Allreal Holding Ag · SIX:ALLN
Allreal — H1 2024 Earnings Presentation
45 slides from Allreal's earnings presentation, Aug 28, 2024
Slide 1: Allreal Group Half-year results for 2024
Allreal Group Half-year results for 2024 Stephan Widrig, CEO Marc Frei, CFO Glattpark, 28 August 2024 Escher-Terrassen, Zurich-West
Slide 2: Agenda
Half-year results for 2024 Agenda 1. Key figures and events at a glance 2. Notes to the financial report 3. Portfolio and projects 4. Sustainability 5. Conclusion 6. Questions and discussion 7. Appendix 2
Slide 3: Key figures and events at a glance
Half-year results for 2024 Key figures and events at a glance Richtiplatz, Wallisellen ZH
Slide 4: Stable business development in the first half of 2024
Key figures and events at a glance Stable business development in the first half of 2024 111.0 21.3 Target rental income Earnings from Development & (CHF million) / previous year: 108.5 Realisation (CHF million) / previous year: 17.6 6.7 13.4 Revaluation of portfolio Gross margin (CHF million) / pre
Slide 5: High-quality portfolio in Switzerland's business centres
Key figures and events at a glance High-quality portfolio in Switzerland’s business centres Commercial properties/residential (in relation to rental income) 75/25% 3% Basel region 83% Zurich region/Zug region 5.09 82 Market value Number of properties (CHF billion) (incl. investment properties under
Slide 6: Re-letting and projects on track
Key figures and events at a glance Re-letting and projects on track Real Estate − Bellerivestrasse 36, Zurich successfully handed over to tenant (fully let and generating income again over the entire reporting period) − Two-thirds of the spaces in the Richtiring building in Wallisellen, ZH (formerly
Slide 7: Notes to the financial report
Half-year results for 2024 Notes to the financial report Viaduktstrasse 40–44 (White Plaza), Basel
Slide 8: Increase in net profit incl. revaluation effect
Notes to the financial report Increase in net profit incl. revaluation effect Net profit (CHF million) Key drivers: 120 111.3 - higher rental income due to the rise in the reference 100 86.4 interest rate and the link to 81.8 82.7 80 79.1 inflation 63.0 66.7 60.5 67.2 - higher earnings from the sale
Slide 9: Good operating profit
Notes to the financial report Good operating profit (CHF million) H1 2024 H1 2023 Change Real estate earnings 97.8 104.5 –6.4% Earnings from Development & 21.3 17.6 +21.0% Realisation Operating expenses & 27.5 27.0 +1.9% depreciation Operating EBIT 91.6 95.1 –3.7% Financial expense 18.0 13.2 +36.4%
Slide 10: Rental income up in the Real Estate segment
Notes to the financial report Rental income up in the Real Estate segment Composition of change in rental income (CHF million) 2.3% 10
Slide 11: Slightly higher revaluation, discount and capitalisation rates unchanged
Notes to the financial report Slightly higher revaluation, while discount and capitalisation rates unchanged Geographical distribution of valuation effect (CHF million) 0.7 -0.5 4.33% Ø discount rate 6.7 -1.4 City of Zurich Rest of Canton of Zurich 3.08% Western Switzerland (CHF million) Other regio
Slide 12: Advantageous maturity profile of commercial property leases
Notes to the financial report Advantageous maturity profile of commercial property leases Maturity profile (% of outstanding rental income) 28% 5.0 Weighted remaining term of fixed-term leases for commercial properties (years) 13% 10% 9% 8% 7% 7% 6% 6% 4% 2% 2024 2025 2026 2027 2028 2029 2030 2031 2
Slide 13: Higher Earnings from Development & Realisation
Notes to the financial report Higher Earnings from Development & Realisation Earnings from Development & Realisation Composition of earnings from Development & Realisation 25 21.3 +21% -2% 20 9% 17.6 Fees from third-party business 15 Earnings from placements 19% 47% Capitalised own developments 10 G
Slide 14: Improved profitability in the execution of projects
Notes to the financial report Improved profitability in the execution of projects Project volume completed 33.9% CHF 118.5 million Third-party projects Own projects portfolio 66.1% 13.4% Gross margin third-party projects Poststrasse 5 & 7, Zurich City
Slide 15: Slight increase in volume of third-party projects
Notes to the financial report Slight increase in volume of third-party projects will improve profitability in the next few years Order backlog (CHF million) 800 694 700 611 600 190 565 530 149 500 152 137 400 300 504 462 200 413 393 100 0 2021 2022 2023 H1 2024 Third-party projects Own projects Eich
Slide 16: Stable key balance sheet figures
Notes to the financial report Stable key balance sheet figures Limit 30.6.2024 31.12.2023 30.6.2023 31.12.2022 Equity (CHF million) 2 496.7 2 545.1 2 524.0 2 595.9 Equity ratio > 35% 43.5% 44.5% 44.3% 45.6% Return on equity 5.7% 5.7% 6.3% 6.7% excl. revaluation effect Net finance debts (CHF million)
Slide 17: Secured financing and diversified financing structure
Notes to the financial report Secured financing and diversified financing structure Debt financing structure as at 30.6.2024 (CHF million) 1.35% 1000 2.50% 900 800 2.00% Avg. interest rate 700 600 1.50% 500 2.76 539 325 400 1.00% 300 200 243 0.50% 159 100 148 Financial liabilities 258 182 100 (CHF b
Slide 18: Outlook for 2024 confirmed
Half-year results for 2024 Outlook for 2024 confirmed Net operating profit slightly Rising net financial Rental income marginally down from the previous year expense higher, while vacancy rates remain low Slightly higher profits from Marginal increase in Loan to value (LTV) stable sale of condominiu
Slide 19: Portfolio and projects
Half-year results for 2024 Portfolio and projects Toni site, Zurich-West
Slide 20: Regional distribution and mix of uses for investment properties
Portfolio Regional distribution and mix of uses for investment properties Regional distribution of Mix of uses for investment investment properties properties 4% (% of market value) 5% (% of rental income) 6% 13% 9% City of Zurich Office 51% Rest of Canton of Zurich 55% Residential Western Switzerla
Slide 21: High-quality commercial properties with low demand risks
Portfolio High-quality commercial properties with low demand risks − Modern buildings with flexible layouts − Focus on the business centres of Zurich and Geneva − Outstanding locations (urban and with public transport links) − Long-term leases with stable tenants Largest tenants Vulkanstrasse 106, Z
Slide 22: Modern residential portfolio as a secure investment
Portfolio Modern residential portfolio as a secure investment − Modern residential complexes, mainly in urban locations in Zurich and Geneva − Demand will continue to significantly exceed supply − Lower yield; very stable earnings − Flexibility with project development Grünhof site, Zurich Aussersih
Slide 23: Entire value chain covered
Entire value chain covered Ownership, development and implementation We develop real estate. We understand the construction trade. And we think and act with a long-term perspective as owners of large buildings and sites. Development of sites, high-quality residential and commercial buildings, and co
Slide 24: Development projects for portfolio in execution
Development & Realisation Development projects for portfolio in execution Renggerstrasse, Zurich (construction period: 2023–2025) Av. de l’Amandolier, Geneva (2023–2025)* − Estimated investment volume of around CHF 120 million, of which approx. CHF 80 million already invested − Increase in target re
Slide 25: Development projects in planning
Development & Realisation Development projects in planning Baarermatte, Badenerstrasse, Riant-Parc, Pré des Dames, Fontaines-Saintes, Baar ZG Zurich Confignon GE Veyrier GE Confignon GE Mixed Residential Residential Residential Residential Strategic Strategic Project phase Building project Building
Slide 26: Well-stocked pipeline of projects for the sale of condominiums
Development & Realisation Well-stocked pipeline of projects for the sale of condominiums Spiserstrasse, Av. du Curé Baud, Strubenacher, Inzlingerstrasse, Eggen, Lucerne Zurich Grand-Lancy GE Zumikon ZH Riehen BS Awaiting Awaiting Awaiting Project status Realisation Realisation construction approval
Slide 27: Development projects enable flexible action between growth and financing requirements
Development & Realisation Development projects enable flexible action between growth and financing requirements Overview of current projects in the pipeline and under construction that will be completed by approx. 2029 405 ~220 820 In the pipeline ~155 Condo- 2025–2029 185 miniums CAPEX projects for
Slide 28: Own construction skills: entire value chain and additional income
Development & Realisation Own construction skills: entire value chain and additional income − Many years of experience and proven track record in the realisation of complex construction projects − Flexibility and cost optimisation with project development Haus zum Falken, Zurich Stadelhofen Poststra
Slide 29: Sustainability
Half-year results for 2024 Sustainability Baarermatte, Baar ZG
Slide 30: Repositioning of the Baarermatte office building as a sustainable flagship project
Sustainability Repositioning of the Baarermatte office building as a sustainable flagship project with mixed use − Modular construction method with timber and reuse of parts from the existing building − Not having a basement reduces the use of concrete − Extremely low CO2 emissions in its developmen
Slide 31: Binding sustainability targets and uniform label strategy with SNBS Gold
Sustainability Binding sustainability targets with project development and uniform label strategy with SNBS Gold Badenerstrasse, Zurich Altstetten - Minimal greenhouse gas emissions Label strategy for own projects in its development and carbon- 42.2% - - neutral in its operation PV system on the roo
Slide 32: Conclusion and key messages
Half-year results for 2024 Conclusion and key messages Bändliweg 21, Zurich Altstetten
Slide 33: Conclusion
Half-year results for 2024 Conclusion − Stable business development and key balance sheet figures − Annual net profit excl. revaluation effect still expected to be slightly down from the previous year owing to the higher financial expense − High-quality portfolio with net yield of 3.9% − Low demand
Slide 34: Dates for your diary and further information
Half-year results for 2024 Dates for your diary and further information − Annual results 2024 21 February 2025 − 26th annual general meeting 25 April 2025 − Half-year results 2025 22 August 2025 Online report Value Update H1/2024 34
Slide 35: Q&A
Half-year results for 2024 Q&A Stephan Widrig, CEO Marc Frei, CFO 35
Slide 36: Allreal builds value
Allreal builds value
Slide 37: Appendix
Half-year results for 2024 Appendix 1. Main tables from the financial report 2. Overview of projects in development 3. Sustainability strategy targets 2021–2024 37
Slide 38: Key figures at a glance
Appendix Key figures at a glance H1 2024 or 30.6.2024* H1 2023 or 31.12.2023* Change in %1 Group Total sales2 (CHF million) 229.5 251.5 –8.7 Operating profit (EBIT) incl. revaluation effect (CHF million) 98.3 69.0 42.5 Net profit incl. revaluation effect3 (CHF million) 67.2 44.3 51.7 Operating profi
Slide 39: Real estate at a glance
Appendix Real estate at a glance H1 2024 H1 2023 Change or 30.6.2024* or 31.12.2023 in %1 Investment properties Residential properties on balance sheet date Number 36 36 – Commercial properties on balance sheet date Number 42 42 – Market value on balance sheet date CHF million 5 023.1 5 016.3 0.1 Re
Slide 40: Pipeline of development reserves (incl. condominiums)
Appendix Pipeline of development reserves (incl. condominiums) Estimated 2025 2026 2027 2028 2029 2030 2031 Plot Portfolio/ Latest investment volume Location Property area (m²) condominiums milestone (CHF million) Av. de la Gare 84 bis / Route de la Maladière Chavannes-près-Renens VD (Les Serres) 33
Slide 41: Market value of portfolio at a glance
Appendix Market value of portfolio at a glance Market value of portfolio (CHF million) 5300 5106 5097 5077 5094 5100 4900 4700 4525 4500 4342 4300 4160 4100 3957 3900 3700 3575 3525 3500 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 2024 41
Slide 42: Profit and distribution per share
Appendix Profit and distribution per share Operating profit per share and distribution (CHF) 10.00 9.00 8.00 8.94 8.65 8.34 7.84 7.39 7.00 7.00 7.28 7.11 6.89 7.04 6.00 5.00 4.00 6.75 6.75 7.00 7.00 7.00 6.25 6.50 3.00 5.75 5.75 2.00 3.66 1.00 0.00 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 P
Slide 43: Sustainability targets Environment: Strategy period 2021–2024
Appendix Sustainability targets Environment : Strategy period 2021–2024 Target figure Target Performance metrics 2024 Carbon-neutral by Allreal will halve the use of − Share of fossil fuels generating electricity for investment < 59% 2050 fossil fuels by 2030 properties3 and be carbon-neutral by 205
Slide 44: Sustainability targets Social: Strategy period 2021–2024
Appendix Sustainability targets Social: Strategy period 2021–2024 Target figure Target Performance metrics 2024 Workplace health Allreal values workplace health − Number of unannounced site audits conducted1 > 10 and safety and safety − Safety risks as a percentage of all shortcomings identified in
Slide 45: Sustainability targets Governance: Strategy period 2021–2024
Appendix Sustainability targets Governance: Strategy period 2021–2024 Target figure Target Performance metrics 2024 Sustainability in Sustainability is firmly embedded − Number of Group Management meetings with ESG items on the >6 company management in senior management at Allreal agenda1 >8 − Numbe