Lumo Kodit Oyj Integrates Acquired Portfolio, Sees Rental Market Recovery
Lumo Kodit Oyj reported better-than-expected integration of an April-acquired residential portfolio, with occupancy rising to 89%. The company also noted signs of recovery in the rental market and secured its financing.
Helsinki – Lumo Kodit Oyj announced in its October 2026 investor newsletter that the integration of its April-acquired residential portfolio has progressed favorably. The portfolio's occupancy rate increased from approximately 83% at the time of acquisition to 89% by the end of June, with stabilization expected in the third quarter.
The company attributed the improved occupancy to successful integration into Lumo's leasing platform and operating models, alongside the high quality and prime locations of the apartments. Concurrently, the rental market is showing initial signs of recovery. The number of available rental apartments has decreased, particularly in Helsinki and Espoo, while new housing construction has remained low for several years.
Regarding rent growth potential, Lumo Kodit anticipates that the gradual rebalancing of the rental market will support stronger pricing power. While rent increases are expected to remain moderate in the near term, the outlook for 2027 is more positive than previously assessed.
The company has also actively managed its financing. It has preemptively refinanced bank loans maturing next year, and a EUR 500 million committed back-stop facility secured the refinancing of a bond maturing in May 2027. Lumo Kodit also plans to refinance the remaining portion of the bridge financing related to the portfolio acquisition this year. In September, Moody's affirmed the company's Baa2 credit rating with a stable outlook.