Interim Report 1 – 3/2019 9 May 2019 Jani Nieminen, CEO Kojamo plc Erik Hjelt, CFO
Sisältö • Summary of January – March 2019 • Financial development • Outlook, financial targets and dividend policy Kojamo plc's Interim Report January – March 2019 2
Summary of January – March 2019 Kojamo plc's Interim Report January – March 2019 3
Operating environment Business environment key figures 7.4 6.1 6.0 6.3 General operating environment 2.3 1.7 1.4 • Kojamo is affected particularly by the situation in the 1.2 residential property market and development in the 1.5 1.2 1.1 1.7 Finnish growth centres, as well as macro-economic 2018 2019E 2020E 2021E factors and urbanisation megatrend GDP growth forecast, % Unemployment, % Inflation, % • The slowing growth of world trade is expected to put the brakes on export growth. Private investment growth is estimated to be modest in 2019 and the volume of new Population growth forecast 2017 – 2030 residential construction is expected to decline Helsinki substantially 14.8% Capital region* 16.0% • Domestic demand is expected to maintain growth and Helsinki region** 13.7% Jyväskylä the growth of private consumption is estimated to 5.0% Kuopio 2.7% remain strong. The favourable development of Lahti -2.7% employment and the accelerating increase in income Oulu 5.9% levels are expected to maintain growth in disposable Tampere 7.3% Turku income 7.3% Other areas -7.1% Kojamo plc's Interim Report January – March 2019 * Helsinki, Espoo, Kauniainen, Vantaa, **Capital region, Hyvinkää, Järvenpää, Kerava, Kirkkonummi, Mäntsälä, Nurmijärvi, Pornainen, Sipoo, Tuusula, Vihti 4 Sources: General operating environment, Business environment key figures: Ministry of Finance, Economic Survey, 4/2019; Population growth forecast: MDI’s population forecast 2040
Operating environment Industry key figures 2019E 2018 39,000 46,200 Residential start-ups, units 41,263 51,118 Building permits granted, annual*, units 2.0 2.5 Construction costs, % Prices of old dwellings in the whole country, Residential production and price development change, % 1.2 1.2 • The volume of housing production is returning to Prices of old dwellings in the capital region, 2.2 – 3.5 2.5 – 3.2 normal, the declining number of building permits and change, % Rents of non-subsidised rental dwellings in start-ups will not be reflected until 2020 1.8 1.6 the whole country, change, % Rents of non-subsidised rental dwellings in • Accelerated urbanisation increases the demand for 2.0 – 2.8 2.3 – 2.6 the capital region, change, % apartments, which puts upward pressure on prices in growth centres. The development of prices in the housing market will continue to diverge between growth Housing production need 2016 – 2040 centres and other areas Helsinki 16% • An increasing number of people also choose rental Tampere 2% housing of their own accord. Due to rising apartment 3% Oulu prices and stricter loan terms, it is becoming 4% Turku 48% increasingly difficult to buy an apartment especially in Jyväskylä 7% the inner city areas of large cities. This often leaves Kuopio 9% renting as an only option for finding an apartment in a Lahti specific area for many households Rest of Finland 11% * Rollng 12 months, February 2019 and 2018 Sources: Residential production and price development: Pellervo Economic Research PTT, Housing market 2019 forecast and Confederation of Finnish Construction Kojamo plc's Interim Report January – March 2019 5 Industries RT’s business survey, April 2019; Industry key figures: PTT, Statistics Finland: Building and dwelling production 2019, February, RT; Housing production need: VTT, Need for housing 2015-2040
Operating environment Development of household sizes (% of all households) 45% 40% The popularity of rental housing increases 35% • The trend of regional divergence will accelerate in 30% 2017 – 2040 and the significance of the 10 largest urban 25% areas will increase 20% • Urbanisation increases the demand for rental housing. 1985 1989 1993 1997 2001 2005 2009 2013 2017 Those who move to growth centres increasingly see 1 person 2 persons 3+ persons rental housing as an easier, safer and more flexible choice Development of rental household-dwelling units (% of all households ) • The growing demand for services is also reflected in living preferences. Living-related needs can be 49.2% increasingly satisfied by services instead of owning 47.5% 47.1% 47.2% 42.9% 43.0% 42.2% 40.1% 40.2% 40.0% 39.9% 38.9% 37.7% 37.3% 36.5% 36.7% Helsinki Helsinki Jyväskylä Kuopio Lahti Oulu Tampere Turku region* 2010 2017 Kojamo plc's Interim Report January – March 2019 * Helsinki, Espoo, Kauniainen, Vantaa, Hyvinkää, Järvenpää, Kerava, Kirkkonummi, Mäntsälä, Nurmijärvi, Pornainen, Sipoo, Tuusula, Vihti 6 Sources: The popularity of rental housing increases: MDI’s population forecast 2040 and Pellervo Economic Research PTT, Housing markets 2019 forecast; Development of household sizes and rental household-dwelling units: Statistics Finland, Dwellings and housing conditions 2017
Key figures 1 – 3/2019 net rental income funds from operations (FFO) total revenue 50.8 M€ 26.3 M€ 91.5 M€ (EUR 88.2 million, (EUR 48.1 million, (EUR 21.9 million, +5.7%) +20.3%) +3.7%) fair value of investment occupancy rate profit before taxes properties gross investments 96.9% 38.9 M€ 5.2 Bn € 38.0 M€ (EUR 4.9 billion, (EUR 203.7 million, (96.3%) (EUR 48.9 million, -20.4%) +5.5%) -81.3%) Kojamo plc's Interim Report January – March 2019 7
Of the apartments ’ fair value 98.3% in the seven largest Finnish growth centres Apartment distribution, % Helsinki region 4.8%3.2% 4.2% Fair Fair value Fair Tampere Number of Financial 4.8% value, (EUR value region Region apartments, occupancy (EUR thousand / (EUR / 6.4% units rate, % million) unit) sqm) Turku region 5.3% Helsinki 19,949 3,263 164 2,901 97.9 region Oulu 13.9% 57.3% Tampere 4,848 541 112 2,183 96.1 region Kuopio region Fair value distribution, % 1,848 227 Turku region 123 2,155 96.6 4.1% 1.7% 2,220 190 Oulu 86 1,627 95.6 Lahti region 3.3% 3.7% 1,659 196 Jyväskylä 118 2,193 91.9 3.9% Jyväskylä 4.7% Kuopio 1,674 177 106 2,001 93.4 region 11.2% Others 1,477 159 Lahti region 108 1,928 95.4 67.5% 1,117 83 75 1,382 95.9 Others 34,792 5,202* 139 2,525 96.9 Total Kojamo plc's Interim Report January – March 2019 * Includes EUR 367 million of fair value related to ongoing projects, plots owned by the company and ownership of certain assets through shares and IFRS 16 8 right-of-use assets
The apartment portfolio grew from year-end • Kojamo gave up segment reporting at the beginning of 2019 Apartment portfolio declined from the comparison period due to portfolio • sale at the end of April 2018, but slightly grew from year-end Development of apartment portfolio, units -2.5% 41,153 35,697 34,974 34,713 34,792 34,383 12,437 1,229 3,866 3,365 33,484 31,108 31,018 28,716 2015 2016 2017 2018 31 Mar 2018 31 Mar 2019 Lumo segment VVO segment Kojamo Kojamo plc's Interim Report January – March 2019 9
Lumo builds customer experience in a new way Services of a new customer Services during tenancy Key courier Easy pick up service service Installation service Personal Yard Pets are Lumo open coach welcome janitors house Car- 0 – Affordable Broadband Benefits from sharing security included partners 250 € deposit in rent Customer Versatile Move and Interior events for service paints for installation center free tenants service Kojamo plc's Interim Report January – March 2019 10
Electronic services make every day life easier Over My Lumo application launched for tenants at the 10,000 end of March 2019, already over rental agreements via 7,000 webstore by the end of March users Fully automated service, where tenant can Electronic service channel, where tenant • • choose his or her apartment and rent it at may pay rent, reserve a parking place or once make a defect report • Accessable with Nordic banking access • A platform for other living services in the codes, also used for checking credit future, co-creation to be continued information together with tenants and partners • Majority of rental agreements in the Capital region made already online Kojamo plc's Interim Report January – March 2019 11
Financial development Kojamo plc's Interim Report January – March 2019 12
Total revenue increased by 3.7 per cent • The development of total revenue was supported by the completion of rental apartments in 2018 and during the review period as well as rental like for like (LfL) growth Operative business developed well • Total revenue , M€ Profit before taxes , M€ Profit excluding changes in value Changes in value* Kojamo VVO segment Lumo segment 370.9 289.7 358.8 277.3 351.5 266.7 337.0 11.5 61.5 30.4 224.7 126.4 165.8 149.8 140.5 +3.7 % 154.4 347.6 -20.4 % 307.2 291.1 91.5 88.2 208.8 163.3 48.9 126.2 127.5 38.9 28.2 70.3 28.6 20.7 10.4 2015 2016 2017 2018 1 – 3/2018 1 – 3/2019 2015 2016 2017 2018 1 – 3/2018 1 – 3/2019 * Changes in value = Profit/loss on fair value of investment properties Kojamo plc's Interim Report January – March 2019 13
Recommend
More recommend
