Kojamo (Hold, TP: EUR9.00) - Hunkering down
Adjusted for the EUR9m in bond buy-back gains, Kojamo’s reported Q2 was broadly in line with our forecast and Vara consensus. However, to support its IG rating, the company also announced a cost-cutting programme, a planned stop for all new developments and all modernisation projects of assets, and a plan to pay no dividends for 2023e. We expect no dividends for 2024e and 2025e as well, as the company is likely to see asset values drop and long-term ICRs come under pressure as existing hedging matures. We reiterate our HOLD and have cut our target price to EUR9 (11).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.
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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