Investis: Devaluations lead to loss in 2023
The Group increased like-for-like rental income and achieved a similar result to the previous year before revaluation and sales.
Despite the sale of eleven properties in 2022, the Investis Group increased its turnover by CHF 1.7% to CHF 231.5 million in 2023. The growth was achieved both organically and through acquisitions, according to the statement. EBITDA before revaluations and gains on disposals fell from CHF 53.5 million to CHF 50.1 million.
The higher average real discount rate of 2.97% (previous year: 2.74%) led to a devaluation of CHF 47.7 million. This resulted in an overall operating loss (EBIT) of CHF 1.5 million. In the previous year, EBIT amounted to CHF 180.4 million thanks to high disposal and revaluation gains. The net loss amounted to CHF 5.4 million, compared to a profit of CHF 151.8 million in the previous year. Excluding revaluation effects, net profit fell from CHF 93.8 million to CHF 35.5 million. The previous year's figure included gains on disposal of CHF 63.4 million.
"The lower valuation of our portfolio resulting from the rise in interest rates is due to market conditions," comments Stéphane Bonvin, CEO of the Investis Group. "The strong earning power and above-average quality of the portfolio are not affected by this."
Service business contributes 40% to the result
In the Properties segment, turnover fell from CHF 57.8 million to CHF 53.1 million due to sales. On a like-for-like basis, rental income increased by 3.1%. The vacancy rate fell from 1.3 to 0.9%. As a result of the purchase of two properties and the increase in rental income, target rental income rose from CHF 53.9 million to CHF 57.9 million. In the Real Estate Services segment, sales increased by CHF 4.7% to CHF 181.7 million. The EBIT margin for this segment reached 9.9% (previous year: 10.6%). The segment thus contributed around 40% to the Group's operating result.
The Group's loan-to-value (LTV) ratio is a low 26%. The real estate portfolio was valued at CHF 1.52 billion.
Market normalization expected
Investis expects the market to normalize in 2024. Increased liquidity in the investment market is expected due to the return of institutional investors. Rents are expected to continue to rise on the rental market in French-speaking Switzerland due to ongoing immigration. "Investis is convinced that it is very well equipped and positioned for the current challenges and expects a very good operating result for the 2024 financial year." (aw)
