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

ByEditor

Feb 12, 2024

Last year, real estate investment company Investors House announced its financial statements and October-December results. The company’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 net income was also lower, at 0.55 million euros compared to 0.65 million euros a year earlier. The operating result and reported operating profit were also down compared to the previous year.

The company’s result in October-December was impacted by a decrease in the values of 100 percent 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.

The company’s EPRA NRV, which describes net assets per share, was 5.76 euros, while it was 6.23 euros at the end of 2022. Investors House’s board proposed a dividend of 0.33 euros for 2023, an increase from the dividend paid for 2022.

Managing director Petri Roininen expressed satisfaction with the company’s performance, stating that the strategic plan 2020-23 went well. Despite challenges such as the coronavirus, inflation, and rising interest rates, the company was able to meet its strategic goals and create shareholder value. The company also entered into meaningful partnerships with customers and saw positive developments in profitability.

Real estate valuations were impacted by various factors, including an increase in yield requirements due to rising interest rates. However, the company was able to compensate for the decrease in value through improvements in occupancy rates, full rent increases, and real estate development.

Overall, Investors House anticipates that its results in 2024 will be at the same level as the results in 2023.

By Editor

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