Investis increases sales and profit
The Investis Group increased its consolidated sales by 2.5 percent to CHF 79 million in the first half of 2016. The operating result increased by around five percent to 29.7 million.
After taking into account the financial result and income taxes, Investis achieved a 4.7 percent higher net profit of CHF 19.7 million (previous year: 18.8 million).
"Investis performed very solidly in the first half of the year, as expected. The result reflects the Group's well-balanced and sustainable business model with its two synergistic business units Properties and Real Estate Services," comments founder and CEO Stéphane Bonvin on the first half-year result as a listed company.
Properties business unit increases EBIT by eight percent
The Properties division achieved an operating result (EBIT) of CHF 29.8 million, eight percent more than in the previous year (27.6 million).
At mid-year, the real estate portfolio comprised 122 properties and 2,219 residential units. The value of the portfolio increased to 875 million in the first six months of the current year, up from 857 million as of Dec. 31, 2015, mainly due to investments and revaluation gains of 16.7 million, according to Investis. The majority of properties are located in the Lake Geneva region, and the share of residential properties remains above 90 percent. The vacancy rate is 3.2 percent.
Real Estate Services increases sales, but EBIT falls
Sales of the Real Estate Services business unit came in at 68.7 million, an increase of 9.4 percent compared to the same period last year. Property Management (share of sales 55%) saw sales increase by 7.8 percent, while Facility Management (31%) and Construction Management (14%) each reported a 9.7 percent increase in sales.
In property and facility management, new mandates were acquired, some of which, however, will not have an impact on earnings until the second half of the year, according to Investis. The provision of the additional resources required already led to a higher headcount and correspondingly higher personnel costs in this reporting period. The operating result (EBIT) therefore declined to CHF 1.5 million.
Further acquisitions planned
The proceeds from the IPO in the first half of the year Investis intends to use the proceeds for investments in the Properties business unit and acquisitions in the Real Estate Services segment. In July, the company acquired, among other things, a minority stake in Investis Patrimoine SA. In the Properties segment, nine properties were acquired for a total purchase price of CHF 65 million. In addition, two investment properties under construction will be completed in the second half of the year. As a result of the acquisitions and construction completions, the annualized target rental income in the Properties segment will increase to 46.2 million. In the Real Estate Services segment, various acquisition discussions are currently underway, Investis says.
The real estate company expects "continued solid business development" for the remainder of 2016. Without any special events, Investis expects EBITDA (before revaluation and disposals) to be in line with the previous year. (ah)
