Kojamo Oyj
OTC:KOJAF
Kojamo Oyj
Kojamo Oyj, a Finnish real estate frontrunner, has carved a distinctive niche in the rental housing market with a focus on providing high-quality, urban living solutions. With its roots tracing back to Helsinki in 1969, the company has steadily evolved to become a significant player in the property sector, marked by its innovative approach and commitment to sustainability. Kojamo primarily operates under its well-recognized brand, Lumo, offering a wide array of rental apartments primarily in Finland’s rapidly urbanizing cities. By focusing on urban centers where demand is robust, Kojamo capitalizes on the trend of urbanization and the increasing preference for rental living, especially among young professionals and those seeking flexible housing options.
The company’s business model is built on a strategic cycle of property acquisition, development, and leasing. Kojamo invests heavily in developing new residential properties and renovating existing ones to align with modern standards and environmental sustainability. Their revenue streams are primarily generated through rental income, underpinned by a portfolio characterized by high occupancy rates and competitive rental pricing. By leveraging cutting-edge technology and customer-centric services, Kojamo enhances the tenant experience, which promotes longer lease periods and lower vacancy rates. This focus on quality and efficiency not only bolsters Kojamo's financial performance but also reinforces its position as an industry leader in creating thriving living environments in urban Finland.
Kojamo Oyj, a Finnish real estate frontrunner, has carved a distinctive niche in the rental housing market with a focus on providing high-quality, urban living solutions. With its roots tracing back to Helsinki in 1969, the company has steadily evolved to become a significant player in the property sector, marked by its innovative approach and commitment to sustainability. Kojamo primarily operates under its well-recognized brand, Lumo, offering a wide array of rental apartments primarily in Finland’s rapidly urbanizing cities. By focusing on urban centers where demand is robust, Kojamo capitalizes on the trend of urbanization and the increasing preference for rental living, especially among young professionals and those seeking flexible housing options.
The company’s business model is built on a strategic cycle of property acquisition, development, and leasing. Kojamo invests heavily in developing new residential properties and renovating existing ones to align with modern standards and environmental sustainability. Their revenue streams are primarily generated through rental income, underpinned by a portfolio characterized by high occupancy rates and competitive rental pricing. By leveraging cutting-edge technology and customer-centric services, Kojamo enhances the tenant experience, which promotes longer lease periods and lower vacancy rates. This focus on quality and efficiency not only bolsters Kojamo's financial performance but also reinforces its position as an industry leader in creating thriving living environments in urban Finland.
Occupancy Recovery: Kojamo saw a significant improvement in occupancy rates, reaching 94.4% in Q2 and 94.8% in June, which drove revenue and net rental income growth.
Revenue Growth: Total revenue rose by EUR 4.3 million in H1 versus last year, and EUR 3.3 million in Q2, thanks entirely to higher occupancy.
FFO Decline: Funds From Operations (FFO) dropped by EUR 6.2 million, mainly due to increased financial costs and some higher maintenance and repair expenses.
Strong Balance Sheet: The company highlighted a strong financial position following refinancing over EUR 200 million of loans and the completion of a 1,944-apartment sale, with proceeds used to reduce debt and launch a share buyback program.
Stable Guidance: Guidance was reaffirmed: revenue growth of 0–2% and FFO between EUR 135–141 million for the year; no changes expected from small upcoming disposals.
Market Outlook: Management noted persistent oversupply in the rental market, especially in the capital region, but expects market balance to gradually improve as housing starts remain low and population grows in major cities.
ESG Commitment: ESG remains a priority with ongoing progress toward carbon neutrality by 2030.
Portfolio Focus: Kojamo will continue to focus its portfolio on major Finnish cities and maintains no plans to invest outside Finland.
