Investis Holding SA · SIX:IREN
Investis Holding SA — FY2021 Earnings Presentation
46 slides from Investis Holding SA's earnings presentation, Mar 24, 2022
Slide 1: Full-Year 2021 Results
FULL-YEAR 2021 RESULTS 24 March 2022
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 2021 Market trends Financial overview FY 2021 Outlook Q&A Annexes FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 3
Slide 4: Highlights FY 2021
Highlights FY 2021 Excellent profitability and continued cash flow generation Group ▪ Revenue up 21% to CHF 216m ▪ Impressive increase by 18% of EBITDA before revaluation effect ▪ Strong EBIT of CHF 235m ▪ Substantial increase in NAV per share to CHF 88.73 (+18%) excluding deferred taxes with regard
Slide 5: Agenda
Agenda Highlights of FY 2021 Market trends Financial overview FY 2021 Outlook Q&A Annexes FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 5
Slide 6: Real Estate Market in Switzerland and Geneva in particular
Real Estate Market in Switzerland and Geneva in particular Lake Geneva region is an attractive location Migration/ Demography Construction activity Regulations Capital Markets ▪ In 2021 large city centers ▪ Higher construction activity ▪ Tax regime for corporations ▪ Difficult to assess future moves
Slide 7: Real Estate Market in Geneva
Real Estate Market in Geneva Rents have decreased in most of the ten largest cities in CH over the last five years – but not in Geneva, Zurich, Bern or Lucerne ▪ Demand for apartments in the free market remains high which is reflected in the price trends − The median monthly rent for a 4.5 room apar
Slide 8: Real Estate Market in Switzerland: low rental offers
Real Estate Market in Switzerland Offers for rental apartments remains low in the cantons around lake Geneva region Offer rates by canton – as of Q4 2021 (number of units for rent / stock Source: WüestPartner FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 8
Slide 9: Real Estate Market in Switzerland: low advert time
Real Estate Market in Switzerland In addition: a low and declining advert time of rental apartments on the market …… The time-on market of rental apartments, 2021 (arrows: year-on-year change) Source: Crédit Suisse FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 9
Slide 10: Real Estate Market in Switzerland: vacancy rate
Real Estate Market in Switzerland ….. with vacancy rate remaining well below Swiss-average Housing vacancy rate in the canton of Geneva and in Switzerland Switzerland Geneva 2.00 1.80 1.60 Vacany rate (in %) 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 Source: OCSTAT FULL-YEAR 2021 RESULTS – IR PRESENTAT
Slide 11: Vacancy rates in Lake Geneva region
Real Estate Market in Switzerland Vacancy rates in Lake Geneva region remains much lower than on national average (number of vacant unit/ stock, in %) 2020 2021 Source: BFS FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 11
Slide 12: Housing construction activity
Real Estate Market in Switzerland Though housing construction activity remains at historic heights, … Housing space under construction 10'000 9'000 8'000 7'000 6'000 Number of units 5'000 4'000 3'000 2'000 1'000 0 Q1 2021 p Q3 2021 p Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3
Slide 13: Construction activity mostly not residential
Real Estate Market in Switzerland ….construction activity is mostly NOT in the residential sector Real estate investment volume in Geneva Residential Office Other commercial 4'500 4'000 3'500 In CHF m 3'000 2'500 2'000 1'500 1'000 500 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: OCSTA
Slide 14: Demand for larger living space
Real Estate Market in Switzerland Demand for larger living space spiked in the first COVID wave only small medium large Source: Realmatch360 FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 14
Slide 15: No urban exodus
Real Estate Market in Switzerland No urban exodus – geographic distribution of demand for rental apartments Demand before Demand after Demand as of 1st lockdown 1st lockdown November 2021 Large city centers Suburbs of large cities Medium cities Suburbs of medium cities Outskirts Source: BFS, Realmat
Slide 16: Fierce competition and yield compression
Real Estate Market in Switzerland Fierce competition is driven by abundant capital to allocate into “safe” real estate products → Yield compression continues Residential prime yields in Switzerland (in %) Source: CBRE FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 16
Slide 17: Strategy: Buy and hold while improving efficiency
Strategy: Buy and hold while improving efficiency of the building where appropriate Rue du Nant 30 – Geneva – Acquisition in December 1998 Appraisal value Rent in CHF m in CHF k 1998 Residential block built in 1986 with 40 residential units and 2 retail units 339 2014 Renovation of bathrooms and kit
Slide 18: 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 19: Excellent share price performance among real estate companies
Excellent share price performance among real estate companies FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 19
Slide 20: Agenda
Agenda Highlights of FY 2021 Market trends Financial overview FY 2021 Outlook Q&A Annexes FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 20
Slide 21: Remarkable operating results coupled with substantial revaluation effects
Remarkable operating results coupled with substantial revaluation effects Substantial increase in NAV ▪ Investis Group: − Revenue of CHF 216m (FY 2020: CHF 179m) – a 21% growth − EBITDA before revaluations/disposals up 18% to CHF 53.7m (CHF 45.5m) − Revaluation gains of CHF 184m − Excellent net prof
Slide 22: Investis Group: Overview on the excellent financial performance FY 2021
Investis Group: Overview on the excellent financial performance FY 2021 FY 2021 FY 2021 (CHFm) FY 2021 Δ in % FY 2020 FY 2019 FY 2018 Revenues Invested Capital Revenue 216.0 20.9 178.7 187.5 197.5 2% EBITDA 53.7 17.9 45.5 46.7 39.7 27% before revaluations/disposals Income from revaluations / from 18
Slide 23: Properties: Significant increase in valuation
Properties: Significant increase in valuation underlines portfolio quality EBIT enhanced by substantial revaluation gains to CHF 225m (CHFm) FY 2021 Δ in % FY 2020 FY 2019 FY 2018 Revenue and like-for-like rental growth (Revenue in CHFm) Revenue 60.0 +3.7 57.9 57.0 55.0 EBITDA 40.0 +7.4 37.2 37.8 35
Slide 24: Properties: vacancies almost only when buildings are refurbished
Properties: vacancies almost only when buildings are refurbished Property Portfolio: 171 buildings – 3,073 residential units – value CHF 1,735m by category: by canton: by apartment type: 7% 5% 13% 25% 29% 28% 70% 93% 30% Residential Commercial GE VD VS 1-room 2-room 3-room other Low vacancy 2.2% Res
Slide 25: Properties: targeted like-for-like rental growth achieved
Properties: targeted like-for-like rental growth achieved year on year Still room for further rental growth Rent potential based on CBRE appraisal 75.0 (CHFm) 65.0 +12% +4.1% 55.0 60.0 57.0 57.9 55.0 +1.0% 45.0 (CHFm) 47.5 41.9 35.0 40.0 37.8 37.2 35.0 32.4 Current rent 40.8 rent 1) 41.9 Market6.3%
Slide 26: Real Estate Services: organic and acquisitional revenue growth of 28%
Real Estate Services: organic and acquisitional revenue growth of 28% Excellent EBIT margin underlines efforts for delivering quality combined with cost-efficiency (CHFm) FY 2021 Δ in % FY 2020 FY 2019 FY 2018 FY2021 Revenues Revenue 159.8 +28.3 124.6 136.0 147.8 EBIT 14.9 +38.4 10.8 11.5 7.7 38% EB
Slide 27: Real Estate Services: evolution over the years
Real Estate Services: evolution over the years Steady growth of top line and much improved profitability Revenue evolution EBIT margin evolution (CHFm) 160 (%) 160 148 148 140 136 136 10.0% 9.3 125 8.4 8.6 120 8.0% 100 80 6.0% 5.3 5.2 60 4.0% 2.9 40 2.0% 20 0 0.0% 2016 2017 2018 2019 2020 2021 2016
Slide 28: Investis Group: Excellent Net profit
Investis Group: Excellent Net profit EPS at CHF 15.74 (CHFm) FY 2021 Δ in % FY 2020 FY 2019 FY 2018 EBIT 235.1 +72.6 136.2 127.2 74.6 ▪ Financial income includes the effect of selling the minority stake in Flatfox (CHF 2.6m) Financial income 3.2 +608.5 0.5 5.8 0.1 ▪ Tax rate unchanged below 15% Fina
Slide 29: Solid capital structure and prudent financing policy
Solid capital structure and prudent financing policy Strong balance sheet Balance Sheet (CHFm) 31.12.2021 Δ in % 31.12.2020 31.12.2019 31.12.2018 Debt structure (CHFm) 31.12.2021 Cash and cash equivalents 5 -67.2 15 66 33 Bonds 435 Properties portfolio 1'735 +16.4 1'490 1'438 1'345 Private placement
Slide 30: Debt structure
Debt structure Strategy of a low LTV of around 40% unchanged since IPO 800 700 Maturity of financial liabilities as at 600 660 184 (CHFm) 31.12.2021 (CHFm) 520 560 500 Due within the first year 184 30 180 30 400 420 435 Due within the second year 140 300 (CHFm) 100 Due within the third year 200 Due
Slide 31: Agenda
Agenda Highlights of FY 2021 Market trends Financial overview FY 2021 Outlook Q&A Annexes FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 31
Slide 32: ESG
ESG Responsible and sustainable action is anchored in the strategy ▪ In 2020 properties portfolio was assessed for the first time by Signa-Terre – yearly monitoring ▪ Over 90% of the portfolio is residential and mostly in central locations ▪ For years all local regulations in Geneva and in Vaud have
Slide 33: Outlook 2022
Outlook 2022 Swiss housing sector remains a stable anchor for the real estate market ▪ Immigration into Switzerland and specially into the Lake Geneva region remains an important driver and is expected to further grow (+60’000 expected for Switzerland in 2022 according to BfS) ▪ Maintain and further
Slide 34: What makes INVESTIS unique?
What makes INVESTIS unique? ▪ Quality of the portfolio with well-maintained properties ▪ Largest listed residential property owner in the undersupplied Lake Geneva region – sustaining demand, high return, low vacancies – continuous rent potential of 12% – low exposure in commercial properties lower
Slide 35: Agenda
Agenda Highlights of FY 2021 Market trends Financial overview FY 2021 Outlook Q&A Annexes FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 35
Slide 36: Thank you for your attention!
Thank you for your attention! FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 36
Slide 37: 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 38: Fundamental business strengths
Fundamental business strengths Value proposition FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 38
Slide 39: 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 − 93% Residential − 7% Commercial VD: 25% ▪ Lake Geneva region ▪ Middle segment (no luxury apartments) ▪ Low vacancy rates GE: 70% VS: 5% FU
Slide 40: Real Estate Services: active nationwide with well-known local brands
Real Estate Services: active nationwide with well-known local 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 ▪ Letti
Slide 41: Property Management – focused on recurring contracts
Property Management – focused on recurring contracts FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 41
Slide 42: Facility Services – hauswartprofis/conciergepro
Facility Services – hauswartprofis/conciergepro …. FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 42
Slide 43: Facility Services – rohr ag
Facility Services – rohr ag …. FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 43
Slide 44: Facility Services – analysis LAB
Facility Services – analysis LAB FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 44
Slide 45: Organisation
Organisation FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 45
Slide 46: Thank you for your attention!
Thank you for your attention! FULL-YEAR 2021 RESULTS – IR PRESENTATION – 24 MARCH 2022 46