Taaleri establishes joint venture with Keva to invest in rental apartments
Translation: Original published in Finnish on 1/30/2025 at 7:26 am EET.
Taaleri announced the formation of a joint venture with the pension company Keva. The company plans to invest a total of 300 MEUR in residential development projects in Finland's growth centers. Taaleri Real Estate is responsible for the acquisition, construction and management of real estate. According to our interpretation, the funds invested will therefore come from Keva, with Taaleri receiving recurring fee income.
Impact on earnings development will remain moderate
Taaleri's real estate business has been sluggish as assets under management have declined and the result is estimated to be a loss. AUM growth is therefore a priority for the company. In light of this, we consider the release encouraging. However, we believe that the nature of the arrangement is more like a mandate, which is moderate in terms of fee levels relative to Taaleri's other AUM. In addition, capital will be called in as investment progresses, so the impact will not be very significant for Taaleri in the coming years. However, the arrangement will result in a significant increase in AUM in the real estate business (at the end of Q3: 677 MEUR).
More important than the mandate now published would be successful fund launches, where Taaleri's fee levels are higher than in the mandate business. On the institutional side, however, interest in real estate investments seems to be slowly picking up, which increases the likelihood of a successful fund launch for Taaleri Real Estate.
Taaleri
Taaleri operates in the financial sector. The company is a Nordic private equity fund company that focuses on renewable energy and other alternative investments. The company has two business segments: Equity Funds and Strategic Investments. With its capital funds, Taaleri creates, for example, wind and solar power, biofuels and real estate. The company was founded in 2007 and its head office is located in Helsinki, Finland.
Read more on company pageKey Estimate Figures17.01
2023 | 24e | 25e | |
---|---|---|---|
Revenue | 65.6 | 63.9 | 70.0 |
growth-% | 3.82 % | -2.61 % | 9.54 % |
EBIT (adj.) | 31.9 | 32.0 | 38.2 |
EBIT-% (adj.) | 48.58 % | 50.03 % | 54.49 % |
EPS (adj.) | 0.81 | 0.82 | 0.97 |
Dividend | 1.00 | 0.49 | 0.58 |
Dividend % | 11.12 % | 6.25 % | 7.43 % |
P/E (adj.) | 11.09 | 9.60 | 8.08 |
EV/EBITDA | 7.13 | 7.07 | 5.47 |