Investors House, a leading real estate investment company, released its financial statements for the past fiscal year and presented its results for the final quarter of October-December. During this period, the company experienced a decline in revenue to €1.8 million from €2.1 million in the same quarter last year. The net income also decreased to €0.55 million from €0.65 million, while the operating result dropped to €0.34 million from €0.36 million. Moreover, the reported operating profit decreased by 97% to €0.04 million from €3.9 million, resulting in an overall loss of €0.1 million compared to a profit of €2.3 million in the previous year.
The decline in performance during the fourth quarter was primarily attributed to several factors such as a decrease in fully owned properties’ values by around €1 million, goodwill write-downs on subsidiaries like Juhola Asset Management by 600,000 euros and incentive fees worth 30,000 euros.
On a positive note, changes in property valuations for associated companies contributed approximately €1.5 million towards the overall result.
Investors House’s EPRA NRV (Net Present Value of Real Estate) stood at €5.76 per share at the end of Q4 compared to €6.23 at the end of Q3 2022.
Looking ahead, Investors House projected that their results for 2024 would be similar to those of 2023.
Petri Roininen, CEO of Investors House remarked on their strategic plan’s success for 2020-23 despite challenges such as COVID-19 pandemic, inflation and rising interest rates.
He highlighted how they managed to create shareholder value despite these obstacles and how they formed meaningful partnerships with customers while maintaining high equity and liquidity levels.
Regarding real estate valuations, Roininen pointed out how they faced challenges due to increased yield requirements resulting from rising interest rates that led to decreased property values.
However, he noted that they countered this challenge by improving occupancy rates, implementing full rent increases and engaging in real estate development as part of their strategic objectives.
Overall Roininen expressed his optimism regarding future prospects for Investors House and its continued growth potential despite market fluctuations and uncertainties ahead.