Kojamo plc Stock Exchange Release 6 June 2019 at 9:30 a.m. (EEST)
Kojamo plc to use yield-based valuation technique in the valuation of its investment properties
Kojamo plc has decided to change from so-called transaction-based valuation technique to yield-based valuation technique in the valuation of its investment properties as of 31 December 2019. The is a change in accounting estimate by nature and its possible effects will be recognized in the accounting period when the change occurs. The change is not accounted for retrospectively.
Kojamo plc values its investment properties in fair value in accordance with IAS 40. Majority of Kojamo plc's investment property portfolio is currently valued using so-called transaction-based valuation technique. The company's international peers, however, are mainly using yield-based valuation technique. Kojamo plc's change into using yield-based valuation technique in the valuation of its investment properties makes Kojamo plc more comparable with its relevant international peer group.
Kojamo plc will look into the possible effects of the change and disclose any possible impact of the change in the fair value of the company's investment properties, profit or loss and financial position separately, to the extent necessary.
For more information:
Erik Hjelt, Chief Financial Officer, Kojamo plc, erik.hjelt@kojamo.fi, tel. +358 20 508 3225
Distribution:
Nasdaq Helsinki, Key media
Kojamo is Finland’s largest private residential real estate company and a frontrunner in the rental housing business. Our mission is to create better urban housing. We operate in Finland’s most significant growth centres and our Lumo brand provides rental housing and new services for urban housing with 50 years of experience. We actively develop the value and number 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 kojamo.fi/en/