Frans has made a new company report on Investors House after the latest developments. 
Investors House distributed an extraordinary dividend of 3.14 euros per share, which is approximately half of its equity. Next year, the company will likely split into service and real estate businesses. The company aims to build two separate growth companies from these, and the historical track record of the real estate business is good. Separating the service business could unlock hidden value from the balance sheet if the business turnaround succeeds, and we believe it serves as a good acquisition platform. However, in our opinion, the share price has clearly overreacted to these news and the dividend distribution, and the current price level does not account for the clearly declining earnings level in the coming years and the halved equity after the dividend distribution. We lower our target price to 3.30 euros (previously 6.10 €) due to the ex-dividend date and reiterate our Sell recommendation due to the very weak short-term risk-reward ratio.
Here are Frans’s comments as IH is expected to merge three subsidiaries in the Services segment.
Frans has provided his preliminary comments as Investors House reports its results on Monday.
This will be an exceptionally interesting interim report because it is the first after the very significant Apitare property sale. Due to the property sale, we forecast a clear decrease in revenue and profit levels. On the results day, our focus will be on the operational performance of the remaining property portfolio and further communication regarding a potential business demerger plan. The company’s balance sheet will also clearly shrink, as the company distributed a massive dividend at the end of the quarter, which corresponded to approximately half of its equity.
Here are Frans’s comments on the morning’s results.
Investors House published a Q3 report that was slightly better than our expectations. Revenue and profit levels decreased significantly from the comparison period as expected, but the cost level across the group was lower than our expectations, which led to the result exceeding our forecast. The company announced plans to launch a new housing fund, which, if successful, could significantly grow the Services segment’s business.
@Petri_Roininen was interviewed by Frans regarding Q3.
Topics:
00:00 Introduction
00:12 Key points from the third quarter
00:52 Development of the Real Estate segment
01:35 Situation of the Services segment
02:59 Investors House’s role in the market
04:21 Fund launch
05:28 Why is now the right time?
07:09 Market situation
09:25 Tightness of financing
@Petri_Roininen was talking about his company as an investment target at the Investor 2025 event.
@Petri_Roininen was talking about his company as an investment at the Real Estate Evening.
Frans has prepared a preview report; IH will publish its results on Monday, Feb 9.
We expect a comparably improving trend in revenue driven by service revenue, but the earnings level will drop significantly from an exceptionally strong comparison period as a result of the Apitare real estate sale. Our focus in the report is particularly on the 2026 guidance, which is exceptionally interesting due to the changed business structure and the reduced balance sheet. We forecast the dividend to be EUR 0.20, but the balance sheet would still allow for a positive dividend surprise. In our view, the stock’s valuation does not yet attract further purchases before the earnings growth outlook becomes clearer. We reiterate our target price of EUR 3.50 and our Reduce recommendation.
Here are Frans’s quick comments on IH’s results.
And here is also @Petri_Roininen’s interview regarding Q4
Topics:
00:13 Summary of 2025
01:38 Dividend proposal and capital allocation
03:42 Partial demerger and development of segments
06:38 Status of the new residential fund launch
07:23 Guidance for 2026
08:45 Housing market situation
Frans has written another company report following Investors House’s Q4.
Investors House’s Q4 report was slightly better than our expectations, especially thanks to the Services segment. The company delivered yet another dividend surprise, and the Board proposes a dividend of EUR 0.37. The company’s guidance was cautious as expected, and 2026 will be a year of structural change as the company is likely to split into separate services and real estate businesses. The outlook for the Services segment is better than before, and we believe the company’s strong historical track record justifies a higher valuation level than in the past. However, the expected return remains negative due to the downside in valuation (2026e P/B 1.44x) despite the 8.7% dividend yield. We raise our target price to EUR 3.70 (prev. EUR 3.50) driven by forecast changes and the increase in the fair value of the Services segment, but we reiterate our Reduce recommendation.