Investors House

Country:
Sector:
Market cap (m):
Finland
Construction and Real Estate
EUR 33.61
Bloomberg:
Reuters:
Website:
INVEST FH
INVEST.HE
Share price (close):
EUR 5.28

Latest Reports

10 MAY 2024
Commissioned Research: Reporting structure clearer after recent deal
Investors House reported Q1 2024 revenue of EUR 1.6m, 4% below our estimate, while net operating income beat our forecast by 24%. The reported numbers will change materially from Q2 because the company consolidated Apitare, the former minority-stake JV, at the end of Q1 after increasing its stake from 33% to 67%. The guidance of a flat net result for 2024 was reiterated (EUR 3.5m), broadly in line with our EUR 3.3m estimate after the report. We do not include any fair value changes in our estimates, but as the development of the Kukkula area in Jyväskylä (Apitare) continues, the company has indicated that more positive revaluations might occur. As Investors House consolidated Apitare, reported debt increased and the equity rate dropped temporarily to 44%; however, the company expects to reach the low-end target of 45% by the end of 2024. Marketing material commissioned by Investors House.

8 MAY 2024
Commissioned Research: Flash Comment: Strong reported Q1 results on asset revaluations
Investors House reported Q1 revenues of EUR 1.6m, 4% below our 1.7m estimate. Net operating income was EUR 0.2m, which was up from EUR 0.1m y/y and above our EUR 0.1m estimate. Real Estate division posted 4% sales growth, in line with our estimate, with net operating income up 126% y/y in the seasonally small quarter. The Services segment posted slightly weaker results than we had anticipated with sales down 6% y/y while operative EBIT was up y/y. Associated companies, which includes e.g. the Kukkula-project in Jyväskylä (Apitare), contributed less to earnings in Q1 than we expected. EBIT excluding fair value change was EUR 0.0m, we had expected EUR 0.3m which is to a large extent explained by higher administration costs y/y. Reported Q1 earnings were EUR 0.8m versus EUR -0.2m a year ago and the biggest impact comes from the revaluation of Investors House increasing its ownership in JV Apitare from 1/3 to 2/3. This is included in other income, which amounted to EUR 1.0m in Q1. The former JV Apitare will be consolidated from Q2 onwards. The guidance for 2024 was reiterated: earnings will be at the same level as in 2023 (2023: EUR 3.5m). Equity per share was EUR 5.40 versus EUR 5.27 in Q4 2023. The equity ratio declined q/q from 63% in Q4 2023 to 44% following the Apitare consolidation at the end of Q1 We expect an initial neutral to slightly positive share price reaction.

13 FEB 2024
Commissioned Research: Much relies on associated companies in 2024
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.

12 FEB 2024
Commissioned Research: Flash Comment: Strong Q4 supported by associated companies and upbeat 2024 guidance
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.

14 NOV 2023
Commissioned Research: Real Estate and associated companies good in Q3
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.

13 NOV 2023
Commissioned Research: Flash Comment: Q3 results largely in line with our expectations on solid associated companies contribution
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.

22 AUG 2023
Commissioned Research: Q2 earnings boosted by asset revaluation
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.

21 AUG 2023
Commissioned Research: Flash Comment: Strong Q2 on associated companies valuation gains, operationally slightly soft
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. We have expected a slight increase in earnings in 2023. EPRA NRV was EUR 5.83 per share which translates to a 10% EPRA NRV discount. The Services business accounted for 52% of sales and Real Estate for 48% in Q2. The equity ratio improved clearly q/q to 62% from 58% in Q1 and cash position was EUR 5.1m. We expect a neutral share price reaction on the results and reiterated guidance for 2023.

4 JUL 2023
Commissioned Research: Flash Comment - Finalizes Kukkula deal and raises 2023 guidance
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.

16 MAY 2023
Commissioned Research: One-offs burdened Q1 – 2023 guidance reiterated
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.

Equity analysts

Director
Associate Director

Key persons

CEO: Petri Roininen

CFO: Matti Leinonen

Chairman: Tapio Rautiainen

Numbers
Export to Excel
Nordea
EURm
2020
2021
2022
2023
2024E
2025E
2026E
Total revenues
9,465.3
8,042.5
7,603.2
6,857.2
9,526.9
10,617.4
10,829.8
Ebitda (adj.)
333.36
4,148.55
2,260.11
3,897.45
4,892.32
4,963.55
5,097.13
Ebitda - margin
3.5%
51.6%
29.7%
56.8%
51.4%
46.7%
47.1%
EBIT (adj.)
333.4
4,148.5
2,260.1
3,897.5
4,892.3
4,963.5
5,097.1
EBIT (adj.) margin
3.5%
51.6%
29.7%
56.8%
51.4%
46.7%
47.1%
PTP (adj.)
-782.6
3,533.5
2,021.1
3,407.8
3,648.7
3,751.1
3,884.7
Net profit from cont oper (adj)
-1,103.50
3,408.46
1,723.40
3,395.19
3,321.72
3,413.51
3,535.07
Shareholders´ Equity
37,562.0
36,239.0
32,113.0
33,619.0
34,228.8
34,631.4
35,028.2
Net interest bearing debt
19,505.0
4,383.0
12,205.0
8,273.0
37,123.6
36,726.2
36,417.9
Net gearing
50.4%
11.9%
37.5%
24.4%
87.0%
83.8%
80.9%
Net debt/EBITDA
n.a.
n.a.
2.9
2.1
7.6
7.4
7.1
Free cash flow to equity
-2,205.4
13,285.2
580.6
4,548.0
-26,742.2
2,625.0
2,663.2
Diluted number of shares in issue, year-end (m)
6,182.3
6,182.3
6,389.1
6,389.1
6,364.6
6,364.6
6,364.6
Nordea Markets estimates published on May 10, 2024
Source: Company data, Nordea estimates
Per share data and multiples
Export to Excel
Nordea
EUR and %
2020
2021
2022
2023
2024E
2025E
2026E
EPS (adj.)
-0.18
0.53
0.27
0.54
0.43
0.41
0.43
EPS (adj.) growth
-137.3%
396.5%
-49.0%
100.3%
-20.5%
-3.8%
4.6%
DPS
0.27
0.29
0.31
0.33
0.35
0.37
0.39
BVPS
6.1
5.9
5.0
5.3
5.4
5.4
5.5
P/E (adj.)
n.a.
10.5
17.8
9.4
12.3
12.8
12.2
EV/Sales
5.90
6.45
5.69
5.97
8.94
8.06
7.95
EV/EBITDA (adj.)
167.64
12.50
19.16
10.50
17.41
17.24
16.88
EV/EBIT (adj.)
17.94
22.64
25.48
n.a.
17.82
17.24
16.88
P/BV
0.94
0.95
0.95
0.96
0.98
0.97
0.96
Dividend yield
4.7%
5.2%
6.5%
6.5%
6.6%
7.0%
7.4%
FCF Yield bef A&D, lease adj
2.3%
-2.1%
1.9%
-2.9%
6.6%
7.8%
7.9%
RoE
-3.8%
-3.1%
9.4%
10.5%
8.0%
7.6%
7.9%
ROIC
0.4%
n.a.
4.1%
6.9%
6.3%
4.9%
5.0%
Nordea Markets estimates published on May 10, 2024
Source: Company data, Nordea estimates

Source: LSEG Data & Analytics