Lumo Homes reaffirmed its financial outlook for 2026 on Wednesday, saying like-for-like rental growth accelerated to 3.2% in the first quarter as occupancy levels improved.
The firm reiterated guidance for total revenue between €484 million and €497 million for the full year, which equates to growth of 6.3% to 9.2% versus the prior year. It also left unchanged its funds from operations (FFO) projection of €147 million to €157 million for 2026, excluding non-recurring costs.
On a quarterly basis, total revenue was down 3.1% to €110.8 million in the first quarter. Management said disposals completed in July 2025 were the primary cause of the decline, subtracting €5.4 million from top-line revenue. Net rental income fell 4.6% to €59.9 million for the period.
Occupancy improved, with the vacancy rate narrowing by 80 basis points from December 2025 to 4.4% in the first quarter, a 280 basis point improvement compared with the prior year.
Company commentary noted that an oversupply of stock remains in the market, but that conditions are rebalancing and new construction starts are expected to fall. Within Lumo’s own portfolio, there are currently no apartments under construction.
On balance-sheet and valuation measures, net tangible asset value per share increased 0.8% to €18.46. The loan-to-value ratio fell by 150 basis points to 42.5% year-on-year, a reduction Lumo attributed to disposals. Liquidity metrics showed the interest coverage ratio steady at 2.4 times, while the average interest rate on debt inched higher by 10 basis points from December 2025 to 3.3%.
Detailed first-quarter cash-flow-related figures showed total funds from operations down 8.7% to €21.2 million. Operating charges included a notable rise in modernization and repair expenses, which climbed 21.8% to €10.6 million. Like-for-like asset values were down 0.6% from the prior year after adjustments to property age calculations. The net initial yield eased by 20 basis points to 3.7%.
Overall, Lumo maintained its 2026 targets despite near-term revenue and FFO volatility driven by disposals and higher upkeep spending, while reporting improving occupancy and modest upward pressure on borrowing costs.