# Lumo Kodit Oyj

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/lumokodit).

## Overview

Lumo Kodit Oyj is a Finland-based residential real estate company that operates as the primary housing investment vehicle of the Kojamo Group. The company owns, develops, and leases urban rental apartments primarily located in Finland's major growth centres. Its property portfolio is supported by a proprietary digital rental platform and residential value-added services under the Lumo brand.

## Products & services

• Long-term residential apartment rentals in Finnish growth centres
• Digital apartment renting via the Lumo webstore
• MyLumo resident mobile and web self-service portal
• Shared mobility solutions and electric vehicle charging infrastructure
• Housing-related value-added services, broadband, and community activities

- **Residential Rental Housing** (95%) — Direct leasing of privately financed rental apartments in growth centres, generating steady rental income.
- **Housing-Related Services** (5%) — Value-added services including shared mobility, parking space leasing, utility charges, and tenancy services.

- Residential rental apartments across major Finnish urban growth centres
- Digital lease origination and instant renting through the Lumo webstore
- MyLumo resident application for tenancy management and service ordering
- Shared electric vehicles and parking spaces equipped with EV chargers
- Communal residential services, sustainable district heating, and recycling initiatives

## Customers

Lumo Kodit serves individual consumers seeking flexible urban rental housing in Finland's key growth centres. Demand is underpinned by demographic shifts including urbanisation, smaller household sizes, and workforce mobility. The company directly reaches tenants through its digital webstore and the MyLumo self-service application.

- **Urban Private Renters** (primary) — Individuals and households renting modern apartments in prime growth hub locations with integrated digital services.
- **Parking and Ancillary Service Users** (secondary) — Residents paying for parking facilities, EV charging points, and optional residential services.

- Urban professionals and students requiring flexible rental living near public transit
- Single and two-person households seeking modern apartments in major growth centres
- Mobile workers relocating to the Helsinki Metropolitan area and regional growth hubs
- Digital-first tenants who utilize online lease execution via the Lumo webstore
- Environmentally conscious residents demanding EV charging and shared mobility access

## Geography

Lumo Kodit operates exclusively in Finland, concentrating its portfolio in the largest urban growth centres. The Helsinki Metropolitan area represents the dominant majority of total property fair value and unit distribution. Additional significant holdings are located in Tampere, Turku, Oulu, Jyväskylä, Kuopio, and Lahti.

- **Helsinki region** (76%) — Estimated from portfolio fair value distribution disclosed in Kojamo Group reports
- **Rest of Finland** (24%) — Includes Tampere, Turku, Oulu, Jyväskylä, Kuopio, and Lahti growth centres

- Concentration in Finnish growth centres where long-term urbanisation drives rental demand
- Helsinki region accounts for over 75% of investment property fair value
- Tampere and Turku regions form the primary secondary urban market exposures
- Regional presence in Northern and Central hubs including Oulu and Jyväskylä
- Over 97% of property portfolio value situated in the seven largest metropolitan markets

## Strategy

Lumo Kodit focuses on maximizing financial occupancy and delivering customer satisfaction across Finnish growth centres. The company prioritizes digital service automation through its webstore and the MyLumo platform to enhance operating efficiency. Long-term strategy emphasizes balance sheet discipline, carbon-neutral district heating, and selective portfolio modernization.

- **Customer Experience and Digital Leadership** (medium-term) — Higher tenant satisfaction and seamless digital service drive tenancy duration and reduce turnover costs.
- **Sustainability and Carbon Footprint Reduction** (long-term) — Regulatory compliance and investor ESG standards require declining operational emissions and energy efficiency.
- **Occupancy Rate and Cash Flow Optimization** (short-term) — Maximizing occupancy directly counters market headwinds from new housing supply and yields solid operating cash flow.

- Improve financial occupancy rates through dynamic pricing and webstore marketing
- Enhance customer retention and NPS via responsive MyLumo service interactions
- Transition property portfolio heating toward carbon-neutral district energy solutions
- Maintain capital discipline by curtailing gross investments during tight debt cycles
- Target prime locations with superior transport links within core growth hubs

## Risks

The business is exposed to broader macroeconomic conditions, interest rate fluctuations, and property valuation yields that impact loan-to-value ratios. High localized rental housing supply and housing allowance reforms threaten rental pricing power and occupancy. Tightened debt availability or higher refinancing costs also pose risks to capital structure sustainability.

- **Property Fair Value Devaluations** [critical] — Rising market yields and weak transaction liquidity lead to non-cash reductions in investment property fair values.
- **Financing and Refinancing Availability** [high] — Disruptions in capital markets or tighter bank lending rules increase debt costs and restrict debt renewal.
- **Rental Market Overcapacity and Occupancy Pressure** [medium] — Elevated apartment supply in growth centers increases tenant turnover and demands tenant acquisition concessions.

- Rising required investment property yields cause negative fair value balance sheet adjustments
- Increased market supply of rental apartments dampens rent growth and occupancy
- Higher interest rates raise borrowing costs and constrain capital market refinancing
- Legislative changes to social housing allowances impair tenant solvency and rental yields
- Construction inflation and counterparty risks limit viability of expansion projects

## Accounting

Lumo Kodit relies heavily on IAS 40 fair value measurement for its investment property portfolio, creating substantial non-cash volatility in pre-tax earnings. Determining whether acquisitions are treated as asset purchases or business combinations under IFRS 3 requires significant management judgment. Furthermore, lease liabilities and right-of-use land plots accounted for under IFRS 16 impact reported net debt metrics.

- **IAS 40 Investment Property Fair Valuation** — Directly impacts equity ratio, reported net profit, and balance sheet loan-to-value
- **IFRS 3 vs Asset Acquisition Judgment** — Determines whether goodwill, deferred taxes, and transaction fees are capitalized or expensed
- **IFRS 16 Leases for Plot Rents** — Increases reported liabilities and assets, affecting operational gearing metrics

- Investment properties are measured at fair value under IAS 40 with gains/losses through P&L
- Classification of property acquisitions as asset deals versus IFRS 3 business combinations
- IFRS 16 accounting for long-term land leases recognized as right-of-use assets and liabilities
- Fair value estimation of development projects and plot reserves initially held at cost
- Credit loss provisioning on rent receivables under IFRS 9 based on expected default rates

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*Last updated: 2026-10-24T10:38:44.177489+00:00*