Investor newsletter June 2026

Lumo’s investor newsletter is primarily published after an Interim Report and the subsequent roadshows, before the beginning of the silent period. The purpose of the newsletter is to discuss topical issues and themes related to Lumo as an investment that are relevant for investors. It does not contain new, unpublished information. The newsletter is available on Lumo’s investor pages and can be subscribed to the e-mail.

Q1/2026

The Interim Report for January-March 2026 was published on 6 May 2026.

The publications, webcast recording from the results news conference as well as transcript of the event are available at Lumo’s Investors website. 

Roadshows and investor meetings

We have met investors in May-June via investor events and conference calls. In May, we participated in Van Lanschot Kempen’s European Real Estate conference in Amsterdam. Additionally, we had several debt investor calls in connection with the issuance of a new EUR 300 million bond.

The acquisition of the housing portfolio from Varma has generated considerable interest, particularly regarding the occupancy rate, condition and capex requirements of the properties, as well as the portfolio’s yield and its integration into our rental platform. We have highlighted the strength of our operating model, having significantly improved occupancy rates last year through our own measures. This was supported by the further development of internal processes, more efficient resource allocation and increased pricing flexibility. The acquired properties are of high quality and well located, with no material capex requirements. We believe that integrating the portfolio into our own rental platform will support a gradual improvement in occupancy. The integration has started as planned, and the letting performance during the first weeks has been strong.

The rental market and rent increases have been widely discussed. The oversupply situation continues, especially in the capital region, and there has been no significant change in market conditions in recent months. Population growth in Finland’s largest growth centres continues, while the level of new construction has remained very low for the fourth consecutive year. Housing starts are expected to decline this year and remain low next year, which will be reflected in the rental market with a lag. In the short term, rent increases are expected to be moderate due to current market conditions. However, rents are adjusted on an apartment-by-apartment basis, allowing regional differences to be reflected in pricing. Over the longer term, urbanisation and migration to growth centres are expected to support broader rental growth.

We have received a lot of questions regarding the refinancing of loans maturing next year. Of the acquisition of the portfolio, EUR 600 million was financed with a 12-month acquisition financing facility. In May, we issued a new EUR 300 million bond, which was used to partly refinance the acquisition facility. Demand for the bond was very strong. As previously communicated, we are monitoring developments in interest rates and financial markets. Our plan is to refinance the remaining EUR 300 million, as well as the bond maturing next year, in several tranches. In addition, a few smaller bank facilities will mature next year, and discussions with the banks on extending these have already commenced.

Regarding capital allocation, investors have raised questions, among other things, about the balance between dividends, potential share buybacks and investments. In this market environment, our focus is on progressing with the integration of the acquired portfolio before pursuing new growth. In line with our updated financial target, LTV is to remain below 45 per cent. In connection with the strategy update, we also revised our dividend policy to allow share buybacks as an alternative means of returning capital alongside dividends.

Other topics

We published the composition of our Shareholders’ Nomination Board which consists of Christian Fladeland, Co-CEO, Heimstaden AB, Risto Murto, CEO, Varma Mutual Pension Insurance Company, Annika Ekman, EVP, Investments, Ilmarinen Mutual Pension Insurance Company.

In June, we signed a EUR 500 million back-stop facility agreement with Nordea Bank Abp, OP Corporate Bank plc and Swedbank AB (publ). The back-stop facility is unsecured when undrawn and matures in early 2029. The facility can be used to refinance the EUR 500 million bond maturing in spring 2027.

Our climate work received international recognition. The Financial Times and Statista published the 2026 list of the Europe’s Climate Leaders. The ranking brings together European companies that have reduced their greenhouse gas emissions the most relative to their revenue over the period 2019-2024. Lumo Homes was included in the list for the second consecutive year. Lumo is already more than halfway on its journey towards carbon-neutral energy use in its properties, and the carbon footprint per apartment has been reduced by 60 percent in five years.

Tommi Valento was appointed as CFO and a member of the Management Team. He will start in his position latest on 13 January 2027. Current CFO Erik Hjelt will retire on 1 July 2026. Antti Syvänen, Director, Finance and Business Controlling, has been appointed as the company’s interim CFO until Tommi Valento assumes his position.

In June, we announced that Lumo Homes had joined the supporters of the Shed Foundation. Through this support, the foundation can continue and further develop its work in providing safe, inclusive and encouraging musical theatre opportunities for children and young people.

We completely renovated a historic stone building in the heart of Turku to meet modern living needs while respecting the building’s history. Lumo Homes’ modernisation investments aim to improve both the building’s energy efficiency and residential comfort.

Future events

Lumo’s silent period starts on 14 July 2026, and the Half-Year Report for January-June 2026 will be published on 13 August 2026.

You can find information about future events and roadshows in Lumo’s investor calendar.

Niina Saarto, Director, Treasury & Investor Relations, Lumo Homes plc, niina.saarto@lumo.fi, tel. +358 20 508 3283. 

Lumo Homes plc is Finland’s largest residential real estate company and a bold innovator in urban living. Our homes are located in the largest growth centres, with excellent transport connections and diverse services nearby. We invest in sustainable, modern and digital solutions that make life in a rental home smooth and flexible. We create better urban living by delivering the best customer experience. Lumo – simply the right home.
 
Lumo Homes plc´s shares are listed on the official list of Nasdaq Helsinki. For more information: https://yritys.lumo.fi/en