Investor newsletter October 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 It does not contain new, unpublished information.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.

H1/2026

The Half-Year Financial Report for January-June 2026 was published on 13 August 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 August-September via investor events and conference calls. In September, we also attended Goldman Sachs European Real Estate Equity and Debt Conference in London. Additionally, we held an event for private investors targeted at members of the Finnish Shareholders’ Association in Espoo-Kauniainen.

One of the main topics of discussion has been the integration of the residential portfolio acquired in April. Investors have been particularly interested in the portfolio’s low initial occupancy rate and how quickly it can be brought closer to the higher occupancy level of Lumo’s existing portfolio. The portfolio’s occupancy has improved significantly better than expected, rising from approximately 83 per cent at the time of acquisition to 89 per cent by the end of June, with strong development continuing beyond the summer. We have assessed reaching a stabilised occupancy rate already during the third quarter. The rise in occupancy rate has been driven in particular by successful integration into Lumo’s leasing platform and operating models, as well as the high quality and prime locations of the apartments. While seasonal factors supported leasing activity during the summer months, operational execution has played a significant role in the strong performance.

In recent months, we have seen the first positive signs in the rental market. Although there is still an oversupply in the market, the number of available rental apartments has decreased, particularly in Helsinki and Espoo. We have observed that the volume of supply has continued to decline even after the summer season. At the same time, the volume of new housing construction has remained very low for several years, while population growth continues in the largest cities. Finland’s economic outlook has also improved somewhat, with economic growth forecasts revised upwards. These factors support the gradual rebalancing of the rental market.

We have received many questions regarding rental growth and future rent increase opportunities. We have noted that the gradual rebalancing of the rental market also supports stronger pricing power. While rent increases are expected to remain moderate in the near term, the outlook for the rental market towards 2027 is more positive than previously. We continue to monitor market developments closely and adjust our pricing based on the market  conditions.

We have also had extensive discussions regarding loan refinancings, the availability of financing, and interest rate levels. We have refinanced well in advance the bank loans maturing next year, and the EUR 500 million committed back-stop facility signed in June also secures the refinancing of the bond maturing in May 2027. Our plan nevertheless remains to refinance the bond in the capital markets during next year.

In addition, we intend to refinance the remaining portion of the bridge financing raised in connection with the portfolio acquisition, most likely during this year. In September, Moody’s affirmed our Baa2 credit rating with a stable outlook. Although market interest rates have increased in recent months, the availability of financing has remained good in both the bank and capital markets.

Other topics

In September, we published the dates for our financial reporting and Annual General Meeting for 2027.

In August, we signed a EUR 100 million unsecured term loan facility agreement linked to sustainability targets with OP Corporate Bank. The facility was used to refinance the EUR 75 million loan with OP maturing in 2027 and will also be used for the company’s general corporate purposes.

In September, we signed an amendment agreement relating to our existing unsecured financing arrangement with SMBC Bank EU AG. Following the amendment, the total size of the financing arrangement will amount to EUR 200 million, up from EUR 150 million, consisting of a EUR 100 million revolving credit facility and a EUR 100 million term loan. The maturity of the term loan has been extended to September 2030, including a one-year extension option. The margin is linked to Lumo Homes’ key sustainability targets.

As part of Lumo’s sustainability work, we organized the autumn scholarship application round to support hobbies for children and young people. The grants have been part of Lumo’s sponsorship and grant programme since 2012.

We received again EPRA gold awards for our Sustainability Report and Financial Statements. This is already the third consecutive year that both of Lumo’s reports have received gold.

Finland’s residential tenancy legislation reformed after more than 30 years. Amendments to residential tenancy legislation that had been under preparation for several years entered into force on 1 October 2026. The fundamental principles of the legislation remain unchanged. The most significant changes include extending the smoking ban to all tenancies and enabling fully electronic communications. Financial impacts on Lumo are expected to be limited.

Future events

Lumo’s silent period starts on 6 October 2026, and the Interim Report for January-September  2026 will be published on 5 November 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