On Wednesday evening, the housing investment company Housing Portfolio announced changes to its dividend policy and updated financial goals. The new dividend policy aims to increase shareholder value in the long term, with no defined goals for profit distribution. Dividend distributions will be made on a case-by-case basis, with no guarantees of distribution every year.
In terms of financial goals, Housing Portfolio now aims for the combined fair value of Tallinn’s completed and under-construction apartments to match that of Finland by 2027. The company also aims to set the lending ratio at 35-65 percent. Previously, the goal was to reach the situation in Finland by the end of the fiscal year ending in 2025, with the credit ratio target remaining the same.
The company provided an outlook for the fiscal year ending in September 2024, estimating a realized profit of EUR 0.3-1.0 million and updated its financial guidance assumptions. Asuntosalkku now estimates the group’s turnover to be EUR 17.5-20.0 million in the financial period ending in September 30 and does not forecast unrealized profit or loss from property valuation.
Housing Portfolio also stated that it would refine its financial outlook later in the year by publishing an estimate of the realized profit. The company’s financial guidelines have been updated to reflect these changes in strategy and goals.
Overall, these changes are aimed at increasing shareholder value over time while still maintaining a flexible approach to dividend payments and lending ratios. The updated financial goals provide a clearer path forward for investors and stakeholders alike as Housing Portfolio continues to grow its business in Tallinn and beyond.
