# KoskiRent 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/fi/companies/koskirent).

## Overview

KoskiRent Oyj is a Finnish provider of relocatable and adaptable modular space solutions, specializing in the leasing of temporary and long-term public infrastructure buildings. The company's portfolio primarily comprises educational facilities, including schools and daycare centers, managed through circular re-leasing and turnkey project delivery models across Finland.

## Products & services

• Leasing of relocatable and modular educational spaces (schools, daycares)
• Social welfare and healthcare modular facility leasing
• Turnkey construction and modular space divestment contracts
• Space installation, relocation, and site-adaptation services
• Ongoing facility maintenance and remote building monitoring services

- **Educational Space Leasing** (75%) — Long-term rental of adaptable modular buildings configured for schools and daycare centers.
- **Turnkey Modular Contracts & Project Sales** (20%) — Direct sales, turnkey installations, and divestment of reconditioned modular units to municipalities.
- **Social & Healthcare Infrastructure** (5%) — Specialized adaptable premises leased to public regional welfare and healthcare authorities.

- Long-term rental and leasing of adaptable modular buildings
- Modular daycare and kindergarten facility installations
- Relocatable school building solutions and temporary classrooms
- Turnkey modular delivery and project management services
- Social infrastructure premises for regional welfare areas

## Customers

KoskiRent primarily serves Finnish municipalities and public sector authorities facing demographic shifts and school facility renovations. Clients procure flexible modular spaces to address fluctuating pupil counts or indoor air quality issues without committing to permanent construction. The customer base is expanding into regional wellbeing services counties requiring agile social and healthcare facilities outside urban centers.

- **Municipal Education Authorities** (primary) — Finnish municipalities procuring long-term school and daycare modular spaces to handle demographic shifts.
- **Wellbeing Services Counties (Hyvinvointialueet)** (emerging) — Regional public authorities seeking adaptable, leased healthcare and social care space outside major city hubs.
- **Municipalities via Turnkey Acquisition** (secondary) — Local governments purchasing tailored, pre-used modular infrastructure via turnkey projects.

- Municipalities requiring flexible capacity for growing urban pupil populations
- Public school districts replacing outdated facilities undergoing major renovations
- Municipal daycare operators needing rapid facility deployment to address capacity crunches
- Regional wellbeing service counties (hyvinvointialueet) seeking adaptable clinic and care space
- Public sector procurement bodies leveraging circular economy modular reuse in tenders

## Geography

KoskiRent operates exclusively within Finland, serving municipalities and public entities across the country. Operations are concentrated in growing urban areas where demographic pressure creates sustained demand, alongside regional municipalities needing agile infrastructure. Module manufacturing and delivery are coordinated through domestic partnerships, including main partner M-Partners Ltd.

- **Finland** (100%) — Estimated from disclosures indicating all operations and municipal clients are in Finland.

- 100% of operations and asset footprint located in Finland
- High exposure to Finland's five largest growing urban centers driven by urbanization
- Active regional deployments across municipalities such as Vaasa, Kankaanpää, Seinäjoki, and Vöyri
- Domestic assembly and supply chain reliance anchored in Finnish subcontracting

## Strategy

KoskiRent focuses on improving portfolio utilization rates through the circular re-leasing and relocation of modular premises. The company is actively diversifying beyond educational spaces into healthcare and social infrastructure tenders. To support larger-scale asset expansion, management is pursuing long-term growth financing and capital structure optimization.

- **Capital Structure & Growth Financing** (short-term) — High leverage and rising interest costs require a stable, long-term capital base to fund new module stock investments.
- **Diversification into Social Infrastructure** (medium-term) — Broadens revenue streams and secures longer, predictable lease tenures with wellbeing service counties.
- **Circular Portfolio Lifecycle Management** (long-term) — Reusing and re-leasing modules extends asset useful life, improves capital efficiency, and optimizes returns.

- Maximize portfolio utilization rates by relocating and re-leasing existing modular stock
- Diversify into social welfare and healthcare segments to capture longer lease durations
- Promote circular economy credentials and modular reuse to win public tenders
- Establish comprehensive long-term growth financing to expand module asset base
- Enhance installation speed and execution efficiency to reduce project cycle times

## Risks

KoskiRent faces operational concentration risk due to its high reliance on key construction partner M-Partners Ltd for modular manufacturing. Financially, the company has significant exposure to floating-rate debt and tight credit conditions in real estate-linked financing. Demand is also susceptible to municipal budgetary constraints, changing public procurement rules, and demographic headwinds such as declining national birth rates.

- **Subcontractor Concentration on M-Partners Ltd** [high] — Operational disruptions, capacity constraints, or contract renegotiations with M-Partners could delay customer deliveries and raise costs.
- **Interest Rate and Refinancing Constraints** [critical] — A significant portion of debt carries variable interest rates, driving financial expenses and tightening free cash flow amid restrictive credit markets.
- **Fair Value Fluctuations of Module Stock** [medium] — Valuation adjustments on investment properties under IAS 40 directly impact total comprehensive income and balance sheet ratios.

- Subcontractor dependency on M-Partners Ltd for modular building production
- High interest rate exposure due to variable-rate borrowing and elevated leverage
- Fair value volatility in modular building portfolio directly affecting net income
- Public sector budgetary restrictions and complex municipal procurement cycles
- Long-term demographic decline in school-aged children outside primary urban centers

## Accounting

KoskiRent accounts for its modular building stock as investment property under IAS 40, measuring modules either at fair value or adjusting parameters when transferring them to inventory under IAS 2 for turnkey sales. Revenue is bifurcated between rental income from operating leases and percentage-of-completion revenue recognized over time under IFRS 15 for turnkey project contracts. Key estimates include lease classifications, module life cycles, and fair value assumptions.

- **IAS 40 / IAS 2 Reclassification** — Shifts capital asset bases, triggers one-off revenue/gain recognitions, and alters gross margin patterns.
- **IFRS 15 Over-Time Revenue Recognition** — Introduces volatility depending on project timing and milestone completion across quarters.
- **Fair Value Measurement of Module Stock** — Drives material fluctuations in total comprehensive income and loan-to-value (LTV) metrics.

- IAS 40 fair value model adjustments for modular stock create earnings volatility
- Transfer of modules between IAS 40 investment property and IAS 2 inventory upon sale
- IFRS 15 over-time revenue recognition based on input costs for turnkey contracts
- Significant judgment applied in lessor lease classification and estimated lease terms
- Advance payments for modules capitalized upon delivery and transfer of control

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*Last updated: 2026-10-24T10:37:57.733195+00:00*