Investis increases sales and profit

Investis' sales reached CHF 190 million in the past financial year, compared with CHF 162 million in the previous year. EBITDA before revaluations and gains on disposal rose from 28.7 to 37.3 million in the same period. Revaluations on the portfolio amounting to 25 million, as well as gains on disposals and write-downs, resulted in EBIT of 60.9 million - a decline on the previous year, when EBIT was 76.4 million. However, the high figure was due to above-average market-related valuation gains in 2016 (46.6 million), Investis says.

Overall, Investis posted a 28 percent increase in net profit to 57.6 million (previous year: 45.1 million). Earnings per share increased from CHF 3.88 to CHF 4.49. Net income excluding revaluation effect was 26.8 million (previous year: 9.4 million). Net book value (NAV) per share excluding deferred taxes related to real estate increased to 55.91 million (previous year: 54.85). The only slight increase was explained by the offsetting of goodwill from the Acquisition of janitor professionals with equity, Investis writes in a statement. This had led to a dilution of the key figure by CHF 1.16 per share.

Rental income increases

In the Properties segment, 131 million was invested in the acquisition of further investment properties and in the development projects in the year under review, while individual properties were sold. Together with revaluation gains (25 million), the value of the portfolio increased by 14 percent to 1.121 billion (previous year: 981 million). As of December 31, 2017, the portfolio of the company, which specializes in residential real estate in the Lake Geneva region, comprised 139 properties with 2,508 residential units.

In the period under review, rental income increased by 13 percent to 47.5 million (previous year: 41.9 million) with a vacancy rate of 3.5 percent (previous year: 3.7%). On a like-for-like basis, rental income increased by 1.9 percent (previous year: 1.1%). Real estate expenses increased only slightly, which led to an increase in the gross margin to 73 percent (previous year: 70%). Overall, the Properties business unit posted an operating profit (EBIT) of 58 million, significantly lower than the previous year's figure of 76.7 million. However, operating profit in the previous year had been influenced by above-average valuation gains.

In the Real Estate Services segment, sales increased to 148 million (previous year: 136 million). The full integration of the janitor professionals acquired in January 2017 contributed 18 million to sales. As the general contracting activities in Construction Management were discontinued, sales decreased by 15 million. Rental volume under management in Property Management increased from 1.58 to 1.68 billion. Operating profit doubled in the reporting period from 3.9 to 7.8 million.

Dividend to remain stable

At the Annual General Meeting on April 20, 2018, an unchanged dividend of CHF 2.35 per share - in the form of a repayment from capital contribution reserves - is to be proposed to Investis shareholders. Furthermore, the Board of Directors intends to propose the creation of additional conditional capital in the amount of 128,000 in order to be able to issue bonds or similar debt instruments with conversion and/or option rights.

For 2018, the Board of Directors and Group Management again expect an increase in sales in both segments. In the Real Estate Services segment, the aim is to increase the EBIT margin. In 2019, annualized rental income in the Properties segment is expected to exceed the 50 million mark. The Real Estate Services segment is expected to generate a high single-digit EBIT margin.