Insider Information: Kojamo has agreed to acquire a housing portfolio and issued special rights entitling to shares

Kojamo plc, its wholly owned subsidiary Lumo Kodit Oy and Varma Mutual Pension Insurance Company have entered into an agreement under which Lumo Kodit will acquire a Finnish housing portfolio owned by Varma. The portfolio consists of 60 residential properties that have combined 4,761 apartments. The properties are located mainly in the capital region. In total, 98 per cent of the property portfolio is located in the attractive Helsinki, Tampere and Turku metropolitan areas.

The debt-free transaction price is approximately EUR 900 million, part of which will be paid in cash and part in new shares to be issued by Kojamo in connection with the closing of the transaction. The financing of the transaction is described later in this release.

Kojamo estimates that the stabilised annual rental income of the housing portfolio is EUR 63.0 million. Stabilised income will be achieved when the occupancy rate of the housing portfolio increases from the current level (83 per cent) to Kojamo's current occupancy rate. Kojamo expects to drive occupancy improvement of the target portfolio by onboarding it to the Lumo brand and lettings platform and applying its leading customer service capabilities. Kojamo anticipates upside potential in the fair value of the portfolio as the occupancy improves. The transaction value represents a stabilised net yield of approximately 4.9 per cent. The transaction is expected to increase the company's FFO per share.

The transaction enhances Kojamo's operational efficiency and improves EPRA Cost Ratio. It demonstrates well the operational leverage that Kojamo as a platform has.

"This transaction presents a unique opportunity for Kojamo to return to growth by acquiring a portfolio of significant size and with a strong alignment with our strategy. The properties are located in prime areas with a strong focus on growth centres, and they are of high quality and in good condition. With this transaction, we are pleased to deliver strong shareholder value through accretion in FFO per share. We welcome Varma's conviction in Kojamo's leading residential asset management platform capabilities and their increased ownership in Kojamo as part of the transaction. We warmly welcome our new customers to Lumo services," CEO Reima Rytsölä states.

"We have reviewed our investment portfolio to determine efficient waysto invest in the Finnish residential market after, also considering the upcoming pension reform. This transaction provides a natural opportunity to do so through our ownership in Kojamo. Varma will continue as a significant real estate and residential investor in Finland with a strong partner. We are pleased that the housing portfolio will continue to be managed by a stable and professional real estate investor who can further develop its returns and performance," says Varma's Deputy CEO Markus Aho.

Financing of the transaction

Kojamo has issued 24,666,667 special rights to Varma pursuant to Chapter 10, Section 1 of the Finnish Companies Act based on the authorisation granted to the Board of Directors by the Annual General Meeting held on 13 March 2025. The special rights entitle and obligate Varma to subscribe for, and the company to issue, 24,666,667 new shares of the company upon the completion of the transaction. The subscription price of the shares is EUR 11.8090 per share. The subscription price corresponds to a premium of 23.04 per cent to the average price of ten trading days preceding the signing. Varma will pay the total subscription price of EUR 291,288,670.60 for the shares in full upon completion of the transaction by transferring to Lumo Kodit a portion of the housing portfolio corresponding to the total subscription price. The remaining portion of the transaction price will be paid by Lumo Kodit in cash.

Kojamo has agreed a senior unsecured acquisition financing facility of EUR 600,000,000 with Goldman Sachs Bank Europe SE, Nordea Bank Abp and Skandinaviska Enskilda Banken AB (publ). The acquisition facility will have a tenor of 12 months. The acquisition facility is expected to be taken out via capital market debt financing.

Conditions

The transaction is subject to the fulfilment of customary conditions for a real estate transaction, including the approval by the competition authority. The parties' objective is to finalise the transaction by 1 April 2026.

For more information, please contact

Reima Rytsölä, CEO, Kojamo plc, tel. +358 20 508 5077, [email protected]

Ville Raitio, Executive Vice President, Investments, Kojamo plc, tel. +358 20 508 3012, [email protected]

Distribution:

Nasdaq Helsinki, key media

Kojamo is Finland's largest private residential real estate company and one of the biggest investors in Finland. Our mission is to create better urban housing. Lumo offers environmentally friendly housing and services for the city dweller who appreciates quality and effortlessness. We actively develop the value of our investment properties by developing new properties and our existing property portfolio. We want to be the property market frontrunner and the number one choice for our customers. Kojamo's shares are listed on the official list of Nasdaq Helsinki. For more information, please visit https://www.kojamo.fi/en/