Kojamo Plc

I'm Niina Sartoen from Investor Relations. Today we have two presenters. We have CEO Reema Rytselä and we have CFO Erik Hjalt. We will first present last year's result and the outlook for this year. But then we have interesting news we want to share. We have after the review period announced that we will acquire a big housing portfolio and shortly we will tell you more on that. Additionally, this morning we announced updated strategy and financial targets for years 26 to 28. We will also present these briefly today. So lots of topics coming. We have a Q&A after the presentation and we take both live questions and questions via chat. I believe we can now start the presentation.

Thank you, Niina, and very good morning on behalf of me as well. We have had very exciting 24 hours here in Kojamo, and happy to tell you the latest news as well. But we start with the Q4 and the whole year 25 results. I think it's fair to say that we had a strong quarter behind us, the last quarter of 25. and the kind of total revenue and net rental income grew in a year 25. FFO decreased the whole year due to higher financial costs, but for example Q4 FFO was already increasing. Our balance sheet is still strong and that enabled us as well to enter the transaction market, which we did tell you yesterday evening and tell you more about later this morning. But I would say that the key highlight of last year in Kojamo was definitely the very good development of occupancy rate, and the last quarter occupancy even rose to 96.3, even though the seasonal effect is always a bit of a kind of a burden in rental market as a last quarter of the year. Our like-for-like rental income also turned clearly positive, 2.6 percent. We have previously communicated that it's a very backward-looking indicator, and we haven't seen that fitting that well, especially in a turnaround situation, which Kojaama had with the occupancy rate, but that's definitely kind of a proving as well that our development has been really good on that side. Also the Net Promoter Score was 57 and improved from last year. As I said already earlier, that our strong balance sheet enabled us to kind of enter the transaction market and back to the growth path as well. And we still see that our financial position is very strong. And we get back to the latest acquisition and a new strategy in the later stage of the presentation. The operating environment, first if we take a kind of macroeconomic view, so we definitely seen a kind of improvement in Eurozone, even global growth has improved. Finnish economy is still muted. We do have some signs, whether they are weak or a bit stronger, but we do have seen some signs of a recovery now. Hopefully that will carry on. We don't know that yet. Going to the rental market as such, so there's definitely oversupply still, especially in capital region. The balancing of our supply has somewhat postponed still, and it hasn't eased up, where we kind of repeat the kind of confidence that we have in a medium term. and long term that it will balance out because of a fact that actually the new startups have been already three years very low level especially non-subsidized market but even on you counting on subsidized market and it's forecasted that actually subsidized market will come down this year due to legislation changes. In this RT statistics is forecasted that actually private startups or non-subsidized apartment startups would increase in forecast wise even double from 4500 to 9000, we actually are not that optimistic, we think that on 26 non-subsidized side the market will be very kind of very muted in a new startups. So all in all the kind of megatrends that are backing up the rental market is that urbanization is kind of a continuing and kind of a population growth is, how to say, population is growing all the time in the biggest cities and with the match of a Kojamos portfolio and And with the addition to the new acquisition, which is even more concentrated on this growth triangle, Helsinki area, Tampere and Turku area, so it's very well fitted to the kind of demand that the population growth and urbanization will create in the future. I will skip that and due to the fact that we have plenty of news to cover, so I would like to ask Erik on the stage and just to kind of highlight the last figures of last year, so especially the kind of FFO was very strong in Q4. Having said that, we have to bear in mind that December was very warm, which the January and February hasn't been so far in Finland, but that was improving the net rental income as well. But all in all, I would say that kind of very solid quarter for Koyama and very kind of a very good year to 25 in a sense that I would like to say that we are kind of a packing business in a sense. Erik, please.

Thank you, Reema, and good morning, everybody, from my side as well. So, page 11, top line. So, top line grew 2.8 million euros the whole year 2025 compared to 2024, despite of the disposal that we made during the summer. And Q4 growth was 1.9 million euros negative compared to Q4 2024. net rental income grew 4.8 million euros the whole year compared to previous year, and Q4 last year, the net rental income grew 1.6 million euros compared to Q4 2024. So the whole year repairs were in line with the previous year, and Q4 repairs were 1.5 million euros less than in the corresponding period. On the maintenance side, so 2.1 million euros down from the corresponding year, whole year and actually 2.1 million euros for Q4 as well. And biggest items driving the changes in maintenance expenses, so heating, 2.8 million euros down. Actually the weather was quite mild both during the first quarter and fourth quarter last year. Now it seems to be more golden and snow is coming nicely down as well. And credit losses down by 1.3 million euros, electricity down by 0.6 million euros and waste management 0.3 million euros. On a growing side, so water expenses was up by 1.2 million euros, maintenance 0.6 million euros and cleaning 0.6 million euros. and of course these growing items today they are because of the higher occupancy so customers are spending more water and are using more water and we need to clean a little bit more because there's more customers so that's actually a positive thing. So page 12 on the right hand side, our FFO, the whole year FFO down by 7.3 million euros. But if you look only Q4, so it's already on positive side, 0.3 million euros. So a whole year net rental income contributed 4.8 million euros. SG expensive increased by 0.4 million euros and then financial expenses is the biggest driver bringing the whole FFO figure whole year down so FFO expenses grew 8.9 million euros. Occupancy improved, so very strong performance there. Whole year figure up by 3.3 percentage point, and it's cumulative, the whole year figure 94.8. We are extremely proud that the Q4 figure was already 96.3, and actually it increased even from the third quarter, despite of the seasonal effect in the market. Our tenant turnover came down 1.8 percentage point, and that's pretty much driven by our all-time high net promoter score. Like for like, as Reimo already explained, so we are not great favor of this KPI in a turnaround situation, because it's really backward looking, but as anticipated now the impact of the commercial rate is very very strong, positively strong, and that's driving the whole like for like growth, rental income growth to 2.6 percent, and the impact of occupancy was 3.7 percent. Impact of rents and water charges, negative 1 percent, so we are still increasing the rents of the existing tenants, 1.2, 1.3 percent, Q4 actually even slightly more than that. but the negative impact is coming through because of the fact that we are more flexible what comes to the pricing in renting, so that is the driver behind the negative figure, but as I said, impact of the occupancy very very strong there. Page 15, investments were on a low level, so we have only one ongoing development project, 119 apartments, and that will be complete actually by the end of this month. And as already said, we made this larger disposal in July. Modernization investments increased close to the 30 million euros the whole year, and the driver there is that we started a couple of new bigger modernization investment projects and repairs at 24.1 million euros as in the previous year. Then page 16, value of investment properties. We didn't chase actually our valuation parameters, so valuation remained the same, and the slight negative impact came through because of the modernization investments actually. So the money spent is negative, and once the process is completed, then most likely the slight positive figure coming through there. Loan-to-value coming down, so moving in the right direction in that sense. We are very happy with the current level. And then page 18, our financial position has remained strong. In autumn, Moody's actually affirmed our PAA2 credit rating and stabilized our outlook. We are very happy with that. And net debt down more than 200 million euros from the corresponding period. Cash and cash equivalent and including financial assets, 239 million euros, that covers nicely all 2026 maturing loans. So the next refinancing is to refinance 2027 maturing loans. Perhaps we start to address that before the summer, but we have plenty of time to do that. Financial KPIs remain stable, so average interest rate same as seen in Q3, 3.2 and coverage ratio 2.4, and to make our figures more comparable with our peers, so our coverage ratio excluding repair expense is 2.6. And then equity per share and EPRANTA, not that great excitement there, very, very flattish. And then page 20, outlook for this year. So now we estimate that the top line is going to be between 484 and 497 million euros. And we estimate that the FFO is going to be 147 to 157 million euros. In this outlook, we have taken into account the acquisition, so the acquisition of 4761 apartments, and we estimate that the transaction will be completed 1st of April, so that impact is included in this outlook. Otherwise, in the top line growth, if we look at the midpoint of the top line growth guidance, So there we estimated some improvement in occupancy and moderate rent increases and still flexible in new rents. And then of course the FFO guidance echoing the range of our top line guidance. And now back to Reimo.