DnB Markets - Kojamo Oyj (KOJAMO) Kojamo (Buy, TP: EUR10.50) - Expecting improved rental markets

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DnB Markets

Simen Mortensen

EUR 469.86 For Business Accounts Only

Kojamo (Buy, TP: EUR10.50) - Expecting improved rental markets

The Q3 results were in line with our forecasts, with continued muted Finnish residential rental markets. However, we expect markets to gradually improve, given a low supply of newbuilds over 2025–2027e and falling unemployment rates. With declining interest rates, we also see the potential for the company to restart project developments in 2025–2026. On the current valuation, we find the risk/reward attractive. We have upgraded to BUY (HOLD) and raised our target price to EUR10.5 (10).

10/11/2024 1 EN

Underlying

Kojamo Oyj

Kojamo Oyj is a Finland-based private residential real estate company. It offers rental apartments and housing services for tenants primarily in the Helsinki region, the Tampere, Turku, Kuopio and Lahti regions, as well as in the cities of Oulu and Jyvaskyla. The Company's portfolio comprises over 35 000 rental apartments. The Company operates within two segments: Lumo and VVO. The Lumo segment includes commercial housing services and apartments primarily are free from restrictions under state-subsidized housing loans (ARAVA) and/or interest subsidy legislation. The VVO segment includes the rental apartments subject to restrictions on rent levels under ARAVA and/or interest subsidy legislation.

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FI4000312251 Nasdaq Nordic Helsinki Finland

Provider

DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

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Analysts

Simen Mortensen

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Kojamo (Buy, TP: EUR10.50) - Expecting improved rental markets

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