Investis triples net profit
Investis reports a net profit of CHF 172.8 million for the 2019 financial year. This is more than three times as much as in the previous year, when the key figure was 54.4 million.
In addition to the operating performance, the high profit increase was also due to a positive special effect from the implementation of the tax reform (STAF) in the canton of Geneva, as well as gains on sales and revaluation effects, Investis said. Earnings per share climbed from CHF 4.27 to CHF 13.59. Net income excluding revaluation effects almost doubled year-on-year to 69.5 million (previous year: 35.6 million). Net book value (NAV) per share excluding deferred taxes related to real estate increased from CHF 59.59 to CHF 67.61.
Sales declined from 197 million to 188 million in the period under review, according to Investis, due to disposals and further mandate adjustments in the Real Estate Services segment. Ebitda before revaluations and gains on disposals increased by 17% from 39.7 to 46.7 million. Ebit increased from 74.6 to 127.2 million.
All mortgages repaid
In the Properties segment, the real estate company reported Ebit of 102.5 million, compared with 71.9 million a year earlier. The result included revaluation effects of 56.6 million and gains on the sale of individual properties of 8.2 million. The portfolio value at the end of the year was 1.44 billion - an increase of almost 7% compared with the previous year (1.35 billion). Annualized target rental income was 61.2 million, compared with 57.7 million in the previous year. The vacancy rate is 3.2% (previous year: 2.9%). Rental income increased by 4% to 57.0 million (previous year: 55.0 million).
As of the reporting date, the portfolio comprised 170 properties with more than 3,000 residential units. All mortgages were repaid in the fiscal year, Investis added. As of the reporting date, there was no collateral for third parties against the real estate portfolio; all mortgage notes were in the company's own portfolio.
Concentration on two brands in Real Estate Services
In the Real Estate Services segment, sales decreased by 8% year-on-year from 147.8 to 136.0 million. However, operating profit (Ebit) increased from 7.7 million to 11.5 million (+49%). The Ebit margin of 8.4% (previous year: 5.2%) exceeded the margin target. In Property Management, Investis sold Régie du Rhône, whereupon the rental volume decreased from 1.74 to 1.41 billion. Subsidiaries were also sold in the Facility Services business. The companies sold reportedly generated sales of 20.6 million in 2019.
In the Real Estate Services segment, Investis is now only active with two brands: Privera for property management and Hauswartprofis or Conciergepro for facility services.
General Meeting in camera
Investis further announces that the Annual General Meeting 2020 will take place as planned on April 28, 2020 - albeit under extraordinary conditions: Based on the so-called Covid 19 Regulation 2, the public will be excluded.
Shareholders should therefore cast their votes in advance by instructing the independent proxy accordingly. There will be no address by the Chairman of the Board of Directors or the Group Executive Board, nor will the event be broadcast, Investis said. Only the independent proxy may cast votes on behalf of the shareholders.
A dividend of CHF 2.35 per share is to be distributed, corresponding to a profit distribution ratio of 17.4%. All members of the Board of Directors and the Compensation Committee are standing for re-election. (ah)
