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Third party research

Investors House: Finalizes Kukkula deal and raises 2023 guidance - Nordea

Investors House

This is a third party research report and does not necessarily reflect our views or values

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Investors House’s JVs have today signed a lease agreement and two property transactions with The wellbeing services county of Central Finland (Keski-Suomen Hyvinvointialue) and marks the completion of three years of negotiations. The first phase includes extending the rental agreement with the seller until 2041 and making it a triple-net agreement for the 17,600 sqm property located in city of Jyväskylä. The second phase includes the purchase of 20,000 sqm protected property in Jyväskylä to be leased and a hospital building in city of Äänekoski. The third phase includes a ten hectare land area in Jyväskylä targeted for 100,000 sqm of mainly residential development. Investors House will book a EUR 3m valuation gain in H1 2023 mainly due to the extension of the lease agreement. Investors House expects the deal to bring EUR 1-4m in annual profits to the company over the next 10-15 years, in addition to the EUR 0.6m in annual recurring revenue from the triple-net lease agreement. Due to the revaluation effect, Investors House raises its guidance for 2023 from a flat net profit to a flat to slightly increasing profit versus 2022. We view the news as positive as it secures a long pipeline for Investors House’s JVs with limited risks.
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