market in 2020. The restrictions slowed down migration and students temporarily moved back in with their parents. In addition, apartments intended for short-term rentals were switched to long-term leases. A large number of new apartments were also completed in the market in 2020, which means that supply has temporarily increased relative to demand. These factors have been reflected in our occupancy rate, although we have been able to maintain it at a good level at 96.4%. While the impacts of the pandemic will still be visible in the market during the early part of the new year, we expect them to be temporary.
The past year was particularly successful for us with regard to new construction projects. We started construction on more than 1,800 apartments. We also have preliminary agreements for the construction of nearly 1,000 apartments. We currently have 2,600 apartments under construction in central locations in the Helsinki region, close to good transport connections and services. Furthermore, our Metropolia real estate development project will see us create as many as 1,000 new homes in buildings previously occupied by educational institutions in Helsinki's central business district and other good locations.
Gross investments totalled EUR 371.2 million in 2020. Fair value of investment properties saw strong growth during the year. The fair value was increased particularly by our investments and gains from fair value measurement. Our strong balance sheet and diverse financing structure have enabled us to make investments in a challenging economic environment. We established an EMTN programme in the spring and subsequently carried out a successful EUR 500 million bond issue under the programme. Our balance sheet indicators developed in line with our strategy during the year.
In 2020, people spent more time at home, which highlighted the significance of comfort and safety. Accordingly, we have put special focus on keeping our properties tidy and comfortable. We have also put emphasis on effective and comprehensive communication, which has been helped by the My Lumo application that is already used by about 75 per cent of our customers. The application makes it quick and easy for our customers to manage all of the important aspects of their tenancy relationship. We will continue to invest in service development in 2021 in accordance with our digital roadmap.
In December, we published our sustainability programme, which brings together our long-term sustainability efforts in the form of practical targets and actions. Corporate responsibility and sustainable development are a strategic priority for Kojamo and part of the Group's DNA. In our sustainability programme, we commit to the UN Sustainable Development Goals and carbon-neutral energy use at our properties by 2030. During the year, we also participated in the real estate industry's global GRESB sustainability benchmark survey for the first time and received a Green Star award with a rating of three stars out of five. After the review period, in January, we also completed our first financing arrangement linked to our sustainability targets by signing a revolving credit facility for EUR 75 million. We will publish our Sustainability Report as part of our Annual Report.
Lastly, I want to take this opportunity to thank our customers, partners and everyone at Kojamo for good cooperation during the last year despite of exceptional circumstances
Jani Nieminen
CEO
News conference as a webcast
Kojamo will hold a news conference for institutional investors, analysts and media on 18 February 2021 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 com-pany website at https://kojamo.fi/en/investors/releases-and-publications/financial-reports/
The news conference can be streamed online at https://kojamo.videosync.fi/2020-q4-results
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: 58882215#
For more information, please contact:
Maija Hongas, Manager, Investor Relations, Kojamo plc, tel. +358 20 508 3004, maija.hongas@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 a frontrunner in the housing business. Our mission is to create better urban housing. The Lumo brand provides environmental-friendly housing and services in Finland's biggest growth centres. 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 kojamo.fi/en/
This information was brought to you by Cision http://news.cision.com
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The following files are available for download:
https://mb.cision.com/Public/18367/3289223/b10b20549f2a088d.pdf | Kojamo Financial Statements Release 2020 |
https://mb.cision.com/Public/18367/3289223/8ffd67da75e88172.pdf | Kojamo Financial Statements Release 2020 presentation |
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