Operational Report 2024
Report of Lahden Talot for the financial period 1.1. – 31.12.2024
Basic information on the group
The Lahden Talot Group comprises the parent company Lahden Talot Oy, wholly owned by the City of Lahti, and its subsidiaries Lahden Asunnot Oy and Lahden Palveluasunnot Oy. Lahden Talot Oy owns the Group’s non-financed real estate portfolio. Lahden Asunnot Oy is a public utility company within the meaning of the araval legislation and owns the majority of the group’s ARA housing stock and student housing. Lahden Palveluasunnot Oy is also a public utility company which owns service houses and special housing for special groups.
At the end of the financial year, the Lahden Talot group had 7 152 dwellings. The dwellings were divided into the following companies: Lahden Asunnot 5 658 dwellings, Lahden Palveluasunnot 906 dwellings and Lahden Talot 588 dwellings.
Shares in the company
The company’s share capital consists of 206 shares of equal nominal value and voting rights. All shares have equal rights to dividends and to the company’s assets. The shares are not subject to any consent or redemption clauses.
Management and auditors
The members of the Board of Directors of Lahden Talot Oy are:
Pasi Karjalainen, Chairman
Rami Lehto, Vice-Chairman
Saija Granlund
Hanna Koskela
Hannu Rahkonen
Harri Rummukainen
Minttu Murtomäki
The Board of Directors has met 13 times during the financial year. The Annual General Meeting was held on 18 March 2024.
The Managing Director has been Sanna Karppinen, tradenomi, LKV, LVV.
The auditor has been BDO Oy, with Lauri Roti, Chartered Accountant, as the auditor in charge from 4 September 2023.
Salaries and remuneration of management and staff
The payment of the CEO’s performance bonuses is conditional on the general conditions for performance bonuses set by the Board of Directors being met. In addition, the Board of Directors determines the CEO’s objectives on an annual basis. These are the objectives derived from the strategy, the budgetary objectives and other objectives set by the Board. The Board decides annually on the CEO’s salary and remuneration in February. The CEO’s performance bonus may not exceed three months’ monthly salary.
The entire staff has been covered by an incentive bonus scheme for the financial year, the indicators of which are based on the main objectives of the company’s strategy, namely the rental rate of the company’s apartments, energy efficiency, customer satisfaction and the Group’s financial performance. The duration of the incentive scheme and the indicators are decided by the CEO once a year in accordance with the Board of Directors’ policy directive. The maximum amount of performance bonuses for staff will not exceed the average monthly salary of the staff. For the Management Team, the maximum amount paid shall not exceed the equivalent of one and a half months’ salary.
The total remuneration of the members of the Board of Directors amounted to EUR 26 330.00 during the financial year.
The CEO’s salary including fringe benefits was EUR 128 925.00. No performance bonus was paid to the CEO. The CEO was entitled to a lunch, telephone and car allowance. The value of the fringe benefits was EUR 12 331,50. The company has not taken any additional pensions for the management or the management team.
Staff salaries and benefits in kind totalled EUR 2 205 997,71. This amount includes a performance bonus of EUR 36 105,51. Staff have a lunch allowance and some have a telephone allowance.
Significant events during and after the financial year and an assessment of the financial position and performance
The Group’s finances developed as planned during the financial year. Turnover for the financial year was EUR 58.3 million (58.2 Me in 2023), an increase of 0.1 per cent. Operating profit was approximately EUR 2.8 million (4.9 Me in 2023) and profit before tax and minority interests was EUR 2.0 million (3.5 Me in 2023). The results were in line with budget for both the Group and the individual Group companies, although Group revenue was slightly below budget. The stable economic development of the Lahden Talot Group has enabled the full implementation of planned investments and development measures during the financial period.
Overall, both the parent company’s and the Group’s results and financial position were good at the end of the financial year.
2024, the year of change and renewal
2024 was the first year of the company’s new customer experience-based strategy. The company continued to develop its occupant-centric property portfolio by building new and renovating existing stock. In line with the renewed strategy, the company focused in particular on improving the customer experience and affordable rents. In line with these priorities, significant operational changes were implemented, the most important of which were the reorganisation, the creation of a property management unit and the redefinition of job functions. To ensure affordability of rents, activities were reorganised, the ratio of in-house to outsourced work was optimised and operational efficiencies were introduced, which created the possibility to re-price and re-balance rents on a per-tenant basis. The average rent change is -4.4% for 2025.
The new ERP system was launched at the beginning of October, and the website was also redesigned.
At the end of the previous lease, the company reassessed the requirements and needs of the working environment. In order to improve collaboration, teamwork and job satisfaction, more suitable premises were sought for the Lahden Talojen office. In autumn 2024, the company moved to temporary premises and in spring 2025 Lahden Talot will move to its new and modern premises at Aleksanterinkatu 8.
There have been no changes in the Group structure during the financial period.
The company has no material events to report after the end of the financial year.
Achievement of the objectives of the City of Lahti’s ownership strategy
In line with the Lahti Group’s objectives, the Lahti Houses Group has continued in 2024 to maintain sound, long-term and predictable financial management and profitability. In line with the strategic and financial objectives set by the owner, the company’s financial performance is in line with budget. The changes implemented in the company during 2024 significantly strengthened the delivery of safe, affordable and energy efficient rental housing required by the owner. The company also promoted low-carbon construction in its own projects, such as the second wooden apartment building completed on Svinhufvudinkatu, in line with the owner’s objective.
The Lahden Talot Group paid a dividend of EUR 600,000 to the owner for the financial year 2024, in line with the owner’s target.The direct and indirect income payments of the Lahden Talot Group to the Lahti City Group through the Group companies (dividends, energy charges, water and waste water charges, waste charges, property taxes, interest, property rents) in 2024 totalled EUR 15,985,683.
Lahden Talot Group has supported innovation and promoted market access and competitiveness of companies in the region through its acquisitions. In 2024, the company’s acquisitions will have targeted companies in the region to a significant extent. Examples of local cooperation include real estate services, construction, IT services, financial services, catering services, transport services and design and architectural services. In 2024, the Lahden Talot Group’s service providers will employ an estimated 330 people in the Lahden Talot Group.
In 2024, Lahden Talot Group employed a total of 18 trainees and seasonal/summer workers. The share of trainees and seasonal workers was 33% of the total number of employees.
Lahden Talot Oy, together with the City of Lahti, continued to provide housing counselling services in Lahti. The advisory services are available to all residents.
Lahden Talot Oy was involved in the work of the Student Housing Forum, which also includes LUT University, student organisations and the City of Lahti. The forum discusses issues related to student housing and makes proposals for improving the way it is run.
Lahden Talot continued its cooperation with the Lahti Development Centre for Carbon Neutral Construction to promote low-carbon construction.
Key indicators for the Group
| Tunnusluku | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|---|
| Liikevaihto (meur) | 58,3 | 58,2 | 57,2 | 56,1 | 54,6 | 56,1 |
| Liikevoitto (meur) | 2,8 | 4,9 | 14,6 | 14,5 | 16,5 | 15,9 |
| Liikevoitto -% | 4,9 | 8,4 | 25,5 | 25,8 | 30,2 | 28,3 |
| Käyttökate-% | 29,1 | 32,8 | 41,7 | 41,0 | 46,0 | 40,6 |
| Oman pääoman tuotto % | 2,0 | 3,1 | 8,4 | 9,0 | 12,0 | 12,7 |
| Omavaraisuusaste % | 33,4 | 31,3 | 30,3 | 29,4 | 27,2 | 25,7 |
| Vuokrasaamiset liikevaihdosta % | 1,7 | 1,4 | 1,5 | 1,5 | 1,5 | 1,3 |
| Taloudellinen käyttöaste -% (konserni) | 92,8 | 96,1 | 97,3 | 96,3 | 96,6 | 97,2 |
| Asukasvaihtuvuus % | 24,5 | 22,9 | 19,9 | 20,4 | 21,0 | 23,7 |
| Henkilöstö keskimäärin tilikaudella 1) | 45,8 | 43,6 | 37,8 | 37,2 | 35,6 | 36,1 |
| Vakituinen henkilöstö 31.12. | 36 | 35 | 32 | 32 | 33 | 34 |
| Henkilöstökulut tilikaudella (meur) | 3,0 | 2,9 | 2,7 | 2,5 | 2,3 | 2,5 |
*) Figures are not comparable due to a change in the depreciation schedule in 2023
**) The figure includes all staff, permanent and temporary.
Development, renovation and sale of real estate
Construction of Lahden Talot Oy’s new building at Svinhufvudinkatu 7 started in summer 2023, and it will be the Group’s second A energy class wooden apartment building. The project is non-subsidised. The five-storey building will consist of 39 high-quality apartments: studios, two-bedrooms and three-bedrooms, with floor areas ranging from 28.5 to 67.5 square metres. A photovoltaic power plant was installed on the roof, whose electricity can be used to cool the building, charge electric cars, power HVAC equipment and light the building, among other things. The main construction material used for the house is CLT laminated wood. The contractor for the project was Varte Lahti Oy. The wooden apartment building was completed in August 2024.
The renovation of Lahden Asunnot Oy’s Helkalankatu 1 started in September 2023.The apartment building has 36 apartments with a total floor area of 1 883 asm2.In the comprehensive renovation of the building, which was completed in 1992, all interior surfaces were renewed and the interiors of the apartments were modernised. The building services were also completely renewed, the balconies were repaired and glazed and the courtyards were renovated. In addition, a photovoltaic power plant was installed on the roof. The contractor was RSP-Lahti Oy. The renovation was completed in September 2024.
As of 31 December 2024, Lahden Talot Group had a total building stock of 351 buildings, 131 cost centres and 7 152 dwellings.
Group actual expenditure data
| Vuosi | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|
| Lämmitys, normeerattu , kWh/rm³ | 38,3 | 40,3 | 40,9 | 41,5 | 42,5 | 43,9 | 43,0 |
| Vesi, l/asukas/vrk | 129,9 | 131,3 | 134,3 | 139,9 | 130,1 | 132,6 | 135,0 |
| Sähkö, kWh/rm³ | 7,5 | 7,3 | 7,3 | 7,7 | 7,4 | 7,9 | 8,1 |
| CO2-luku, normeerattu, kg/rm³/vuosi | 5,8 | 2,9 | 1,2 | 2,0 | 3,3 | 4,9 | 8,3 |
| CO2-luku, normeerattu, kg/asukas/vuosi | 1039 | 460 | 213 | 346 | 581 | 855 | 1 420 |
Water consumption in service dwellings is not included in the figures.
Environmental issues, sustainability, property maintenance and resident engagement
We published our 2023 Sustainability Report in March, in line with the GRI standard. In our 2024 sustainability work, we focused in particular on customer satisfaction, reducing emissions and developing staff skills. During 2024, we have prepared our Sustainability Report in line with the principles of the ESRS standard, starting by identifying the sustainability issues relevant to our operations and setting metrics to monitor sustainability issues. We are committed to comprehensive and transparent sustainability reporting on environmental, social responsibility and good governance issues.
During 2024, total carbon dioxide emissions increased by about 3,917.04 tonnes, or about 65% over the year, compared to the previous year. District heat consumption decreased by 1.7% and electricity consumption decreased by 8.6%, but the increase in emission factors had a significant impact on CO2 emissions. The renewal of the building stock, the use of energy management systems and activation campaigns for residents continued to contribute to the reduction in energy consumption. Per capita water consumption decreased by around 1% compared to 2023, to 129.9 litres per day.
The seventh MiniMoi! competition, which encourages residents to change their consumption habits and thus reduce their carbon footprint, ended on 31 May 2024.The competition takes into account the carbon dioxide emissions caused by heating, electricity, hot water and waste management. This year’s winner was Metsolankatu 2 and 4.
Our aim is to improve the recycling and sorting of waste, both in our housing and in our renovation and construction projects. We encourage our residents to sort by providing adequate sorting facilities in their homes and by maintaining clean and safe waste containers. All our waste containers have pictorial sorting instructions. In 2024, the collection of glass, metal and bio-waste became the responsibility of the municipality, in addition to cardboard and plastic packaging.
The annual Property Day for service providers providing property maintenance and cleaning services to the company was held at the end of April. In addition to discussing the reports on the quality monitoring of property maintenance and cleaning services, the programme of the day included a review of the functionalities of the new ERP system. Traditionally, the best performing contractors in property maintenance and cleaning and the best scoring employees were rewarded.
The main theme of the training day for residents’ committees in March was teamwork. Other topics included mobilising residents and the impact of changes in waste management.
A budget tracking event focused on the company’s budgeting for the coming year included a presentation on the Resident Activation Project and future sustainability reporting.
Estimate of likely future developments
Although 2024 was a challenging year for the economy and economic growth both globally and in Finland, there are already cautious signs of improvement, and Lahden Talot Group’s development in 2025 can be expected to continue as planned and predictable. The company will ensure good development by continuing its long-term work in managing its real estate assets, profitability and finances, and by actively developing its operations in a customer-oriented manner.
The competitive situation in Lahti’s rental housing market will probably remain tight until 2025. Lahden Talot is responding to the competition with operations and continuous development in line with its strategy.
Assessment of the main risks and uncertainties and other factors affecting the development of the business
The Lahden Talot Group has a written risk management policy, which was approved by the Board of Directors of Lahden Talot Oy for the first time in 2015. The risk management policy defines the risk management principles, practices and responsibilities of the Group. The Risk Management Policy is updated as necessary and at least once a year.
The latest update of the Group’s risk management policy was carried out in November 202, in line with the annual plan. Based on the updated risk matrix, the key risk factors identified for the operation are deterioration and ageing of the properties and fires in apartments and buildings. Other risks identified include water leaks, services provided not meeting demand, insufficient resources for development activities, market disruptions and adverse and rapid economic changes.
Lahden Talot Oy has a financial risk management policy approved by the Board of Directors. According to this policy, the Group’s financing, its interest rate risks and other risks related to annual instalment loans and index-linked loans are monitored regularly. Financial risk management is assisted by an external advisor who actively monitors the risk of the loan portfolio and makes recommendations for risk management measures based on market information. In December 2024, the hedge ratios of the Group companies’ loan portfolios ranged from 43% to 72%. Through successful interest rate risk management, the Lahden Talot Group has been able to reduce the increase in its interest expenses.
Lahden Talot Group’s overall financial occupancy rate was 92.8% on average during the financial year (96.1% in 2023). The occupancy rate is expected to develop in line with the budget in 2025.
In the Group’s construction activities, risks are managed through good construction practice design guidance and in-house and comprehensive supervision during construction.
In 2023, an extensive repair debt and repair needs survey was carried out on the building stock of the Lahden Talot Group. The study provided essential information for long-term management of the building stock and for renovation activities. The study will be updated in 2025.
The Group has insurance policies to cover property, interruption and damage risks.
Proposal by the Board of Directors for measures concerning the company’s profit
The Board of Directors proposes that the profit of the parent company for the financial year of EUR 4 194 143,33 be entered in the balance sheet under retained earnings. The Board of Directors further proposes that a dividend of EUR 600 000.00 be distributed.
