Investis increases sales and net profit
In the first half of 2022, the Investis Group increased its sales and posted a strong rise in net profit excluding revaluations. Compared to the previous year, it climbed from just under CHF 20 million to over CHF 70 million.
As Stéphane Bonvin, CEO of the Investis Group, explains, the real estate company made gains in both the Real Estate Service segment and the Properties segment in the first half of the year. Among other things, a portfolio of ten properties was sold at a profit of 23 percent above the balance sheet value.
The Investis Group reported sales of CHF 112 million, ten percent more than in the previous year. The Group's EBITDA before revaluations and gains on disposal reached 27 million (previous year: 25 million).
According to the company, higher cash flows from investment properties and a decline in the average real discount rate for the entire portfolio led to revaluations of CHF 64 million. Although the operating result (EBIT) of CHF 148 million did not reach the previous year's figure of CHF 155 million, this was characterized by particularly high revaluations of CHF 131 million.
Net profit jumps to 70.5 million
The bottom line is a net profit of CHF 126 million (previous year: 132 million). Net profit excluding revaluation effects was CHF 70.5 million compared to CHF 19.6 million in the previous year. For the year as a whole, Investis expects net profit excluding revaluation effects to double compared to the previous year.
The real estate portfolio was valued at CHF 1.55 billion and on the reporting date comprised 151 buildings with 2,563 residential units - mainly in central locations and in the mid-price segment in the Lake Geneva region. The loan-to-value (LTV) ratio is 31.7 percent and will fall to around 25 percent in the second half of the year. The portfolio is to be optimized through acquisitions, Investis announces. If no attractive acquisitions arise, the Group intends to reduce financial debt accordingly.
Rental income increases
As Investis further reports, sales in the Properties segment amounted to CHF 31 million (+4.8%). Like-for-like rental income increased by 2.5 percent, partly due to various renovation projects, which had led to lower rental income in some cases in the previous period. The vacancy rate decreased to 1.4 percent (Dec. 31, 2021: 2.2%). Target rental income amounted to CHF 55.8 million as of June 30, 2022 (12/31/2021: 64.2 million). The operating result (EBIT) in the segment was CHF 142 million (previous year: CHF 151 million); in addition to operating income, this also includes revaluation effects and gains on disposals.
In the Real Estate Services segment, sales climbed to CHF 83 million (PY: 74 million). Property Management contributed CHF 31 million (+4.8%), and Facility Services CHF 52 million (PY: 45 million). The EBIT margin in the segment increased from 8.8 percent to 9.7 percent. (ah)
