Lumo (LUMO) investor relations material

Updated strategy, brand unification, and strategic direction

• Introduced a unified brand, Lumo, consolidating previous dual-brand structure to strengthen customer value, simplify operations, and foster a strong company culture.

• Strategy centers on delivering superior customer experience, leveraging data, technology, and AI to drive value creation and operational excellence.

• Focuses on disciplined growth in Finland’s largest cities, especially Helsinki, Tampere, and Turku, with over 95% of portfolio value in growing urban areas.

• Portfolio renewal leverages customer insights for decisions on locations, apartment mix, and services to drive occupancy and long-term value.

• Capital recycling, intensification of land use, and selective acquisitions are key growth opportunities.

Financial targets, guidance, and capital allocation

• Sets 2026–2028 targets: Net Promoter Score above 65, annual revenue growth of 5–7%, FFO per share growth of 3–5%, and loan-to-value below 45%.

• Dividend policy revised to a maximum payout of 20% of FFO, with flexibility for share buybacks, subject to equity ratio and financial position.

• Growth to be achieved through improved occupancy, positive rental growth, integration of acquisitions, and operational efficiency.

• EUR 80–90 million annual investment capacity from FFO and disposals, with additional equity considered only for accretive large transactions.

• Maintains investment-grade rating (Baa2, stable), moderate leverage policy, high liquidity (514 M€ available), and diversified funding sources.

Customer experience, technology, and digital transformation

• Customer experience is prioritized, with high NPS scores (currently 57, target above 65) and systematic process improvements to reduce churn and accelerate leasing cycles.

• AI and digital platforms (Lumo.fi, MyLumo) drive seamless customer journeys, automate processes, and enable data-driven decision-making.

• AI use cases include pricing, chatbots, customer feedback analysis, predictive maintenance, energy optimization, and virtual staging.

• Operational efficiency gains allow management of a larger portfolio with minimal headcount increase, supporting margin improvement.

• Core expertise is kept in-house, while scalable functions like maintenance and first-line customer service are outsourced.