Investis: Rental income rises despite Corona crisis
Investis reports "very good results" for the first half of 2020. While rental income increased, sales and profits declined compared to the previous year, which was characterized by special effects.
The Covid 19 pandemic had only a minor impact on the half-year results, Investis reports. So far, all challenges of this crisis have been well managed.
Sales in the reporting period were CHF 89.2 million, compared with CHF 98.6 million in the previous year, the real estate company said. However, the previous year's sales included contributions from subsidiaries amounting to 16.5 million, which were sold in 2019. Organically, sales therefore increased.
In the Properties segment, revenues increased by 3.5% from 28.1 to 29.0 million. Reasons for the plus were like-for-like rental income increases of +0.9% and acquisitions, Investis informs. Vacancy decreased to 2.8% from 3.2% at the end of 2019, although furnished apartments were vacant more often due to the pandemic. Annualized target rental income was 60.3M as of June 30, 2020.
The Real Estate Services segment recorded a significant decline in sales due to the sale of two subsidiaries, but Privera achieved an increase in sales of 3.6%. The managed rental volume increased to 1.43 billion (Dec. 31, 2019: 1.41 billion).
EBIT rises, net profit slumps
The operating result (EBIT) increased byTP2T 8.51 toTP2T 61.9 million in the reporting period. EBITDA before revaluation effects and disposals increased byTP2T 3.21 to 23.6 million. Including revaluation gains of 35.9 million (PY: 27.6 million), net profit was 51.2 million -less than half of the previous year's result (111.9 million) However, gains on disposals and the release of deferred tax liabilities had a positive impact of 61 million at that time. Net income excluding the revaluation effect was 20.0 million (previous year: 33.8 million). The real estate portfolio was valued at 1.48 billion, slightly higher than at the end of 2019, and comprised 170 properties with 3,020 residential units at the reporting date.
Investis, which mainly holds residential properties in central locations with apartments in the mid-price segment in the Lake Geneva region in its portfolio, expects the high demand for these residential properties in the canton of Geneva to continue. The company plans to further expand its real estate portfolio through acquisitions of investment properties in attractive locations with a focus on the Lake Geneva region, according to Investis.
For the second half of the year, the real estate company expects "a solid performance in line with the strong prior year." However, the outlook for the current year is subject to uncertainty due to the Covid-19 pandemic. (ah)
