Allreal significantly increases its net profit in the first half of the year

Allreal significantly increases its net profit in the first half of the year

• Net profit incl. revaluation effect rises by 73.8% to CHF 116.8 million (H1 2024: CHF 67.2 million)
• Higher income from the sale of condominiums and a lower financial expense offset temporary decrease in rental income
• Revaluation effect amounts to CHF 70.3 million (H1 2024: CHF 6.7 million)
• Stable key balance sheet figures and secured financing
• Outlook for 2025 full year confirmed

Rental income stood at CHF 103.5 million in the first half of the year (H1 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, Allreal 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, the properties on Missionsstrasse in Basel and Chemin du Gué in Petit-Lancy were sold. This meant that they were no longer generating income in the first half of 2025. In addition, Allreal 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% (H1 2024: 1.5%). The increase is mainly attributable to the spaces that are still free in the property on Freiburgstrasse in Bern, an office building at Geneva Airport and vacated space on the Richti site. However, the vacancy rate remains low by industry standards.

At CHF 10.7 million, direct expenses for rented investment properties decreased (H1 2024: CHF 13.2 million). The expense ratio declined to 10.3%; the net yield amounted to 3.7%.

Press release

One investment property in Bülach was sold in the first half of the year. The building on Marterlochstrasse did not fit with Allreal's strategy and was sold to the operating company. The market value of the portfolio at the reporting date was around CHF 5.20 billion (31.12.2024: CHF 5.19 billion).

Overall, the Real Estate segment generated net operating profit of CHF 57.8 million (H1 2024: CHF 61.7 million).

Income from business activities in the Development & Realisation segment increased to CHF 26.0 million (H1 2024: CHF 21.3 million). This development can mainly be attributed to the higher contribution to earnings from the sale of condominiums. The main driver was the project on Spiserstrasse in Zurich. The Panorama Eggen project in Lucerne and Strubenacher Living project in Zumikon, which went on sale in the first half of the year, will ensure that the Group continues 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 previous year's value (H1 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 the portfolio or for sale. Income from realisation fell in the first half of 2025 to CHF 9.0 million (H1 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 activity. The gross margin on third-party projects was 11.9% (H1 2024: 13.4%).

Operating expenses decreased by 3.7% year on year to CHF 20.8 million (H1 2024: CHF 21.6 million), while operating profit was CHF 9.3 million (H1 2024: CHF 3.1 million).

Overall, net profit in the Development & Realisation segment improved significantly, amounting to CHF 5.2 million (H1 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, the Group 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%).

In terms of the 2025 full year, Allreal still expects operating profit to be roughly in line with 2024, as well as stable balance sheet figures. Financing costs will be lower than in the previous year. In the Real Estate segment, the Group expects rental income to be lower because 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, Allreal expects income from the sale of condominiums to rise over the current year, an overall slightly higher construction volume and lower operating expenses.

This press release and the 2025 Half-Year Report are available online at https://www.allreal.ch

Audio webcast on the half-year results

An audio webcast on the half-year results 2025 will take place at 9:15 a.m. today (Friday). Stephan Widrig, CEO, and Marc Frei, CFO, will be commenting on the results. The presentation will be given in German. Join the audio webcast

For queries and further information:

Marc Frei

CFO

Tel. +41 44 319 14 09

Mobile +41 78 870 00 22

ir@allreal.ch

Reto Aregger

Chief Communications Officer Tel. +41 44 319 12 67

Mobile +41 79 325 55 58

reto.aregger@allreal.ch

Allreal Group

Lindbergh-Allee 1

8152 Glattpark https://www.allreal.ch

Allreal is the only company to combine a high-quality portfolio of commercial and residential properties with outstanding development and realisation expertise. The company's property portfolio is worth around CHF 5.2 billion. This is augmented by development projects with an investment volume of around CHF 2.5 billion. In the 2024 financial year, the volume of projects completed by the Realisation division was around CHF 250 million. The property company employs 230 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. Investors 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 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 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. Rental income from investment properties as a percentage of the amortised market value of the investment properties as at 1 January

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

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

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

10. Market capitalisation plus net finance debts