The reduction in real estate values ​​weighed on Investors House's result

Real estate investment company Investors House announced last year’s financial statements and October-December result.

Investors House’s turnover in October-December fell to 1.8 million euros from 2.1 million euros in the comparison period of the previous year.

The company’s net income was 0.55 million euros compared to 0.65 million euros a year earlier.

The operating result was 0.34 million euros, while it was 0.36 million euros a year earlier.

The value of real estate decreased

The reported operating profit was 0.04 million euros, compared to 3.9 million euros a year earlier.

The company’s result in October-December was 0.1 million euros compared to 2.3 million euros in October-December 2022.

In the last quarter, the result was weighed down by the decrease in the values ​​of 100 percent owned properties by approximately EUR 1.0 million, the goodwill write-down of the subsidiary Juhola Asset Mangement by EUR 0.6 million, and incentive fees by EUR 0.03 million. Correspondingly, the positive change in value of investment properties owned by associated companies supported the result by around 1.5 million euros.

EPRA NRV, which describes net assets per share, was 5.76 euros, while it was 6.23 euros at the end of 2022.

Inderes, following Investors House, expected turnover of 1.8 million euros, net income of 0.6 million euros and a drop in the reported operating result to a loss of 0.2 euros.

Investors House’s board proposes a dividend of 0.33 euros for 2023, while the dividend paid for 2022 was 0.31 euros. Inderes expected a dividend of EUR 0.33.

Investors House estimates that the result of 2024 will be at the same level as the result of 2023.

Managing director Petri Roininen estimates that the strategic plan 2020-23 went well.

“Almost all of the strategic goals set in 2020 were realized despite the corona virus, inflation and the rapid rise in interest rates that hit the period. This speaks to Investors House’s ability to create shareholder value regardless of business cycles.

“During the strategy period and its last year in 2023, we entered into meaningful partnerships with customers. Our profitability developed positively. The level of spending remained under control despite inflation and interest rates. Equity and liquidity are strong.”

The write-downs of real estate values ​​were partially compensated

According to the review, real estate valuations were especially weighed down by the increase in yield requirements caused by the rise in interest rates. The value changes of properties owned 100 percent at the beginning and end of the year ranged between -25 percent and +2 percent.

On the other hand, in accordance with its strategy, the company managed to compensate for the decrease in value caused by the increase in yield requirements by improving occupancy rates, full rent increases and real estate development

By Editor

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