Investis Holding Sa · SIX:IREN
Investis Holding Sa — FY2023 Earnings Presentation
47 slides from Investis Holding Sa's earnings presentation, Mar 27, 2024
Slide 1: Full Year Report 2023
INVESTIS REAL ESTATE GROUP FULL YEAR REPORT 2025 27 March 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 FY 2023 Market trends Financial overview FY 2023 Outlook Q&A Annexes FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 2024 3
Slide 4: Highlights FY 2023
Highlights FY 2023 Strong operating performance and sustained cash flow generation – very low LTV at 26% Unchanged dividend of CHF 2.50 proposed Group ▪ Top line growth +1.7% to CHF 232m despite the successful sale of eleven properties ▪ Net profit excluding revaluation effects at CHF 36m (2022: CHF
Slide 5: Agenda
Agenda Highlights of FY 2023 Market trends Financial overview FY 2023 Outlook Q&A Annexes FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 2024 5
Slide 6: Real Estate Market in the Lake Geneva region
Real Estate Market in the lake Geneva region A very attractive location Migration/ Demography Construction activity Regulations Capital Markets ▪ Net immigration into CH ▪ Lowest portion of homeowners ▪ Tax regime for corporations ▪ Lowered inflation rate in CH for 2023 at a peak in CH i.e. highest
Slide 7: Rental values mirror supply scarcity in the region
Real Estate Market in the Lake Geneva region Rental values mirrors supply scarcity in the region ▪ The lake Geneva region remains one of the most expensive area in CH ▪ Even peripheral areas within the region (e.g. Gros de Vaud, Chablais) shows above average rental values ▪ This suggets a spill over
Slide 8: Further decline in the residential vacancy rate in 2023
Real Estate Market in the Lake Geneva region Further decline in the residential vacancy rate in 2023 ▪ The vacancy has fallen < the1.0% mark in the canton of Vaud as of June 2023 ▪ The rate remains very low in the canton of Geneva, albeit unabated new construction activity ▪ The undersupply situatio
Slide 9: Subdued investment activity in Geneva in 2023
Real Estate Market in the Lake Geneva region Subdued investment activity in Geneva in 2023 Residential Office Other commercial Other 5.0 ▪ Real estate transactions volume in Geneva has 4.5 further decreased in 2023, specifically on the two 4.0 main traditional sectors: the residential and the office
Slide 10: New construction activity in Geneva high on average, however not sufficient
Real Estate Market in the Lake Geneva region New construction activity in Geneva high on an average, however is not sufficient 10’000 9’000 ▪ Apartments under construction in Geneva 8’000 represented approx 7,500 units in Q4 2023, i.e. Its lowest level in 5 years 7’000 ▪ Depite above-average constru
Slide 11: Residential demand
Real Estate Market in Switzerland Residential demand International net migration Excess birth rate New domestic households (as of 2013) Building permits Source: UBS, Jan 2024, * UBS estimate FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 2024 11
Slide 12: Residential yields are still trending upward
Real Estate Market in Switzerland Residential yields are still trending upward 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% Q4 2013 Q4 2014 Q4 2015 Q4
Slide 13: Rents on the rise
Real Estate Market in Switzerland Rents on the rise Inflation Offered rents Existing rents Source: UBS, Jan 2024 FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 2024 13
Slide 14: Market outlook: strong market fundamentals
Real Estate Market in the Lake Geneva region Market outlook: strong market fundamentals ▪ The downward trend in the residential vacancy is expected to continue in 2024, as construction activity is by far not offsetting demographic growth, which remains unabated ▪ The cantons of Vaud and Geneva conti
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 value Rent in CHF m in CHF k 1998 40 residential units and 2 retail units 339 2014 Renovation of bathrooms and kitchens 2015 Additional energy efficiency 12.3 623 +13% + 4% 2016 New
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
Agenda Highlights of FY 2023 Market trends Financial overview FY 2023 Outlook Q&A Annexes FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 2024 17
Slide 18: Excellent operating results and dividend earned operationally
Excellent operating results and dividend earned operationally NAV at CHF 92.00 per share excluding deferred taxes with regard to properties ▪ Investis Group: − Revenue of CHF 232m (FY 2022: CHF 228m) – a 1.7% growth despite the sale of eleven properties − EBITDA before revaluations/disposals at a re
Slide 19: Investis Group: Overview on the excellent operating performance FY 2023
Investis Group: Overview on the excellent operating performance FY 2023 FY 2023 FY 2023 (CHFm) FY 2023 Δ in % FY 2022 FY 2021 FY 2020 Revenues Invested Capital Revenue 231.5 1.7 227.5 216.0 178.7 23% 3% EBITDA 50.1 -6.5 53.5 53.7 45.5 before revaluations/disposals 77% Income from revaluations -47.7
Slide 20: Properties: Excellent operating performance despite disposals in prior year
Properties: Excellent operating performance despite disposals in prior year EBIT adversely affected by devaluation (CHFm) FY 2023 Δ in % FY 2022 FY 2021 FY 2020 Revenue and like-for-like rental growth 7.6 Revenue 53.1 -8.2 57.8 60.0 57.9 60.0 (CHFm) 57.0 57.9 57.8 EBITDA 33.7 -8.5 36.8 40.0 37.2 53.
Slide 21: Properties: Rental income of the buildings sold in 2022
Properties: Visualisation of the rental income of the buildings sold in 2022 Contribution of the buildings sold over the past five years (# of residentital units) 3’000 3’049 3’006 3’073 2’445 2’477 (CHFm) 2’500 11 buildings sold in 2022 10.4 6.0 10.0 10.3 2’000 ▪ Rental income CHF 10.4 (FY 2021) 51
Slide 22: Properties: Positive revaluation effects over the years
Properties: Positive revaluation effects over the years relativise this year's devaluation Positive net revaluation gains of CHF 435m since the IPO CHFm 500 400 300 200 100 0 2016 2017 2018 2019 2020 2021 2022 2023 Total Increase Decrease Total FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 202
Slide 23: Properties: vacancy rate at lowest level
Properties: vacancy rate at lowest level Property Portfolio: 152 buildings – 2,477 residential units – value CHF 1,518m by category by canton by apartment type 1) 10% 6% 14% 30% 22% 29% 72% 90% 27% Residen al ommercial GE D S 1 room 2 room 3 room other Low vacancy 0.9% Residential GE 0.7% Note: 1) B
Slide 24: Properties: continuous reduction in vacancy rate
Properties: continuous reduction in vacancy rate Rent potential remains double digit at 12% although 3.1% like-for-like rent increase in 2023 Rent potential Evolution of the vacancy rate based on CBRE appraisal (CHFm) 3.0% +12% +1.0% 2.2% 40.8 6.3% 41.9 1.3% Current rent Market rent 1) +3.4% +1.1% +
Slide 25: Real Estate Services increased contribution to Group's operating performance
Real Estate Services increased contribution to the Group’s operating performance Sustainable excellent EBIT margin (CHFm) FY 2023 Δ in % FY 2022 FY 2021 FY 2020 FY 2023 Revenues Revenue 181.7 +4.7 173.5 159.8 124.6 EBIT 17.9 -2.5 18.4 14.9 10.8 33% EBIT margin 9.9% n/a 10.6% 9.3% 8.6% 67% ▪ Revenue
Slide 26: Real Estate Services: development over the years
Real Estate Services: development over the years Steady growth of top line and sustainable profitability Revenue evolu on E IT margin evolu on H m) in %) 200 2 12.0% 180 74 06 60 160 99 10.0% 93 36 4 6 140 25 8.0% 120 100 6.0% 80 60 4.0% 40 2.0% 20 0 0.0% 2019 2020 2021 2022 2023 2019 2020 2021 2022
Slide 27: On a Group level: unchanged dividend of CHF 2.50
On a Group level: unchanged dividend of CHF 2.50 Net profit excluding revaluation effect at CHF 35.5m despite fewer properties (CHFm) FY 2023 Δ in % FY 2022 FY 2021 FY 2020 EBIT -1.5 -100.8 180.4 235.1 136.2 ▪ EPS at CHF –0.42 (CHF 11.90 in 2022) ▪ Net profit excluding revaluation effect in 2022 Fin
Slide 28: Solid capital structure and increased investment power
Solid capital structure and increased investment power Strong balance sheet – continued low level of financial debt – LTV of 26% Balance Sheet (CHFm) 31.12.2023 Δ in % 31.12.2022 31.12.2021 31.12.2020 Debt structure (CHFm) 31.12.2023 Cash and cash equivalents 4 +4.7 4 5 15 Bonds 115 Properties portf
Slide 29: Debt structure – all unsecured – no pledged properties
Debt structure – all unsecured – no pledged properties Strategy of a low LTV of around 40% unchanged since IPO 800 700 H m) Maturity of nancial liabili es as at 31.12.2023 600 660 4 H m) 500 560 30 Due within the rst year 247 35 400 435 247 Due within the second year 115 300 64 200 255 35 100 5 0 20
Slide 30: Agenda
Agenda Highlights of FY 2023 Market trends Financial overview FY 2023 Outlook Q&A Annexes FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 2024 30
Slide 31: ESG
ESG Responsible and sustainable action is anchored in the strategy ▪ Energetic consumption analysis monitored for the third consecutive year ▪ Focus on energetic renovations to improve CO2 footprint of the buildings ▪ Since 2022 Investis has been participating in SSREI (Swiss Sustainable Real Estate
Slide 32: Outlook 2024
Outlook 2024 Residential properties market in CH has solid fundamentals ▪ Demand for residential properties in prime Swiss locations will remain healthy and strong ▪ Net migration into Switzerland and especially into the Lake Geneva region remains an important driver and is expected to further grow
Slide 33: Why to invest in Investis?
Why to invest in INVESTIS? ▪ 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 potential remains above 10% – low exposure in commercial properti
Slide 34: Agenda
Agenda Highlights of FY 2023 Market trends Financial overview FY 2023 Outlook Q&A Annexes FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 2024 34
Slide 35: Thank you for your attention
THANK YOU FOR YOUR ATTENTION FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 2024 35
Slide 36: Investis Group is a leading Swiss residential property company
Investis Group is a leading Swiss residential property company in the Lake Geneva region and a national Real Estate Services provider Strategy and investment policy ▪ Focus on residential properties in GE and VD ▪ Buy and hold ▪ Growth through realisation of rent potential ▪ Expansion of portfolio t
Slide 37: Fundamental business strengths
Fundamental business strengths Value proposition FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 2024 37
Slide 38: Very focused and attractive portfolio around the Lake Geneva
Very focused and attractive portfolio around the Lake Geneva Strategy buy and hold – continuous realisation of rent upside potential Focus is on: ▪ Residential − 90% Residential − 10% Commercial VD: 22% ▪ Lake Geneva region ▪ Middle segment (no luxury apartments) ▪ Low vacancy rates GE: 72% VS: 6% F
Slide 39: Real Estate Services: active nationwide with well-known brands
Real Estate Services: active nationwide with well-known brands Focus on two Activities and two national brands for PROPERTY MANAGEMENT FACILITY SERVICES ▪ Property management ▪ Caretaking services ▪ Co-ownership associations ▪ Cleaning services ▪ Center management ▪ Building technology ▪ Letting man
Slide 40: Property Management – focused on recurring contracts
Property Management – focused on recurring contracts FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 2024 40
Slide 41: Facility Services – hauswartprofis/conciergepro
Facility Services – hauswartprofis/conciergepro …. FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 2024 41
Slide 42: Facility Services – rohr ag
Facility Services – rohr ag …. FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 2024 42
Slide 43: Facility Services – home service
Facility Services – home service …. FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 2024 43
Slide 44: Facility Services – analysis LAB
Facility Services – analysis LAB FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 2024 44
Slide 45: Facility Services – aatest
Facility Services – aatest FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 2024 45
Slide 46: Organisation
Organisation FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 2024 46
Slide 47: Thank you for your attention
THANK YOU FOR YOUR ATTENTION FULL-YEAR 2023 RESULTS – IR PRESENTATION – 27 MARCH 2024 47