Half-year Report 2025 (Half year Report 2025)

Half-year Report 2025

Allreal Half-year Report 2025

Management report Financial report Additional information

1st half-year (CHF million)

As at 30 June and 31 December (CHF million)

5097.2

5077.3

5185.4

5204.2

116.8

81.8

82.7

66.7

60.5

67.2

62.6

44.3

1st half-year (CHF million)

1st half-year (CHF million)

106.8

108.5

111.0

103.5

155.5

143.0

126.3

118.5

Allreal Half-year Report 2025

Management report Financial report Additional information

Key figures at a glance

Enterprise value9 CHF million 5 833.8 5 429.7 7.4

* Should no further particulars be given, values referring to the income statement concern the first half-year, and balance sheet values the balance sheet dates 30 June 2025 and 31 December 2024.

1. Changes in number and percentage values are shown as an absolute difference

2. Rental income from investment properties plus completed project volume in the Realisation division

3. Revaluation gains refer to gains from the revaluation of investment properties less deferred taxes on revaluation

4. Borrowings minus cash and marketable securities as a percentage of equity

5. Borrowings minus cash and marketable securities

6. Income from Realisation, sales Development, capitalised own developments and various revenues minus direct expenses from Realisation and sales Development

7. Earnings from Realisation as a percentage of income from Realisation division

8. Share price at balance sheet date multiplied by the number of outstanding shares

9. Market capitalisation plus net finance debts

Allreal Half-year Report 2025

Management report Financial report Additional information

Real estate at a glance

* Should no further particulars be given, values referring to the income statement concern the first half-year, and balance sheet values the balance sheet dates 30 June 2025 and 31 December 2024.

1. Changes in number and percentage values are shown as an absolute difference

2. The change includes the sale of the property at Marterlochstrasse 21 in Bülach, the reclassification of the fully renovated property at Freiburgstrasse 130 in Bern and the reclassification of the property under construction at Baarermatte in Baar.

3. As a percentage of target rental income, cumulative as at balance sheet date

4. Rental income from investment properties as a percentage of continued market value of investment properties as at 1 January

5. Rental earnings from investment properties as a percentage of continued market value of investment properties as at 1 January

6. Building and land costs

Allreal Half-year Report 2025

Management report Financial report Additional information

‌Table of contents

Management report

Letter to shareholders 7

Financial commentary 9

Portfolio and projects at a glance 12

Financial report

Consolidated half-year financial statements of Allreal Group 16

Information on the property portfolio 35

Additional information

Alternative performance measures 44

Information on investment properties 48

Key share data 49

Organisation and schedule 50

Management report

Allreal Half-Year Report 2025 Management report

Financial report Additional information

‌Letter to shareholders‌

‌Swiss real estate continued to become more attractive in the first half of the year. The main drivers are falling interest rates, a robust economy and population growth. Demand for commercial premises in well-connected locations remains intact, but the market is challenging. In the case of residential properties, demand continues to significantly exceed supply, particularly in urban locations. Vacancy rates are low and demand for home ownership is correspondingly high. In terms of realisation, the shortage of skilled workers continues, but building costs are no longer rising and construction activity has gained momentum.

Even though there is increased global and economic uncertainty, the expectations for the Swiss economy are currently positive. Following the SNB's interest rate cuts in March and June, the key interest rate currently stands at 0%. Accordingly, the interest rate environment continues to benefit the real estate sector.

Allreal benefited from the positive environment, with its net profit increasing significantly in the first half of the year. As expected, rental income decreased year on year owing to various portfolio changes. However, this effect was offset by higher earnings from Development & Realisation, a lower financial expense and the sale of an investment property that no longer fitted with the strategy. Including the latest rise in the value of the portfolio, Allreal achieved a significantly higher net profit of CHF 116.8 million (first half-year of 2024: CHF 67.2 million).

Our high-quality real estate portfolio in central locations in the Canton of Zurich and around Lake Geneva is generating stable income over the long term thanks to a balanced investment mix covering office, education, industry and residential use. We modernise or sell investment properties that are no longer optimally positioned in the market or if they lack development potential.

On Freiburgstrasse at Europaplatz in Bern, we finished the extensive renovation work for Forum West in the first half of the year - it now presents itself in new splendour. Since July, the property has been the new headquarters of the transport company BLS. Our property at Baarermatte in Baar near Zug is also undergoing a major transformation. The conversion of an office building at the end of its lifetime into a new mixed-use complex with the highest sustainability standards will generate significant added value. Following receipt of a legally enforceable construction permit this spring, demolition of the existing property will begin at the end of the summer.

Because we manage the technical and commercial aspects of our properties ourselves, we have first-hand knowledge of the challenges involved and are in close contact with our tenants. This also helps us when letting and re-letting our space.

In the first half of the year, we signed leases for around 44,000 m2, including on Herostrasse, Vulkanstrasse and Zollstrasse/Josefstrasse/Klingenstrasse in the city of Zurich. Significant agreements were also reached for the Dreieck site in Winterthur and the Richti site in Wallisellen.

Allreal Half-Year Report 2025 Management report

Financial report Additional information

The high quality of our portfolio is also reflected in the valuations by Wüest Part-ner's external real estate valuers. In the first half of the year, the portfolio underwent a positive revaluation of CHF 70.3 million, driven by the signing of new leases, higher market rents and the favourable interest rate environment.

Our Development & Realisation activities are an integral part of our business model. Besides exploiting the potential in our own portfolio, we develop and build projects for sale as condominiums. Our projects on Spiserstrasse in Zurich and Avenue de l'Amandolier in Geneva will be completed as scheduled in the second half of the year. In both cases, all of the apartments have been sold. In Lucerne and Zumikon, we started marketing and constructing new properties for sale in the first half of the year. Demand is in line with our expectations. We are therefore confident that here, too, the units that are still free will be sold by the time construction is completed. We also anticipate the sale of condominiums to contribute to earnings accordingly over the next few years.

We are keeping a close eye on the expansion of our pipeline. After the balance sheet date, we acquired a new development plot at Geissacher in Zumikon. We will develop and realise a new residential development with condominiums over the next few years. In Zurich Seebach, we have developed the Köschenrüti garden town residential development for a customer as a full-service provider. The planning application for the project was submitted at the beginning of the year. The construction contract for the project was obtained in the first half of the year as well.

In the first half of the year, we installed additional photovoltaic systems at our properties and in September we will complete the expansion begun in 2021 with the last major installation in the portfolio for the time being. In total, the installed kWp output exceeds 7,500 kWp.

We have also pushed ahead with our efforts to optimise the operation and energy of the properties in the portfolio, as well as signing a framework agreement for the long-term procurement of biogas in addition to several property renovations. In the future, around half of the gas required by our properties in German-speaking Switzerland will be covered by biogas. We see this as an important interim step on the way to decarbonising the portfolio. We will halve the share of fossil fuels in our energy consumption by 2030 and want to meet our net zero target across our portfolio by 2050.

Allreal is in good financial health, generating stable rental income over the long term and additional earnings from its attractive development pipeline. We are well positioned to continue to build value for our shareholders.

Chairman of the Board of Directors CEO

Allreal Half-Year Report 2025 Management report

Financial report Additional information

‌Financial commentary

In the first half of the year, our net profit increased by 73.8% to CHF 116.8 million (first half-year of 2024: CHF 67.2 million). The revaluation effect amounted to CHF 70.3 million (first half-year of 2024: CHF 6.7 million). Excluding revaluation effect, net profit increased to CHF 62.6 million (first half-year of 2024: CHF 60.5 million). Rental income was down year on year. However, this was offset by higher income from the sale of condominiums and a lower financial expense.

Rental income amounted to CHF 103.5 million in the first half of the year (first half-year of 2024: CHF 111.0 million). This development is primarily attributable to changes in the portfolio, with a corresponding impact on the basis for comparison. In the first half of the previous year, we had begun to modernise the commercial building on Freiburgstrasse in Bern. The property still contributed to rental income in the first quarter of 2024. In the second half of 2024, we sold the properties on Missionsstrasse in Basel and Chemin du Gué in Petit-Lancy. This meant that they were no longer generating income in the first half of 2025. In addition, we launched the new-build project at Baarermatte in Baar in the reporting period. The commercial building was therefore only generating income until the end of March 2025.

The cumulative vacancy rate increased compared with the previous year to stand at 2.9% (first half-year of 2024: 1.5%). The increase is mainly attributable to the spaces that are still free in the property on Freiburgstrasse in Bern, our office building at Geneva Airport and vacated space on the Richti site. However, our vacancy rate remains low by industry standards.

The weighted remaining term of fixed-term commercial leases at 30 June 2025 was 5.3 years. Around 11% of leases are due to expire within the next two years.

At CHF 10.7 million, direct expenses for rented investment properties were down (first half-year of 2024: CHF 13.2 million). The expense ratio declined to 10.3%; the net yield amounted to 3.7%.

One investment property in Bülach was sold in the first half of the year. The building on Marterlochstrasse did not fit with our strategy and was sold to the operating company. At the reporting date the portfolio comprised a total of 79 properties, consisting of 36 residential and 39 commercial properties, as well as 4 properties under construction.

The valuation by Wüest Partner's external expert resulted in an upward revaluation of the portfolio before taxes of CHF 70.3 million (first half-year of 2024: CHF 6.7 million). The positive value adjustment can be attributed to the successful signing of new leases, higher market rents and the favourable interest rate developments. The applicable capitalisation rates fell slightly.

The market value of the portfolio at the reporting date was around CHF 5.20 billion, slightly above the level at the end of 2024 (31.12.2024: CHF 5.19 billion).

Overall, the Real Estate segment generated net operating profit of CHF 57.8 million (first half-year of 2024: CHF 61.7 million).

Income from business activities in the Development & Realisation segment increased to CHF 26.0 million (first half-year of 2024: CHF 21.3 million). This development can mainly be attributed to the higher contribution to earnings from the sale of condominiums. In the first half of the year, the main driver was our project on Spiserstrasse in Zurich. Also contributing to the higher income from sales were the projects on Avenue de l'Amandolier and Avenue du Curé-Baud in the Canton of Geneva. The Panorama Eggen project in Lucerne and the Strubenacher Living project in Zumikon, which went on sale in the first half of the year, will ensure that we will continue to generate relevant earning contributions from the sale of condominiums in the years to come.

At CHF 126.3 million, the completed project volume in the Realisation division was above the level of the previous year (first half-year of 2024: CHF 118.5 million). At the same time, it should be noted that construction services were still being provided for third parties in Western Switzerland in the first half of 2024. Of the total volume of projects completed, around 40% related to own projects intended either for our portfolio or for sale. This share will remain stable in the course of the financial year.

Income from realisation fell in the first half of 2025 to CHF 9.0 million (first half-year of 2024: CHF 10.5 million). This change is based on a lower volume of third-party projects and correspondingly lower income from fees and construction ac-tivitiy. The gross margin on third-party projects was 11.9% (first half-year of 2024: 13.4%).

Operating expenses decreased by 3.7% year on year to CHF 20.8 million (first half-year of 2024: CHF 21.6 million), while operating profit was CHF 9.3 million (first half-year of 2024: CHF 3.1 million).

Overall, net profit in the Development & Realisation segment improved significantly, amounting to CHF 5.2 million (first half-year of 2024: CHF 1.2 million).

The order backlog grew to CHF 786 million at the halfway point of the year, corresponding to a good level of capacity utilisation in the Realisation division for more than 24 months.

In April 2025, we issued another green bond for CHF 125 million, with a coupon of 1.375% and a maturity of seven years. The average interest rate fell to 1.16% as of the balance sheet date, while the interest lock-in period remained stable at 38 months (31.12.2024: 1.25% / 40 months).

As at the balance sheet date, financial liabilities had increased slightly to CHF 2.76 billion following the distribution to shareholders in April 2025 (31.12.2024: CHF 2.70 billion). Of these, 48.1% were bonds, 34.4% fixed-rate mortgages and 17.5% fixed advances.

As at the balance sheet date, the equity ratio amounted to 44.0%, net gearing to 104.4% and the interest coverage ratio to 6.0 (31.12.2024: 44.9% / 102.1% / 5.5). The loan to value (LTV) was unchanged at 47.5% as at the reporting date (31.12.2024: 47.5%). We will focus on these parameters in the future as well and ensure long-term stable financing.

In terms of 2025 full year, we still expect operating profit to be roughly the same as in 2024, as well as stable balance sheet figures. Financing costs will be lower than in the previous year. In the Real Estate segment, we expect rental income to be lower as a result of renovations and tenant changes. However, the decrease remains a temporary effect and will be more than offset in the medium term by improved earnings. In the Development & Realisation segment, we expect income from the sale of condominiums to rise over the year as a whole, an overall slightly higher construction volume and lower operating expenses.

CFO

Financial report Additional information

‌Switzerland's business centres

Text

Allreal has a carefully selected portfolio of commercial and residential properties, focusing on the business centres of Zurich and Geneva. The portfolio has grown steadily in recent years, partly as a result of acquisitions but mainly thanks to a supply of high-quality modern properties from Allreal's own site and project developments.

New leases in Zurich Altstetten

During the reporting period, we extended a major lease on

Herostrasse in Zurich Altstetten for another ten years. New leases were also signed for the property on Vulkanstrasse, one of several high-quality commercial properties in the vicinity of Altstetten railway station owned by Allreal.

Rental agreements successfully negotiated at Zurich main station and in Winterthur

For our property on Zollstrasse, right by the main railway station in Zurich, we extended two leases at the same time in the first half of the year, each for ten years. One of these was with a major retailer.

We also successfully negotiated other rental agreements for Lind-bergh-Allee in Glattpark and the Dreieck site in Winterthur.

Modernisation completed at Freiburgstrasse

With the completion of the modernisation of Freiburgstrasse, the commercial property Forum West began generating income again from the second half of the year. The anchor tenant is BLS.

Overview of Portfolio:

allreal.ch/immobilien/portfolio

Development projects creating added value and growth

For a customer, we are carrying out a mandate as service developer and supporting them in designing the Köschenrüti

Pioneering sustainability project moves into the implementation phase

At Baarermatte, on the edge of Zug, a mixed-use complex with 104 apartments and more than 6,000 square metres of office and commercial space will be developed over the next three years. The previous tenants moved out of the existing property at the end of March, allowing preparatory work to begin with the transplanting of over 30 trees.

Baarermatte is setting new standards when it comes to the circular economy and minimal resource consumption. Demolition will start in September; we will be reusing parts from the existing building as part of the new project. The new apartments will be sold as condominiums and the commercial space added to the portfolio.

New rental apartments for Zurich Altstetten

On Badenerstrasse 501-505 in Zurich Altstetten, we are planning a residential building with more than 60 rental apartments, as well as commercial space. The project, based on the plans of Michael Meier and Marius Hug Architects, boasts a

central location with a reduced use of concrete and adequate floor plans.

The building will be carbon-neutral in operation. Construction is scheduled to start in 2026, with the work being finished around two years later.

Onlineberichterstattung Portfolio&Projekte: allreal.ch/en/investors-and-media/reporting/half-year-report-2025/portfolio-projects

Financial report

Start Finazberichtbericht 0.

Allreal Half-Year Report 2025

Management report Financial report Additional information

‌Consolidated half-year financial statements of Allreal Group‌

CHF million Retained earnings

Capital reserves represent the amount (premium) earned by shareholders over and above the nominal value on subscription of share capital of Allreal Holding AG after deduction of the corresponding issue costs. The capital reserves and retained earnings can be distributed to shareholders up to the statutory minimum requirement of CHF 8.3 million (50% of share capital).

CHF million Note 1st half-year

2025

1st half-year

2024

1. EBIT less revaluation gains as a percentage of income from business activity (balance of operating income, direct operating expenses, capitalised own development, and income from sale of investment properties)

2. Assignment of equity to individual segments corresponds to internal financial reporting guidelines requiring an equity ratio of 40% for the Development & Realisation segment; financial and tax liabilities will be assigned accordingly.

1. EBIT less revaluation gains as a percentage of income from business activity (balance of operating income, direct operating expenses, capitalised own development, and income from sale of investment properties)

2. Assignment of equity to individual segments corresponds to internal financial reporting guidelines requiring an equity ratio of 40% for the Development & Realisation segment; financial and tax liabilities will be assigned accordingly.

1. Basic principles
   1. Basis of preparation

      The consolidated half-year financial statements for 2025 were prepared in accordance with Swiss GAAP FER 31 "Complementary recommendation for listed com-panies" and are compatible with the Listing Rules as well as Article 17 of the Directive on Financial Reporting (DFR) of SIX Swiss Exchange. The same accounting principles apply as for the consolidated financial statements for 2024. No new FER standards had come into force as at 1 January 2025.

      Individual business activities of Allreal Group are subject to fluctuations over the course of the year, in particular in the Development & Realisation segment - for example the planning and execution of construction projects and the sale of development properties. No exceptional circumstances came about in the first half of 2025 that had a significant impact on the asset, financial or earnings situation of Allreal Group.

      The consolidated half-year financial statements 2025 were approved by the Board of Directors of Allreal Holding AG on 20 August 2025.

      1.2 Scope of consolidation
      	Registered	Share capital	Shareholding	Shareholding
      Company	office	CHF million	in 2025	in 2024
      Allreal Holding AG	Opfikon ZH	16.60	-	-
      Allreal Generalunternehmung AG	Opfikon ZH	10.00	100%	100%
      Allreal Home AG	Opfikon ZH	26.52	100%	100%
      Allreal Office AG	Opfikon ZH	150.00	100%	100%
      Allreal Romandie SA	Plan-les-Ouates GE	0.10	100%	100%
      Allreal Toni AG	Opfikon ZH	90.00	100%	100%
      Creactive Properties SA1	Plan-les-Ouates GE	-	-	100%
      Roof SA	Plan-les-Ouates GE	0.50	100%	100%

      1 Merged with Allreal Romandie SA effective 1 January 2025

      Compared to 31 December 2024, the scope of consolidation changed following the absorption of Creactive Properties SA by Allreal Romandie SA. The company was fully owned directly by Allreal Holding AG in the previous year, meaning that there were no changes for consolidation purposes.

2. Rental income from investment properties

   	1st half-year	1st half-year
   CHF million	2025	2024
   Rental income from residential properties	27.0	26.4
   Rental income from commercial properties	76.5	84.6
   Income from renting investment properties	103.5	111.0

   The cumulative vacancy rate for the first half of 2025 totalled 2.9% of target rental income (compared with 1.5% in the first half of 2024), with residential properties accounting for 0.7% and commercial properties 3.8% (compared with 0.8% and 1.7%, respectively, in the first half of 2024).

3. Income from sale of investment properties

   CHF million	1st half-year 2024	1st half-year 2024
   Proceeds from sale	11.0	0.0
   Transaction costs on sale	-0.1	0.0
   Balance sheet value = market value on 31 December of the previous year	-8.4	0.0
   Earnings from sale of investment properties	2.5	0.0

   In the first half of 2025, a property on Marterlochstrasse in Bülach was sold for CHF 11 million. After deduction of all transaction costs, income from sale of investment properties amounted to CHF 2.5 million.

4. Earnings from Development & Realisation

   	1st half-year	1st half-year
   CHF million	2025	2024
   Income from Realisation	75.9	78.3
   Direct expenses from Realisation	-66.9	-67.8
   Earnings from Realisation	9.0	10.5
   Income from sales Development	28.8	11.0
   Direct expenses from sales Development	-18.5	-6.8
   Income from sales Development	10.3	4.2
   Capitalised own developments	4.9	4.5
   Other income	1.8	2.1
   Earnings from Development & Realisation segment	26.0	21.3

   Earnings from realisation consists of architects' and project & development fees (CHF 6.3 million) and earnings from construction activity (CHF 2.9 million) (first half-year of 2024: CHF 9.3 million/CHF 1.7 million). This contrasts with directly offset sales deductions of CHF 0.2 million (first half-year of 2024: CHF 0.5 million).

   Income from sales Development is made up of revenue from the Spiserstrasse in Zurich, Avenue de l'Amandolier in Geneva and Avenue du Curé-Baud in Grand-Lancy residential real estate projects (CHF 28.8 million). This resulted in gains on sales of CHF 10.3 million.

5. Direct expenses for rented investment properties

   	1st half-year	1st half-year
   CHF million	2025	2024
   Administrative and operating expenses, residential properties	-0.7	-1.1
   Administrative and operating expenses, commercial properties	-3.8	-3.5
   Maintenance and repair expenses, residential properties	-2.2	-2.2
   Maintenance and repair expenses, commercial properties	-4.0	-6.4
   Real estate expenses	-10.7	-13.2

6. Personnel expenses

   	1st half-year	1st half-year
   CHF million	2025	2024
   Salaries and wages	-15.2	-16.5
   Social insurance benefits	-1.3	-1.7
   Employee pension plans	-1.4	-1.2
   Share-based remuneration	-0.6	-0.1
   Other personnel expenses	-1.4	-1.2
   Personnel expenses	-19.9	-20.7

7. Other operating expenses

   	1st half-year	1st half-year
   CHF million	2025	2024
   IT expenses	-1.0	-0.9
   Rental expenses	-0.3	-0.3
   Consultancy and legal fees	-0.7	-1.1
   Administration expenses	-1.9	-1.8
   Capital taxes	-1.1	-1.0
   Other general operating expenses	-0.4	-0.3
   Other operating expenses	-5.4	-5.4

8. Income from revaluation of investment properties

   	1st half-year	1st half-year
   CHF million	2025	2024
   Higher valuation of investment properties	86.0	9.5
   Higher valuation of investment properties under construction	2.2	4.5
   Lower valuation of investment properties	-17.9	-7.3
   Lower valuation of investment properties under construction	0.0	0.0
   Earnings from revaluation of investment properties	70.3	6.7

   The higher valuation of investment properties can be attributed to revaluations of commercial properties and residential properties amounting to CHF 31.7 million and CHF 54.3 million, respectively (first half-year of 2024: commercial properties CHF 9.5 million / residential properties CHF 0 million). CHF 17.9 million of the lower valuation of investment properties relates to commercial properties (first half-year of 2024: commercial properties CHF 7.3 million / residential properties CHF 0 million).

   As at 30 June 2025, the average capitalisation rates amounted to 2.88% (31.12.2024: 2.93%)

   Wüest Partner AG continues to act as the external valuation expert on a contract basis.

9. Financial expense

In the Development & Realisation segment, expenses for property gains taxes are contingent on the time of sale of development properties; in the Real Estate segment, they are contingent on sales from the portfolio. These property taxes are incurred on an irregular basis accordingly.

1. Net profit per share/net asset value (NAV) per share

   	1st half-year	1st half-year
   	2025	2024
   Number of outstanding shares as at 1 January (in thousands)	16 511	16 510
   Authorized capital increase (in thousands)	-	-
   Change in holdings of treasury shares (in thousands)	3	1
   Number of outstanding shares on balance sheet date (in thousands)	16 514	16 511
   Average number of outstanding shares (in thousands)	16 515	16 513
   Net profit excl. revaluation effect (in CHF million)	62.6	60.5
   Earnings from revaluation of investment properties (in CHF million)	70.3	6.7
   Deferred taxes on revaluation gains (in CHF million)	-16.1	0.0
   Net profit incl. revaluation effect (in CHF million)	116.8	67.2
   Earnings per share incl. revaluation effect (CHF)	7.07	4.07
   Earnings per share excl. revaluation effect (CHF)	3.79	3.66
   Diluted earnings per share
   - incl. revaluation effect (CHF)	7.07	4.07
   - excl. revaluation effect (CHF)	3.79	3.66

   The share-based remuneration of members of Group Management has the effect of diluting the earnings per share. For this calculation, the average number of outstanding shares increases from 16, 513,218 to 16, 514,948 shares.

   CHF million	30.06.2025	31.12.2024
   Outstanding shares on balance sheet date (in thousands)	16 514	16 511
   Equity on balance sheet date (CHF million)	2 642.8	2 641.0
   Net asset value (NAV) per share after deferred taxes (CHF)	160.03	159.95
   Equity plus provision for deferred taxes less deferred tax assets (CHF million)	3 087.1	3 063.7
   Net asset value (NAV) per share before deferred taxes (CHF)	186.94	185.56

2. Investment properties

   CHF million	30.06.2025	31.12.2024
   Residential properties	1 712.4	1 654.3
   Commercial properties	3 443.7	3 455.9
   Investment properties	5 156.1	5 110.2
   Investment properties under construction	48.1	75.2
   Investment properties	5 204.2	5 185.4

   The changes in the first half of 2025 can be summarised as follows:

   CHF million	Residential properties	Commercial properties	Total yield-producing properties	Investment properties under con- struction	Total investment properties
   As at 01.01.2025	1 654.3	3 455.9	5 110.2	75.2	5 185.4
   Purchases	0.0	0.0	0.0	0.0	0.0
   Value-enhancing investments	3.8	20.2	24.0	9.8	33.8
   Capitalised building loan interest	0.0	0.0	0.0	0.2	0.2
   Disposals	0.0	-8.4	-8.4	0.0	-8.4
   Reclassifications	0.0	-38.5	-38.5	-39.3	-77.8
   Market value adjustments	54.3	13.8	68.2	2.2	70.3
   Rent-free periods	0.0	0.6	0.6	0.0	0.6
   As at 30.06.2025	1 712.4	3 443.7	5 156.3	48.1	5 204.2
   of which pledged or	1 197.5	2 678.6	3 876.1	0.0	3 876.1
   subject to transfer restrictions	69.9%	77.8%	75.2%	0.0%	74.5%

   The value-enhancing investments relate to the investment properties Freiburgstrasse 130, Bern (CHF 9.3 million), Allianz office building, Wallisellen (CHF 1.5 million), Hohenstieglenstrass 12-13 and 2-16, Glattbrugg (CHF 0.9 million), Vulkanstrasse 106, Zurich Altstetten (CHF 0.8 million), Zollikerstrtrasse 183, Zurich (CHF 0.7 million) and miscellaneous other properties (CHF 10.8 million). The reclassifications relate to the property on Freiburgstrasse in Bern as a commercial property, Baarematte in Baar as an investment property under construction and building under construction, and the property at Soodmattenstrasse 8/10 in Adliswil as a development reserve.

   Largest tenants, commercial properties

   The five largest tenants accounted for 33% of the total rental income from commercial properties:

   CHF million	30.06.2025	31.12.2024
   Canton Zurich	16%	15%
   Allianz Suisse Insurance Company Ltd	6%	6%
   Everllence Switzerland Ltd	5%	4%
   Generali Switzerland	3%	5%
   La Prairie Group Ltd	3%	3%
   Total	33%	33%

   The five largest tenants' share of total rental income from all investment properties (residential and commercial) in the first half-year of 2025 amounts to around 24% (Canton of Zurich 12%, Allianz Suisse Insurance Company Ltd 4%, Everllence 4%, Generali Switzerland 2% and La Prairie Group 2%).

   Maturity profile of commercial leases

   4

   1

   6

as a percentage of outstanding rental income (CHF million - rounded)

2025

2026

2027

2028

2029

2030

2031

2032

2033

>2034

Open-ended

contract end existing leases

The weighted remaining term of fixed-term commercial leases is 5.3 years (31.12.2024: 5.0 years) and takes into account the earliest possible date that the tenant can terminate their contract. We have already found a follow-up solution for over half of the leases that are due to expire in 2025.

1. As per valuation on 30.06.2025

2. Building and land costs

Baarematte, Baar

New build of the commercial property with a mobility tower in a pioneering sustainability concept certified to the SNBS Gold standard. The amount of space available for rent totals more than 6,000 m2. The project is being executed by the Realisation division and, upon completion in the second half of 2028, will be reported in the portfolio of investment properties. For the market valuation as at the balance sheet date, nominal discount and capitalisation rates of 4.33% and 3.30%, respectively, were applied.

The investment property under construction is 100% solely owned by Allreal.

Avenue de l'Amandolier, Geneva

Construction of a new apartment building with 16 rental apartments, as well as retail space. The amount of space available for rent totals 1291 m2. The project is being executed by the Realisation division and, upon completion in the second half of 2025, will be reported in the portfolio of investment properties. For the market valuation as at the balance sheet date, nominal discount and capitalisation rates of 3.47% and 2.45% were applied (31.12.2024: 3.78% / 2.50%).

The investment property under construction is 100% solely owned by Allreal.

Rue Edouard-Rod, Geneva

Construction of a new apartment building with 16 rental apartments, as well as retail space on the ground floor. The amount of space available for rent totals 1328 m2. The project is being managed by the Realisation division and, upon completion in the second half of 2025, will be reported in the portfolio of investment properties. For the market valuation as at the balance sheet date, nominal discount and capitalisation rates of 3.47% and 2.45% were applied (31.12.2024: 3.78% / 2.50%).

The investment property under construction is 100% solely owned by Allreal.

Renggerstrasse, Zurich

Conversion of a commercial building into an apartment building consisting of 21 apartments, covering 1,591 m2 of rentable space. The project is being executed by the Realisation division and, upon completion in the first half of 2026, will be reported in the portfolio of investment properties. For the market valuation as at the balance sheet date, nominal discount and capitalisation rates of 3.22% and 2.20% were applied (31.12.2024: 3.53% / 2.25%).

The investment property under construction is 100% solely owned by Allreal.

1. Development properties

   CHF million	Development reserves	Buildings under construction	Completed properties	Development properties
   As at 01.01.2025	451.0	50.5	0.0	501.5
   Purchases	0.0	0.0	0.0	0.0
   From construction activity/development	2.2	18.5	0.0	20.7
   Income from sales Development	0.0	10.3	0.0	10.3
   Impairment	0.0	0.0	0.0	0.0
   Disposals / offsetting prepayments	0.0	-1.7	0.0	-1.7
   Reclassifications	-2.7	80.3	0.0	77.6
   As at 30.06.2025	450.5	157.9	0.0	608.4

   The reclassification concerns the projects Eggen in Lucerne and Strubenacher in Zumikon from development reserves to buildings under construction and Baarermatte in Baar from investment properties to buildings under construction, as well as Soodmattenstrasse 8/10 in Adliswil from investment properties to development reserves. The rest of the changes are in line with the normal progress of the projects shown in the balance sheet at their various stages.

   As at 30 June 2025, the composition of the balance sheet position of development properties was as follows:

   Location	Properties	Acquisition/ project start	Site area in m²	Register of suspected contamin- ated sites	Book value in CHF million2	Estimated investment volume CHF million¹	Project status	Expected comple- tion
   Development reserves
   Adliswil	Soodmattenstrasse 8/10	2017	10 043	no	49.2	75.0	in planning	open
   Chavannes-près-Renens VD	Av. de la Gare 84 bis / Route de la Maladière	2021	33 111	no	126.0	341.0	in planning	open
   Confignon GE	Route de Base / Ch. des Charrotons 25 / Ch. des Grands-Champs 23	2021	6 231	no	21.0	61.0	in planning	open
   Geneva	Ch. Dr-J-L Prévost 3	2021	1 186	no	14.4	30.0	in planning	open
   Geneva	Ch. Buisson 6	2021	480	no	3.2	4.0	in planning	open
   Geneva	Ch. Mestrezat 5A, 5B et 7	2021	3 762	no	22.0	40.0	in planning	open
   Geneva	Av. de Joli-Mont 2 / Av. Louis-Casaï 12 / Av. de Riant-Parc	2021	2 038	no	7.7	29.0	in planning	open
   Geneva	Av. Louis-Casaï 62	2023	1 932	no	0.7	23.0	in planning	open
   Nyon VD	Route des Tattes d'Oie 83 et 91	2021	6 093	yes	10.1	42.0	in planning	open
   Riehen BS	Inzlingerstrasse	2019	10 883	no	21.4	62.0	in planning	open
   Sunikon-Steinmaur ZH	Hohlgasse 7	2022	4 916	no	12.8	51.0	in planning	open
   Veyrier GE	Pré des Dames	2021	15 441	no	20.8	92.0	in planning	open
   Winterthur ZH	Vitus-Areal	2023	75 000	yes	97.0	535.0	in planning	open
   Zurich	Badenerstrasse 501-505	2020	1 739	no	33.8	65.0	in planning	open
   Zurich	Hauserstrasse	2019	1 341	no	7.1	11.0	in planning	open
   Zurich	Spiserstrasse 15	2023	387	no	3.3	5.8	in planning	open
   Total development reserves					450.5	1 466.8
   Buildings under construction
   Baar	Baarermatte	2002	10 625	no	30.1	130.0	in progress	2028
   Geneva	Av. de l'Amandolier 21	2021	997	no	9.3	11.0	in progress	2025
   Grand-Lancy GE	Av. du Curé-Baud 22	2021	1 040	no	3.5	12.0	in progress	2026
   Lucerne	Eggen	2018	8 386	no	40.0	93.0	in progress	2027
   Zumikon ZH	Strubenacher	2019	4 569	no	15.8	42.0	in progress	2027
   Zurich	Spiserstrasse	2018/2019	3 066	no	59.2	74.4	in progress	2025
   Total buildings under construction					157.9	362.4
   Completed real estate
   Total completed real estate					0.0
   Total development properties					608.4	1 829.2

   1. Land and building costs

   2. Book value includes acquisition costs for the land 100% owned by Allreal and accrued project costs of third parties