Allreal reports higher net profit and positive outlook

Allreal reports higher net profit and positive outlook

• Net profit rises to CHF 219.3 million

• Good operating profit of CHF 122.1 million thanks to higher earnings from the Development & Realisation segment and a lower financial expense
• Higher revaluation of the portfolio of CHF 125.0 million
• Improved key balance sheet figures and sustainable financing
• Positive outlook for 2026
• Stable distribution of CHF 7.00 per share proposed
• Personnel changes on the Board of Directors

The Board of Directors is proposing to the annual general meeting to be held on 17 April 2026 a stable distribution of CHF 7.00 per share. Half of this comes from reserves from contribution of capital.

In the last financial year, rental income in the Real Estate segment fell to CHF 204.0 million (2024: CHF 221.3 million). This temporary decline can primarily be attributed to changes in the portfolio, as well as various one-off effects in the previous year. In the 2024 financial year, Allreal sold the properties on Missionsstrasse in Basel and Chemin du Gué in Petit-Lancy. And in the first half of 2025, the company sold a property on Marterlochstrasse in Bülach and started the new-build project on the Baarermatte site near Zug. It was not possible to offset the loss of this rental income, even with the return to the portfolio of a modernised office building in Bern and two new residential properties in Geneva. Rental income is expected to rise again in the coming years.

The cumulative vacancy rate increased compared with the end of the year to stand at 3.4% (2024: 1.6%). There were already signs in the first half of the year that it would increase. The main drivers are the spaces that are still free on Freiburgstrasse in Bern, in an office building at Geneva Airport and vacated space on the Richti site in Wallisel-len. The weighted remaining term of fixed-term commercial leases at 31 December 2025 was 5.0 years.

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Direct expenses for rented investment properties amounted to CHF 23.8 million, significantly below the previous year's level (2024: CHF 27.2 million). The expense ratio was 11.7%.

In 2025, Allreal sold one commercial property in Bülach and one in Basel. The transactions were conducted 9.0% above book value, resulting in total income from sale of investment properties of CHF 2.6 million. At the reporting date, the portfolio comprised a total of 78 properties.

The valuation by Wüest Partner's external expert resulted in an upward revaluation of the portfolio before taxes of CHF 125.0 million (2024: CHF 121.3 million). This latest

positive value adjustment of the building stock can be attributed to successful lease extensions and new signings, an adjustment of market rents in some cases and the favourable development of the discount rate. The market value of the portfolio at the reporting date was around CHF 5.27 billion (31.12.2024: CHF 5.19 billion).

Ultimately, the Real Estate segment generated net operating profit of CHF 113.8 million (2024: CHF 123.0 million).

Income from business activities in the Development & Realisation segment increased to CHF 52.9 million compared with CHF 42.8 million in the previous year. The segment benefited in particular from the considerably higher contribution to earnings from the sale of condominiums. This increased to CHF 21.1 million (2024: CHF 11.2 million). The main driver was the project on Spiserstrasse in Zurich Albisrieden. Also contributing were the projects on Avenue de l'Amandolier in Geneva and Avenue du Curé-Baud in Petit-Lancy. The Panorama Eggen in Lucerne and Strubenacher Living in Zumikon properties, which went on sale for the first time in the first half of the year, will ensure that the Group continues to generate relevant successful sales in the years to come.

In terms of the volume of projects completed in the Realisation division, it seems that a corner has been turned. The construction volume rose to CHF 282.6 million in the last financial year (2024: CHF 248.1 million). At the same time, it should be noted that construction services were still being provided for third parties in Western Switzerland in the previous year. The share of own projects increased to over 40%, up from around a third in the previous year. Income from Realisation remained stable at CHF 17.3 million (2024: CHF 17.6 million). Thanks to the increase in the share of own projects, capitalised own development rose to CHF 10.9 million (2024: CHF 10.0 million)

Operating expenses fell slightly by 2.6% year on year to CHF 41.5 million (2024: CHF 42.6 million), while operating profit was CHF 19.5 million (2024: CHF 7.4 million). Net profit in the Development & Realisation segment improved, amounting to CHF 10.7 million (2024: CHF 3.0 million).

The order backlog increased to CHF 837 million compared with the previous year, corresponding to a good level of capacity utilisation in the Realisation division for around 30 months.

Allreal benefited from the positive sentiment in the capital markets in the reporting period, issuing two bonds. In April, a green bond was issued for CHF 125 million, with a coupon of 1.375%, and in October, a second green bond for CHF 110 million, with a coupon of 1.04%. The proceeds of the bond issues are being spent on sustainable projects in accordance with the Allreal Green Bond Framework.

The interest rate on debt decreased over the course of the year with an associated positive impact on financing costs. Financial liabilities on the reporting date fell by CHF 24.7 million from the previous year to CHF 2,675.0 million (31.12.2024: CHF 2,699.7 million). Of these, 53.8% were bonds, 32.5% fixed-rate mortgages and 13.7% fixed advances.

The average interest rate on financial liabilities at 31 December 2025 fell to 1.13% (31.12.2024: 1.25%). The average fixed-rate period was 39 months (31.12.2024: 40 months). The loan to value (LTV) decreased by 170 basis points to 45.8% as at the reporting date (31.12.2024: 47.5%).

Group equity increased to CHF 2.75 billion. Earnings per share excluding the revaluation effect were CHF 7.39. The equity ratio at 31 December 2025 was 45.8%, net gearing was 97.2% and the interest coverage ratio was 6.0 (31.12.2024: 44.9% / 102.1% /

5.5).

For the financial year 2026, Allreal expects a higher net operating profit and stable balance sheet figures. In the Real Estate segment, rental income will continue to increase. In addition, the sale of investment properties can be expected to make a substantial contribution to earnings in the first half of the year. The vacancy rate will fall again over the course of the year. In the Development & Realisation segment, Allreal expects a slight rise in income from the sale of condominiums, a slightly higher construction volume and stable operating expenses. However, financing costs will increase slightly, as it is likely that liabilities with a very favourable rate of interest will have to be refinanced at a higher rate.

In line with the step-by-step renewal of the Board of Directors, Chair Ralph-Thomas Honegger and member Peter Spuhler will not be standing for re-election at the next annual general meeting. On behalf of Allreal's shareholders, the Board of Directors would like to thank them for their many years of commitment. Thanks to their strategic vision, extensive expertise and great entrepreneurial spirit, they have made a major contribution to the company's successful development.

The Board of Directors will propose Philipp Gmür as the new Chair. He has been a member since 2019. A Doctor of Law and a lawyer, Philipp Gmür is an experienced executive and holds several mandates in boards of directors and boards of trustees. He previously had various senior roles at Helvetia Group, most recently Group CEO from 2016 to 2023.

The Board of Directors will propose Beat Fellmann and Martin Frischknecht to the annual general meeting for election as new members. Beat Fellmann, born in 1964, has a Master's degree from the University of St. Gallen and is a certified public accountant. He sits on several supervisory bodies and was CFO of the listed companies Implenia and Valora for many years. Martin Frischknecht, born in 1968, has a Doctorate in economics from the University of St. Gallen and a Master's in Finance from London Business School. He is a member of various boards of directors and worked for Credit Suisse for over 20 years, most recently as Managing Director and Member of the Investment Banking Management Committee Switzerland.

This press release and the 2025 Annual Report are available online at www.allreal.ch

Analysts' and media conference

At 9:30 a.m. today (Friday), an analysts' and media conference on the annual results will take place in the Zunft Stube at Hotel Widder in Zurich (Rennweg 7, 8001 Zurich). The event can also be followed digitally (listen-only). The presentation will be given in German: Join the audio webcast

For queries and further information:

Marc Frei

CFO

Tel. 044 319 14 09

Mobile 078 870 00 22 ir@allreal.ch

Reto Aregger

Head of Communications Tel. 044 319 12 67

Mobile 079 325 55 58 reto.aregger@allreal.ch

Allreal Group

Lindbergh-Allee 1

8152 Glattpark https://www.allreal.ch

Allreal combines a high-quality portfolio of commercial and residential properties with outstanding development and realisation expertise. The company's property portfolio is worth around CHF 5.3 billion. This is augmented by development projects with an investment volume of around CHF 2.0 billion. In the 2025 financial year, the volume of projects completed by the Realisation division was around CHF 280 million. The property company employs more than 220 members of staff across Zurich, Basel, Bern and Geneva. With its registered office on Glattpark (Opfikon), Allreal operates exclusively in Switzerland. Shares in Allreal Holding AG are listed on the SIX Swiss Exchange.

Some of the statements made in this press release may relate to the future. Any such statements are based on Allreal's expectations and estimations, but Allreal cannot provide any guarantee that those expectations or estimations will prove to be accurate. Inves-tors should note that all statements relating to the future are associated with risk and uncertainty. The actual future outcomes may differ significantly from the estimations and expectations presented. Unless required to do so by law, Allreal makes no promise to update these statements on the basis of new information, future developments or anything else.

Key figures at a glance

* Should no further particulars be given, values referring to the income statement concern the full year and balance sheet values the cut-off dates 31 December 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 effects correspond 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. Income from Development & Realisation segment, Sales Development, capitalised own developments and other income minus direct expenses from Development & Realisation and Sales Development

6. Yield corresponds to the distribution per share as a percentage of the share price on the reporting date (Board of Directors proposal of CHF 7.00 per share for the 2025 financial year)

7. Rental profit from investment properties as a percentage of continued market value as at 1 January

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

2. Earnings from Realisation as a percentage of income from Realisation

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

4. Market capitalisation plus net finance debts