Investors House (INVEST) Q4 2024 earnings summary

Executive summary

• Achieved 10th consecutive year of growth, with 2024 net profit at €8.6M, up 145% from 2023, and proposed dividend of €0.35 per share, representing 26% of group profit and a 6.6% yield at year-end price.

• Over the past decade, profit per balance sheet euro increased 19-fold, and return on equity 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 and divesting the stake in Jyväskylän Kukkulan Kehitys Oy.

• Revenue for 2024 grew by 45% year-over-year, with profitable transactions and value creation in development activities despite a major write-down in one subsidiary.

Financial highlights

• 2024 group net profit reached €8.6M, with EPS of €1.08 and ROE of 21.1%.

• Proposed dividend of €0.35 per share, higher than the combined dividends of the previous three years.

• Equity at year-end was €47.4M, with a balance sheet total of €97.9M.

• Q4 2024 revenue: €2.83M (+54% vs Q4 2023); full-year 2024 revenue: €9.98M (+45% vs 2023).

• Major one-time gain: €4.7M from the JKK transaction in Q2 2024.

Outlook and guidance

• Strategic targets for 2024–27 focus on sustainable profitability and annual dividend growth.

• Aims for over 10% return on equity across cycles and a minimum equity ratio of 45%.

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

• Expects Finnish real estate market to improve after bottoming out in summer, though general economic concerns and open-ended funds remain risks.