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.