Kojamo reports marginal revenue growth, net loss in Q1

Published 08/05/2025, 06:04
Kojamo reports marginal revenue growth, net loss in Q1

HELSINKI - Kojamo (HE:KOJAMO) plc, a Finnish real estate investment company, reported a slight increase in total revenue for the first quarter of 2025, while experiencing a net loss before taxes, according to its interim report released today. The company’s total revenue rose by 0.9% to EUR 114.3 million compared to the same period last year, with net rental income climbing 3.7% to EUR 62.8 million.

Despite the growth in revenue and rental income, Kojamo’s result before taxes for the quarter was a loss of EUR 11.0 million, a significant downturn from the EUR 39.3 million profit reported in the first quarter of 2024. This loss was primarily due to a EUR 37.4 million negative result on the valuation of investment properties at fair value. Earnings per share also reflected this decline, registering at EUR -0.04, down from EUR 0.13 in the prior year.

The company’s Funds From Operations (FFO) decreased by 8.6% to EUR 23.3 million. Kojamo attributed the FFO decline to increased financial expenses. Investment in new properties slowed down, with gross investments totaling EUR 4.0 million, representing 3.5% of total revenue, down from 7.4% in the previous year.

The financial occupancy rate saw a slight improvement, standing at 92.8% during the review period, up from 92.4%. Kojamo also noted an increase in occupancy rate in March to 93.5%. The fair value of investment properties was EUR 7.9 billion, including EUR 280.0 million in properties held for sale.

Kojamo’s equity per share decreased to EUR 14.65, and the EPRA NRV per share (net reinstatement value) dropped by 0.8% to EUR 18.45. The company’s outlook for the full year of 2025 remains unchanged, anticipating total revenue to increase by 1–4% and FFO to range between EUR 135–145 million, excluding non-recurring costs.

In his review, Interim CEO Erik Hjelt highlighted the improved occupancy rate and net rental income, attributing them to completed rental apartments and lower maintenance expenses due to milder weather. He also mentioned the company’s strong financing situation following a successful EUR 500 million bond issuance in March and a focus on enhancing customer experience, as evidenced by a rising Net Promoter Score.

Kojamo’s performance in Q1 reflects a mixed financial picture, with growth in some areas but challenges reflected in the overall loss. This report is based on the company’s press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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