Core Insights - Kojamo plc reported a strong increase in occupancy rates, with the financial occupancy rate reaching 93.6% during the review period, up from 91.7% in the previous year [6][12][14] - The company completed a significant transaction involving the sale of 1,944 apartments, which is the largest transaction in the Finnish residential market this year, aimed at reducing debt and enhancing shareholder value [16][12] - The outlook for 2025 indicates a projected revenue increase of 0-2% year-on-year, with Funds From Operations (FFO) estimated between EUR 135-141 million, excluding non-recurring costs [9][10] Financial Performance - Total revenue for the second quarter of 2025 increased by 2.9% to EUR 115.6 million, compared to EUR 112.3 million in the same period last year [5][6] - Net rental income rose by 0.9% to EUR 82.8 million, with a net rental income margin of 71.7% [5][6] - The profit before taxes improved significantly to EUR -12.7 million from EUR -104.3 million year-on-year, reflecting a positive trend in financial performance [5][6] Investment and Property Management - Kojamo owned 40,946 rental apartments at the end of the review period, with no new completions since the previous year [4] - Gross investments totaled EUR 10.1 million, representing 8.8% of total revenue, indicating a slight decrease from the previous year [6][7] - The fair value of investment properties remained stable at EUR 7.9 billion, with EUR 272.8 million in investment properties held for sale [6][7] Customer Experience and Market Position - The Net Promoter Score (NPS) reached an all-time high of 58, indicating improved customer satisfaction [15] - The company is focused on enhancing customer experience and maintaining a strong position in Finland's growth centers [18] - Despite oversupply in the rental market, particularly in the capital region, the growth in supply appears to have stalled, which may benefit Kojamo's occupancy rates [14]

Financial Data and Key Metrics Changes - The second quarter and first half of the year results exceeded initial guidance, with revenue growth driven by higher occupancy and rental revenue [5][6] - Core FFO growth was reported at 3.3% year to date, positioning the company toward the top of the sector [9] - Operating expenses growth is now forecasted at 3.1%, 100 basis points better than original guidance, leading to higher NOI growth projected at 2.7% for 2025 [6][12] Business Line Data and Key Metrics Changes - Same store NOI growth is projected at 2.7%, which is 30 basis points above initial expectations, driven by a reduction in expense growth [12][13] - New development projects started in the first half of the year totaled $610 million, with a revised target of $1.7 billion for the full year [9][13] Market Data and Key Metrics Changes - Total market occupancy in established regions stands at 94.8%, while the Sunbelt region is at 89.5% due to elevated standing inventory [10] - Economic occupancy in New York, New Jersey averaged 96.3% during Q2, while Seattle achieved 96.6% [19][21] Company Strategy and Development Direction - The company is focused on acquiring $900 million of assets this year, primarily funded by capital from dispositions [8] - Development projects are expected to generate differentiated external growth, with ongoing projects trending above pro forma stabilized yields [7][9] Management's Comments on Operating Environment and Future Outlook - Management noted that job growth expectations for the second half of the year are more muted, but demand remains healthy across most of the portfolio [6] - The company anticipates that new supply in established regions will continue to decline, supporting healthy operating fundamentals [6][10] Other Important Information - The company raised $1.3 billion of capital year to date at an initial cost of 5%, which is attractive relative to yields on new development projects [9] - The CEO acknowledged the retirement of the Head of Investor Relations, Jason Reilly, after 21 years with the company [10][11] Q&A Session Summary Question: What is impacting the pace of leasing in Denver communities? - The leasing pace is averaging about 30 homes per month, which is in line with expectations, but some delays are due to elevated concessions in competitive submarkets [30][32] Question: What gives confidence in achieving the same number of occupied units by year-end? - The company has seen good velocity in leasing, averaging 30 homes per month, and expects to push harder on concessions to maintain occupancy [34][36] Question: What caused the leveling off in asking rent trends? - Demand has softened due to weaker job growth, with about 100,000 fewer jobs than originally projected impacting rent growth [41][42] Question: Why is bad debt running higher compared to peers? - The company charges for all amounts due under lease terms, including late fees and utilities, which may contribute to higher bad debt figures [44][45] Question: How is the Dallas acquisition performing? - The acquisition is trending as expected, with increased resources being allocated to asset management [52][54] Question: What regions are expected to underperform in rent change? - The Mid Atlantic and Southern California are projected to underperform due to weaker job environments and pricing power [58][60] Question: What is the outlook for the DC asset sales? - The DC market is challenging due to unique laws, but the company is comfortable with current pricing and values for the assets [91][94]