Investors House

Country:
Sector:
Market cap (m):
Finland
Construction and Real Estate
EUR 34.74
Bloomberg:
Reuters:
Website:
INVEST FH
INVEST.HE
Share price (close):
EUR 5.62

Latest Reports

17 AUG 2021
Commissioned Research: Operative result improved 28% y/y in Q2
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.

16 AUG 2021
Commissioned Research: Flash comment: Investors House – Comparable result improved 28% y/y and EPRA NRV increased q/q
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 quarter, 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.

12 MAY 2021
Commissioned Research: Expanding in Real Estate and Services
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. Marketing material commissioned by Investors House.

11 MAY 2021
Commissioned Research: Flash Comment: Investors House – Somewhat weak Q1 but guidance is for result to improve in 2021
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 result 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.

9 MAR 2021
Commissioned Research: Increasing Services' exposure through M&A
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. Marketing material commissioned by Investors House.

9 MAR 2021
Commissioned Research: Flash Comment: Investors House – One-offs burdened Q4 and 2021 guidance remains withdrawn
Investors House reported Q4 revenues of EUR 1.73m, 3% ahead of our EUR 1.68m estimate. Net operating income was EUR 0.83m, 20% below our EUR 1.04m estimate. The Q4 operative result was EUR 0.51m, down 24% y/y and was burdened by investments into new businesses (recruitments) and to a lesser extent by COVID-19. The reported Q4 net result of EUR -2.6m included EUR 2.1m of costs related to the distribution of Ovaro shares to Investors House’s shareholders and EUR 1.1m of negative fair value changes. EPRA NRV was EUR 7.60 per share, down from EUR 8.30 at the end of Q3. The distribution of Ovaro shares had a EUR 0.54 per share negative impact on EPRA NRV. The Services business accounted for 20% of EPRA NRV and Real Estate for 80%. After Q4, Investors House announced the acquisition of Juhola Asset Management, which will increase the share of sales and NRV contribution from Service. Solidity remained strong at 55% in spite of the Ovaro share distribution. Investors House keeps 2021 guidance withdrawn owing to COVID-19 related uncertainties. Investors House trades at a 20% discount to EPRA NRV. We expect a slightly negative share price reaction on the back of the somewhat weak Q4.

1 DEC 2020
Commissioned Research: Making a final exit from Ovaro
Investors House posted net operating income of EUR 0.8m for Q3, 12% below our EUR 0.9m estimate. EPRA earnings of EUR 0.9m were largely in line with our expectation. In conjunction with the Q3 report, Investors House announced it that it had exited the majority of its 20.4% holding in Ovaro in three transactions, using Ovaro shares as payment. The remaining Ovaro shares, approximately 740,000, will be distributed to Investors House shareholders in December. This should clarify the company's structure and we view it as a positive move given the difficulties the company has had with the transformation of Ovaro. Marketing material commissioned by Investors House.

30 SEP 2020
Commissioned Research: Securing growing dividends top priority
At its CMD in Helsinki on 28 September 2020, Investors House presented its new strategy for 2020-23, which marks a clear shift from growth in the strategy period 2015-19 to increasing income stability and enabling continued dividend growth. Under its new strategy, Investors House aims for the majority of income to be generated by stable and recurring income – eg rental income, income from real estate funds and services – and a smaller part of income from 'lumpier' sources, eg own or co-owned project developments. The strong balance sheet, with a 59% equity ratio, should enable high and growing shareholder remuneration, and the company aims to maintain the equity ratio above 45% in the long term. It has an attractive pipeline of own development projects and new funds, which could be launched in the near future. Marketing material commissioned by Investors House.

25 AUG 2020
Commissioned Research: Streamlining the balance sheet
Investors House reported net operating income of EUR 1.9m for Q2 2020, 6% below our estimate of EUR 2.0m. Adjusted EBIT of EUR 1.3m was 26% below our estimates, mainly because of higher costs than expected from growth initiatives and because of disappointing performance from the Service business. The biggest change as of Q3 is that IVH Kampus, of which Investors House owns 42%, will no longer be consolidated, but treated as an associated company; this has a negative impact on group sales and a positive impact on the equity ratio. The EUR ~50m residential project in Tikkurila is ongoing, but is estimated to account for over 60% of the group's total assets once completed. Marketing material commissioned by Investors House.

19 MAY 2020
Commissioned Research: Adapting to changing market environment
Investors House reported a disappointing Q1, but the negative earnings deviation was partly explained by higher-than-normal Q1 costs, including property tax. Investors House has been marginally impacted by COVID-19 but it is preparing for changes in the market environment. The EUR ~50m residential project in Tikkurila is ongoing and could be an important value driver for the company in the next few years. Marketing material commissioned by Investors House.

Equity analysts

Director
Senior Analyst, Sector Coordinator

Key persons

CEO: Petri Roininen

CFO: Matti Leinonen

Chairman: Tapio Rautiainen

Numbers
Export to Excel
Nordea
EURm
2017
2018
2019
2020
2021E
2022E
2023E
Total revenues
6,449.0
8,276.0
11,461.0
9,465.3
9,122.0
10,884.8
11,352.5
Ebitda (adj.)
3,394.00
3,611.00
5,273.00
333.36
4,019.87
5,516.18
5,778.14
Ebitda - margin
52.6%
43.6%
46.0%
3.5%
44.1%
50.7%
50.9%
EBIT (adj.)
3,394.0
3,611.0
5,273.0
333.4
4,019.9
5,516.2
5,778.1
EBIT (adj.) margin
52.6%
43.6%
46.0%
3.5%
44.1%
50.7%
50.9%
PTP (adj.)
2,972.0
3,020.0
4,060.0
-782.6
3,479.1
4,892.3
5,084.2
Net profit from cont oper (adj)
2,460.00
1,072.00
3,391.54
-1,103.50
3,320.74
4,625.68
4,807.28
Shareholders´ Equity
46,128.0
46,815.0
43,477.0
37,562.0
37,947.0
39,654.5
41,349.0
Net interest bearing debt
24,266.0
35,017.0
16,081.0
19,505.0
21,952.7
28,331.4
34,809.1
Net gearing
52.6%
70.8%
36.0%
50.4%
54.8%
66.3%
76.5%
Net debt/EBITDA
4.1
7.5
4.1
n.a.
5.5
5.1
6.0
Free cash flow to equity
2,449.0
-4,909.7
-11,500.2
-2,205.4
-778.5
-4,524.1
-4,313.9
Diluted number of shares in issue, year-end (m)
6,182.3
6,182.3
6,182.3
6,182.3
6,182.3
6,182.3
6,182.3
Nordea Markets estimates published on Aug 17, 2021
Source: Company data, Nordea estimates
Per share data and multiples
Export to Excel
Nordea
EUR and %
2017
2018
2019
2020
2021E
2022E
2023E
EPS (adj.)
0.55
0.17
0.48
-0.18
0.39
0.59
0.61
EPS (adj.) growth
-3.2%
-68.4%
176.0%
-137.3%
315.9%
52.1%
3.2%
DPS
0.21
0.23
0.25
0.27
0.29
0.31
0.33
BVPS
7.5
7.6
7.0
6.1
6.1
6.4
6.7
P/E (adj.)
n.a.
34.6
13.5
n.a.
14.6
9.6
9.3
EV/Sales
n.a.
9.04
4.99
5.90
6.44
6.08
6.49
EV/EBITDA (adj.)
n.a.
20.71
10.84
167.64
14.62
11.99
12.75
EV/EBIT (adj.)
n.a.
25.28
9.76
17.94
23.32
16.72
17.73
P/BV
n.a.
0.79
0.92
0.94
0.92
0.88
0.84
Dividend yield
n.a.
3.8%
3.9%
4.7%
5.2%
5.5%
5.9%
FCF Yield bef A&D, lease adj
n.a.
0.7%
3.9%
2.3%
5.0%
10.0%
7.7%
RoE
14.9%
4.6%
3.7%
-3.8%
5.4%
9.0%
8.9%
ROIC
4.8%
3.6%
5.7%
0.4%
5.2%
6.4%
5.9%
Nordea Markets estimates published on Aug 17, 2021
Source: Company data, Nordea estimates

Source: Refinitiv