Real Estate Investment Company Faces Challenges but Remains Optimistic for Future

Investors House’s Results Impacted by Decrease in Real Estate Values

Real estate investment company Investors House released its financial statements and October-December results, reporting a decrease in turnover and net income compared to the previous year. The company’s turnover in October-December was 1.8 million euros, down from 2.1 million euros, while net income fell to 0.55 million euros from 0.65 million euros a year earlier. The operating result and reported operating profit were also lower than the previous year.

The negative impact on the company’s result during this period was attributed to several factors, including a decrease in the values of 100% owned properties, a goodwill write-down of a subsidiary, and incentive fees. However, the positive change in the value of investment properties owned by associated companies supported the result.

Investors House’s EPRA NRV decreased from 6.23 euros at the end of 2022 to 5.76 euros at the end of October-December 2023, despite challenges such as an increase in interest rates and inflation impacting real estate valuations. The board proposed a dividend payment of 0.33 euros for shareholders for 2023, an increase from last year’s dividend payment.

Managing director Petri Roininen expressed satisfaction with Investors House’s performance over the past two years and stated that their strategic plan for 2020-23 went well despite challenges such as the coronavirus pandemic and rising interest rates. He noted that they were able to meet their strategic goals while creating shareholder value through meaningful partnerships with customers and positive developments in profitability. Real estate valuations were also impacted by various factors including an increase in yield requirements due to rising interest rates but Investors House compensated through improvements in occupancy rates, full rent increases, and real estate development efforts.

Overall, Investors House anticipates that its results will remain stable in 2024 and be at about the same level as those seen in October-December 2023

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