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Third party research

Investors House: Massive extra dividend after asset disposals - 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 Q2 report was overshadowed by the announcement that the board will propose an extra dividend of EUR 3.14 per share (~50% of total equity), corresponding to a dividend yield of ~40%. The dividend is partly enabled by the very successful divestment of real estate JV Apitare, two-thirds of which was owned by Investors House. After the disposal and extra dividend payment, the balance will shrink from EUR ~96m at the end of 2024 to EUR ~40m. We cut EPS roughly in half for 2026E-27E and expect the ordinary dividend to be cut to EUR 0.1, assuming a ~50% payout ratio versus EUR 0.35 paid in 2025. We now estimate adjusted EPS of 0.19-0.21 for 2026-27. Our slightly lower fair value range of EUR 5.3-7.1 (5.5-7.2) is based on a P/BV range of 0.85-1.15x, as the company will change significantly and the soon-to-be paid dividend represents a major part of the current fair value.
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