Picture: Arkkitehtitoimisto Helin & Co, Voima Graphics Oy Half-Year Report 1 – 6/2020 20 August 2020 Jani Nieminen, CEO Kojamo plc Erik Hjelt, CFO
Agenda • Summary of January – June 2020 • Financial development • Outlook, financial targets and dividend policy 2 Kojamo plc's Half-Year Report January – June 2020
Summary of January – June 2020 3 Kojamo plc's Half-Year Report January – June 2020
Impact of COVID-19 pandemic on Kojamo’s operations • The current situation in Finland is relatively good • Restrictions have been mainly removed • Anticipation of the second wave has begun • The impact of the pandemic on Kojamo has been limited • Our operations have continued almost without disturbance • Liquidity is on a good level and we have been able to make new financing arrangements • Pandemic has had an impact on the housing market and the operating environment, and the supply of rental apartments in the market has temporarily increased 4 Kojamo plc's Half-Year Report January – June 2020
Operating environment Business environment key figures 9.0 8.8 8.5 6.7 2.5 1.7 1.0 General operating environment 0.3 1.4 1.1 0.9 • Finland’s GDP has significantly decreased, but the -6.0 economy has started recovering at the second half of 2019 2020E 2021E 2022E the year as the restrictions have began to be lifted GDP growth, % Unemployment, % Inflation, % • The future development of the economy is affected especially by the potential second wave of the pandemic and recovery of Finland’s key export Population growth forecast 2019 – 2030 markets Helsinki 11.7% Capital region* • The impacts of the pandemic are expected to be 13.0% Helsinki region** 10.5% short-lived and urbanisation is expected to continue Jyväskylä 7.1% Kuopio 2.9% Lahti 0.3% Oulu 7.3% Tampere 11.7% Turku 8.5% Other areas -6.4% 5 Kojamo plc's Half-Year Report January – June 2020 * Helsinki, Espoo, Kauniainen, Vantaa, ** Capital region, Hyvinkää, Järvenpää, Kerava, Kirkkonummi, Mäntsälä, Nurmijärvi, Pornainen, Porvoo, Riihimäki, Sipoo, Tuusula, Vihti Sources: General operating environment, Business environment key figures: Ministry of Finance, Economic Survey 6/2020; Population growth forecast: Statistics Finland, Population forecast 2019
Operating environment Industry key figures 2020E 2019 28,000 38,700 Residential start-ups, units Building permits granted, annual*, units 35,479 40,281 Construction costs, change % n/a 1.0 Industry operating environment Prices of old dwellings in the whole 1.0 1.2 • The pandemic has increased the slowing down of country, change, % Prices of old dwellings in the capital housing start-ups and the housing production is 1.0 – 3.1 0.5 – 3.4 region, change, % expected to be below the annual demand for housing in 2020 and 2021 Rents of non-subsidised rental dwellings in 1.6 1.4 the whole country, change, % • Housing trade has slowed down, as the increased Rents of non-subsidised rental dwellings in 1.6 – 1.8 1.6 – 2.0 uncertainty makes people postpone their plans to buy a the capital region, change, % home • The supply in the long-term leasing market has Housing production need 2020 – 2040 increased as due to the restrictions on travel, apartments intended for short-term rental have been Helsinki 22% Tampere switched to long-term leases 3% Oulu 43% 3% Turku Jyväskylä 4% Kuopio 8% Lahti 6% Rest of Finland 11% * Rolling 12 months, May 2020 6 Sources: Industry operating environment: Ministry of Finance, Economic Survey 6/2020; Industry key figures: PTT, Statistics Finland: Building and dwelling production 2020, May, Kojamo plc's Half-Year Report January – June 2020 Confederation of Finnish Construction Industries RT’s business survey spring 2020; Housing production need: VTT, Need for housing 2020-2040
Operating environment Development of household sizes (% of all households) 45% Pandemic does not have a long-term impact on 40% the rental market 35% • In a longer term, migration keeps the demand for rental 30% apartments especially close to good connections high. 25% The significance of location and services is highlighted 20% in people’s housing needs 1985 2002 2019 • People are increasingly attracted by the freedom 1 person 2 persons 3+ persons provided by rental housing, which supports the development of the market for a long time Development of rental household-dwelling units (% of all households) • In Helsinki there are more rental households than owner-occupied, in the coming years in Tampere and 49.3% 48.3% Turku as well. This is a strong sign of acceleration of 48.2% 47.1% 43.8% urbanisation and changes in living preferences as well 43.0% 42.2% 40.6% 40.7% 40.4% 39.6% 40.2% 37.7% 37.3% • Corona virus pandemic has slowed down housing trade 36.5% 36.7% and uncertainty increases the popularity for rental apartments Helsinki Helsinki Jyväskylä Kuopio Lahti Oulu Tampere Turku region* 2010 2018 * Helsinki, Espoo, Kauniainen, Vantaa, Hyvinkää, Järvenpää, Kerava, Kirkkonummi, Mäntsälä, Nurmijärvi, Pornainen, Porvoo, Riihimäki, Sipoo, Tuusula, Vihti 7 Kojamo plc's Half-Year Report January – June 2020 Sources: The popularity of rental housing increases: MDI’s population forecast 2040 and Pellervo Economic Research PTT, Housing markets 2020 forecast; Development of household sizes and rental household-dwelling units: Statistics Finland, Dwellings and housing conditions 2018
Of the portfolio’s fair value 98.8 % in the seven largest Finnish growth centres Apartment distribution, % 4.0% 2.3% Helsinki 4.7% Number of region commercial 5.0% Number of Fair Fair value Fair premises Financial Tampere apart- value, (EUR value 6.3% Region and other occupancy region ments, (EUR thousand (EUR / rate, % 3) leased 5.4% units million) / unit) sqm) premises, Turku region units 13.9% Helsinki region 20,719 315 4,395 209 3,713 96.6 58.4% Oulu Tampere region 4,934 126 623 123 2,385 96.1 Turku region 1,904 17 216 113 1,969 97.4 Fair value distribution, % Jyväskylä Oulu 2,220 19 185 82 1,567 96.8 2.5% 1.2% Jyväskylä 1,771 2 185 105 1,989 92.3 2.7% Kuopio region 3.1% Kuopio region 1,674 47 161 94 1,758 95.1 3.1% Lahti region 1,436 4 148 103 1,832 95.8 3.6% Lahti region Others 816 20 71 85 1,515 95.0 10.4% Total 35,474 550 5,985 1) 166 3,015 96.3 Others 502 2) Others 73.4% Total portfolio 35,474 550 6,486 96.3 8 Kojamo plc's Half-Year Report January – June 2020 1) The figures reflect income-generating portfolio assets, which excludes ongoing projects, plots owned by the company and ownership of certain assets through shares. 2) Fair value of ongoing projects, plots owned by the company and ownership of certain assets through shares and IFRS 16 right-of-use assets. 3) Financial occupancy rate does not include commercial premises and other leased premises.
Key figures 1 – 6/2020 net rental income total revenue funds from operations (FFO) 124.9 M€ 190.5 71.5 M€ M€ (184.6 M €, + 3.2 %) (117.7 M€, +6.2%) (66.4 M€, +7.6%) fair value of investment profit excluding changes in value 1) properties gross investments profit before taxes 77.0 M€ 125.2 M€ 6.5 Bn € 179.0 M€ (5.3 Bn €, +22.3%) (72.3 M€, +6.6%) (96.6 M€,+85.3%) (124.8 M€, +0.3%) 9 Kojamo plc's Half-Year Report January – June 2020 1) Changes in value = Profit/loss on fair value of investment properties
Almost 2,400 apartments under construction • During the review period, 18 (4) apartments were sold, 45 (99) acquired and 201 (383) completed During the period, construction of 1,265 (648) apartments was started • Development of apartment portfolio, units Apartments under construction, units +79.1% 2,380 +0.8% 35,474 35,272 35,194 34,974 34,713 34,383 1,536 1,525 1,329 1,316 1,064 2016 2017 2018 2019 30 Jun 30 Jun 2016 2017 2018 2019 30 Jun 30 Jun 2019 2020 2019 2020 10 Kojamo plc's Half-Year Report January – June 2020
Over 4,500 apartments in the production pipeline Record-high number of • Projects under construction 2,380 apartments under Lumo One, Lauri Korpisen katu 8, Niittykatu 15, Höyrykatu 8, Runoratsunkatu 11, construction Työpajankatu 17A, Vantaa Espoo Helsinki Helsinki Espoo Co-operation agreements • on the construction of over 1,200 apartments Kirkkojärventie 10 D, Luotsikatu 1a, Vinsentinaukio 4, Strömbergintie 4E, Niittykummuntie 12 B, • Metropolia property Espoo Helsinki Helsinki Helsinki Espoo development entity to bring even 1,000 apartments, as 7 former educational buildings will Fregatti Dygdenin kuja 5, Lapinmäentie 10, Tenderinlenkki 8, Leineläntie 10, Niittykummuntie 12 E, be converted into Helsinki Helsinki Helsinki Vantaa Espoo residential use 11 Kojamo plc's Half-Year Report January – June 2020
Recommend
More recommend
