Lumo (LUMO) Q2 2025 earnings summary

Executive summary

• Revenue and net rental income increased year-over-year, driven by improved occupancy rates and stable rental demand, while FFO declined 9% due to higher financial, maintenance, and repair expenses.

• Occupancy rate rose to 94.8% in June, with tenant turnover decreasing and financial occupancy rate up to 93.6% year-over-year.

• Major apartment sale (1,944 units) completed post-period for €242 million, proceeds allocated to debt reduction and share buybacks.

• Financing position remains strong, with significant refinancing completed, net debt reduced, and average interest rate on debt at 3.2%.

• Strategic focus remains on customer experience, operational excellence, and portfolio concentration in major Finnish cities.

Financial highlights

• Total revenue for H1 2025 was €229.9 million (+1.9% year-over-year), net rental income €145.6 million (+2.0%), and FFO €62.0 million (-9.0%).

• EBITDA for H1 2025 was €41.5 million, with an adjusted EBITDA margin of 18.0%.

• Maintenance costs rose by €0.8 million and repair costs by €0.6 million in H1; heating and electricity costs declined.

• Fair value of investment properties declined by €48 million in Q2 and stood at €7.9 billion (-0.5% year-over-year).

• Earnings per share was €-0.08 (H1 2024: €-0.21).

Outlook and guidance

• 2025 revenue expected to grow 0–2% year-over-year; FFO guidance set at €135–141 million, excluding non-recurring costs and transaction-related taxes.

• Guidance reflects the impact of recent property disposals but excludes future acquisitions/disposals.

• Occupancy rate expected to continue improving; rent increases to remain modest.