Investis: profit rises significantly
Investis reports a net profit of CHF 112 million for the first half of 2019, compared with CHF 22 million in the previous year. One reason for the plus is a special tax effect of 61 million.
Investis' revenue increased only slightly by 0.8% to 98.6 million in the first half of 2019. Within this, the Properties segment grew by 4% to 28.1 million, partly due to like-for-like rental income increases, acquisitions and a reduced vacancy rate to 2.1%. Property Management in the Real Estate Services segment generated growth ofTP1.6%. Sales in Facility Services, on the other hand, declined by 2%. According to Investis, this was due to mandate adjustments.
Operating profit (EBIT) almost doubled year-on-year to 56.0 million (+91.7%). According to the real estate company, both segments - Properties and Real Estate Services - contributed to the growth.
Due to higher rental income and a slightly lower average real discount rate of 3.44%, revaluation gains of 27.6 million were significantly higher than the previous year's 2.7 million. The sale of individual properties generated a gain of 6.7 million.
Profit multiplies
Net income in the first half of the year amounted to 111.9 million after 21.7 million. Earnings per share amounted to CHF 8.80 (previous year: 1.70). Net income excluding revaluation effect increased from 19.7 to 33.8 million.
As a result of the implementation of the tax reform (STAF) in the canton of Geneva from 2020, Investis has released deferred tax liabilities of 61 million, resulting in a net tax income in the 1st half of 53.2 million. From 2020, the real estate company expects an average tax rate of 15%.
The real estate portfolio - 154 properties with 2,872 residential units - was valued at 1.34 billion. Based on the portfolio value, the loan-to-value was 42% (interest-bearing financial liabilities of 562 million), Investis said. Net book value (NAV) per share rose to CHF52.47 now from CHF45.89 on Dec. 31, 2019.
For the year as a whole, Investis expects to achieve the medium-term targets set by the company at the time of the IPO in June 2016 by the end of 2019. Further acquisitions of investment properties in the Lake Geneva region are also planned. (ah)
