Investis Holding Sa · SIX:IREN
Investis Holding Sa — H1 2024 Earnings Presentation
35 slides from Investis Holding Sa's earnings presentation, Sep 2, 2024
Slide 1: Half-Year 2024 Results, 2 September 2024
2 September 2024
Slide 2: Disclaimer
Disclaimer This communication contains specific forward-looking statements, beliefs or opinions, including statements with respect to objectives, which are based on current beliefs, expectations and projections about future events and assumptions of the management of Investis Holding SA ("Investis")
Slide 3: Agenda
Agenda Highlights of HY 2024 Market trends Financial overview HY 2024 Outlook Q&A Annexes HALF-YEAR 2024 RESULTS – IR PRESENTATION – 2 SEPTEMBER 2024 3
Slide 4: Highlights HY 2024
Highlights HY 2024 Strong operating performance – property acquisitions and successful sale of the entire Real Estate Services segment – LTV at 19% ▪ Top line growth +1.5% to CHF 117m Group ▪ Gain from the disposal of the RES segment CHF 122.2m ▪ Net profit excluding revaluation effect at CHF 139.1m
Slide 5: Agenda: Market trends
Agenda Highlights of HY 2024 Market trends Financial overview HY 2024 Outlook Q&A HALF-YEAR 2024 RESULTS – IR PRESENTATION – 2 SEPTEMBER 2024 5
Slide 6: Real Estate Market in the Lake Geneva region: A very attractive location
Real Estate Market in the Lake Geneva region A very attractive location Migration/ Demography Construction activity Regulations Capital Markets ▪ Immigration expected to ▪ Lowest portion of homeowners ▪ Tax regime for corporations ▪ Lowered inflation rate in CH remain high in CH i.e. highest portion
Slide 7: Population growth forecasts till 2030
Real Estate Market in the Lake Geneva region Population growth forecasts till 2030 ▪ The cantons of Vaud and Geneva are expected to see above- average population growth, given their superior economic attractiveness and young population ▪ However, the strongest demographic growth is likely to be more
Slide 8: Unabated undersupply situation
Real Estate Market in the Lake Geneva region Unabated undersupply situation VD GE ▪ Strong population growth and limited development activity translate in a stronger residential undersupply situation in the Lake Geneva region ▪ As new supply is not able to meet demand, rents and prices are further t
Slide 9: Vacancy rates in Investis' key markets well below Swiss average
Real Estate Market in the Lake Geneva region Vacancy rates in Investis’ key markets well below Swiss average ▪ The vacancy remains well below the 1.0% mark in the canton of Vaud ▪ The rate remains very low in the canton of Geneva, albeit unabated new construction activity ▪ The undersupply situation
Slide 10: Market absorption remains very quick due to ongoing strong demand
Real Estate Market in the Lake Geneva region Market absorption remains very quick due to ongoing strong demand ▪ Apartments under construction in Geneva represented approx. 8,000 units in HY 2024, rebounding from Q4 2023 when it recorded its lowest level in 5 years ▪ Despite above-average constructi
Slide 11: The real estate yield premium has become attractive again
Real Estate Market in the Lake Geneva region The real estate yield premium has become attractive again Investors’ activity could pick up from H2 2024 as further interest rates cuts are expected 4.0% Risk premium Residential 10-y bond 3.5% 3.0% 2.5% 2.0% Prime Yield 1.5% 1.0% 0.5% 0.0% -0.5% -1.0% Q1
Slide 12: Real Estate Market in Switzerland: Rents on the rise
Real Estate Market in Switzerland Rents on the rise (change compared to the same quarter of the previous year, in per cent) Inflation Offered rents Existing rents Source: UBS, Jul 2024 HALF-YEAR 2024 RESULTS – IR PRESENTATION – 2 SEPTEMBER 2024 12
Slide 13: Swiss vacancy rate – clear trend for rented apartments
Real Estate Market in Switzerland Vacancy rate (in %) – clear trend for rented apartments 3.0 2.5 2.0 1.5 1.0 0.5 0.0 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 All apartments Alle Wohnungen Home ownership Eigenheime (geschätzt) Rented apartments Mietwohnungen (geschätzt) (estimated) (estimated
Slide 14: Market outlook: strong market fundamentals
Real Estate Market in the Lake Geneva region Market outlook: strong market fundamentals ▪ Real estate investment activity has shown signs of recovery in first HY 2024, especially in the residential sector ▪ The strong fund-raising activity since the beginning of the year bodes well for a more dynami
Slide 15: Strategy: Buy and hold while improving tenant comfort
Strategy: Buy and hold while improving tenant comfort Rue du Nant 30 – Geneva – Acquisition in December 1998 Appraisal Rent value in % in % in CHF k in CHF m 1998 40 residential units and 2 retail units 339 2014 Renovation of bathrooms and kitchens 2015 Additional energy efficiency 12.3 623 + 13 % +
Slide 16: Investis' position in the Swiss Real Estate Market is unique
Investis’ position in the Real Estate Market in Switzerland is unique ▪ Active in markets where there is a constant situation of undersupply − Low vacancy rates ▪ Focus on middle segment of the market – no luxury homes ▪ Number of residential properties in city centers does not grow ▪ Highest demand
Slide 17: Agenda: Financial overview HY 2024
Agenda Highlights of HY 2024 Market trends Financial overview HY 2024 Outlook Q&A HALF-YEAR 2024 RESULTS – IR PRESENTATION – 2 SEPTEMBER 2024 17
Slide 18: Excellent result overall – LTV remains very low at 18.7%
Excellent result overall – LTV remains very low at 18.7% NAV at CHF 107.92 per share excluding deferred taxes with regard to properties ▪ Investis Group: − Revenue of CHF 117m (HY 2023: CHF 115m) – a 1.5% growth through acquisitions and rent increases − Sale of the segment Real Estate Services as at
Slide 19: Investis Group: Excellent operating performance HY 2024
Investis Group: Excellent operating performance HY 2024 – considerable income from disposal of subsidiaries (CHFm) HY 2024 Δ in % HY 2023 FY 2023 FY 2022 Revenue 116.5 1.5 114.8 231.5 227.5 EBITDA 26.4 6.9 24.6 50.1 53.5 before revaluations/disposals Income from revaluations 4.5 n/a -48.8 -47.7 67.2
Slide 20: Properties: Excellent operating performance
Properties: Excellent operating performance Like-for-like rental income further grows while vacancy rate is kept at its lowest (CHFm) HY 2024 Δ in % HY 2023 FY 2023 FY 2022 ▪ Like-for-like rental growth +1.8% − in residential +2.0% Revenue 28.2 +7.7 26.2 53.1 57.8 ▪ Vacancy ratio kept very low at 1.
Slide 21: Properties: Evolution of the revenues
Properties: Evolution of the revenues Compound average like-for-like growth rate of 2% since 2020 60.0 57.9 57.8 30.8 53.1 28.8 27.2 26.9 (CHFm) 29.0 29.2 30.6 3.1 28.2 1.6 1.8 1.3 1.0 26.2 FY 2020 FY 2021 FY 2022 FY 2023 HY 2024 Revenue from letting 1st HY Revenue from letting 2nd HY Like-for-like
Slide 22: Properties: vacancy rate kept at a very low level
Properties: vacancy rate kept at a very low level Property Portfolio: 162 buildings – 2,599 residential units – value CHF 1,605m by category by canton by apartment type 0 2 22 2 0 2 Residen al ommercial E V other room 2 room room other Low vacancy 1.0% Residential GE 0.7% Note: 1) Based on number of
Slide 23: Properties: Rent potential remains double digit
Properties Rent potential remains double digit at …. …. despite continuous like-for-like rent increases Rent potential based on CBRE appraisal (CHFm) +13% 69% of the residential and commercial rental+1.0% contracts are indexed to the CPI (Swiss Consumer Price Index) 40.8 6.3% 41.9 11% tenant turnove
Slide 24: Real Estate Services: segment sold on 24 June 2024
Real Estate Services: segment sold on 24 June 2024 with a gain of CHF 122.2m Organic growth in revenue and excellent EBIT margin 1.1.- (CHFm) Δ in % HY 2023 FY 2023 FY 2022 HY 2024 Revenues 24.06.2024 Revenue 89.9 -0.3 90.2 181.7 173.5 EBIT 8.8 -1.4 8.9 17.9 18.4 31% EBIT margin 9.8% n/a 9.9% 9.9% 1
Slide 25: Real Estate Services: a very successful journey and disposal
Real Estate Services: BOTH - a very successful journey and disposal Evolution of the segment over the years – gain on the disposal CHF 122m Evolution of Revenue and EBIT margin 200 9.9% Net assets at IPO CHF 20 m 180 8% Net assets at 31.12.2023 CHF 54 m 182 4.7% 160 3% Net assets at 24.06.2024 CHF 2
Slide 26: On a Group level: Very pleasing Net profit
On a Group level: Very pleasing Net profit Higher interest costs and lower income taxes (CHFm) HY 2024 Δ in % HY 2023 FY 2023 FY 2022 restated restated restated EBIT 150.9 n/a -25.9 -1.5 180.4 ▪ Financial expenses in 2023 benefited from a very low coupon bond (0.05%), which was redeemed in Result fr
Slide 27: Solid capital structure prevailing
Solid capital structure prevailing Excellent equity ratio, very low LTV Balance Sheet (CHFm) 30.06.2024 Δ in 31.12.2023 31.12.2022 31.12.2021 restated restated restated Cash and cash equivalents 3 -26.3 4 4 5 ▪ Financial assets contain the minority investment in Properties portfolio 1,605 +5.7 1,518
Slide 28: Debt structure – all unsecured – no pledged properties
Debt structure – all unsecured – no pledged properties Short term financing – weighted average Debt structure (CHFm) 30.06.2024 interest rate of 1.20% on outstanding debt Bonds 115 800 Private placement 40 700 Current bank loans (Credit lines used) 145 600 184 Total Financial liabilities 300 560 500
Slide 29: Agenda: Outlook
Agenda Highlights of HY 2024 Market trends Financial overview HY 2024 Outlook Q&A HALF-YEAR 2024 RESULTS – IR PRESENTATION – 2 SEPTEMBER 2024 29
Slide 30: Properties: Boost of Gross rental income and NAV in the last three years
Properties: Boost of Gross rental income and NAV in the last three years Funds from disposals in 2021 strategically reinvested in 2023/24 to acquire quality properties at half the price Gross rental income ▪ In 2021 a portfolio of 11 properties was sold 72.8 +13.4% ▪ Acquired properties have signifi
Slide 31: Outlook 2024: Market Environment
Outlook 2024 Market Environment ▪ Net migration – continuous to be a significant driver of demand, particularly in the Lake Geneva region ▪ Housing shortage – particularly in central locations ▪ 279 new apartments for 2,248 new inhabitants in Geneva Q1 2024 ▪ Shortfall of 50,000 apartments across th
Slide 32: Outlook 2024: For Investis in particular
Outlook 2024 For Investis in particular ▪ Focus on residential market in the Lake Geneva region ▪ Demography ▪ Region is an international business center ▪ Stringent building regulations ▪ Rising rental income ▪ Double digit rent potential since IPO despite rental increase year by year ▪ Continuous
Slide 33: Why to invest in INVESTIS?
Why to invest in INVESTIS? The only listed residential real estate company in Switzerland ▪ Quality of the portfolio with well-maintained properties ▪ Largest listed residential property owner in the undersupplied Lake Geneva region – sustained demand, high return, low vacancies – continuous rent po
Slide 34: Fundamental business strengths: Value proposition
Fundamental business strengths Value proposition HALF-YEAR 2024 RESULTS – IR PRESENTATION – 2 SEPTEMBER 2024 34
Slide 35: Thank you for your attention
THANK YOU FOR YOUR ATTENTION 35