Investis: net profit increases by 40 percent

Investis generated consolidated sales of CHF 94 million in the first half of 2017, an increase of 18% compared to the same period of the previous year (CHF 79 million). According to the company, the two segments Properties and Real Estate Services grew organically, investments were also made in investment properties, the facility management company Hauswartprofis was acquired and activities in the area of construction management as a general contractor were discontinued.

EBITDA before revaluations and gains on disposal amounted to 17.6 million (previous year: 13 million). The operating result (EBIT) rose by 16% to 34.3 million (previous year: 29.7 million). Overall, the Investis Group recorded an increase in net profit of 40% to 27.7 million in the first half of the year (previous year: 19.7 million).

Real estate portfolio: Billion mark broken

At mid-year, the real estate portfolio comprised 138 properties and 2,354 residential units. According to Investis, the value of the portfolio exceeded the billion mark for the first time in the company's history in the first six months, rising to 1.04 billion. At the end of 2016, the value was still at 981 million. The valuation result amounted to 17.2 million (previous year: 16.7 million).

47 million was invested in the portfolio in the first half of 2017. This includes the acquisition of further investment properties with a gross yield of over 5%. The vacancy rate is 3.3% and the annualized target rental income as at 30 June 2017 was 48.9 million.

Rental income increased by 16% to 23.3 million (previous year: 20.2 million). On a like-for-like basis, rental income rose by two percent. Real estate expenses remained almost constant year-on-year at 7.1 million (previous year: 7.0 million).

The Properties division achieved an operating result (EBIT) of 33.1 million, up eleven percent on the previous year (previous year: 29.8 million).

Real Estate Services segment: EBIT doubles

Investis generated sales of 73 million (previous year: 69 million) with real estate services in the first half of the year, an increase of six percent. The discontinuation of construction management activities as a general contractor reduced turnover by nine million, according to Investis. The property and facility management divisions currently contribute roughly equal shares of turnover.

The operating result (EBIT) more than doubled to 3.7 million (previous year: 1.5 million), while the EBIT margin reached 5% after 2.1% in the previous year. The managed rental volume in the Property Management segment increased to 1.64 billion (end of 2016: 1.58 billion) due to new mandates

Investis expects an EBITDA increase of ten percent

Investis' total assets amounted to 1.2 billion in the first half of the year, which corresponds to an increase of five percent. Around 90 percent of this is tied up in the real estate portfolio. The loan-to-value (LTV) ratio remained unchanged from the previous year at 38%. The equity base amounts to 540 million and the equity ratio fell to 46.8% in the reporting year. This was due to the offsetting of goodwill from the acquisition of Hauswartprofis against Group reserves.

For the 2017 financial year, Investis expects EBITDA (before revaluations and gains on disposals) to increase by at least 10% compared to the previous year. Since July 1, 2017, Investis has acquired seven additional investment properties for a total of 53 million. These acquisitions increase the annualized target rental income to 51.7 million.

For 2019, Investis aims to achieve annualized rental income of more than 50 million in the Properties segment and a "high single-digit" EBIT margin in the Real Estate Services segment.