CEO’s review

CEO’s review

According to the Lumo Homes plc’s Half-Year Financial Report 1 January – 30 June 2026

Total revenue, net rental income and FFO grew strongly in the second quarter. The growth was supported particularly by the portfolio acquisition completed in April and the improvement in occupancy rate compared with the previous year. Our liquidity remained good and our balance sheet strong.

Our occupancy rate increased from the previous year and stood at 95.0 per cent at the end of the review period. Renting activity was exceptionally high in the second quarter. Signs of improving market conditions are visible especially in the capital region, although oversupply persists. The supply of rental apartments has started to decline, which is reflected in improving occupancy rates.

Leasing of the apartments in the portfolio acquired at the beginning of April has progressed clearly ahead of our expectations. By the end of June, the portfolio’s occupancy rate had increased from approximately 83 per cent to approximately 89 per cent, representing a significant improvement in one quarter. This strong development has continued after the reporting period.

EUR 600 million of the apartment portfolio acquisition was financed with a short-term acquisition facility that was drawn in early April. We refinanced half of the facility in May through the issuance of a EUR 300 million bond. The remaining EUR 300 million is intended to be refinanced during the current year.

Our financial situation has remained stable, and we have extended our bank financing agreements maturing next year well in advance. In addition, we signed a EUR 500 million back-stop facility agreement in June, which can, if necessary, be used to repay the bond maturing next spring. Our plan is to refinance the maturing bond in the debt capital markets, and we are actively monitoring market conditions and assessing the optimal timing.

At the heart of our strategy, published earlier this year, is creating the best customer experience, which we measure through customers’ willingness to recommend us (NPS). At the end of June, the NPS stood at 59, reflecting our customers’ strong trust in our services. The implementation of the strategy has progressed as planned. We have developed our operating mod els to become more customer-centric, renewed our organisational structure and strengthened our customer-focused culture. The ongoing development initiatives aim to improve the customer experience throughout the entire customer journey.

The portfolio acquisition completed in April was the largest real estate transaction in Finland in the 2020s and a significant undertaking for our entire organisation. I am particularly pleased with how quickly the renting of the new apartments got off to a strong start and how successfully the new properties were integrated into our operations. I would like to extend my warmest thanks to all our employees whose expertise, commitment and determined efforts have made these achievements possible. At the same time, I warmly welcome the new residents who joined us through the portfolio acquisition to Lumo.

Reima Rytsölä
CEO