CEO’s review

According to the Kojamo plc’s Financial Statements Release 1 January–31 December 2025

Total revenue and net rental income increased in 2025 due to improved occupancy rate. FFO decreased from the previous year due to higher financial expenses. Our balance sheet remained strong, and our liquidity position solid.

Our occupancy rate developed strongly throughout the year, increasing in each quarter. The full-year cumulative occupancy rate was 94.8 per cent, more than three percentage points higher than in the previous year. Typically, rental demand slows towards the end of the year compared to the summer months. Despite this, we succeeded in further improving the occupancy in the last quarter of the year, which increased to 96.3 per cent from 96.1 per cent in the third quarter.

The balancing of the rental market continues. The oversupply situation in the capital region did not ease last year, although some positive signs have begun to emerge. Differences between cities are large, and this continues to be reflected in pricing. While the capital region is recovering with a delay, the rental markets in Tampere and Turku have already largely normalised. The long-term trends favouring rental housing have not changed. Rental living is increasing in the largest cities, and population growth continues to be strong in the cities of the growth triangle. Residential construction has been exceptionally low for three years, and no material increase is expected this year.

The transaction market picked up last year, but the volume remained low. There were a few larger portfolio transactions in residential real estate, the most significant being Kojamo’s portfolio sale to international funds. Foreign investors have also otherwise supported the market recovery.

We have systematically focused on improving customer experience. Last year, this work was concretely reflected in a significant increase in customers’ willingness to recommend us. At the end of the year, our NPS was 57, up three points from the previous year. At the same time, tenant turnover has decreased. We will continue to focus on improving the customer experience, and we will develop sales and customer interactions by extensively utilising data, technology and artificial intelligence.

Last year, we did not start any new development projects and instead focused on improving the efficiency of our existing housing stock. Our only ongoing project in Helsinki will be completed during the winter. In the capital region, the oversupply of rental apartments continues, in addition to which construction costs and other prices have remained high. Nevertheless, our goal is to return to a growth phase, and we see acquiring completed properties as a more attractive alternative to own development projects. After the review period, we agreed to purchase a significant housing portfolio. The transaction includes 4,761 apartments located in prime areas with a strong focus on growth centres. The portfolio is of high quality, fits perfectly with our strategy, and it will also improve our cash flow.

Our financial position and liquidity situation have remained strong. During the year, we utilised both the bond market and bank financing. We issued a new bond of EUR 500 million and refinanced bank loans for a total of EUR 275 million. With the arrangements, we extended the loan maturities and strengthened our financial position Some of the funds received from the sale of the housing portfolio were used to repay debt, which reduced the amount of net debt. Moody’s affirmed the company’s Baa2 credit rating and raised the outlook to stable. We start the new year from a solid position.

Our work towards carbon neutrality progressed according to plans. The carbon footprint per apartment decreased from the previous year by more than our annual target, and we are already more than halfway towards achieving carbon neutral energy consumption in our properties by 2030.

The year 2025 did not yet bring a clear turnaround in the real estate or rental housing markets. However, we demonstrated our ability to develop our operations and achieve strong results even without the support from the market environment. I would like to express my warm thanks to the entire Kojamo personnel for their successful and responsible work during the year. I would also like to thank our customers, partners and shareholders for their long-term cooperation and trust in Kojamo.

Reima Rytsölä
CEO

Page updated 11 February 2026