• Sat. Mar 2nd, 2024

Investors House Reveals Lowered Q4 Financial Results, Forecasts Similar Outlook for 2024


Feb 12, 2024
Investors House’s result impacted by decrease in real estate values

Petri Roininen, the managing director of Investors House, revealed the company’s financial statements for the previous year and disclosed its results for the period of October-December. During that time, the company experienced a decline in turnover to 1.8 million euros from 2.1 million euros compared to the same period the year before. Their net income also dropped to 0.55 million euros from 0.65 million euros, while the operating result decreased to 0.34 million euros from 0.36 million euros.

The decline in performance during the last quarter was primarily due to several factors such as a decrease in fully owned properties’ values by around 1 million euros, a goodwill write-down of subsidiary Juhola Asset Management by 0.6 million euros, and incentive fees totaling 0.03 million euros.

On the positive side, Investors House’s change in investment properties’ value owned by associated companies contributed around 1.5 million euros to the overall result.

Looking ahead, Investors House projected that its results for 2024 would be similar to those of 2023 despite challenges such as inflation and rising interest rates.

Roininen highlighted that despite these challenges, Investors House achieved almost all of its established goals through its strategic plan 2020-23.

He emphasized that the company had formed meaningful partnerships with customers while maintaining strong equity and liquidity.

Regarding real estate valuations, Roininen mentioned that Investors House faced challenges due to increased yield requirements resulting from rising interest rates leading to decreased property values.

To counter this challenge, Investors House improved occupancy rates, implemented full rent increases, and engaged in real estate development aligned with its strategic objectives.

Investors House’s EPRA NRV stood at 5.76 euros at the end of October-December compared to 6.23 euros at the end of the previous year.

Overall, Roininen reiterated his confidence in his team’s ability to navigate through challenging business cycles and create shareholder value regardless of market conditions.

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