Investors House’s result impacted by decrease in real estate values

Investors House, a real estate investment company, has released its financial statements for the previous year and announced its results for the period of October-December. During that time, the company experienced a decrease 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. Additionally, the reported operating profit went down to 0.04 million euros from 3.9 million euros, and the overall result for October-December was 0.1 million euros compared to 2.3 million euros in the previous year.

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 1.0 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 value of investment properties owned by associated companies contributed around 1.5 million euros to its overall result.

Investors House’s EPRA NRV stood at €5.76 at the end of Q4 compared to €6.23 at the end of Q3.

Looking ahead, Investors House projected that its results for Q4 would be similar to those of Q3.

The managing director Petri Roininen highlighted his company’s success with strategic plan 2020-23 despite challenges such as COVID-19 pandemic, inflation and rising interest rates.

He emphasized on how they were able to create shareholder value regardless of business cycles while forming meaningful partnerships with customers while maintaining strong equity and liquidity.

Regarding real estate valuations, Investors House faced challenges due to an increase in yield requirements resulting from rising interest rates leading to decreased property values.

However, they countered this challenge by improving occupancy rates, implementing full rent increases and engaging in real estate development as per their strategic objectives.

By Editor

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