Kojamo Oyj's Q3 2024 Report Shows Revenue Growth Amidst Market Challenges
Kojamo Oyj, Finland's largest private residential real estate company, has released its interim report for January-September 2024, highlighting a growth in total revenue and net rental income despite ongoing market challenges.
Sammanfattning
Kojamo Oyj's latest report indicates a modest increase in revenue and net rental income, while financial and maintenance expenses have impacted the FFO. The company maintains a strong balance sheet, but market challenges persist with oversupply in the rental market. Kojamo's strategic focus remains on managing its existing portfolio and maintaining financial stability.
Kojamo Oyj, a prominent player in Finland's residential real estate market, has released its interim report for the period of January to September 2024. The report reveals that the company's total revenue increased by 3.9% compared to the same period last year, amounting to EUR 225.6 million. However, the Funds From Operations (FFO) saw a decline to EUR 68.2 million from EUR 80.5 million in the previous year.
| Key Performance Indicator | 2024 (Jan-Sep) | 2023 (Jan-Sep) |
|---|---|---|
| Total Revenue | EUR 225.6 million | EUR 217.1 million |
| Net Rental Income | Increased | - |
| Funds From Operations (FFO) | EUR 68.2 million | EUR 80.5 million |
| Debt Ratio | Stable | - |
| Interest Coverage Ratio | Improved | - |
Despite the growth in revenue, Kojamo faced increased financial and maintenance expenses, which contributed to the decrease in FFO. The company's balance sheet remains robust, with a stable debt ratio and improved interest coverage ratio.
The oversupply in the rental market continues to pose challenges, although Kojamo's occupancy rate showed improvement in the third quarter compared to the second quarter. The management has refrained from new investment decisions, focusing on maintaining financial stability and managing the existing portfolio.
Looking ahead, Kojamo's outlook for 2024 remains unchanged, with an estimated revenue growth of 2–4% and FFO between EUR 142–152 million, excluding non-recurring costs. The company's strategic focus is on addressing the challenges of the operating environment while leveraging positive signs in the rental and financing markets.
Conclusion: For investors, Kojamo's stable financial position and strategic focus on managing existing assets amidst market challenges indicate a cautious but resilient approach. The company's ability to maintain a strong balance sheet and improve key financial ratios suggests a potential for steady performance in the longer term.
Källa
Sammanfattning
Kojamo plc released its Interim Report for January to September 2024, stating an increase in total revenue and net rental income, while the fair value of investment properties remained unchanged. By the end of September, Kojamo owned 40,973 rental apartments, having completed 779 new units over the year. The company maintains its 2024 outlook, predicting a 2-4% revenue increase and an FFO between EUR 142–152 million, excluding non-recurring costs. Although FFO decreased due to higher financial and maintenance expenses, the balance sheet remains strong with good liquidity. The rental market faces oversupply, but limited new construction and population growth in major cities are expected to eventually balance the market. Kojamo plans to start a new project in Helsinki by year-end. Administrative and repair expenses have decreased, contributing to cost savings. Kojamo refinanced its loans and expects favorable interest rate trends to aid future financing. Moody's confirmed Kojamo's Baa2 (negative) credit rating. The company continues to focus on enhancing urban living through its Lumo brand, which celebrates its 10th anniversary. A webcast news conference is scheduled for November 7, 2024.