Investis: Valuation clouds half-year results

The Investis Group increased sales by 3% to CHF 115 million in the first half of the year. Last year's property sales led to lower rental income in the Properties segment, while like-for-like rental income increased by 3.1 %. Overall, sales fell from CHF 31 million to CHF 26 million. By contrast, the Real Estate Services segment reported growth of 9%. The Group's EBITDA before revaluations and gains on disposals fell from CHF 27 million to CHF 25 million. The increase in the average discount rate by 10 basis points to 2.84% was primarily responsible for the net devaluation of the portfolio of CHF 49 million to CHF 1.46 billion, following an appreciation of CHF 64 million in the prior-year period. As a result, the operating result fell from CHF 148 million to CHF -26 million. In the prior-year period, property sales had had a positive impact of CHF 58 million on the result.

Due to the lower level of debt, the net financial result improved from CHF -0.9 million to CHF -0.7 million, although the average interest rate rose by 20 basis points to 0.55%. Net profit excluding the revaluation effect amounted to CHF 17.4 million, while the net result was negative at CHF -24.4 million.

"I am pleased to report a solid performance in the first half of 2023, with a strong operating performance in both segments," says Stéphane Bonvin, CEO of the Investis Group. "Negative valuation changes due to higher interest rates are market-driven and have no impact on the underlying operational performance of our company or the quality of the properties." (aw)