Investors House (INVEST) Q4 2024 earnings summary

Executive summary

• Achieved a record net profit of €8.6 million for 2024, 2.5 times higher than 2023, with EPS of €1.08 and a proposed dividend of €0.35 per share, marking the tenth consecutive annual increase and a 6.6% yield at year-end price.

• Over the past decade, profit grew 429-fold, balance sheet 16-fold, equity 11-fold, and dividend 15-fold; profit per balance sheet euro increased 19-fold, and ROE per shareholder euro rose 53-fold.

• Maintained resilience through market crises, aiming to become Finland's first real estate and construction sector dividend aristocrat.

• Major structural changes included acquiring a controlling stake in Apitare, divesting the stake in Jyväskylän Kukkulan Kehitys Oy, and consolidating service subsidiaries under single management.

• Focused on sustainable profitability and owner value through consistent dividend growth and strategic capital allocation.

Financial highlights

• Full-year 2024 net profit reached €8.6 million, with revenue up 45% to €9.98 million and major one-time gain of €4.7 million from the JKK transaction.

• Dividend proposal of €0.35 per share, representing 26% of group profit and higher than the combined dividends of the previous three years.

• Return on equity for 2024 was 21.1%, with equity at €47.4 million and balance sheet total at €97.9 million.

• Equity ratio at year-end was 49.4%, above the 45% strategic target.

• Rental income comprised 73% of revenue, with nearly two-thirds from public sector and ARA tenants.

Outlook and guidance

• Strategic targets for 2024–2027 focus on sustainable profitability, annual dividend growth, and an average ROE of at least 10%.

• 2025 net profit is expected to be significantly lower than the exceptional 2024 result.

• Market recovery is expected to be slow, with normalization by 2026–2027; Finnish real estate market expected to improve after bottoming out in summer 2024.

• Cautious approach to new investments, maintaining strong balance sheet and flexibility.