”We pursue yield for the shareholders, but we are aware of the dangers when taking risks. Thanks to common incentives, i.e. opportunities and risks, the interests of the owners and the management are genuinely the same,” says Petri Roininen.
Real estate investment company Investors House Oyj, which is listed on the main list of NASDAQ OMX Helsinki, strives to give its shareholders at least a 10 percent total annual return through its own direct investments and management services including fractional ownership. In the next few years, the company will increase its investments in the housing sector, which is strengthening along with urbanization.
The target return of capital for shareholders consists of the growth of the invested assets and the dividend yield.
“We aim at dividend income by continually improving operating results and increasing invested assets through measures that develop real estate value,” explains Petri Roininen, CEO of Investors House.
After reviewing the company strategy, over the last three years the annual target has been exceeded each year. This success has been due to a versatile revenue base, efficient rental, general cost efficiency and successful investments.
“We realize that previous success is no guarantee for the future. That is why we continually work with the next returns-generating projects,” he promises.
Ownership calls for perseverance and commitment
Urbanization is a megatrend that shapes markets.
“People move into growth areas. Demographics change faster than building stock, which creates a need for new dwellings and for higher quality homes,” summarizes Roininen.
He warns that in a low-interest environment, the pursuit of growth at the expense of profitability should be avoided. Real estate investment is a long-term activity, where the investments should withstand time and various conditions, he notes.
In financial and ownership terms, the executive directors and board members of Investors House have committed themselves exceptionally strongly to the company. Management and shareholders have shared interests through their shared ownership.
Text: Eila Lokka