Kojamo Oyj - Half Year financial report

Kojamo plc: Half Year Financial Report 1 January-30 June 2017

KOJAMO PLC
Half year financial report
24 August 2017 at 6.10 p.m.



Kojamo plc: Half Year Financial Report 1 January-30 June 2017

Summary of January-June 2017

  * Turnover totalled EUR 167.2 (182.3) million. Turnover is generated entirely
    by rental income. Turnover decreased due to the divestments of rental
    apartments in 2016 and early 2017.
  * Profit before taxes amounted to EUR 136.8 (105.3) million. The profit
    includes EUR 67.5 (56.2) million in net valuation gain on the fair value
    assessment of investment properties and EUR 1.3 (-26.9) million in capital
    gains and losses on investment properties. The profit increase resulted
    primarily from larger changes in the fair value, higher income from the
    divestment of investment properties and lower financial costs than in the
    comparison period.
  * Net rental income was EUR 106.0 (116.5) million, representing 63.4 (63.9)
    per cent of turnover. Net rental income decreased due to the divestments of
    rental apartments in 2016 and early 2017.
  * The financial occupancy rate remained high, standing at 96.6 (96.9) per cent
    during the review period.
  * Gross investments during the period totalled EUR 129.4 (89.9) million. Gross
    investments were 77.4 (49.3) per cent of turnover.
  * The fair value of investment properties was EUR 4.4 (3.6) billion. Return on
    investment was 7.6 (7.1) per cent.
  * There were 1,835 (1,303) Lumo apartments under construction at the end of
    the review period.
  * Kojamo owned 33,877 (32,736) rental apartments on 30 June 2017.


Summary of April-June 2017

  * Turnover totalled EUR 83.6 (86.4) million. Turnover decreased due to the
    divestment of rental apartments.
  * Profit before taxes amounted to EUR 78.5 (51.0) million. The profit includes
    EUR 44.0 (42.1) million in net valuation gain on fair value assessment.
  * Net rental income was EUR 53.4 (55.8) million, representing 63.8 (64.5) per
    cent of turnover. Net rental income decreased due to the divestment of
    rental apartments.
  * The financial occupancy rate remained high, standing at 96.4 (97.0) per cent
    during the period.
  * The Group's gross investments during the period totalled EUR 64.4 (46.2)
    million.

Unless otherwise stated, the comparison figures in brackets refer to the
corresponding period of the previous year.

The figures in this Half Year Financial Report have not been audited.



CEO Jani Nieminen: Kojamo diversified its financing and continues on the path of
strategic growth
We diversified our financing to ensure the achievement of our strategic goals.
The public credit rating and the Eurobond listed on the Irish Stock Exchange
support the company's goal of investing in Lumo homes in the urbanising Finland.

We are very pleased to have been able to acquire international financing to
increase well-being in Finland. On 30 May 2017, Moody's Investor Service issued
a long-term credit rating of Baa2 with a stable outlook for Kojamo plc. The
company subsequently issued a EUR 500 million unsecured bond that was listed on
the official list of the Irish Stock Exchange and admitted for trading on its
regulated market. Kojamo's first Eurobond was offered to a large number of
European investors and oversubscribed in a matter of hours.

We invest in rental housing to support, among other things, the migration of
people in pursuit of employment in the urbanising Finland. Kojamo currently has
1,835 Lumo apartments under construction. The focus of our operations is on the
seven main urban regions of Finland and we respond to the demand for rental
apartments especially in the Helsinki region.  Kojamo's share of the entire
rental housing market is approximately four per cent.

We have a strong emphasis on the development of our operations. We are
increasingly investing in digital services, the customer experience and our
corporate culture. A good example of our digital services is the Lumo web store,
which now accounts for the rental of more than 300 apartments per month. The
objective of our company is to be a housing investment company known for its
excellent customer experience and producing excellent financial results.

We want to deliver an excellent customer experience every day. The customer
experience consists of our code of conduct, our professional skill, our customer
service attitude and our desire to solve the customer's problems all at once.



Key indicators

                         4-6/2017 4-6/2016 1-6/2017 1-6/2016                2016
--------------------------------------------------------------------------------
Revenue, M€                  83.6     86.4    167.2    182.3               351.5

Net rental income, M€        53.4     55.8    106.0    116.5               222.0

% revenue                    63.8     64.5     63.4     63.9                63.2

Profit before taxes, M€      78.5     51.0    136.8    105.3               289.7

Operative result, M€         25.9     31.3     52.6     65.4               116.9

Investment properties,
M€ (1))                                     4,423.0  3,607.8             4,298.9

Financial occupancy
rate, %                      96.4     97.0     96.6     96.9                97.4

Interest-bearing
liabilities, M€ (2))                        2,460.0  1,713.4             2,122.8

Return on equity, %
(ROE)                                          11.5      9.8                12.9

Return on investments, %
(ROI)                                           7.6      7.1                 8.8

Equity ratio, %                                38.8     43.6                40.7

Loan to Value, % (2) 3))                       46.6     38.9                47.1

Earnings per share, €        8.40     5.58    14.73    11.53               31.38

Equity per share, €                          260.82   238.10              251.20

Gross investments, M€        64.4     46.2    129.4     89.9               696.0

Number of personnel, end
of period                                       333      321                 286



(1)) Including items
held for sale

(2)) Does not include
items held for sale

(3)) The calculation formula is changed 2017 and the comperative figures
adjusted to corresbond to the current calculation method



Outlook for Kojamo

Kojamo estimates that in 2017, net rental income will be EUR 208-220 million.
Investments in new development and housing stock acquisitions are forecast to
exceed EUR 300 million. Kojamo estimates that, in 2017, its operative result
will be EUR 96-107 million. The outlook takes into account the effects of both
the significant housing divestments carried out in 2016 and the housing
divestments and acquisitions planned for 2017, the estimated occupancy rate and
the number of apartments under construction.


Further information:
Jani Nieminen, CEO, tel. +358 20 508 3201
Erik Hjelt, CFO, tel. +358 20 508 3225



Kojamo plc focuses on real estate investments in Finland, renewing rental
housing in order to make it increasingly attractive. The company develops Lumo
homes and services that promote work-related mobility in the urbanising Finland,
increase well-being and protect the environment. Over the past five years, the
Group has invested nearly EUR 1.5 billion in commercial rental housing.
www.kojamo.fi/en






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Attachments:

Half year financial report 1 Jan - 30 June 2017.pdf

Half year financial report 1 Jan - 30 June 2017 presentation.pdf