Kojamo Oyj's Revenue Decreased, Profit Increased in First Half of 2017
Sales of rental properties led to a decrease in Kojamo Oyj's revenue for the first half of 2017. However, the company's profit significantly improved due to property value appreciation and sales gains.
Kojamo Oyj reported a decrease in revenue to EUR 167.2 million for the first half of 2017, down from EUR 182.3 million in the same period last year. The decline was primarily attributed to the company's sales of rental apartments.
Despite the revenue dip, profit before taxes rose to EUR 136.8 million, compared to EUR 105.3 million in the prior year. This improvement was driven by a substantial increase in the fair value of investment properties and gains from property sales. Net rental income stood at EUR 106.0 million, a slight decrease from EUR 116.5 million, reflecting the impact of property disposals.
The company maintained a strong occupancy rate of 96.6 percent. Kojamo also significantly increased its investments in new construction, with gross investments totaling EUR 129.4 million. At the end of the first half, 1,835 Lumo apartments were under construction, bringing the total number of rental properties owned by Kojamo to 33,877.
Kojamo successfully diversified its financing during the period, securing a credit rating from Moody's and issuing a EUR 500 million Eurobond listed on the Irish Stock Exchange. The company forecasts its net rental income for the full year 2017 to be between EUR 208-220 million.