Investors House, a real estate investment company, has released its financial statements for the previous year and disclosed its results for the period of October-December. During that time, the company experienced a decline in turnover to 1.8 million euros from 2.1 million euros compared to the same period the year before. Their net income also dropped to 0.55 million euros from 0.65 million euros, while the operating result decreased to 0.34 million euros from 0.36 million euros.
The decline in performance during the last quarter was primarily due to several factors such as a decrease in the values of fully owned properties by around 1.0 million euros, a goodwill write-down of the subsidiary Juhola Asset Management by 0.6 million euros, and incentive fees totaling 0.03 million euros.
However, on the positive side, the change in value of investment properties owned by associated companies contributed around 1.5 million euros to the overall result.
Investors House’s EPRA NRV stood at 5.76 euros compared to 6.23 euros at the end of the previous year.
Looking ahead, Investors House projected that it expects similar results for 2024 as those of 2023.
The managing director, Petri Roininen, commented on their successes with their strategic plan for 2020-23 stating that they achieved almost all their established goals despite challenges such as COVID-19 pandemic, inflation and rising interest rates.
He highlighted their ability to create shareholder value regardless of business cycles and pointed out that they formed meaningful partnerships with customers while maintaining strong equity and liquidity.
Regarding real estate valuations, Investors House faced challenges such as an increase in yield requirements resulting from rising interest rates leading to decreased property values but they were able to counter this challenge by improving occupancy rates, implementing full rent increases and engaging in real estate development which is aligned with their strategic objectives.