Lumo (LUMO) investor relations material

Executive summary

• Like-for-like rental income and occupancy rate improved year-over-year, despite a decrease in total revenue and net rental income due to the sale of a 2,000-apartment portfolio in July 2025.

• FFO declined by 8.7% year-over-year, impacted by lower revenue and higher heating costs from a cold winter.

• Liquidity and balance sheet remain strong, with loan-to-value improved to 42.5% and equity ratio at 46.2%.

• The acquisition of 4,761 apartments from Varma was completed post-period, financed by a €600 million facility and share issue, with integration exceeding expectations.

• The company updated its strategy for 2026–2028, emphasizing customer centricity and experience, and achieved a record NPS of 60 in Q1.

Financial highlights

• Total revenue for Q1 2026 was €110.8 million, down 3.1% year-over-year, mainly due to the prior portfolio sale; like-for-like rental income grew by 4.3%.

• Net rental income decreased by 4.7% to €59.9 million, with a margin of 54.0%; harsh winter increased heating costs by €2.4 million.

• FFO was €21.2 million, down 8.7% year-over-year; SG&A expenses rose by €1.1 million, while finance expenses dropped by €0.3 million.

• Occupancy rate improved to 95.6%, up 2.8 percentage points year-over-year.

• Fair value of investment properties declined by €42.6 million, mainly due to aging properties and related yield requirement adjustments.

Outlook and guidance

• 2026 total revenue is projected at €484–497 million; FFO expected between €147–157 million, excluding non-recurring costs.

• Guidance incorporates the impact of the recent 4,761-apartment acquisition but excludes future acquisitions/disposals.

• Management can influence revenue and FFO through operations but not market or regulatory trends.

• No change to outlook despite Q1 challenges; management remains confident in staying within guidance range.