What will the company do with the money obtained as a result in -24? Only 26% of EPS is paid as a dividend?
Will there be a growing dividend from so-called distributable funds for the entire strategy period, or will some also go to new growth projects?
Business operations will likely have more stable continuity in the coming years with long-term contracts.
What money? With Excel money, you get surprisingly few things in the real world. Net cash flow from operations was about 2 million. Investments amounted to 3.2 million, dividends just over 2 million, and loan repayments about 3 million. Add to that smaller line items, and as a result, the cash balance melted by 6.3 million in the last fiscal year.
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This is the key question. When the company has recorded a huge profit by transferring ownerships from one pocket to another within the same circle, has real value been created? Additionally, the earnings report included a one-time gain from changes in value. I am a shareholder.
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Frans’s interview featured @Petri_Roininen 
Unless the general meeting decides otherwise, Investors House will become a dividend aristocrat later this year. Why does the company emphasize dividends in profit distribution, and what has enabled dividend growth? CEO Petri Roininen answers in an interview with analyst Frans-Mikael Rostedt.
Topics:
00:00 Introduction
00:25 Through growth to a record result
01:10 Significant one-off items
02:10 Change in real estate values
03:28 Write-down of subsidiary Juhola
04:04 Development of service business
05:44 Dividend policy
07:07 Industry dynamics
08:00 Recipe for growing dividends
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And here’s the company report itself, in Frans’s style.
Investors House’s Q4 result was weaker than our expectations at the reported result level due to a goodwill impairment in the services segment. Operationally, however, the result was good thanks to the strong performance of the real estate segment. Guidance and dividend were expected, and the company is increasing its basic dividend for the 10th consecutive year. Our forecasts decreased slightly due to the weak short-term outlook for the services segment. In our opinion, the company’s valuation (Q4’24 P/B 0.93x) is at a fairly reasonable level, which is why we await a better buying opportunity for additional purchases. We reiterate our target price of 5.70 euros and lower our recommendation to ‘reduce’ (previously ‘add’).
@Petri_Roininen and @Karo_Hamalainen were on fire at Karo’s Grill.
Petri Roininen, CEO of the real estate investment company Investors House, estimates that many property types are now in a buyer’s market. But it’s not just sellers who are active.
“With the decrease in interest rates, there is very strong domestic and international demand for properties with good, long, predictable cash flow. The world is full of money looking for investment products,” says Roininen.
“Anyone operating in the real estate sector, now is the right time to act.”
Last year, Investors House, led by Roininen, was particularly active in two major deals. It sold its one-third ownership in Jyväskylän Kukkulan Kehitys company to Ovaro and bought one-third of Apitare company operating in the same area. The deals significantly reshaped Investors House. From riskier project development, it shifted almost to the dullness of a bond.
Apitare owns just under 18,000 square meters of former hospital properties, which it has leased with a rental agreement extending to 2041 to the Central Finland wellbeing services county (Keski-Suomen hyvinvointialue). The tenant is responsible for the maintenance and repairs of the properties, and the rent is tied to an index. Two-thirds of Apitare provides a stable foundation for Investors House’s earnings and cash flow.
In addition to Apitare, Investors House has other individual real estate investment properties and service business that has performed rather poorly recently. Significant write-downs were made to last year’s service business results, and it is being put in order under the leadership of a new segment director.
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Frans has prepared a comprehensive report on Investors House. Which is available for everyone to read, like extensive reports.
Investors House is an investment, development, and service business company operating in the real estate sector, whose key objective is to develop its business in a way that enables annually growing dividends. Thanks to recent sales and investments, the company’s current business is highly predictable. We forecast the company to be able to continue approximately 5% dividend growth in the coming years, supported by the operating business’s earnings growth, which also serves as the basis for an investor’s return expectations. In our opinion, the company’s valuation (Q4’24 P/B 0.94x) is at a fair level, which is why we await a better buying opportunity for additional purchases.
Quoted from the report:
Dividend Aristocracy within Reach
We forecast the dividend to remain on a growth trajectory in the coming years, and we expect the company to continue increasing its dividend at an annual rate of approximately 2 cents, similar to recent years. The year 2024 is very likely to be the tenth consecutive year of a growing basic dividend (board’s proposal). Thus, the company is achieving its long-term goal of becoming a real estate dividend aristocrat. The company’s dividend payout ratio rises to a high level in our forecasts (2025e-28e: 96-102% of operating and 94-102% of reported earnings). A stable cash flow profile and a solid financial position of the current business create a strong foundation for the annually growing dividend, which is central to the investor story.
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Here’s a video about the company.
Topics:
00:00 What the company does
04:29 Strategy
05:29 Track record of value creation
10:37 Related party transactions
13:30 Rationale of the real estate sector
18:10 Attractiveness of the share
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Frans has given his preliminary comments as Investors House publishes its Q1 results on Wednesday.
We forecast operating profit to grow significantly from the comparison period, driven by the Apitare investment. In the comparison period, the company recorded a one-off positive earnings impact of EUR 0.97 million from the Apitare transaction, which is why we expect a clear decline in reported earnings. Q1 is seasonally weaker for the company because the full year’s property taxes are recorded for the quarter.
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As a politician, Roininen has a good grasp of communication, except that a true politician would never admit to being wrong : EREHDYIN – ASUNTOLAMA KESTÄÄ ODOTETTUA PIDEMPÄÄN | Kauppalehti
Let’s add the result too, it wouldn’t be wise to pay attention to flashy additional announcements on results day : INVESTORS HOUSE Q1 2025 – TOIMINTAHISTORIAN TOISEKSI PARAS YKKÖSKVARTAALI - Inderes
SUMMARY Q1 2025 (COMPARISON PERIOD Q1 2024)
The Group’s result for the first quarter of 2025 was €0.4 million, which is the company’s second best first quarter in its history this decade and since property taxes began to be allocated to the first quarter.
The best first quarter in history was Q1 2024, when the positive impact of a large investment raised the result to €0.8 million. On average, the first quarter result for 2020-24 has been €0.1 million, meaning Q1 2025 was approximately four times higher.
The result was anticipated and based on the cash flow result from continuing operations. On the expense side, there were one-off costs of approximately €0.1 million in maintenance expenses for the integration of service business and real estate arrangements, as well as the aforementioned full-year property taxes.
After the end of the review period, the Annual General Meeting on April 10, 2025, confirmed an increased dividend per share for the tenth consecutive time. Investors House thus became the sixth dividend aristocrat in Finland’s 113-year stock exchange history.
Due to good earnings development and extraordinary loan repayments, the equity ratio improved to 49.7% (43.6).
CEO PETRI ROININEN:
‘‘The anticipated development brought the company’s second-best first quarter in its operating history. The result was based on continuing operations as no investments or sales were made. There is still room for improvement in these areas for the rest of the year.’’
SUMMARY TABLE
| 1-3/2025 | 1-3/2024 | Change | |
|---|---|---|---|
| Revenue, t eur | 2 722 | 1 635 | 66 % |
| Net yield, t eur | 1 109 | 169 | 556 % |
| Result for the review period, t eur | 361 | 807 | -55 % |
| Equity ratio, % | 49,7 | 43,6 |
NEAR-TERM RISKS AND UNCERTAINTIES
The biggest uncertainties concern the impact of market conditions on property values and the weakening of the general economic situation.
Russia and the geopolitical situation
The company has no business operations or direct ties to Russia. Possible economic sanctions against Russia do not directly affect the company. Indirectly, sanctions and the geopolitical situation have an impact on the general operating environment.
Other factors unchanged
Interest rate development appears to have turned downwards. Similarly, inflation has decreased significantly. Both factors significantly improve the operating environment for the real estate sector.
Tightening capital requirements and increasing regulation in the financial system may limit banks’ lending, which could have negative effects on the real estate market.
The occupancy rate of properties owned by the company may vary, and customer relationships in the service business may change.
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Here are Frans’s quick comments on IH’s morning results.
Investors House’s Q1 result was at a good level, but fell short of our forecasts. Operationally, the result grew strongly from the comparison period, driven by the Apitare investment. In the comparison period, the company recorded a one-off positive earnings impact of EUR 0.97 million from the Apitare transaction, which is why the reported result clearly decreased. The result fell short of our forecasts because, in our estimation, we had somewhat underestimated the impact of property taxes and the Services segment’s result was slightly below our expectations. The report was broadly as expected, and, according to our preliminary assessment, did not cause any other significant forecast revision needs beyond a weaker-than-expected Q1.
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@Petri_Roininen was interviewed by Frans after Q1.
Topics:
00:00 Introduction
00:11 Q1 Summary
00:55 Real Estate segment
02:15 Services segment
04:02 Market outlook
05:44 Effects of the trade war
06:50 Petri Roininen’s election to regional and municipal councils
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Frans has made a new company report on IH after Q1.
Investors House’s Q1 result grew strongly operationally but fell short of our expectations. This was due to a heavier-than-expected property tax burden and weak profitability in the service business. We made small downward forecast revisions for both segments. In our opinion, the expected return, relying on dividend yield (6-7%), is clearly positive, but we believe the company’s valuation (Q1’25 P/B 0.89x) is at a fair level, which is why we are still waiting for a better opportunity for further purchases.
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@Frans-Mikael_Rostedt has commented on how Investors House is initiating a strategic review of its Services segment.
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In accordance with the Board’s decision, the second installment of the dividend of €0.17 per share is due for payment. This corresponds to approximately a 3.1% dividend yield for the current share price.
The dividend record date is June 9, 2025, and the payment date is June 16, 2025.
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Here are Nordea’s comments on how Investors House is selling its owned Apitare premises to Nordisk Renting for 60 million euros. The premises have been leased to the Central Finland Wellbeing Services County until 2041.
So Investors House’s share was 40 million. Ovaro reported the cash flow impact to be 12 million, for Investors House one could imagine it being double, i.e., 24 million. What does Investors House, with a market value of 35 million, do with 24 million, large dividends or something else?
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Here are my own comments on the deal. It was indeed a good investment from Investors House. A transaction price valuation of 46 MEUR at the peak of the cycle and an exit at ~83 MEUR valuations.
I estimate the following regarding the next target for the capital. We consider new real estate investments likely. We do not rule out the payment of an additional dividend of some size either, but we believe the company aims to grow its dividends in the long term, which requires new investments.
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[Investors House Q2’25 -pikakommentti: JÄRKÄLEOSINKO ja jakautuminen kahteen osaan tulossa - Inderes]
Analyst Comment
Investors House Q2’25 Quick Comment: HUGE DIVIDEND and Split into Two Parts Coming
– Frans-Mikael RostedtAnalyst
20.08.2025 at 09.31
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Forecast Table Q2’24 Q2’25 Q2’25e Q2’25e Consensus Difference (%) 2025
MEUR / EUR Comparison Realized Inderes Consensus Low High Realized vs. Inderes Inderes
Revenue 3.08 2.40 2.69 -11 % 8.7
Net Revenue 1.91 1.39 1.54 -10 % 3.8
Operating Profit (reported) 7.65 3.36 4.39 -23 % 5.0
Operating Profit, Real Estate 7.40 3.74 4.52 -17 % 5.9
Operating Profit, Services 0.51 -0.10 0.16 -160 % 0.21
EPS (reported) 0.88 0.53 0.49 7 % 0.67
Revenue growth-% 80 % -22 % -13 % -9.6 %-pts. -13 %
Net revenue from revenue, % 61.8 % 58.1 % 57.3 % 0.8 %-pts. 44.0 %
Source: Inderes
Investors House’s Q2 result was exceptionally strong thanks to a capital gain and also exceeded our forecasts. The biggest news in the report was that the company’s board sees the division of the group into three parts as reasonable: a company engaged in real estate business, a service company, and a distribution of assets to shareholders. The company’s board proposes the distribution of a massive 3.14 euro dividend, which corresponds to a 56% dividend yield relative to yesterday’s closing price. The report caused slight upward pressure on our NAV forecast due to the earnings beat, and naturally, our dividend forecasts will be updated. We will also make a more detailed assessment of the separation of the Services business in our update.
Net Revenue Slightly Below Forecasts, Weighed Down by the Services Segment
Investors House’s Q2 revenue decreased by 22% to EUR 2.4 million against a strong comparison period, and the level remained somewhat below our EUR 2.7 million forecast due to underperformance in both segments. The Real Estate segment’s revenue decreased by 4%, while we expected it to be at the comparison period’s level. The Services segment’s revenue decreased by 52% to EUR 0.57 million (forecast -33%), and no one-off fees seemed to have been recognized during the period. In the comparison period, the company recognized a EUR 0.35 million success fee in the segment. At the net revenue level, however, the Real Estate segment exceeded our forecasts, and overall, net revenues were 10% below forecast due to the underperformance of services. The development of the Services segment thus continued to be weak in Q2, but the fair value determined by Translink for the segment indicates slight growth, which would suggest a somewhat better outlook going forward. The company commented that it is dissatisfied with the segment’s earnings level and that the result was weakened by integration costs and restructuring costs of one subsidiary.
Very Strong Q2 Result
The company recorded capital gains and losses from the sale of properties, with a positive item of EUR 2.5 million from the sale of Apitare Oy, and the remaining capital gain (total EUR 3.1 million) is reflected as positive taxes (EUR 0.5 million). Thus, operating profit was EUR 3.7 million, which was below our forecast (EUR 4.4 million), but earnings per share were as high as EUR 0.53 and exceeded our forecast. However, the result decreased from last year, when the company recognized a EUR 6.2 million capital gain from divesting from the Kukkula project’s real estate development targets. The Q2’25 quarterly result is the second best quarterly result in the company’s history and also exceptionally strong.
Massive Dividend Shock and Services Business to Be Separated
Investors House also announced today its decision to prepare for the company’s division into three parts: a real estate business company corresponding to the real estate segment, a service company corresponding to the services segment, and a distribution of assets to shareholders. Decisions on all of these will be made separately at general meetings based on the preparation. The board believes that the separation into three is justified from the perspective of shareholder value and has begun preparing the matter. The likely separation of the Services business does not come as a big surprise, and we see it as an interesting option, although the company’s size and earnings level are currently low. We last commented on the strategic assessment of the Services segment here.
The big news in the report was the massive dividend distribution. The board proposes that a total dividend of 3.14 euros per share be distributed from the company’s distributable funds and the reserve for invested unrestricted equity. The company also issued today an invitation to an extraordinary general meeting concerning the matter. The dividend would correspond to over half of the company’s current market value, i.e., a 56% dividend yield based on yesterday’s closing price. The dividend record date would be September 16, 2025, and the dividend would be paid starting September 23, 2025. In our assessment, the dividend is very likely to be realized, as the company’s CEO and board own such a large proportion of the shares. This is again a bold move in capital allocation and also the end of an era, as the distribution of funds no longer allows for annual dividend growth in the future. The company became a dividend aristocrat in the spring with ten consecutive annual increases in its basic dividend.
Would some IH investor like to explain a bit what is appealing about this investment? Within a year, the share price has indeed seen good development, but at a quick glance, the company looks like an eternal laggard. Has Roininen’s “dividend aristocracy” managed to confuse the minds of casual investors and convinced them that the investment is excellent, when it so skillfully moves money from the right pocket to the left? A constantly growing dividend alone cannot be an intrinsic value.
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