Good morning, ladies and gentlemen, and warm welcome to Kojamo's first quarter results news conference. My name is Niina Saarto, and I'm Group Treasurer and Head of Investor Relations. Today, CEO Jani Nieminen and CFO Erik Hjelt will tell you about Q1 events. After their presentation, we will have time for questions. We will first take questions from live audience here, then from the phone line, and finally from the chat. Let's get started, and let's welcome Jani.
Hi. Thank you, Niina. Nice to be here and providing color on what's been going on here in Kojamo during Q1 this year. To start providing some color and wrap up in the big picture, I would say, of course, rental market has been affected by tighter COVID-19 restrictions introduced late last year. Restrictions were lifted in March, and this will be having a positive impact towards rental apartment markets and urbanization here in Finland. Russian attack to Ukraine has had no direct impact to Kojamo operations. All the development projects, ongoing projects, have been proceeding in a normal manner as planned. Of course, we have seen in the market cost increases concerning construction business, some availability problems concerning materials, but they have not been impacting our business. Our figures Q1 is solid performance. Operations have remained stable. Financial position is really strong.
I would say we've been able to proceed according to our strategy. We've been able to actually increase our top line rents, increasing total revenues, net rental incomes, and FFO. Now we see the rental apartment market improving as COVID-19 restrictions have been lifted, as I said, and towards the year-end, things are gonna get even better. Moving to the operational environment on page four, the reopening of the economy and recovering demand of services will support the private consumption, creating growth and urbanization. Of course, the war in Ukraine and related sanctions are estimated to slow down a bit Finland's economic growth, and prices are expected to increase due to inflation. Activities among consumers, individuals, have been witnessed here in Helsinki streets. People are moving a lot, using restaurants, meeting, having fun. Residential startup numbers seem to be increasing towards the year-end last year.
Now, it's clear that estimates have been brought a bit down, so the number of new residential startups is declining. I would actually say that our estimates are lower in the market than the official estimates. Construction companies have been having problems with increasing construction costs. On the other hand, we see increasing interest levels, increasing uncertainty among home buyers, and that may create an impact that actually more build-to-sell projects will be either postponed or canceled in the market. Not enough information concerning construction cost increases this year. Of course, it's easy to say that some material cost, we have witnessed a rapid increases, severe increases. On the other hand, we have to keep in mind two things. All Kojamo construction projects, new development projects, are based on fixed prices. They are turnkey projects, so no impacts to our ongoing projects.
On the other hand, according to construction companies and statistics, it's good to keep in mind that actually of apartment prices, roughly 30% are material costs. Of that 30% of material cost, some 20% are materials like rebars, steels, windows, and wood structures. At the end of the day, the cost increases concerning these certain materials will have a limited impact to the overall construction cost increases. Moving to page five, the operational environment. We firmly believe that all the long-term trends, drivers for demand of new rental apartments in the biggest cities are still valid. Urbanization will continue. Economy is improving and society is opening, we have witnessed already the increasing number of work opportunities. Students are moving back to university cities, and urbanization will pick up speed.
Actually, an estimate, for example, here in capital region is that a 40,000 people increase will be happening this year here in Helsinki region. On the other hand, what we see in the market is that if we combine uncertainty related to the war in Ukraine, inflation, interest levels, construction cost, that may have an impact for home buyers. They will start postponing their decision-making buying homes, and as I said, that might have a severe impact in build-to-sell projects with construction companies, bringing volumes in the total market down and actually create the situation where the relative attractiveness of rental apartments will increase compared to owner-occupied homes. We do see a lot of interest still from international players towards Finnish residential market. Actually, a couple of quite big transactions have been completed. Buyers have been international players.
Coming back to what I said, society opening, rental apartment market improving. Yes, during Q1, the occupancy level was not as good as we would hope. On the other hand, our focus has been quite systematic approach concerning pricing, still improving our net rental income and top-line growth, increasing the rents in a normal manner. Now, what we have seen after restrictions been lifted, April, if we compare the amount of new tenant agreements with the last year, April, the improvement has been 17%. Now, during May, during the first 11 days, the actual growth compared to comparison period is about 20%. A number of new tenant agreements is actually increasing quite rapidly. The old thing still valid.
As urbanization continues, the number of households living in rental apartments in all the big cities will be increasing in the future as well. Helsinki, Turku- Tampere, today, 1/2 of the households live in rental apartments. Actually, more households living in rental apartments than in owner-occupied homes. As has been previously said, the number of small households is still increasing here in Finland. There we see no impact because of COVID-19. A lot of color already provided concerning slide six. As I said, construction cost increases have been present, some challenges with raw materials. On the other hand, limited impact and things like rebars, wood, at the end of the day, they are bulk. Construction companies will be able to find new solutions with logistics. Our estimate is that this kind of cost increase impact will be temporary.
On the other hand, of course, inflation and cost increases concerning, for example, energy will have an impact on construction costs. Population growth will start picking up speed here in capital region again, as I said. What we will follow closely is that if construction volumes and when they start coming down a bit, projects typically will be first postponed, then construction companies will start figuring whether to cancel those projects, and that situation may open possibilities for companies like Kojamo with a really strong financial position. Moving forward to page seven and our key figures, they are really solid. We've been able to actually increase the total revenue by 2.4%. Increase basically based on units completed last year after Q1 and this year, providing growth. Net rental income increased 2.8%. A strong result.
Of course, some details to be provided by CFO Erik Hjelt. Things like electricity cost increasing slightly, real estate taxes increased slightly, some cost savings concerning, for example, renovations. Funds from operations, FFO, improving 3.6%, strong figure. Today, the fair value of investment properties EUR 8.4 billion. Increase there basically based on our investments. We are still growing according to our strategy. Gross investments close to EUR 49 million, basically new development projects. Still happy to say that operationally we are really strong. Profit excluding changes in fair value improved by 4.1%. At the end of the day, profit before taxes EUR 63 million. It's good to keep in mind that actually changes in fair value last year EUR 143.5 million.
This year, a strong figure, EUR 28 million, but still less amount than comparison year. For us as a company, it's all the time been important that we are able to grow using multiple sources. At the moment, it's been about how to optimize new development projects. We've been able to actually increase the amount and keep it in a good level. Now, 2,566 apartments under construction. Mainly all the projects located here in Helsinki region. One project in Tampere, one project in Turku. We still keep in mind that Kojamo is able to convert buildings into apartments. We have started the first project concerning so-called Metropolia case. We will be scanning portfolios available if and when we find something appealing enough to buy. We are buying portfolios still, but this strong project pipeline is now providing good growth, strong growth.
As I said, all the construction projects are based on fixed prices, turnkey projects. Projects under construction providing the net initial yield around 4% or above 4% actually means that development gains are really strong, north of 30%. As we are completing this year close to 1,300 apartments, next year 1,700 apartments, we are achieving those development gains after completion of the projects. We still have binding agreements with construction companies providing additional 600 apartments, and then the Metropolia case is proceeding and the last zoning part will be completed by the end of this year. The growth path is really strong still. Lumo is providing easily best living, and actually it means that it's not only floors, walls and ceilings, but providing additional value for our customers. How to make things easy and effortless.
Combining apartments, communal sauna spaces, services, both digital and physical, additional services like you are able to get a dishwasher. That's been appreciated a lot. We are still on a path to create new services. Now, the latest services introduced to our residents being related to sustainability. Our clients today are able to make a carbon footprint test digitally using My Lumo. We launched a service to our customers to join climate actions. They are able to buy carbon-free district heating. All the time it's been a question that the ESG is a part of our company DNA, a part of all our operations. Now, for the first time, we will provide a Green Deal demolition. The old shopping center in Puotila will be demolished and replaced with apartments and business premises.
We will start a project providing geothermal heating for seven of our properties, and in the big picture today, close to 100 properties already use renewable energy and heating. Now, if Erik would continue providing more detailed color, please.
Well, thank you, Jani, and good morning everybody from my side as well. Page thirteen, our total revenue growth was EUR 2.3 million from the corresponding period. The like-for-like growth was flattish, -0.2%. There's actually two different part of that story. The increases in rents and wood charges was a positive figure, 2.2%. We've been increasing the rents pretty much in normal manner, if you like. The decline in occupancy rate was a negative impact 2.6%. Other parts + 0.1%. The total revenue growth was mainly driven by the bigger property portfolio.
Q1, we completed 270 apartments and of course for revenue growth contributes as well those apartments that we have completed Q2, Q3, and Q4 last year, more than 1,200 apartments. Net rental income growth was EUR 1.5 million. Maintenance expenses up EUR 1.3 million. Electricity up by EUR 0.7 million, property taxes EUR 0.3 million, and cleaning and water together EUR 0.3 million. All other items were pretty much in line with the corresponding period. Repairs decreased EUR 0.5 million.
Page fourteen, if we first look at the profit on fair value of investment properties, so there was a main contributor, the easing restrictions, covering roughly 44.0% of the positive impact in fair values and development gains, 66.0% of the positive change in fair value. We kept yield requirements unchanged during Q1, and the development gain, as Jani mentioned, was north of 30%, 33.0%. FFO growth there was EUR 1 million. Of course, net rental income contributed EUR 1.5 million. SG&A expenses up by EUR 0.3 million, and financial expenses in FFO calculations EUR 0.3 million. Cash taxes a negative figure there. It's a positive thing, of course, down by EUR 0.4 million.
As Jani mentioned, our financial occupancy rate was impacted by the restriction regarding COVID. Now after all these restrictions has been removed, we expect to see a positive trend in occupancy rate. Of course, the occupancy change quarter-to-quarter was negative, but not 2% as can be calculated here, given the fact that the 2021 figure is the whole year figure. Of course, 2020 Q figure in this slide is only one quarter's figure. Page 16, I think we already covered that's like-for-like rental income. For us it's important to increase the rents and water charges in normal manner, and this is something we've been doing this year as well.
Page 17, investments. Gross investments mainly covered by development projects, EUR 46 million, monetization investments EUR 1.6 million, and capitalized borrowing cost EUR 1.2 million. Monetization investment repairs flattish, repairs down by EUR 0.5 million and monetization investments EUR 0.2 million. The value of investment properties, EUR 8.4 billion, and we still have 1,854 apartments where we have restrictions regarding the valuation and the uplift. There will be somewhere around EUR 120-130 million when these restrictions ends, and they will end gradually by 2024. More than half of that uplift will come 2024. Page 19, Euro-wise, our ongoing developments and landbank.
On the column on left-hand side, apartments under construction, EUR 388 million already invested and EUR 257 million to invest in order to complete these ongoing developments, providing 2,566 apartments. Binding agreements, we have apartments for EUR 636 million as a number of apartments and EUR 123 million to be invested in order to finalize these. Metropolia developments, 1,000 apartments, 77 of these apartments already included those figures that Jani showed that what is the estimated completion of ongoing developments and, in this case, of course, conversion. Otherwise, Metropolia is not included in those figures. The actual landbank providing us 1,500 apartments.
In that landbank, we have both pure land and those land where we have existing building, and the idea there is to demolish existing building and build a new one, and there is roughly 250 apartments on those land. Almost all of these apartments under construction and binding apartments are located in Helsinki region. We have one project ongoing in Tampere and one in Turku. We toned slightly down our estimate of investments in development this year. Now, we estimated that it will amount to EUR 280 - 330 million.
The reason this slight change there is that there were a couple projects where the zoning and then building permission project takes slightly more time than originally estimated. It's pretty much a timing issue. It's good to note that already during Q2, we have started two new projects. One is Luoteislinna and Nihtisilta, in Espoo. All these apartments under construction and under these binding agreements, we have the net initial yield 4-ish% and the development gain north of 30%. Page 20, our equity ratio and loan to value.
We have a target to have equity ratio above 40% and loan to value below 50%, and then we have quite sizable buffer against these levels. When you look at our equity ratio, it's good to note that at 31st March, we made the new bond and so the bond and the cash is included in our balance sheet and then, of course, that is visible in equity ratio, b ut loan to value, you can see that the change was quite limited there. Very strong figures there. Page 21, EBITDA flat-ish there as well, EUR 21..
If you look what happened during Q1, of course the dividend, the decision was made already during Q1 and that has a negative impact for a EUR 93.9 million profit for the period. Positive figure there, EUR 50.4 million. The fair value reserve, so meaning that the derivatives because of the increased interest rates were up by EUR 28 million. If you put all this together, that kept our EBITDA flat-ish. In this type of interest rate environment, it's important to have a strong financial position, I think, and that's exactly what we have. At the end of Q1, we have cash and cash equivalents, EUR 478 million. We had financial assets, EUR 104 million.
In total, EUR 582 million. On top of that, we had EUR 300 million committed credit lines, unused. We don't have any major maturing refinancing needs in next two years to come. Our average cost of financing, including cost of derivatives, 1.8%, and the fixed interest rate period, four years. Our hedging ratio is actually very, very high, 93%. In our case, we have a strong balance sheet. We are really cash rich, and we have very, very high hedging ratio. Our financing position is very, very strong. Page 23, a couple notes regarding our strategic targets. FFO against total revenue, 29.1.
It's good to note that because of IFRIC 21, the property taxes for whole year is booked in Q1. The amount is EUR 11.7 million, so that means that the part of property taxes allocated to Q2, Q3, and Q4 is EUR 8.8 million on that. If you calculate that in, that means that the FFO against total revenue was 9% higher than what we've shown here. Pretty much in line, or actually we are above this target level. Other note here is that Net Promoter Score, 38, we changed how we calculate the Net Promoter Score because previously, we showed different, the Net Promoter Score as such and the digital Net Promoter Score, and now we have combined these two.
In this new calculation, we have the Net Promoter Score for incoming customers, for existing customers, and leaving customers, and in each part included the digital part of our operations. If we calculated this in an old way, if you like, there was no major changes during the Q1. Outlook for this year unchanged. We estimate that the total revenue will increase by 3%-6% year-on-year, and that FFO will amount between EUR 153 million and EUR 165 million. If you look at the higher end of the top line growth outlook, 6%, there's two parts before the in.
Behind that, one is that half of that growth will come through the like-for-like rent and water charges increases between 2.1%-2.5%, and some improvement in occupancy, and half of that growth will come through the completed apartments. As Jani mentioned, all our ongoing development project are proceeding as planned. This FFO range reflects the top line range. In FFO, we have estimated that the weather is going to be normal remaining part of this year. Some impact on inflation and some impact of cost savings that we are able to achieve. Page 26, our dividend policy, nothing changed there. 60% FFO annually paid as a dividend. Now back to Jani.
Thank you, Erik. I guess before Q&A, it's good to anyway summarize. As I said, all the key figures, solid. The financial position at the moment, really strong. We are ready, able, willing to move forward according to our strategy. In spite of a challenging environment, all the ongoing projects have been proceeding as planned. Good to keep in mind there that we do have fixed prices, turnkey projects for all the ongoing projects, as well as those binding agreements providing additional 600 apartments. Looking forward, we do believe that we are getting those strong development gains. Cost increases are not impacting those projects. As restrictions have been lifted in March, we have witnessed a lot of positive signs, as I said. We have seen an increasing number of new tenant agreements.
Yes, we did read this morning that KTI provided information concerning rental apartment markets and supply in the market. There, it's good to keep in mind that this data is based on a survey made in March. Those providing information then looked backwards, what's been happening in January, February, beginning of March. Now we're late in May. Actually, supply from the market in April, in the commercial portals, for example, in Helsinki, dropped down more than 10%. It seems that a lot of activity is in rental market at the moment. Urbanization will continue. Students are moving back to university cities, a nd probably summer will be quite hectic, providing a growing number of tenant agreements. Thank you. Now if we move to Q&A.
Yes. Thank you, Jani and Erik. We could take first questions from the audience. Go ahead.
It's Svante Krokfors from Nordea. A couple of questions if I may. First, regarding the consumer confidence is quite poor currently, and inflation is high and wage increase is quite limited. Given the squeeze on the consumers, how do you view the possibilities to raise rents in the 2%-2.5% range that you target? Yes, that's the first one.
Yeah. I think that it's good to keep in mind that total market is about people finding homes. This uncertainty and increase of living expenses or maintenance cost is as well impacting owner-occupied homes directly, and increasing interest rate levels will be impacting home buyers. Typically, if we look backwards what's been going on in history, uncertainty in consumer confidence will impact home buyers and actually increase the relative attractiveness of rental apartments. Yes, we do believe that we are able to increase the rents as we have been planning.
Thank you. Could you remind us about the rent increase terms that you have, how much is indexed and how much can you raise rents above the index level?
Yeah. In all our rental agreements, we apply a clause that we are able to increase the rents once a year with index plus maximum 5%. It actually means that we are pricing all the apartments one by one, and all the customers are receiving an individual letter.
Thank you. Given the inflation, I mean, it has many impacts, but what kind of impacts does it have on your operations and maintenance and repair?
Well, what we've seen so far is that the cost of electricity has gone up, and that of course plays a role if you look at maintenance costs. Heating is included in the rent, so heating cost will have an impact. Those prices gone up slightly as well, b ut more important in our figures is what is the weather. Impact of the weather and taking snow from one place to another seems to be quite expensive. Weather factor is more important for us than the price factor when it comes to heating.
Otherwise, price, yes, we've seen inflation, price has gone up slightly, but we've been able to offset part of those increases by being a big buyer in the market. The impact, as already discussed, in our figures has been quite limited so far.
Okay. Thank you. Regarding the occupancy rate, which is at unprecedentedly low levels, what do you really believe is the impact from COVID-19 and how much is the impact from increased supply in the market?
The biggest driver by far is COVID-19 impacting urbanization. As a net result, actually Helsinki has been shrinking during COVID-19, so people moving away from Helsinki. At the same time, as we've been providing information all the time, we did know that that new supply was coming to the market, and without COVID-19, it wouldn't have been a problem. On the other hand, we have said all the time that the impact is temporary. Urbanization will continue. Of course, depending on what kind of player you are, what's your strategy, puts the ball game to a certain level. Our focus has been that we are able to increase the rents all the time systematically. We've been able to do this. As we now provided information...
Actually, as we've been providing all the time information that we firmly believe that as soon as COVID-19 is passing by, restrictions are removed, activities will start again, job opportunities will be able, available, people move. Using services creates demand for services, so people start moving back to big cities. Universities now asking students to come back. That will start happening, so demand side will be coming back. It's our focus is long-term game, not short-term temporary impacts.
Thanks. That's very clear. You haven't communicated anything about your review of the non-core portfolio, 3,600. I guess you will not comment on it here either. What I've heard, there's been a number of portfolios quite large in the market and, at least I haven't heard of any of those having closed. What's the investor demand? How has that developed now?
Yes, it's still an ongoing process, so we're not providing color. As I said, a couple of transactions have been completed. A portfolio consisting roughly 2,000 apartments disposal project was completed by a foreign investor. It seems that there's still a lot of demand in the market.
Yeah. Thanks. The last one, Erik, you mentioned that the higher end of the top line or growth guidance assumes somewhat higher occupancy rate. Can you be more specific on that?
If you calculate the 6%, if half of that is coming through according to your estimate, because of completed apartments and half, so 3% of like-for-like growth in total. If we estimate that increases in rents and water charges will provide the growth for like-for-like 2.1%-2.5%. The slight increase in occupancy will cover the difference between 3% and this 2.1%-2.5%.
Okay. Thank you. That's all from me.
Okay. Do we have no more questions from here? Next, we can take questions from the phone line. Operator, we are ready.
Thank you. Ladies and gentlemen, if you wish to ask a question, please press zero one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero two to cancel. Thank you. We have a question from John Vuong from Kempen. Please go ahead.
Hi. Good morning, and thank you for taking questions. Perhaps on the demand coming back to Helsinki from the restrictions being lifted at the beginning of March. We're now well into May. What are you seeing in your overall inquiry numbers?
Yeah. Thank you for the question. As I provided color, we have been following the market and our operations on databases, typically. April against last year April, the increase of new tenant agreements was 17%. Now, during the first 11 days of May against a comparison period of time, the increase is about 20%. It seems that the market is picking up speed. What we have seen is that in commercial portals during April, for example, in Helsinki, the supply decreased more than 10%.
Okay. Those numbers are a bit more comforting, given that it's quite significant. Any changes in terms of the average rent levels you're asking for these, same apartments?
We've still been able to increase the rents in a normal manner as provided in a like-for-like figure. Top line growth has been 2.2%.
Okay. That's clear. Perhaps on the delay in zoning, you mentioned that EUR 30 million of CapEx is being delayed now. It feels like the delay in zoning is a bit of a recurring theme. Is this you being too optimistic on timing, or would you say that there's more unforeseen case-specific issues there?
Actually the situation hasn't changed if you look today, and compared to a couple of years ago. The question is that, when we make our,
Estimates, we pencil in each project in the schedule. This is the time that we estimate that we are able to start each project. There, of course, we take into account that zoning might take this and that long, or getting a building permission will take one or two months or three months. If those are postponed somewhat, that of course has an impact for investments made this year because we are now estimating the investments for 2022. If we originally estimated that a project is started in May, and now it looks that it will be postponed six or seven months, that means that the amount of investments this year for that project is going to be very limited.
This is actually what is over. Yes, the zoning is unfortunately taking longer than we would like to see, but it's a question of each project that we put on the calendar when we think that one project can be started. If that is postponed from that point for a couple of months, then it might end up being started next year or can be started this year. Investment for that project this year is going down. This is as you mentioned. This is an ongoing thing. Lucky enough, some projects are started or completed earlier than anticipated in our estimates.
Okay. That's very clear. Just one last question on the development starts that are coming down across the market. How does the Helsinki region compare to the other regions you're looking at?
I think that the impact goes throughout all the cities. It's related to a couple of things. I think at the end of the day now, construction companies are facing difficulties in pricing the product and facing the situation that home buyers are a bit more careful with their decision-making. This construction cost impact goes throughout the country.
Okay. Not that Helsinki region is seeing more, or actually less development starts than initially planned, relative to, for example-
I think all the players still find Helsinki region attractive as a market. Now they are facing challenges in how to estimate the cost side and do the pricing concerning the projects. The visibility has been a bit limited because of Russian attack on Ukraine.
Okay. Yeah, that's helpful. Thank you.
Thank you. The next question comes from Jonathan Kownator from Goldman Sachs. Please go ahead.
Hi. Thank you for taking my question. Appreciate it. It's been talked about quite a bit already this morning, but I just wanted to come back to the occupancy and perhaps understand a bit better, I guess longer term, not, you know, next month, but obviously the drop from peak from, you know, 97.2% in 2019 is obviously very significant. Do you think half of that has become structural, i.e., you're highlighting that there's been more supply recently and I appreciate this could, you know, the environment is obviously changing, b ut what I'm trying to think about is long term, are we thinking that these levels of 97% are achievable again in the short term, given the recovery that you're seeing?
Are you seeing any concentrated vacancies in specific area which have changed in terms of attractiveness or anything around that? I mean, obviously these things happen. Just trying to get a bit of color on that gap and where that occupancy shortfall is across your portfolio or specifically located. Thank you.
Yeah. Thank you for the question. Of course, the tricky part is what do we mean with short period of time. I would say that as we've been commenting on the market all the time, yes, one could argue that there's a lot of supply in the market. As I've been saying, due to COVID-19 and lack of urbanization, there's actually been a lack of demand in the market. Now as restrictions have been lifted, the demand is picking up speed. At the end of the day, the total amount of available rental apartments in the market in Capital Region is limited. It's not a question of tens of thousands of apartments, but a handful of thousand apartments.
People are moving back to the Helsinki region in order to start working or starting to study in the universities or other places, that supply will be absorbed by the market. Sooner or later here in the Helsinki region, the occupancy levels will be reaching 97% again. In our eyes, as we've been commenting and I've been providing information all the time, occupancy plays an important role, but at the end of the day, it would be too easy to buy occupancy. You just start lowering the rents and stop making money. It's about being consistent with your strategy and providing additional value and finding efficiencies in your processes. Once the market normalizes, as it now seems to be happening, you are actually in a better shape than ever. Okay. Thank you.
Thank you. Ladies and gentlemen, if you wish to ask questions, please press zero-one on your telephone to dial. Thank you. There are no further questions at this time. Dear speakers, back to you.
Thank you. We have some questions in the chat. First question is about the occupancy rate. Have you thought about giving up rent increases in order to improve occupancy rate if it keeps going downward?
I think we've been providing quite sufficient color on that topic, and we will keep on being systematic with our strategy. Now, we do believe that, as estimated, things are getting better as restrictions have been lifted and market will be normalizing, so we will continue with our strategy.
Okay. There's a question concerning your comment. You highlighted that the growth in new rental agreements has been quite rapid during Q2 compared to last year. Is it possible to comment how has the financial occupancy rate developed during Q2?
Typically we only comment on the standard quarter report, and we're not providing exact information on ongoing quarters. As we've been saying that there are positive signs and it's typical that once you start creating increasing number with new tenant agreements, there's a slight delay once they step into the flat providing improvement with the occupancy.
Good. One more question. Did the negative occupancy rate development in Helsinki region focus on some specific location or age group, or was it more general development?
I would say it's been more general development.
Okay, thanks. It seems we don't have more questions. Thank you all for joining us today. It's been a pleasure to host this event. Kojamo's half year financial report will be published on 18th of August. Hope to see you then. Thank you, and have a great summer.