Investors House: Massive extra dividend after asset disposals - Nordea
This is a third party research report and does not necessarily reflect our views or values
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.