Interim reports | The decrease in the value of apartments weighed on Kojamo's profit at the end of the year, the rental income increased

Rental housing company In October-December, Kojamo's turnover increased by 5.2 percent year-on-year to 113.5 million euros. The company's net rental income grew by 4.3 percent to 75.5 million euros.

Kojamo's result also improved from the previous year, but it was still loss-making, as the figure includes the estimated decrease in the value of investment properties. The three-month result before taxes rose to -119.5 million euros, compared to -748.3 million euros a year earlier.

“The fair value of our investment properties decreased by 1.9 percent in the year-end valuation. No significant comparable deals were made on the transaction market last year, so the increase in yield requirements was based on an overall estimate,” says Kojamo's CEO Jani Nieminen in the bulletin.

Kojamon turnover for the whole of last year increased by 7.0 percent from the previous year to 442.2 million euros. Net rental income increased by 6.1 percent to EUR 297.2 million, and the result before taxes improved to EUR -112.3 million. The result for the whole year was also weakened by the valuation of investment properties at fair value.

Nieminen estimates that the group made a good result last year in a very challenging market.

“Although there was still a lot of supply on the rental market, we managed to improve our occupancy rate from the previous year. Urbanization continued stronger, bringing demand.”

Kojamo estimates that the group's net sales will grow this year by 4–8 percent compared to last year.

“Due to the abundant construction in recent years, there has been an oversupply in the rental market, which still affected the recovery of the occupancy rate, but the market situation is expected to balance out as the new supply decreases significantly,” Nieminen continues.

“The slowdown in construction and, at the same time, accelerating population growth will probably be reflected in stronger occupancy rates and larger rent increases.”