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2/13/2024 6:30:17 AM - Investors House: Much relies on associated companies in 2024 - Nordea - Investors House reported Q4 2023 revenue of EUR 1.8m, the same as our estimate, while adjusted EBIT of EUR 1.6m (including associated companies) beat our forecast by 61%. Associated companies fared better than we expected, whereas Services profitability remained weak. Real Estate was broadly in line but EUR -1m in fair value changes weighed on earnings, as did the EUR 0.6m writedown of Juhola Asset Management in Services. Company guidance for 2024 expects a flat net result, which implies strong earnings from associated companies. The company's main focus will be on preparing the Kukkula JV project for the coming years; the JV is already delivering recurring revenues to Investors House, with an uptick expected for 2024, and development of the Kukkula project might bring additional positive surprises from a valuation perspective. Marketing material commissioned by Investors House.
2/12/2024 8:03:56 AM - Investors House: Strong Q4 supported by associated companies and upbeat 2024 guidance - Nordea - Investors House reported Q4 revenues of EUR 1.8m, in line with our estimate. Net operating income was EUR 0.6m, which was down 15% y/y and 32% below our estimate. The dividend proposal is EUR 0.33 per share, as we expected. Real Estate division posted 6% sales growth (3% below our estimate) with net operating income down 17% y/y. The Services segment posted weaker results than we had anticipated with sales down 22% y/y and operative EBIT down 57% y/y. Services also had in impairment charge of EUR -0.6m in the quarter. Associated companies, which includes e.g. the Kukkula-project in Jyväskylä, contributed more to earnings in Q4 than we expected. Fair value changes were EUR -1.0m in Q4. EBIT excluding fair value change was EUR 1.6m, 61% above our estimate but likely includes significant amount of fair value changes in associated companies, we believe. The Services business accounted for 49% of sales and Real Estate for 51% in Q4. A guidance for 2024 was introduced: earnings will be at the same level as in 2023 (2023: EUR 3.5m). As 2023 included a significant amount of positive fair value changes, we have expected the 2024 result to decline from 2023 as we do not forecast fair value changes. EPRA NRV was EUR 5.76 per share, virtually unchanged q/q, which translates to a 10% EPRA NRV discount. The equity ratio was flat q/q at 63% in Q4 and cash position was EUR 8.5m. We expect an initial positive share price reaction on the upbeat 2024 guidance.
11/14/2023 6:14:06 AM - Investors House: Real Estate and associated companies good in Q3 - Nordea - Investors House reported Q3 2023 revenue of EUR 1.6m, 8% below our estimate, while adjusted EBIT of EUR 0.8m (including associated companies) was 6% below our estimate. Associated companies fared better than we expected while Services profitability remained weak. The reported net result of EUR 0.5m represented more than a doubling from a year ago. Investors House is still waiting for the market to stabilise before making new investments and it will closely monitor acquisition opportunities to enhance its return on capital. Its main focus will be on preparing the Kukkula JV project for the coming years; the JV is already delivering recurring revenues to Investors House, with an uptick expected for 2024. Marketing material commissioned by Investors House.
11/13/2023 7:32:31 AM - Investors House: Q3 results largely in line with our expectations on solid associated companies contribution - Nordea - Investors House reported Q3 revenues of EUR 1.6m, 8% below our estimate. Net operating income was EUR 0.5m, which was down 42% y/y and 42% below our estimate. Real Estate division posted virtually flat sales y/y with net operating income down 38% y/y. The Services segment posted weaker results than we had anticipated with sales down 37% y/y and EBIT down 79% y/y. Associated companies, which includes e.g. the Kukkula-project in Jyväskylä, contributed more to earnings in Q3 than we expected. Fair value changes were limited in Q3. EBIT excluding fair value change was EUR 0.8m, 6% below our estimate. The Services business accounted for 48% of sales and Real Estate for 52% in Q1-Q3. The 2023 guidance was reiterated: earnings will be at the same level or slightly better from 2022. We have expected a slight increase in earnings in 2023. EPRA NRV was EUR 5.74 per share which translates to an 18% EPRA NRV discount. The equity ratio improved slightly q/q to 63% from 62% in Q2 and cash position was EUR 7.7m. We expect a neutral share price reaction on the Q3 results and reiterated guidance for 2023.
8/22/2023 5:35:37 AM - Investors House: Q2 earnings boosted by asset revaluation - Nordea - Investors House reported Q2 2023 revenue of EUR 1.7m, 12% below our estimate, and net operating income (NOI) of EUR 0.6m, 25% below our EUR 0.8m forecast, as the Service business disappointed. The company is taking actions to improve the division's top line and profitability, as its EBIT declined by more than 60% y/y. The operative result fell by 47% y/y at the group level, while the net results improved to EUR 3.1m from EUR 0.4m y/y due to valuation gains from the Kukkula project booked in Q2. Investors House is still waiting for the market to stabilise before making new investments and will closely monitor acquisition opportunities to enhance its return on capital. The company's main focus will be on preparing the Kukkula project for the coming years. Marketing material commissioned by Investors House.
8/21/2023 5:59:17 AM - Investors House: Strong Q2 on associated companies valuation gains, operationally slightly soft - Nordea - Investors House reported Q2 revenues of EUR 1.7m, -12% versus our estimate. Net operating income was EUR 0.6m. The Services segment posted somewhat weaker results than we had anticipated with sales down 16% and EBIT down 63% y/y. The net result was EUR 3.1m compared to EUR 0.4m a year ago as the successful Kukkula-transaction was completed and booked in associated companies in the P&L in Q2. EBIT excluding associated companies’ fair value change was EUR 0.6m versus our EUR 0.8m estimate. The 2023 guidance was reiterated: earnings will be at the same level or slightly better from 2022.
7/5/2023 5:37:57 AM - Investors House: Finalizes Kukkula deal and raises 2023 guidance - Nordea - Investors House’s JVs have today signed a lease agreement and two property transactions with The wellbeing services county of Central Finland (Keski-Suomen Hyvinvointialue) and marks the completion of three years of negotiations. The first phase includes extending the rental agreement with the seller until 2041 and making it a triple-net agreement for the 17,600 sqm property located in city of Jyväskylä. The second phase includes the purchase of 20,000 sqm protected property in Jyväskylä to be leased and a hospital building in city of Äänekoski. The third phase includes a ten hectare land area in Jyväskylä targeted for 100,000 sqm of mainly residential development. Investors House will book a EUR 3m valuation gain in H1 2023 mainly due to the extension of the lease agreement. Investors House expects the deal to bring EUR 1-4m in annual profits to the company over the next 10-15 years, in addition to the EUR 0.6m in annual recurring revenue from the triple-net lease agreement. Due to the revaluation effect, Investors House raises its guidance for 2023 from a flat net profit to a flat to slightly increasing profit versus 2022. We view the news as positive as it secures a long pipeline for Investors House’s JVs with limited risks.
5/16/2023 5:23:38 AM - Investors House: One-offs burdened Q1 – 2023 guidance reiterated - Nordea - Investors House reported Q1 2023 revenue of EUR 1.7m, 13% below our estimate, and net operating income (NOI) of EUR 0.1m, clearly below our EUR 0.7m forecast, as several one-offs (EUR -0.4m total) burdened the results. Reported earnings were EUR -0.2m, down from EUR 0.2m in Q1 2022, with the the one-offs explaining the y/y change. The share of revenue from Services was 48%. Investors House has initiated several earnings-enhancing measures, including searching for new growth investments to increase recurring revenue as well as cost measures. The company is still waiting for the market to stabilise before making new investments and will closely monitor acquisition opportunities to enhance its return on capital. Marketing material commissioned by Investors House.
5/15/2023 7:29:32 AM - Investors House: Q1 results impacted by one-offs, company initiates improvement measures - Nordea - Investors House reported Q1 revenues of EUR 1.6m, -13% versus our estimate. Net operating income was EUR 0.1m, clearly below our EUR 0.7m estimate but includes EUR -0.4m of one-offs. Both Real Estate and Services segments were weaker than we expected. The Q1 reported operative result (EPRA) was EUR -0.2m versus EUR +0.2m a year ago. Adjusting for one-offs, the reported operative result was broadly flat y/y. Reported EBIT of EUR -0.1m included EUR -0.1m of fair value changes. The 2023 guidance was reiterated: earnings will remain at the same level as in 2022. We have expected a slight increase in earnings in 2023. EPRA NRV was EUR 5.66 per share. The Services business accounted for 48% of sales and Real Estate for 52%. Equity ratio weakened slightly q/q to 58% from 60% and cash position was EUR 5.6m. The company initiates programmes to improve profitability. Measures include continued search for growth projects as well as increase of recurring revenue and lowering of costs. The improvement period is set for 2023-26 and will gradually improve earnings during the period. We expect a slightly negative share price reaction on Investors House’s Q1 report which was on the weak side.
3/21/2023 8:08:48 AM - Investors House: CMD highlights transformation to more stable operations and no hurry into new investments or M&A - Nordea - Investors House hosted a webcast CMD on 20 March. The company gave an update on current operations of e.g. businesses acquired over the past two years, including Juhola Asset Management and Infonia. The company has gone through a significant transformation over the last two years as a EUR 56m office portfolio and a EUR 15m residential portfolio were divested. Investors House has strengthened its balance sheet (equity ratio 60%) and invested into property services businesses so that today ~60% of revenue is derived from services. According to the company, nearly 90% of revenue comes from recurring revenues (rents and fixed service fees) and slightly over 10% from commission-related income. The recurring revenue stream exceeds 20% of all costs, including net financials. Investors House has a large cash position and ample room to increase leverage (covenant: equity ratio 45%) but is in no hurry to find new investment or acquisition targets given the uncertain market outlook within real estate. Going forward, the company will focus on adding predictable cash flow acquisitions and at the same time ensuring that it can continue to pay a steadily increasing dividend. We estimate a dividend yield of 6.2-6.9% for 2023E-25E. The share is currently trading at a 15% discount to EPRA NRV and our fair value range is EUR 4.4-6.8, based on a combination of valuation methods, with the greatest emphasis being on EPRA NRV. The information provided at the CMD does not lead to any estimate changes.
2/14/2023 6:42:00 AM - Guiding for strong earnings in 2023 - Nordea - Investors House reported Q4 revenue of EUR 2.1m, 4% above our estimate, and net operating income (NOI) of EUR 0.7m, 18% below our EUR 0.8m forecast, as Real Estate posted higher property costs compared to our estimates. EPRA earnings were EUR 0.4m, down by 60% y/y, owing to divestments conducted in Q4 2021. The share of revenue from Services was 59%. Investors House succeeded in streamlining its operations and its balance sheet through an extra dividend of EUR 1 per share in 2022, which has reduced the EPRA NRV discount further to 5%, from 40% at the end of 2021. The company is waiting for the market to stabilise before it enters new investments and will closely monitor acquisition opportunities to enhance the return on capital. Marketing material commissioned by Investors House.
2/13/2023 7:56:02 AM - Investors House: Q4 earnings boosted by development gains – 2023 result guided to be flat - Nordea - Investors House reported Q4 revenues of EUR 2.1m, +4% versus our estimate. Net operating income was EUR 0.7m, -18% versus our EUR 0.8m estimate as the Real Estate segment net operating income was below our estimates. Services segment EBIT of EUR 0.2m exceeded our estimates. The Q4 reported operative result (EPRA) was EUR 0.4m, down 60% y/y and was a result of significant disposals in the Real Estate-segment in Q4 2021. Reported EBIT of EUR 3.0m included EUR 2.6m of fair value changes, of which the Tikkurila zoning contributed positively while property value declined. The 2023 guidance is was as follows: earnings will remain at the same level as in 2022. The company will not guide for EPRA earnings anymore as the company structure has shifted more towards services. We have expected a slight increase in earnings in 2023. EPRA NRV was EUR 6.23 per share. EPRA NRV declined 25% from EUR 8.27 a year ago as e.g. an extra dividend of EUR 1.0 was distributed. The Services business accounted for 59% of sales and Real Estate for 41%, versus 56% and 44% a year ago, respectively. Equity ratio improved further to 60%. The company has a very strong cash position following Real Estate divestments and is patiently waiting for new investment opportunities. It appears that no new transactions will be made in the short-term as the CEO believes it will take time for prices and yields to stabilise in the market. We expect a neutral to slightly negative share price reaction on Investors House’s Q4 report.
1/12/2023 7:46:03 AM - Investors House: EUR 3m pre-tax gain to be booked in Q4 2022 from Tikkurila zoning plan confirmation - Nordea - Investors House announced yesterday (11 January) that its zoning plan for Neilikkatie 17 in Tikkurila, Vantaa has been confirmed. This will enable the construction of 10,000 m2 apartments and Investors House has signed in June 2021 a preliminary agreement for the plot sale. The estimated pre-tax impact of the deal is around EUR 3m and will be booked to the Q4 2022 result. The deal is expected to close during H1 2023 and the cash flow impact will be visible during 2023, according to the company. We have not included the deal in our estimates as the timing has been uncertain while we have estimated the impact to be EUR 2m eventually, so the financial impact of the deal is around EUR 1m higher than we have expected. The transaction will further strengthen Investors House’s strong financial position and based on our calculations enables M&A of over EUR 30m. However, given the recent market turbulence, we do not believe Investors House to be in a hurry to conduct acquisitions, which are likely to focus on the Service segment with the Real Estate segment’s relative share of Investors House’s NAV declining.
11/16/2022 6:46:18 AM - Investors House: Awaiting M&A opportunities in current market - Nordea - Investors House reported Q3 revenue of EUR 1.9m, 1% above our estimate, and net operating income (NOI) of EUR 0.9m, 47% above our EUR 0.6m forecast, as Real Estate posted clearly lower property costs, explained by a significantly increased share of net leases. Adjusted EBIT including associates was EUR 0.7m in Q3, 37% above our EUR 0.5m estimate. The Q3 EPRA result was EUR 0.7m and declined by 21% y/y, owing to divestments conducted in Q4 2021. The share of revenue from Services was 54%. Investors House has succeeded in streamlining its operations and balance sheet by distributing Ovaro shares and an extra dividend of EUR 1 per share, which has reduced the EPRA NRV discount further to 12%, from 40% at the end of 2021. The company is waiting for the market to stabilise before it enters new investments, as it sees further downside to valuations. Marketing material commissioned by Investors House.
11/14/2022 7:51:58 AM - Investors House: Q3 results strong, in no hurry to engage in new transactions - Nordea - Investors House reported Q3 revenues of EUR 1.9m, 1% above our estimate. Net operating income was EUR 0.9m, 47% above our EUR 0.6m estimate as Real Estate-segment NOI was stronger than we expected. Services-segment EBIT was weak and there are quarterly fluctuations in the segment depending on e.g. success fees. The Q3 reported operative result (EPRA) was EUR 0.7m, down 21% y/y and was a result of significant disposals in the Real Estate-segment in Q4 2021. Reported EBIT of EUR 0.3m included EUR -0.3m of fair value changes and EUR 0.1m of losses from disposals. The 2022 guidance is intact: the operating result to decline significantly owing to divestments conducted in Q4 2021. EPRA NRV was EUR 5.70 per share, down from EUR 6.46 at the end of Q2 2022. EPRA NRV declined 33% from EUR 8.55 a year ago as an extra dividend of EUR 1.0 was distributed. The Services business accounted for 54% of sales and Real Estate for 46%, same as a year ago. Equity ratio remained strong at 58%. Investors House trades at a 12% discount to EPRA NRV and the discount has declined slightly from 16% after the Q2 report. The company has a very strong cash position following Real Estate divestments and is patiently waiting for new investment opportunities. It appears that no new transactions will be made in the short-term as the CEO believes it will take time for prices and yields to stabilise in the market. We expect a slightly positive share price reaction on Investors House’s Q3 report.
8/23/2022 5:14:35 AM - Investors House: Expanding Service business through M&A - Nordea - Investors House reported Q2 revenue of EUR 1.9m, 5% below our estimate, mainly owing to Services. Net operating income (NOI) was EUR 0.6m, 29% below our EUR 0.9m forecast, as Real Estate posted elevated property costs. Adjusted EBIT including associates was EUR 0.5m, 37% below our EUR 0.8m estimate. The Q2 EPRA result was EUR 0.4m and declined by 48% y/ y owing to divestments conducted in Q4 2021. The share of revenue from Services was 57%. Investors House has succeeded in streamlining its operations and balance sheet by distributing Ovaro shares and an extra dividend of EUR 1 per share, which has reduced the EPRA NRV discount to 16% from 25% after the Q1 report and from 40% after the Q4 2021 report. Marketing material commissioned by Investors House.
8/22/2022 6:16:08 AM - Investors House: Q2 -Somewhat weak operational result as company is awaiting attractive investment opportunities - Nordea - Investors House reported Q2 revenues of EUR 1.9m, 5% below our estimate, mainly owing to weaker top line in Services while Real Estate top line was as we expected. Net operating income was EUR 0.6m, 29% below our EUR 0.9m estimate as Real Estate-segment NOI was weak, 26% below our estimate. Services-segment EBIT was 30% below our estimate. The Q2 operative result (EPRA) was EUR 0.4m, down 48% y/y and was a result of significant disposals in the Real Estate-segment in Q4 2021. Reported EBIT of EUR 0.5m included no fair value changes. The 2022 guidance is intact: the operating result to decline significantly owing to divestments conducted in Q4 2021. EPRA NRV was EUR 6.46 per share, down from EUR 6.74 at the end of Q1 2022. EPRA NRV declined 20% from EUR 8.11 a year ago as an extra dividend of EUR 1.0 was distributed. The Services business accounted for 57% of sales and Real Estate for 43% compared to 54% and 46% a year ago, respectively. Equity ratio remained strong at 55%. Investors House trades at a 16% discount to EPRA NRV and the discount has declined from 25% after the Q1 report. The company has a very strong cash position following recent Real Estate divestments and is patiently waiting for new investment opportunities. We expect a slightly negative share price reaction on Investors House’s Q2 report.
5/17/2022 5:32:28 AM - Investors House: No hurry to conduct M&A in current market - Nordea - Investors House reported Q1 revenue of EUR 1.8m, 16% below our estimate, mainly owing to Services, while net operating income (NOI) was EUR 0.7m, 8% below our EUR 0.8m forecast. Adjusted EBIT including associates was EUR 0.6m, 16% below our EUR 0.7m estimate. The Q1 EPRA result was EUR 0.3m and improved by 187% y/ y. The share of revenue from Services was 56%. Investors House has succeeded in streamlining its operations and balance sheet by distributing Ovaro shares and an extra dividend of EUR 1 per share, which has reduced the EPRA NRV discount to 25% from 40% after the Q4 report. Marketing material commissioned by Investors House.
5/16/2022 7:15:38 AM - Investors House: Stable Q1 and outlook for 2022 unchanged - Nordea - Investors House reported Q1 revenues of EUR 1.8m, 16% below our estimate, mainly owing to weaker top line in Services. Net operating income was EUR 0.7m, 8% below our EUR 0.8m estimate. The Q1 operative result (EPRA) was EUR 0.3m, up 187% y/y. Reported EBIT of EUR 0.4m included EUR -0.1m of negative fair value changes while we calculate that the adjusted EBIT was EUR 0.6m, 16% below our estimate, explained by lower EBIT of Services. The 2022 guidance is intact: the operating result to decline significantly owing to divestments conducted in Q4 2021. On divisional level, Real Estate top line was above our estimates while Services sales were clearly below. It is worth noting that quarterly result in Services fluctuates owing to e.g. transaction timing. EPRA NRV was EUR 6.74 per share, down from EUR 8.27 at the end of Q4 2021. EPRA NRV declined 15% from EUR 7.90 a year ago as an extra dividend of EUR 1.0 was distributed. The Services business accounted for 56% of sales and Real Estate for 44% compared to 58% and 42% a year ago, respectively. Solidity declined to 54% from 58% in Q4 2021 owing to the extra dividend. Investors House trades at a 25% discount to EPRA NRV and the discount has declined from 40% after the Q4 report. We expect a neutral share price reaction on Investors House’s Q1 report.
3/7/2022 6:52:19 AM - Investors House: Strong balance sheet set for M&A and JVs - Nordea - Investors House reported Q4 revenue of EUR 3.0m, in line with our estimate, while net operating income (NOI) was EUR 1.3m, 17% below our EUR 1.5m forecast. Adjusted EBIT including associates was EUR 2.0m, 20% above our EUR 1.7m estimate. However, there were net positive one-offs of EUR 0.3m, so when adjusting for these, EBIT was broadly in line with our estimate. The Q4 operating result was EUR 1.0m and improved by 102% y/y. The share of revenue from Services increased y/y to 81%, from 63%. The EUR 46m Kukkula JV in Jyväskylä should start to generate rental income in 2022. We estimate a EUR 0.7-0.8m positive impact on the associated companies line annually, although the long-term potential is more interesting from developing the area, mostly for residential use. With a growing pipeline and a growing Services business, we see good potential for further value creation. Marketing material commissioned by Investors House.
3/3/2022 8:11:32 AM - Investors House: Solid Q4 and guidance for 2022 lower due to divestments in Q4 2021 - Nordea - Investors House reported Q4 revenues of EUR 3.0m, same as our estimate. Net operating income was EUR 1.3m, 17% below our EUR 1.5m estimate. The Q4 operative result (EPRA) was EUR 1.0m, up 102% y/y. Reported EBIT of EUR -1.1m included EUR -3.1m of mainly negative fair value changes while we calculate that the adjusted EBIT was EUR 2.0m, 20% above our estimate. The 2022 guidance is for the operating result to decline significantly owing to divestments conducted in Q4 2021. On divisional level, Real Estate top line was below our estimates while Services sales were clearly above. EPRA NRV was EUR 8.27 per share, down from EUR 8.55 at the end of Q3 2021. EPRA NRV increased 10% from EUR 7.53 a year ago. The Services business accounted for 82% of sales and Real Estate for 18% compared to 63% and 37% a year ago, respectively. The increase in Service share of sales comes from e.g. the acquisition of Juhola Asset Managemen t and divestments of real estate assets. Solidity improved to 58% from 49% in Q3 2021 based on the significant divestments. Investors House trades at a 40% discount to EPRA NRV. We expect a neutral share price reaction on Investors House’s Q4 report, while the share could react negatively on the 2022 guidance, which however should not be a surprise given the divestments in Q4 2021.<br>
1/3/2022 1:59:15 PM - Investors House: Large EUR 1 extra dividend and strategy for 2023 confirmed - Nordea - Investors House announced today that it will propose an extra dividend of EUR 1 (~16% dividend yield) for the EGM on 24 January. After recent asset divestments, Investors House has a cash position of EUR 23m, and EUR 23m of potential loan capacity. Additionally, EUR 2.8m will be used to repay debt and EUR 2.8m to be invested in equity stake in the Kukkula JV in Jyväskylä. This leaves Investors House with EUR 34m of potential investment ammo and in addition, Investors House has authorisation to issue 5m new shares if needed. At the CMD today, Investors House reiterated its 2023 strategy, which aims at a profitability development which enables an increasing dividend. The company will also focus on recurring revenues, which is supported by the fact that service income is now higher than income from property leases. In the coming years, Investors House will focus on development projects on its own or with partners, and on increasing property service business. Furthermore, Investors House will maintain its equity ratio above 45%; in Q3 2021 equity ratio was 49%. Investors House will provide a new guidance for 2022 in conjunction with the Q4 report on 3 March. The CMD does not trigger any estimate changes and we will update our numbers once the EUR 1 extra dividend proposal is approved by the EGM on 24 January.
11/26/2021 7:39:57 AM - Investors House: Speeding up capital recycling - Nordea - On 25 November, Investors House announced the divestment of associated company IVH Kampus to Swedish real estate company Nyfosa for a total consideration of EUR 56.3m. Investors House owns 48% of IVH Kampus and will receive net proceeds of some EUR 15m from the divestment, taking its cash position to EUR 23m. We estimate a negative impact on Investors House's associates line of slightly more than EUR 1m annually, with a -21% impact on our adjusted EBIT for 2022E-23E. The company will use part of the funds to finance the EUR 46m Kukkula JV in Jyväskylä, Finland, of which it owns one-third. Although the negative EPS impact is ~30% in the near term, we believe the dividend growth story is intact and new investments will gradually contribute to earnings. We keep our fair value range unchanged at EUR 5.7-8.0 per share. Marketing material commissioned by Investors House.
11/25/2021 9:00:04 AM - Investors House: Divests associated company IVH Kampus and issues a positive profit warning for 2021 - Nordea - Investors House issued a positive profit warning today (25 November) following the sale of associated company IVH Kampus. Investors House now expects the operative result for 2021 to improve significantly from 2020 (previously: operative result to improve). Investors House announced it will sell its associated company IVH Kampus to Swedish real estate company Nyfosa. Investors House owns 48% of IVH Kampus. The transaction will bring Investors House service fees of one-off nature although the divestment will reduce associated company income, which will improve the operative result in Q4 as the deal is expected to close in the quarter. Investors House will continue to manage the IVH Kampus properties for an undisclosed period. The transaction results in realised value changes of EUR -0.7m. The transaction will improve Investors House’s cash position by EUR 15m (after repayment of associated company loans) which w ill increase the cash position to EUR 23m.The transaction highlights Investors House’s ambition to accelerate recycling of capital and the company recently announced the Kukkula JV in Jyväskylä, Finland, where Investors House owns one-third and will develop the area over the coming 10-15 years to develop e.g. residentials in the Jyväskylä region together with its JV partners. The announced transaction will lower the associated income from 2022 by over EUR 1m annually, we estimate, but will improve the financial position considerably to focus on development projects and continue to expand the service business.
11/16/2021 9:59:08 AM - Investors House: Transaction level high; JV moves forward - Nordea - Investors House reported Q3 revenue of EUR 2.4m, 8% below our EUR 2.6m estimate, while net operating income (NOI) was EUR 1.1m, 17% below our EUR 1.3m forecast. Adjusted EBIT including associates was EUR 1.5m, 12% below our EUR 1.7m estimate. The Q2 operative result was EUR 0.9m and improved by 2% y/y. The share of revenue from Services increased y/y to 54%, from 36%. The EUR 46m Kukkula JV in Jyväskylä should start to generate rental income in 2022. We estimate a EUR 0.7m positive impact on the associated companies line annually, although the long-term potential is more interesting from developing the area, mostly for residential use. With a growing pipeline and a growing Service business, we see good potential for further value creation. Marketing material commissioned by Investors House.
11/15/2021 7:58:27 AM - Investors House: Q3 operationally stable y/y and mix continues to improve - Nordea - Investors House reported Q3 revenues of EUR 2.4m, compared to our EUR 2.6m estimate. Net operating income was EUR 1.1m versus our EUR 1.3m estimate. The Q3 operative result was EUR 0.9m, up 2% y/y. Reported EBIT of EUR 0.1m included e.g. EUR 0.9m of negative fair value changes due to the sale of a EUR 15.5m residential portfolio below accounted value. The 2021 guidance is reiterated: operating result will improve. On divisional level, Real Estate top line was slightly below our estimates while Services fell short most likely owing to lower AUM in Fund management. EPRA NRV was EUR 8.55 per share, up from EUR 8.11 at the end of Q2 2021. EPRA NRV increased from EUR 8.30 y/y and it is worth keeping in mind that EUR 0.8 dividend (0.27 cash and 0.53 Ovaro shares) has been distributed over the past 12 months. The Services business accounted for 54% of sales and Real Estate for 46% compared to 36% and 64% a year ago, res pectively. The increase in Service share of sales comes from e.g. the acquisition of Juhola Asset Management. Investors House’s EUR 46m JV in Jyväskylä is progressing and will start generating rental income during Q4, although more focus will be on developing the area over the years to come Solidity remained strong at 49%. Investors House trades at a 33% discount to EPRA NRV. We expect a neutral to slightly positive share price reaction on Investors House’s Q3 report, mainly owing to the increased EPRA NRV, stable y/y performance and maintained positive guidance for 2021.
8/17/2021 5:46:10 AM - Investors House: Operative result improved 28% y/y in Q2 - Nordea - Investors House reported Q2 revenue of EUR 2.5m, 8% below our EUR 2.7m estimate, while net operating income (NOI) was EUR 1.1m, 16% below our EUR 1.3m estimate. The Q2 operative result was EUR 0.8m and improved 28% y/y. Juhola Asset Management, a Finnish real estate asset management company, was incorporated for the first full quarter, boosting the top line. The share of revenue from Services increased y/y to 58%, from 19%. Investors House has signed an agreement to divest a residential project in Vantaa and will book a gain of EUR 2-3m, most likely in 2024. The project to develop an old hospital building in Jyväskylä for other use is progressing and Investors House will own a third of it. With a growing pipeline and a growing Service business, we see good potential for value creation. Marketing material commissioned by Investors House.
8/16/2021 8:00:43 AM - Investors House: Comparable result improved 28% y/y and EPRA NRV increased q/q - Nordea - Investors House reported Q2 revenues of EUR 2.5m, compared to our EUR 2.7m estimate. Net operating income was EUR 1.1m versus our EUR 1.3m estimate. The Q2 operative result was EUR 0.8m, up 28% y/. The 2021 guidance is reiterated: operating result will improve. EPRA NRV was EUR 8.11 per share, up from EUR 7.90 at the end of Q1 2021. EPRA NRV declined from EUR 8.60 y/y but it is worth keeping in mind that EUR 0.8 dividend (0.27 cash and 0.53 Ovaro shares) has been distributed over the past 12 months. The Services business accounted for 58% of sales and Real Estate for 42% compared to 19% and 81% a year ago, respectively. The increase in Service share of sales comes from e.g. the acquisition of Juhola Asset Management and the accounting change of the real estate fund as ownership declined below 50% . The new reporting structure has been in place since Q3 2020. Several projects progressed during and after the quarte r, while the planned real estate loan fund preparation was terminated, which will reduce personnel costs going forward. Solidity remained strong at 47.5%. Investors House trades at a 27% discount to EPRA NRV. We expect a neutral to slightly positive share price reaction on Investors House’s Q2 report, mainly owing to the increased EPRA NRV and maintained positive outlook for 2021.
5/12/2021 6:12:54 AM - Investors House: Expanding in Real Estate and Services - Nordea - Investors House reported Q1 revenue of EUR 1.9m, clearly above our EUR 1.4m estimate, while net operating income was EUR 0.4m, below our EUR 0.7m estimate. The Q1 operative result of EUR 0.1m was virtually flat y/y, burdened by property taxes for the full year being paid in the quarter and by investments in new business and an increased headcount. The acquired Juhola Asset Management, a Finnish real estate asset management company, was incorporated for only three weeks in Q1. The acquisition will increase the share of Services business sales to more than 50% of group sales after Q1. In April, Investors House announced it is part of a consortium that is preparing to acquire an old hospital (85,000 m2 for EUR 46m). This should open up property development potential for the next five to ten years. With a strong Service business and a growing development pipeline, we see good growth potential for Investors House. Mar keting material commissioned by Investors House.
5/11/2021 6:51:40 AM - Investors House: Somewhat weak Q1 but guidance is for result to improve in 2021 - Nordea - Investors House reported Q4 revenues of EUR 1.9m, 39% ahead of our EUR 1.4m estimate. Net operating income was EUR 0.4m, 45% below our EUR 0.7m estimate. The Q1 operative result was EUR 0.1m, up 3% y/y and was burdened by investments into new businesses (recruitments) and by the fact that property tax is fully accounted for in Q1. The reported Q1 net result of EUR -0.5m included EUR -0.6m of negative fair value changes. EPRA NRV was EUR 7.90 per share, up from EUR 7.60 at the end of Q4 2020. The Services business accounted for 39% of sales and Real Estate for 61%. After Q4, Investors House announced the acquisition of Juhola Asset Management, which will increase the share of sales and NRV contribution from Service. The acquisition impacted Q1 for only three weeks. Solidity remained strong at 52%. On Friday 7 May, Investors House reintroduced its guidance. For 2021, Investors House now guides for the operative res ult to improve from 2020, which is in line with our expectations. Investors House trades at a 25% discount to EPRA NRV. We expect a slightly negative share price reaction on the back of the somewhat weak Q1.
3/9/2021 7:07:06 AM - Investors house: Increasing services' exposure through M&A - Nordea - Investors House reported Q4 revenues of EUR 1.73m, largely in line with our estimates. Net operating income was EUR 0.83m, 20% below our EUR 1.04m estimate. The Q4 operative result of EUR 0.51m was down 24% y/y and was burdened by investments in new business and increased headcount. More importantly, Investors House announced at the end of February that it will acquire Juhola Asset Management Oy, a Finnish real estate asset management company. We have incorporated the acquisition into our estimates from Q2 2021. The acquisition will increase the share of Services business sales to close to 60% of group sales. We believe the move is logical and will bring diversification and stability. The property holdings will still form over 50% of the company's value going forward, we estimate.