This year has been operationally and financially successful for KAS Housing which can be observed from the key figures. Through consistent operations, the company has continued to achieve strong development year after year. This shows that strategic guidelines have been successful. However, even an excellent strategy is not enough to lead a company to success without competent and motivated personnel. Clear decisions made by the Board of Directors are also needed for the operative management to be able to lead the company to a profitable year.
The goals we have set have already been achieved even though we are just starting the year 2019 which is the last year of the strategy. Work on a new strategy for 2020-2024 has begun, meaning that analysis and definition of policy for the future development of the company are still ahead. The current strategy has been outstandingly functional and a sturdy foundation for success. It has acted as a great basis for build new things and will continue to help develop the company further in the future while maintaining the company’s strong position for years to come. There have been and will always be challenges brought on by urbanisation and changes in the economy. It is important to react to them correctly and well in advance, and make decisions that are best suited for the situation. The company’s operations extend over a very long period of time and cannot be built solely on strategy periods. Instead, operations must always be observed from a wider perspective and take into account a life-cycle approach.
The company invested heavily in the development of its housing stock. This meant selling non-marketable properties, the sale of which went according to plan. The sold properties were replaced with nearly as many non-subsidised properties and the development of the portfolio was positive. The acquisition of non-subsidised properties helped solidify and advance the position of the parent company. Property development also took big steps forward with regard to construction contracting and new land was acquired for future needs. A significant refurbishment project was launched in the summer and construction of a new property began in the autumn. New construction has now been polished to a well-functioning process and new properties will be built every year. In addition to the construction of new buildings, old ones are going to be repaired and renovated and the overall goal is to meet the growing demand for small apartments.
The financing structure is strong, liquidity is good and loan distribution takes risk management into account. The company has an extensive selection of funding, from market financing to interest subsidy loans, at its disposal. Construction is primarily focused on ARA properties with either long-term or short-term interest subsidy and turnkey contracting projects with non-subsidised funding. Portfolio acquisitions have been focused on non-subsidised properties.
The company’s core operations, the renting of apartments, has continued to develop. Operations are more strongly focused on rental apartments and the remaining part-ownership apartments have been sold. Effective processes have been developed and they help achieve great results. The occupancy rate rose to 96.8% and raising it even further will continue to become more challenging the higher it gets.
KAS Housing will continue to offer affordable and safe housing that meets its mission and values. Its personnel is competent and motivated and job satisfaction is high, which helps promote the development of the company and for which the personnel is to thank. It is also important that cooperation with different stakeholders runs smoothly. All of these aspects form the elements that the company’s success is built on and that form the basis for realising the company’s most important mission of renting affordable homes for satisfied residents.