Investis Holding SA · SIX:IREN
Investis Holding SA — FY2022 Earnings Presentation
45 slides from Investis Holding SA's earnings presentation, Mar 23, 2023
Slide 1: Investis Real Estate Group Full Year Report 2022
INVESTIS REAL ESTATE GROUP FULL YEAR REPORT 2022 23 March 2023
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 2022 Market trends Financial overview FY 2022 Outlook Q&A Annexes FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 3
Slide 4: Highlights FY 2022
Highlights FY 2022 Excellent profitability and continued cash flow generation – very low LTV at 21% Unchanged dividend of CHF 2.50 proposed Group ▪ Substantial increase in NAV per share to CHF 95.07 (+7.1%) excluding deferred taxes with regard to properties ▪ Revaluation effect and gain on sale of p
Slide 5: Agenda
Agenda Highlights of FY 2022 Market trends Financial overview FY 2022 Outlook Q&A Annexes FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 5
Slide 6: Real Estate Market in Geneva
Real Estate Market in Geneva Lake Geneva region is a very attractive location Migration/ Demography Construction activity Regulations Capital Markets ▪ Net immigration in CH for 2022 ▪ Construction activity on the ▪ Tax regime for corporations ▪ Evolution of interest rates will +81’345 – on the high
Slide 7: Geneva's vacancy is getting even more scarce
Real Estate Market in Geneva Geneva’s vacancy is getting even more scarce across all segment sizes ….. Apartments available and vacancy rate by sizer categories in the canton of Geneva 1-2 rooms Other 1-2 rooms % Other% 1'200 1.20 1'000 1.00 800 0.80 # of apartments Vacancy rate in % 600 0.60 400 0.
Slide 8: Geneva stands well below Swiss average
Real Estate Market in Geneva ….. and at national level, Geneva stands well below Swiss average …. Housing vacancy rate in the Canton of Geneva and in Switzerland Source: OCSTAT, CBRE Feb 2023 FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 8
Slide 9: Strong absorption rates and new housing projects slowing down
Real Estate Market in Geneva ….. with strong absorption rates and new housing projects slowing down Housing space under construction in the Canton of Geneva Source: OCSTAT, CBRE Feb 2023 FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 9
Slide 10: Rents growing by +7% upon change of tenant in Geneva
Real Estate Market in Geneva Rents growing by +7% between 2021 and 2022 upon change of tenant in Geneva Evolution of effective rents based on current leases (“free” rental market, excluding new apartments) For all tenants No change of tenant After a change of tenant (Rhs) 2.5% 25.0% 2.0% 20.0% 1.5%
Slide 11: Sharp decline in investment volumes
Real Estate Market in Geneva Sharp decline in investment volumes Source: OCSTAT, CBRE FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 11
Slide 12: Residential yields: upward pressure from rising interest rates
Real Estate Market in Switzerland Residential yields: upward pressure from rising interest rates Reduced spread with prime residential yield following the three hikes in interest rates by the SNB Source: CBRE , SNB, Feb 2023 FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 12
Slide 13: Shortage of apartments expected as of 2026
Real Estate Market in Switzerland As of 2026 a shortage of 50’000 apartments is expected mainly in the red areas No shortage expected 0 - 150 150 -300 300 – 450 450 – 750 750 and more Source: WP & NZZaS Feb 2023 FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 13
Slide 14: Market outlook: price adjustments could be partly offset
Real Estate Market in Geneva Market outlook: price adjustments could be partly offset by strong market fundamentals ▪ Yield de-compression has started in 2nd HY 2022 as a result of rising interest rates and decreasing volume of capital to be invested into real estate ▪ Residential vacancy rates are
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 Residential block built in 1986 with 40 residential units and 2 retail units 339 2014 Renovation of bathrooms and kitchens 2015 Additional energy e
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 2022 Market trends Financial overview FY 2022 Outlook Q&A Annexes FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 17
Slide 18: Solid operating results coupled with revaluation effects and gains on sale
Solid operating results coupled with revaluation effects and gains on sale of properties Substantial increase in NAV to CHF 95.07 per share excluding deferred taxes (+7.1%) ▪ Investis Group: − Revenue of CHF 228m (FY 2021: CHF 216m) – a 5.3% growth despite the sale of properties − EBITDA before reva
Slide 19: Investis Group: Overview on the excellent financial performance FY 2022
Investis Group: Overview on the excellent financial performance FY 2022 FY 2022 FY 2022 (CHFm) FY 2022 Δ in % FY 2021 FY 2020 FY 2019 Revenues Invested Capital Revenue 227.5 5.3 216.0 178.7 187.5 4% EBITDA 25% 53.5 -0.3 53.7 45.5 46.7 before revaluations/disposals Income from revaluations 67.2 -63.5
Slide 20: Properties: slightly lower top line due to sale of eleven properties
Properties: slightly lower top line due to successful sale of eleven residential properties EBIT enhanced by revaluation effects and sales >20% above their book value (CHFm) FY 2022 Δ in % FY 2021 FY 2020 FY 2019 Revenue and like-for-like rental growth (Revenue in CHFm) Revenue 57.8 -3.7 60.0 57.9 5
Slide 21: Properties: vacancy rate at lowest level
Properties: vacancy rate at lowest level – almost exclusively for renovations Property Portfolio: 149 buildings – 2,445 residential units – value CHF 1,508m Low vacancy 1.3% Residential GE 1.4% Note: 1) Based on number of apartments. In the Canton of Geneva the kitchen is considered as one room whil
Slide 22: 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 (CHFm) +10% 64.2 61.2 57.7 58.6 53.9 60.0 +1.0% 57.0 57.9 57.8 55.0 (CHFm) 40.0 37.8 37.2 36.8 1) 35.0 Current rent 40.8 Market rent 6.3% 41.9 74
Slide 23: Real Estate Services: increases its contribution to Group EBITA
Real Estate Services: increases its contribution to the Group’s EBITA Excellent EBIT margin achieved again (CHFm) FY 2022 Δ in % FY 2021 FY 2020 FY 2019 FY 2022 Revenues Revenue 173.5 +8.5 159.8 124.6 136.0 EBIT 18.4 +23.3 14.9 10.8 11.5 35% EBIT margin 10.6% 9.3% 8.6% 8.4% 65% ▪ Revenue growth to a
Slide 24: Real Estate Services: development over the years
Real Estate Services: development over the years Steady growth of top line and much improved profitability Revenue evolu on EBIT margin evolu on ( m) 180 160 12.0% % 140 10.0% % 120 % % 8.0% 100 80 6.0% % 60 4.0% 40 2.0% 20 0 0.0% 2018 201 2020 2021 2022 2018 201 2020 2021 2022 Revenue of di s pos e
Slide 25: Investis Group: Excellent Net profit
Investis Group: Excellent Net profit EPS at CHF 11.90 (CHFm) FY 2022 Δ in % FY 2021 FY 2020 FY 2019 EBIT 180.4 -23.3 235.1 136.2 127.2 ▪ Lower financial expenses due to lower interest costs, repayment of short-term and flexible Financial income 0.4 -87.8 3.2 0.5 5.8 financing Financial expenses -2.8
Slide 26: Solid capital structure and increased investment power
Solid capital structure and increased investment power Strong balance sheet – reduced financial debt – LTV of 21% Balance Sheet (CHFm) 31.12.2022 Δ in % 31.12.2021 31.12.2020 31.12.2019 Debt structure (CHFm) 31.12.2022 Cash and cash equivalents 4 -22.1 5 15 66 Bonds 255 Properties portfolio 1'508 -1
Slide 27: Debt structure – no properties pledged
Debt structure – no properties are pledged to secure available credit lines Strategy of a low LTV of around 40% unchanged since IPO 800 700 660 Maturity of financial liabilities as at 600 184 (CHFm) 31.12.2022 520 560 500 30 Due within the first year 64 140 400 435 Due within the second year 300 (CH
Slide 28: Agenda
Agenda Highlights of FY 2022 Market trends Financial overview FY 2022 Outlook Q&A Annexes FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 28
Slide 29: 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 ▪ As of 2022 Investis is participating in SSREI (Swiss Sustainable Real Estate Index
Slide 30: Outlook 2023
Outlook 2023 Residential properties market in CH has solid fundamentals despite rising interest rates ▪ 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 an
Slide 31: 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 of +10% – low exposure in commercial properties lower c
Slide 32: Agenda
Agenda Highlights of FY 2022 Market trends Financial overview FY 2022 Outlook Q&A Annexes FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 32
Slide 33: Thank you for your attention
THANK YOU FOR YOUR ATTENTION FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 33
Slide 34: 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 35: Fundamental business strengths
Fundamental business strengths Value proposition FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 35
Slide 36: Very focused and attractive portfolio around the Lake Geneva region
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: 23% ▪ Lake Geneva region ▪ Middle segment (no luxury apartments) ▪ Low vacancy rates GE: 71% VS: 6% FU
Slide 37: 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 38: Property Management – focused on recurring contracts
Property Management – focused on recurring contracts FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 38
Slide 39: Facility Services – hauswartprofis/conciergepro
Facility Services – hauswartprofis/conciergepro …. FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 39
Slide 40: Facility Services – rohr ag
Facility Services – rohr ag …. FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 40
Slide 41: Facility Services – home service
Facility Services – home service …. FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 41
Slide 42: Facility Services – analysis LAB
Facility Services – analysis LAB FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 42
Slide 43: Facility Services – aatest
Facility Services – aatest FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 43
Slide 44: Organisation
Organisation FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 44
Slide 45: Thank you for your attention
THANK YOU FOR YOUR ATTENTION FULL-YEAR 2022 RESULTS – IR PRESENTATION – 23 MARCH 2023 45