Investors House, a real estate investment company, has released its financial statements for the previous year and disclosed its results for the period of October-December. During this 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, including a decrease in property values by around 1.0 million euros, a write-down of subsidiary Juhola Asset Management by around 0.6 million euros, and incentive fees totaling around €300k.
On a positive note, changes in value of investment properties owned by associated companies contributed around €1.5million to the overall result.
Investors House’s EPRA NRV stood at €576 per share at the end of the period under review compared to €623 at the end of the previous year.
Looking ahead, Investors House projected that its results for 2024 would be similar to those of 2023.
Managing Director Petri Roininen commented on his company’s success in achieving nearly all its established goals despite challenges such as COVID-19 pandemic, inflation and rising interest rates.
He highlighted their ability to create shareholder value regardless of business cycles and pointed out that they formed meaningful partnerships with customers while maintaining strong equity and liquidity.
Regarding real estate valuations, Investors House faced challenges as an increase in yield requirements resulting from rising interest rates led to decreased property values.
However, Investors House countered this challenge by improving occupancy rates and implementing full rent increases while engaging in real estate development in line with its strategic objectives.