Investis posts strong operating results for the first half year – lower portfolio valuation - Seite 2

 

Excellent operating performance by both segments

The Properties segment achieved revenue of CHF 26 million (CHF 31 million). The figure is lower because of last year’s property disposals. There was an excellent +3.1% rise in like-for-like rental income from residential properties. This increase is due to rent increases in current tenancy agreements, which have been implemented continuously since the beginning of 2023, and tenant changes. The vast majority of rental contracts are linked to the consumer price index. The vacancy rate was further reduced to a record low of 1.0% (1.3% as at 31.12.2022). Gross rental income as at 30.06.2023 stood at CHF 54.5 million (CHF 53.9 million as at 31.12.2022). EBITDA before revaluations and disposals was CHF 16.5 million. After a prolonged period of repeated value appreciation due to falling interest rates, the Swiss National Bank’s successive key interest rate increases in the first half of the year showed effects on the discount rates used for real estate valuations. Thus, the increase in the average discount rate by 10 bp led to a lower valuation of the portfolio of CHF -48.8 million. As a result, the segment posted an EBIT of CHF -32 million (CHF +142 million).

 

The Real Estate Services segment reported revenue of CHF 90 million (CHF 83 million). Revenue at Property Management remained steady at CHF 31 million, while rents under management stood at CHF 1.54 billion. Facility Services achieved revenue of CHF 59 million (CHF 52 million). The already very good EBIT margin for the entire segment increased still further to an excellent 9.9% (9.7%).

 

Financial result

Thanks to the significantly lower level of debt, the net financial result was CHF -0.7 million (CHF -0.9 million), although the average interest rate rose by 20 basis points to 0.55% in the first half of 2023 due to changes in borrowing conditions.

 

Income taxes

Lower valuation reserves on the property portfolio led to an overall net tax income for the first half of CHF 2.2 million (previous year: tax expense of CHF 21.0 million).