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.