Ina Invest: Valuation depresses half-year profit

Ina Invest's operating result (EBIT) fell from CHF 12.0 million in the previous year to CHF 4.2 million; excluding changes in market value, however, the figure improved from CHF 1.3 million to CHF 3.4 million. Net profit fell from CHF 17.0 million to CHF 1.2 million. While rental income increased by an impressive CHF 39% to CHF 7.9 million, the result from changes in market value fell from CHF 10.7 million to CHF 0.8 million.

The higher rental income is mainly attributable to the completed Elefant and HolidayInn & Suites projects. Financial expenses increased by CHF 1.8 million to CHF 3.3 million as a result of higher interest rates and the increase in borrowed capital.

The value of Ina Invest's real estate portfolio increased by 3.1% to CHF 846 million over the last twelve months. Positive changes in market value thanks to progress on key projects such as Bredella West in Pratteln, Lokstadt in Winterthur and the Schaffhauserstrasse project in Zurich contributed to this. Ina Invest also highlights the high proportion of residential properties (after development) of over 50%.

Ina Invest also communicates the following updates for its projects:

• Planning permission has been granted for the casino in the Lokstadt-Hallen in Winterthur.
• The Quartierplan West for the Bredella project has been dealt with by Pratteln municipal council and has been submitted to the canton for approval. Approval is expected in the first half of 2024.
• The planning application has been submitted for the Rue du Valais project in Geneva.
• However, the company also points to delays, such as the Schaffhauserstrasse project in Zurich, where an appeal is pending. The neighborhood planning process for the Préverenges (VD) and Tivoli (NE) projects will also take longer due to complaints.

Reduction in operating expenses as a target for H2

In the second half of the year, Ina Invest intends to focus on the development of its projects and a further reduction in operating expenses. The company also announces that a deferred purchase price obligation from the acquisition of the CERES Group has been repaid since the balance sheet date, which will have a positive effect of CHF 3 million on the income statement in the second half of 2023. (aw)