Investis posts strong operating results for the first half year – lower portfolio valuation

INVESTIS Holding SA / Key word(s): Half Year Results Investis posts strong operating results for the first half year – lower portfolio valuation 29-Aug-2023 / 07:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. Revenue up 3% to CHF 115 million 3.1% like-for-like increase in rental income for residential properties Further increase in EBIT margin at Real Estate Services to 9.9% (9.7%) NAV per share of CHF 90.21 excluding deferred taxes with regard to properties Stéphane Bonvin, CEO of Investis Group said: “I am pleased with the solid results for the first half of 2023 and the strong operating performance from both segments. The negative valuation changes caused by higher interest rates are market-driven and do not affect the underlying operating performance of our business or the quality of the properties. Our solid balance sheet and low level of debt provide a stable base for the future. The fundamentals for the real estate market in the Lake Geneva region remain robust. Rents are rising as a consequence of a housing shortage caused on the one hand by accelerated demand for homes, which is being driven by high levels of immigration, and on the other hand by ongoing weak construction activity. We expect the operating business to remain strong in both segments. The Group is performing extremely well in a challenging market environment.”   Group revenue rose 3% to CHF 115 million (prior year: CHF 112 million). The previous year’s property disposals resulted in lower rental income for the Properties segment. The Real Estate Services segment posted growth of 9%. Before revaluations and disposals, Group EBITDA stood at CHF 25 million (CHF 27 million). The portfolio valuation was lower owing to the 10 basis points (bp) increase in the average real-term discount rate to 2.84% (2.74% as at 31.12.2022) and higher future investments in energetic renovations. These two negative effects were partially offset by a continuing increase in rental cash flow. The overall net reduction in valuation comes to CHF 49 million (CHF +64 million). This produced an operating result (EBIT) of CHF -26 million (CHF +148 million) for the first half of 2023. The property disposals mentioned above positively influenced the result for the first half of 2022 by CHF 58 million.