Good morning, all. Welcome.

This is Kojamo's full-year results webcast. I'm Niina Saarto from Investor Relations.

Today we have two presenters: we have CEO Reima Rytsölä and we have CFO Erik Hjelt. We will first present last year's result and the outlook for this year, but then we have interesting news we want to share.

We have, after the review period, announced that we will acquire a big housing portfolio, and shortly we will tell you more on that. Additionally, this morning we announced updated strategy and financial targets for years '26 to '28.

We will also present this briefly today. Lots of topics coming.

We have Q&A after the presentation, and we take both live questions and questions via chat. I believe we can now start the presentation.

Thank you, Niina, and very good morning on behalf of me as well. We have had very exciting 24 hours here in Kojamo and, and happy to tell you the, the latest news as well.

We start with the, with the Q4 and, and the whole year '25 results. I think it's fair to say that we had a, we had a strong, strong quarter behind us, the last, last quarter of '25, and, and the, the kind of total revenue and net rental income grew in, in the year '25.

FFO decreased the whole year due to higher financial costs, but, but for example Q4, FFO was already increasing. Our balance sheet is still strong and, and, and that enabled us as well to, to enter the transaction market, which, which we will tell you, which we did tell you yesterday evening and, and tell you more about later, later this morning.

I would say that the key highlight of, of, of last year in, in Kojamo was definitely the, the, the very good development of occupancy rate and, and, and the last-quarter occupancy even rose to, to 96.3%, even though the, the seasonal effect is, is always a bit, bit of a, kind of a burden in, in, in rental market as a, as a, as a last quarter of the year. Our, our like-for-like rental income also turned clearly positive, 2.6%.

We, we have previously communicated that it's, it's, it's very backward-looking indicator, and we, we haven't seen that fitting that well in a, in a especially in a turnaround situation which, which Kojamo had with the occupancy rate, so, but, but that's definitely kind of proving as well that, that our development has been, has been really good on, on, on that side. Also, the Net Promoter Score was 57 and, and, and, and improved from, from last year.

As, as I said already earlier that, that, that, that this, our, our strong balance sheet enabled us to, to kind of enter the transaction market and back to the growth path as well. We still see that, that our financial position is, is very strong.

We get, we get back to those, that latest acquisition and, and, and new strategy in the later stage of the, of the presentation. The operating environment, first, if we take a kind of macroeconomic, macroeconomic view, so, we definitely seen a kind of improvement in eurozone.

Even global growth is, has, has improved. Finnish economy is, is, is still muted.

We do have some, some signs, whether they are weak or, or, or a bit stronger, but we do have seen some signs of a, of a, of a recovery now. Hopefully that, that will, that will carry on.

We don't know that yet. Going to the rental market as, as such, so, there's, there's definitely oversupply still, especially in, in capital region.

We haven't kind of the balancing of, of, of oversupply has somewhat postponed still and, and, and it, it hasn't eased up. Where we kind of repeat the, the kind of confidence that we have in a medium term and, and, and in a long term that, that, that it will balance out because of the fact that actually the new, new startups have been already three years very low level, especially non-subsidized market, but even when you're counting on, on, on on subsidized market, and it's forecasted that actually subsidized market will come down this year due to legislation changes.

In this, this RT statistics is forecasted that actually private startups or non-subsidized apartments startups would increase in forecast-wise even double from 4,500 to 9,000. We actually are not that optimistic.

We, we think that on '26, on non-subsidized side, the market will be very, very kind of very muted in, in, in a new startups. All in all, the kind of the kind of megatrends that are backing up the, the rental market is that, that urbanization is, is, is kind of continuing and, and kind of population growth is, is, is how, how do I say, population is growing all the time in the biggest cities and, and with the match of, of, of Kojamo's portfolio and, and with, with, with addition to, to, to new acquisition, which is even in a more concentrated on this growth triangle: Helsinki area, Tampere and Turku area.

It, it's very well fitted to the, to the, to the kind of demand that, that the population growth and urbanization will, will create in a, in a future. I will skip that and, and due to fact that, that we have we have plenty, plenty of news to cover, so, so, would, would like to ask Erik, Erik on, on, on the stage and, and just to, just to kind of highlighting the, the last, the last figures of, of last year.

Especially the, the, the kind of FFO was, was very strong in, in Q4. Having said that, we, we have to bear in mind that, that December was, was very warm, which, which the January and February hasn't been so far in Finland, but, but, but that was improving the net rental income as well.

All in all, I would say that, that kind of very solid, solid quarter for, for Kojamo and very kind of very good year, the '25, in a sense that, that I would like to say that we are kind of back in business in a sense. Erik, please.

Thank you, Reima, and good morning everybody from my side as, as well. Page 11, top line.

Top line grew €2.8 million the whole year 2025 compared to 2024, despite of the disposal that we made during the summer, and Q4 growth was €1.9 million negative compared to Q4 2024. Net rental income grew €4.8 million the whole year compared to previous year, and Q4 last year, the net rental income grew €1.6 million compared to Q4 2024.

Repairs, the whole-year repairs were in line with the previous year, and Q4 repairs were €1.5 million less than in, in corresponding period. Maintenance side saw €2.1 million down from the corresponding year whole year and, and actually €2.1 million for Q4 as well.

Biggest items driving the, the changes in, in maintenance expenses: so heating €2.8 million down. Actually, the weather was quite mild both during the first quarter and, and fourth quarter last year.

Now it seems to be more cold and, and, and snow is coming nicely down as, as well. Credit losses down by €1.3 million, electricity down by €0.6 million, and waste management €0.3 million.

On a, on a growing side, water expenses was up by €1.2 million, maintenance €0.6 million, and cleaning €0.6 million. Of course, these growing items there, they are because of, of the higher occupancy, so, customers are, are spending more water and or using more water, and, and we need to clean a little bit more because there's, there's more customers, so that's actually a positive thing.

Page 12 on right-hand side, our FFO, the whole-year FFO down by €7.3 million, but if you look only Q4, it's already on positive side, €0.3 million. Whole-year net rental income contributed €4.8 million, SG&A expense increased by €0.4 million, and then financial expenses is the biggest driver bringing the whole FFO figure whole year down, FFO expenses through €8.9 million.

Occupancy improved, very strong performance there. Whole-year figure up by 3.3 percentage point and did cumulative whole-year figure 94.8%.

We are extremely proud that, that the Q4 figure was already 96.3%, and actually it increased even from the third quarter despite of, of the seasonal effect in, in, in the market. Tenant turnover came down 1.8 percentage point, and, and that's pretty much driven by, by our all-time high Net Promoter Score.

Like-for-like, as, as Reima already explained, we are not great favor of this KPI in turnaround situation because it's really backward-looking, but as anticipated now, the, the impact of occupancy rate is, is very, very strong, positively strong, and, and that's driving the whole like-for-like growth rental income growth to 2.6%, and the impact of occupancy was 3.7%. Impact of rents and water charges is negative 1%, we are still increasing the rents of existing tenants 1.2%, 1.3%, Q4 actually even more than slightly more than that, but the negative impact is, is coming through because of the fact that we are more flexible what comes to the pricing in, in, in renting, so, so that is the driver behind, behind the negative figure.

As said, impact of the occupancy very, very strong there. Page 15, investments were on a low level, we have only one ongoing development project, 119 apartments, and that will be complete actually by the, by the end of this month.

As, as already said, we made this disposal, large disposal in, in July. Modernization investments increased close to the €30 million the whole year, and, and the driver there is that, that we started couple of new, bigger modernization investment projects, and repairs at €24.1 million as, as in previous year.

Then page 16, value of investment properties, we didn't change actually our valuation parameters, so, valuation yield remained the same, and, and the slight negative impact came through because of the modernization investments, actually. The money spent there is negative, and once the project is completed, then, then most likely the slight positive figure coming through there.

Loan-to-value coming down, moving into right direction in that sense. We are, we are very happy with the current level.

Then page 18, our financial position has remained strong. In autumn, Moody's actually affirmed our Baa2 credit rating and, and stabilized our outlook.

We are very happy with that. Net debt down more than €200 million from the corresponding period.

Cash and cash equivalents and including financial assets, €239 million, that covers nicely all 2026 maturing loans. The next refinancing is to to refinance 2027 maturing loans, that perhaps we we start to address that before the summer, but, but we have plenty of time to do to do that.

Financial KPIs remain stable, average interest rate same as in, in Q3, 3.2%, and coverage ratio 2.4, and to make our figures more comparable with our peers, our coverage ratio excluding repair expenses, 2.6. Then equity per share and, and EPRA NTA, not that great excitement there, very, very flattish.

Then page 20, outlook for this year, now we estimate that top line is going to be between €484 million and €497 million, and we estimate that FFO is going to be €147 million to €157 million. In this outlook, we have taken in account the acquisition, the, the acquisition of 4,761 apartments, and we estimate that transaction will be completed 1st of April, so that impact is included in, in this, this outlook.

Otherwise, the top in top-line growth, if we look the midpoint of the top-line growth guidance, there we estimate is some improvement in occupancy, moderate rent increases, and still flexible in, in new rents, and, and then of course the FFO guidance echoing the, the range of our top-line top-line guidance. Now back to Reima.

Thanks, Erik. Yesterday we, we yesterday evening we announced that, that we have signed a deal with Varma Mutual Pension Insurance Company to acquire 4,761 apartments.

Here you can see on the slide the kind of breakdown of a, of a split on, on, on geographical split and, and also the split between between the kind of by, by the construction year. It's 60 properties, and as you can see that 75.5% of that, that, those properties are in Helsinki region, and Helsinki region plus Tampere and Turku is 97.6%.

This is kind of a super good fit for our strategic scope, and, and only 2.4% in Lahti and Jyväskylä, where actually we do have real estate or apartments of our own as well. We, we signed this deal yesterday, and as, as, as, as Erik said, that we expect that to, to close on, on 1st of April.

The debt-free transaction price was approximately €900 million, and the transaction will be paid partly through directed share issue to the seller and, and with, with the, with the subscription price of €11.86, so, close to 24% premium to market price. We also have signed a €600 million bridge facility with the with the Goldman Sachs, Nordea, and Skandinaviska Enskilda Banken.

We, we are, we are grateful for, for for those counterparties and those banks for, for, for a support in, in a very important acquisition like this. We are planned to take the, the acquisition facility to take out with, with the debt capital markets financing.

Then the transaction rationale, well, of course this is a unique opportunity and, and very sizeable portfolio and very, very both a sizeable and also very good portfolio. As, as I as I as I noted and, and forgot to mention the, the split between the construction year, it's, it's worth of noting that, that in in the 2000 and, and later constructed buildings are the far most majority of the, of the portfolio.

We, we think that this is this is a very kind of a quality portfolio, and this will kind of position Kojamo on a, on a, on a growth path again. Also, it's very positive that Varma as a as already existing shareholder of Kojamo is is is kind of demonstrates confidence to to invest even more in in in Kojamo and even with the with the kind of premium price to to market price.

This this transaction as such is kind of demonstrates very well the the operational leverage that we we we have in Kojamo Kojamo as a platform, and, and, and we we kind of of there there will be kind of a marginal incremental costs to to kind of absorb this this sizeable portfolio, and, and this will definitely improve our our EPRA cost ratio. We also have systematically developed our our sales and, and pricing process, and, and, and I think those those kind of improvements have been have been verified already last year when when when when we when we were able to raise our occupancy significantly during during the year, and that's why we are actually confident that even though the portfolio has a relatively low occupancy at the moment, so, with our with our kind of organization and, and, and with our capabilities, we are we are in very good position to to to improve that and, and to kind of stabilize the occupancy in a in a similar level than than than Kojamo overall has.

We also we also think that that or expect that this will be FFO-per-share accretive deal, and, and the the yield stabilized yield of this transaction is approximately 4.9%. Not standalone as as a 4.9%, not including the the premium premium price to be paid for the for the shares.

Also the LTV is expected to to to remain lower than than 45%, which is our new strategic target for for LTV. All in all, I would say that very comprehensive and, and, and well-structured package.

Then couple of words of of our strategy, and, and, and we will we will I will be relatively brief with the strategy. We have booked already and, and we have sent already the invitations: we have 17th of March the Capital Markets Day, so, we we we want to kind of leave something there as well and, and, and be much, much more concrete on, on our strategy on, on that side.

On the high-level side, as as I have many times communicated during last year that this strategy will be more of of of reviewing the current strategy or, or existing strategy and, and make make the tuning for that, and, and and our mission is still to create better urban living. The kind of focus points where we want to kind of further improve is is is to build the seamless customer journey enabled by data technology and AI.

We have plenty of initiatives going on there. A truly customer-centric portfolio renewal and growth, and, and, and the transaction I just described is is of of course a concrete example of a growth.

We want to have a kind of a most capable and dynamic professionals in the housing market, and, and we want to build the industry-leading operational excellence and strong contribution to sustainable urban living. With all these kind of initiatives or focus areas, we we aim to deliver the best customer experience in a in a in a housing market.

This will kind of crystallize in in our brand promise that which is the simply the right home, Helposti paras koti in in Finnish. This this whole strategy is is is backed very well with the with the with the megatrends, especially the urbanization, and, and, and we think that, as I already described, the kind of trend effect on housing market, and, and the urbanization is is continuing all the time here in Finland and even in an accelerated pace, or or the pace is is is more speeded than than our our peer countries, for example.

We we have we have been kind of lagging on that trend a little bit in in in recent years, but we are at the moment catching up. Obviously, the Finnish Finnish growth will will kind of require mobility of workforce, and that's why the kind of operating and dynamic housing market is is one key parameters for for for for that.

The and the kind of new technology and, and the kind of new solutions to help the and improve the both the custom customer experience and, and, and operational excellence, so, you need to have a scale enough to kind of be a market leader in those on those solutions to provide to your customers. We think that that we we will we we have that that scale and, and we are very well-equipped in a sense to to kind of answer those answer those needs or or or or opportunities.

All in all, I would say that, that that one of the key themes is that, that this will this this strategy will further kind of further focus on on on customer experience and put the customer in in in customer-centric in in the center of our of our strategy. That's that's I would say that it's of course it's not the revolutionary, but in in a real estate business overall, it's it's often very, very kind of asset-driven, and we see that actually actually kind of serving the customer at best possible manner, you will be able to kind of charge a premium rents and, and bring down the churn and, and, and create value to to to our shareholders.

Then all of these focus areas are of course leading to the financial targets that that that we have renewed. Our our new growth target is is average annual growth of a total revenue from from 5% to 7%.

Net Promoter Score to be a bigger than 65. As as as you probably noted in the previous presentation that it's 57 at the moment.

Then on profitability, average annual growth of FFO per share is is 3% to 5%. Then then on risk management perspective or or balance sheet perspective, we we target the the LTV to be lower than 45%.

Also, we have renewed our dividend policy, and and our objective is to be stable dividend payer whose annual dividend payment and/or share buybacks will be at least 20% of FFO, provided that group's equity ratio is 40% or more and taking account the company's financial position. We also see that actually the to to kind of grow the the cash flow and to grow the FFO per share, it it requires a little bit more of of of a capital, and with these market circumstances, I think it's best best for shareholders to to kind of cut down a little bit of a dividend policy and to to kind of and be be more accretive on on on cash cash flow side in in in future.

Then then last, but definitely not least, so, so, so as as you probably noticed from already from our our invitation to to AGM, so, our our Board of Directors proposes the name change to Annual General Meeting. We will accelerate our strategy execution with one-brand strategy, and, and the name will be Lumo Kodit Oyj, Lumo Lumo Homes Plc.

The the kind of brand will be Lumo, similar one-brand strategy. This is not just the name change or, or, or even kind of a brand rehearsal as such, but, but to create a very customer-centric culture here in here in future, hopefully future Lumo, that that the AGM will decide it, so that so that our our focus is in in customers, and, and we are kind of a very unite united as a organization as well, and also to kind of even further strengthen the brand power with with the one-brand strategy.

I think that was pretty much in a in a nutshell of of of of both the the acquisition that we announced yesterday and, and also the brief wrap-up of of our strategy. As I said, that that that we definitely would like to give more color in and 17th of March of of of a CMD.

I think it's now time to Q&A.

Thank you. Now we can start with questions coming over the phone line.

Do we have any?

Hi, good morning. Thanks for taking my questions.

Just on that portfolio, why has the occupancy been so low compared to market occupancies, as well as your own portfolio? How do you expect it to be different, and over what timeframe do you expect to reach the more normalized occupancy?

I think it's I think it's good to ask for the seller that why why it's actually so so low. We haven't we haven't identified any any kind of any how would I say, specific reasons.

Probably some sometimes the pricing hasn't been as dynamic as as as as in this current market it it has to be. I would say that that we are kind of optimistic that we are we will be able to to kind of lift up the the the the occupancy in a in a similar level than than our own.

How how fast that will happen, we haven't we haven't kind of released or given given information of a of a specific timeline. We of course be mindful that that that how to kind of balance the pricing and and so on.

We we are confident that that that we will be we we will be doing do it in not probably not not this year totally when we start are able to start the the the the kind of 1st of April, but, but I would say that that latest on on on by the end of '27.

One additional note, if I may. During due diligence process, of course we we wanted to have a clear view on on on the portfolio and and the reason for for or are there any specific reason why why the occupancy is so low, but we didn't find anything there because we we think that that the portfolio is high quality, great location, and and there's nothing wrong, it's it's very high-quality portfolio.

One thing maybe behind that, it'll of course don't know it, but they they have outsourced, I mean the seller has outsourced all all renting activities, and that might play a role in in in the fact that the occupancy is where it is.

That's clear. When you are referring to dynamic pricing that, or that pricing hasn't been as dynamic as it should be, looking at that stabilized annual rental income of €63 million, I assume that that's probably already at market rents, then, adjusted for the dynamic pricing?

Yeah. That's our view of market rents, yeah.

Okay. Thank you.

Then when you're referring to refinancing the acquisition facility via capital market debt financing, is it fair to assume that you're using plain vanilla bonds, or could you also be looking at more exotic instruments?

We haven't decided yet, in debt capital market, there are several productions and products, and of course we are looking them, we come back to that latest stage.

Thank you.

Hi, good morning. A few questions from my side.

Firstly, on just your thinking about how you look at these acquisition opportunities, and maybe you can explain what sort of metrics do you focus on and what made this specific portfolio attractive for you. I guess linked to that, how do you think about your cost of capital when you look at where your share price is trading at around 5.3% net initial yield roughly?

How does that feed into your thinking about external growth?

I think first of all, if we start I don't know if you're a question was concerned on general kind of portfolio market, but if I comment on this portfolio especially. Obviously the kind of quality of the assets were one key part of that portfolio acquisition and which made it from our perspective very interesting.

As I said that the geographical split is kind of optimal to our strategic scope. Then again, the kind of assets and apart seem to be in a good condition and, relatively kind of young assets.

Then question of a cost of capital and Erik, you might correct me if you disagree, but we have kind of tried to build this as a comprehensive package. If you calculate all the aspects of both the yield of asset portfolio as such on stabilized basis, and then kind of the financing with the premium subscription of to market price, and then again of course the kind of future potential for rent hikes as well in.

We think that it this is kind of a compelling package as such.

Thank you. Is it fair to say that it's presented as a premium subscription, but ultimately the Varma will just get Kojamo's shares, and yesterday the share price was €9.50 and I see it opening at €9.90, isn't that the right price to look at the equity component really, which would also mean that actually the yield on the acquisition is actually better as you've presented it?

It's yeah, I would say that I don't know if there's a correctly right or wrong answer how to look at it, but I think in a sense you're correct that you can view it in a many way and depends on how do you want to calculate. I don't know if Erik had a...

There's I would say there's no right or wrong approach here, but definitely if you issue shares with a strong premium, almost 24%, and if you look the spot figures, of course you may want to pencil in your calculation that as a part of the positive things as a whole transaction. That's of course that was a very important part of the total package, but I'm not saying that you should do it, but there's good ground to do so, to price the premium against the purchase price.

Understood. Maybe then on your medium-term guidance now on revenue growth of 5% to 7%, which translates into FFO growth of 3% to 5%, FFO per share that is, maybe you can just explain how does that work.

Is it the case that the financing headwind is quite meaningful there, that there's a sort of negative spread between revenue growth and FFO-per-share growth, or how are you penciling that?

That's exactly the reason. We penciled in that the cost of we don't need additional financing on top of this transaction, but refinancing plays a role there.

Definitely, the cost of refinancing, that's new facilities, is higher compared to what we are replacing, and that plays a role there. Of course, with today's figures, but indications from the banks for just as a reference for five years bond market is coupon for 3.6-something and something.

That's whether it's that figure or slightly higher or lower figures, is clearly higher than those loans in or those bonds that we are refinancing. That's exactly the reason why the FFO is not growing that much as the top-line growth.

It's still positive, and our aim is to grow FFO per share.

Thank you. Then my last question is just on the announced long-term incentive plan as well, and the targets there, they are still very much earnings-focused.

I guess, especially when I look at the total revenue target, it is perhaps a bit questionable. Maybe makes the management team be incentivized to pursue external growth.

I guess my question is, was there even consideration of tying the compensation package on LTIP to total shareholder return, such that that incentive plan is also commensurate to what your shareholders are getting in terms of returns?

I would just to elaborate that there was of course, in a discussions of many angles, and how to define the parameters. The conclusion of our Board of Directors is that actually to achieve these parameters, they would definitely drive the kind of shareholder value as well.

They are aligned with the shareholders, and I think one key change was that the FFO is now FFO-per-share growth.

One additional note, it's good to keep in mind that in our schemes, the earning potential is decided as a number of shares. It's number of shares set today, in 3 years' time, if the share price goes up, the earning potential is euro-wise is actually more.

In that sense, actually the management is incentivized to drive share price up. It's in that sense, it's already included in this system.

Right. The FFO per share, then, I suppose that would not or the starting point is 2025 share count, right?

Is that correct? Then the new shares that will come into issue with the acquisition would sort of almost be a drag to the earnings potential here, making it more aligned perhaps with shareholders?

This FFO-per-share target is including last year actual figures and Jupiter, and is built on top of that. Yes, you are right that if the growth is driven or supported by share issues, then the management need to look what is the impact for FFO per share.

That's very important part of the LTI KPI package. I think it's if it's important, the FFO per share is important because it's cash flow item, and it because it's per share, it takes into account if the amount of shares changed.

Right, and just to confirm, the starting point for that FFO-per-share calculation is 2025 share count?

It's beginning of 2026.

Before the portfolio acquisition share addition, right?

The acquisition is included in the targets.

All right, thank you.

Yes, good morning, Reima, Erik, and Niina. Thank you for the presentation.

Couple of questions left. The first one regarding your LTV, I guess it goes quite to the close to the 45% which you in your new strategy want to keep it below.

Do you target some kind of disposal still to improve the LTV? I guess there could be some valuation headwinds on residential markets in '26 if there's, for example, the open funds that will sell assets.

Basically, what do you have some plans to secure keeping LTV below 45%?

We aim to keep it below 45%. That's for sure.

That's why we kind of took it on as a financial target. What comes to the disposals, we do have further plans to further focus our portfolio.

What does it mean that obviously we are looking for opportunities to sell non-core assets. As I have said earlier that that's kind of very much of a market circum that you need to take into account the market circumstances as well and be mindful with that you are not pushing kind of illiquid assets in a smaller cities for kind of as a forced seller.

That's why we need to be patient, but that's definitely our aim to kind of focus the portfolio further.

Thank you. Then regarding the FFO guidance, what assumptions do you have for, the €600 million facility that you will take from 1st of April roughly?

What should we assume regarding the interest rate on that? You talked about the bond assumption of 3.6%.

Is it similar?

When we decided this guidance, we penciled in the price for takeouts based on today's indications, or actually last week's indications, but today's indications.

Thank you. That's clear.

Then regarding the, correct me if I'm wrong, but I think you paid around €3,800 per square meter for the Varma portfolio and your average own valuation is €3,550 roughly. Does that reflect the age structure?

What's the biggest difference there?

I think there's both Of course, the age split is one thing, and then I would say that even further is even bigger significance is the geographical split.

Thank you. That is clear, and all from me.

Thank you.

Hi, Reima. I've got three questions, please.

The first one is on your new targets. To get to your new total revenue growth target, I'm assuming you will not start new construction given the weakness of the market.

Am I right in assuming further portfolio acquisition? In that case, Varma has agreed in this instance to take some shares, but for the next acquisition, do you think you will have to come to the market for equity to keep your LTV below 45%?

That will be my first question. My second question, simple, can you just confirm if you see the transaction accretive on day one, even if you do not increase the occupancy rate?

My third question is, how did you agree on the price for the new shares issued to Varma? How did you get to €11?

Thank you.

If I take the first one, the kind of further revenue target, of course the portfolio acquisitions are kind of one tool to achieve that revenue target. New startups are also one, but as you very well pointed out, at the moment it looks like that market doesn't encourage that much to make a new startups and, and you get a better yield for from with acquisitions.

Then with the kind of possible raising of a of equity, I think it depends on obviously the terms, and that's why the kind of financial targets are combined with the revenue growth and the FFO-per-share growth. That's kind of have to be FFO-per-share accretive, the transactions as well if they kind of equity funding is kind of planned to be used, which plans we don't have at the moment.

Then a second question was about the...

FFO.

FFO. Can you repeat the question number two?

Yes. It was, can you confirm if the transaction is accretive on FFO day one even if you do not increase your occupancy rate?

We what we have said that we expect it to be FFO-accretive. We haven't said that it's FFO-accretive in day one.

We haven't either said that it wouldn't be. We have said that we expect that to be FFO-accretive.

As a whole. I guess the question is, as you've rightfully pointed out as well, the market's not in a great shape at the moment, I guess we're in the right to ask, what if, you can't increase the occupancy, what happens?

Is it still a good transaction?

We actually think that it will be a good transaction, but of course our aim is to kind of raise the occupancy as fast as it's wise and doable. Then again, I would say that given the fact that even though the occupancy would be higher and if the market is really bad, it occupancy might drop and then so on.

That's why we actually think that the transaction is good at the moment on according to our view.

Thank you. can you get to my third question, which was on the share price that you agreed with Varma?

We agreed with the seller that what is the premium, and then we agreed that the price is going to be based on 10 10 last trading days before the signing, then we just did the math when we got the figures.

I guess my question was, no, how did you agree on that 24%?

We agreed that with the seller, and it was normal business negotiations.

Thank you. Thanks, all.

morning, everyone. Thanks for taking my question.

Just a quick one on my side. Can you please help us understand what's your current margin on the bank loans and what is the all-in cost on those financing, and how does that compare with the current bond market financing for you?

You have a lot of debt maturities coming up over next couple of years, including this €600 million acquisition facility, just wanted to understand if you plan to increase the share of bond market debt in your debt stack.

Our average cost of financing at the end of Q4 was 3.2%, and that includes the cost of derivatives, and our hedging is quite high. The indications from the bond market, as already said, for five years maturity last week was 3.6-something.

That is the key figures, actually.

My question is the marginal financing from the banks today. If you were to access the bank market, what would be 5-year all-in cost from banks?

The bank indications from the banks for bank financing is pretty much in line with the indications from the bond market.

Do you have any preference in terms of what's the ideal split between those two financing, just to understand how are you looking at this over the longer period of time, because your average debt maturity is around 3.1 years now. Would you like to extend this, or you think that's the comfortable level for you guys?

For us, it's important to have access for different sources of financing, we want to have bond financing and we want to have bank financing as well. Today, our preference is actually on the bond market, given the fact that you can get longer maturities there and it's unsecured as this bridge facility as well.

These are the reasons why today preference is towards bond market.

Got it. Thank you very much.

Thank you. I think we have gone through most of these questions coming via chat, but a couple of questions about the acquisition.

What kind of key initiatives do you plan to do with the vacant apartment? Do you have anything concrete you can mention?

I I think that that, as as I already in my presentation said, that that that we we are confident that that that that our sales and and pricing process are are kind of proper proper tool to to kind of solve this vacancy issue in this portfolio. That's I think that that's pretty much what we have done in in in our portfolio as well with the with the with the last year.

It's a it's a it's a active sales and, and marketing, obviously, and then then dynamic pricing, and we need to we need to kind of assess apartment by apartment that that how how does that that price reflects to to to market price. That and that's that's that's pretty much about it.

How about, do you think there's a lot of CapEx needs for those properties, or do you need to repair those vacant apartments?

I would say that the CapEx needs are very much in kind of calculated path, and with the similar or in some cases might be even less than in our current portfolio. We and the apartments are in relatively good shape.

Of course, that there will be apartments as well that you need to repair, but we don't expect anything kind of extraordinary on that side compared to our current portfolio.

About the outlook for 2026, what is the contribution from the acquisition to the revenue and FFO?

We haven't actually disclosed the split, we penciled in the transaction assuming that the closing will be 1st of August, and these are the total figures.

1st of April.

1st of April. 1st of April, yeah.

That's why we released the total figures.

Okay. Final question: did you have any discussions with Moody's prior to the acquisition, and if so, what were the key topics you discussed?

We discussed with Moody's this transaction, and they know the key parameters and what the structure look like, and they say that they don't see any specific topics related to this transaction.

Good. Thank you.

That was it. Q1 report, we will publish that in May, and as we mentioned, we will have this Capital Markets Day coming on 17th of March.

We're really excited to have that, and we have already opened the registration for this event. It will be in Helsinki at Finlandia Hall, and you're more than welcome to join in person, or of course there's this webcast you can follow.

The whole management team will be there presenting all these topics more in detail, and also there's a possibility to see some of our properties following the event. We wish to see you all in March.

Thank you very much. Bye-bye.

Thanks a lot.

Thank you.