Investis Holding Sa · SIX:IREN
Investis Holding Sa — H1 2023 Earnings Presentation
40 slides from Investis Holding Sa's earnings presentation, Aug 29, 2023
Slide 1: Half-Year 2023 Results – 29 August 2023
29 August 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 HY 2023 Market trends Financial overview HY 2023 Outlook Q&A Annexes HALF-YEAR 2023 RESULTS – IR PRESENTATION – 29 AUGUST 2023 3
Slide 4: Highlights HY 2023
Highlights HY 2023 Excellent operating performance and continued cash flow generation – lower valuation of the portfolio leads to a reported loss – non-cash Group ▪ EBITDA before revaluation/disposals of CHF 24.6m ▪ Net profit excluding revaluation effect of CHF 17.4m ▪ NAV per share at CHF 90.21 ex
Slide 5: Agenda – Market trends
Agenda Highlights of HY 2023 Market trends Financial overview HY 2023 Outlook Q&A Annexes HALF-YEAR 2023 RESULTS – IR PRESENTATION – 29 AUGUST 2023 5
Slide 6: Real Estate Market in the Lake Geneva region: a very attractive location
Real Estate Market in the Lake Geneva region A very attractive location Migration/ Demography Construction activity Regulations Capital Markets ▪ Net immigration in CH for 2022 ▪ Demand for small apartments ▪ Tax regime for corporations ▪ Key interest rates have either +81’345 – on the higher end fu
Slide 7: Decline in the residential vacancy rate
Real Estate Market in the Lake Geneva region Decline in the residential vacancy rate <1% in the Vaud canton as of June 2023 ▪ The vacancy rate has fallen below the 1.0% mark in the canton of Vaud as of June 2023 ▪ The vacancy rate in the canton of Geneva has slightly gone up but remains well below t
Slide 8: Residential rental offers in Geneva/Lausanne
Real Estate Market in the Lake Geneva region Residential rental offers in Geneva/Lausanne Less advertisements on the market for a shorter period of availability Residential rental offers: availability in Residential rental offers in Geneva/Lausanne number of days 2022/23 ▪ 15% fewer online residenti
Slide 9: Rents with tenants in place growing at fastest pace since 2010
Real Estate Market in the Lake Geneva region Rents with tenants in place growing at their fastest pace since 2010 Annual rental growth – Rented apartments – Canton of Geneva Evolution of effective rents based on current leases (“free” rental market, excluding new apartments) 25.0 Lease when change o
Slide 10: Significant slowdown in residential sales during H1 2023
Real Estate Market in the Lake Geneva region Significant slowdown in residential sales during H1 2023 Residential transactions of above CHF 5 million, excluding villas and PPE Source: CBRE July 2023 HALF-YEAR 2023 RESULTS – IR PRESENTATION – 29 AUGUST 2023 10
Slide 11: Residential prime yields in Geneva still moving upwards
Real Estate Market in the Lake Geneva region Residential prime yields in Geneva are still moving upwards, although at a slower pace Swiss 10y bond yields have been trending down significantly over the past two quarters, although interest rates and mortgages rates have continued to rise Source: CBRE
Slide 12: Real Estate Market in Switzerland: expected shortage of apartments
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 HALF-YEAR 2023 RESULTS – IR PRESENTATION – 29 AUGUST 2023 12
Slide 13: Market outlook: strong market fundamentals remain sustained
Real Estate Market in Geneva Market outlook: strong market fundamentals remain sustained ▪ Strong household demand for rental apartments in the Lage Geneva region fuelled by ongoing strong migration and tighter access to homeownership as mortgages rates are rising ▪ As a result, already low vacancy
Slide 14: 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, build in 1986 Appraisal value Rent in CHF m in CHF k 1998 40 residential units and 2 retail units 339 2014 Renovation of bathrooms and kitchens 2015 Additional energy efficiency 12.3 623 +13
Slide 15: 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 16: Agenda – Financial overview HY 2023
Agenda Highlights of HY 2023 Market trends Financial overview HY 2023 Outlook Q&A Annexes HALF-YEAR 2023 RESULTS – IR PRESENTATION – 29 AUGUST 2023 16
Slide 17: Solid operating results – lower portfolio valuation leads to loss
Solid operating results – lower portfolio valuation leads to loss NAV at CHF 90.21 per share excluding deferred taxes – Low LTV allows portfolio expansion ▪ Investis Group: − Revenue of CHF 115m (HY 2022: CHF 112m) – a 2.8% growth despite the sale of properties in 2022 − EBITDA before revaluations/d
Slide 18: Investis Group: Overview on the operating performance HY 2023
Investis Group: Overview on the excellent operating performance HY 2023 HY 2023 HY 2023 (CHFm) HY 2023 Δ in % HY 2022 FY 2022 FY 2021 Revenues Invested Capital Revenue 114.8 2.8 111.7 227.5 216.0 22% 3% EBITDA 24.6 -9.2 27.2 53.5 53.7 before revaluations/disposals Revaluation of properties -48.8 -17
Slide 19: Properties: rise in like-for-like rental income
Properties: Excellent rise in like-for-like rental income for residential properties +3.1% Lower EBITDA as a result of the successful sale of 11 properties in 2022 (CHFm) HY 2023 Δ in % HY 2022 FY 2022 FY 2021 Revenue and like-for-like rental growth (Revenue in CHFm) Revenue 26.2 -14.5 30.6 57.8 60.
Slide 20: Properties: rental income of buildings sold in 2022
Properties: Visualisation of the rental income of the buildings sold in 2022 Contribution of the buildings sold over the past five semesters 3'059 3'073 2'563 2'445 2'450 (CHFm) 5.2 4.8 1.2 11 buildings sold in 2022 5.2 25.6 25.8 26.0 26.2 ▪ Rental income CHF 10.4 (FY 2021) 24.0 ▪ Rental income of C
Slide 21: Properties: Revaluation effects over the years
Properties: Revaluation effects over the years bringing this year’s devaluation into perspective Positive net revaluation gains of CHF 434 m since the IPO CHFm HALF-YEAR 2023 RESULTS – IR PRESENTATION – 29 AUGUST 2023 21
Slide 22: Properties: characteristics of the portfolio
Properties: characteristics of the portfolio 149 buildings – 2’450 residential units – value CHF 1,460m by category by canton by apartment type 1) % 14% 6% 31% 23% 29% 1% 93% 26% Residen al Commercial E S 1 room 2 room 3 room other Note: 1) Based on number of apartments. In the Canton of Geneva the
Slide 23: Properties: continuous reduction in vacancy rate
Properties: continuous reduction in vacancy rate Rent potential remains intact although a like-for-like CAGR at 1.5% over the last 5.5 years Rent potential Evolution of the vacancy rate (CHFm) +10% 3.0% per per 31.12.2022 30.06.2023 2.7% Residential GE 1.4% 0.9% Residential VD 0.4% 0.6% +1.0% 2.2% C
Slide 24: Real Estate Services increases its contribution to EBIT
Real Estate Services increases its contribution to the roup’s EBITA Excellent EBIT margin further improved in HY 2023 vs HY 2022 (CHFm) HY 2023 Δ in % HY 2022 FY 2022 FY 2021 HY 2023 Revenues Revenue 90.2 +8.6 83.1 173.5 159.8 EBIT 8.9 +10.8 8.0 18.4 14.9 34% EBIT margin 9.9% n/a 9.7% 10.6% 9.3% 66%
Slide 25: Real Estate Services: EBIT margin at 9.9%
Real Estate Services: further improved excellent EBIT margin at 9.9% Steady and profitable growth ongoing – very solid operating performance Revenue evolu on EBIT margin evolu on (CHFm) (in %) 100 12.0% 90 80 10.0% 0 8.0% 60 50 6.0% 40 30 4.0% 20 2.0% 10 0 0.0% H 2018 H 2019 H 2020 H 2021 H 2022 H 2
Slide 26: Investis Group: Net profit excluding revaluation effect CHF 17.4m
Investis Group: Notable operating performance Net profit excluding revaluation effect CHF 17.4m (CHFm) HY 2023 Δ in % HY 2022 FY 2022 FY 2021 EBIT -25.9 -117.6 147.7 180.4 235.1 ▪ Average interest expense at 0.55% (0.36% for FY 2022) Financial income 0.3 +0.9 0.3 0.4 3.2 ▪ Low net financial result d
Slide 27: Solid capital structure – investment power intact
Solid capital structure – investment power intact Strong balance sheet – low financial debt – very sound equity ratio Balance Sheet (CHFm) 30.06.2023 Δ in % 31.12.2022 31.12.2021 31.12.2020 Debt structure (CHFm) 30.06.2023 Cash and cash equivalents 4 +1.1 4 5 15 Bonds 255 Properties portfolio 1'460
Slide 28: 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 660 184 Maturity of financial liabilities as at 520 560 30.06.2023 (CHFm) 30 Due within the first year 99 10 140 435 99 Due within the second year 115 (CHFm) 64 10 255
Slide 29: Agenda – Outlook
Agenda Highlights of HY 2023 Market trends Financial overview HY 2023 Outlook Q&A Annexes HALF-YEAR 2023 RESULTS – IR PRESENTATION – 29 AUGUST 2023 29
Slide 30: ESG
ESG The focus is on all three topics…. ▪ “E” – minimising our ecological footprint through ongoing energy efficient renovations, investments in renewable energies, monitoring the evolution of our portfolio with SSREI benchmark ▪ “S” – improving tenants’ quality of life by renovating in a proven and
Slide 31: Outlook 2023
Outlook 2023 Residential properties market in CH has solid fundamentals despite rising interest rates ▪ Demand for residential properties in prime Swiss locations remains healthy and strong ▪ Net migration into Switzerland and especially into the Lake Geneva region remains an important driver and is
Slide 32: 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 around 10% – low exposure in commercial properties l
Slide 33: Agenda – Q&A
Agenda Highlights of HY 2023 Market trends Financial overview HY 2023 Outlook Q&A Annexes HALF-YEAR 2023 RESULTS – IR PRESENTATION – 29 AUGUST 2023 33
Slide 34: Thank you for your attention
THANK YOU FOR YOUR ATTENTION HALF-YEAR 2023 RESULTS – IR PRESENTATION – 29 AUGUST 2023 34
Slide 35: 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 the realisation of rent potential ▪ Expansion of portfol
Slide 36: Fundamental business strengths
Fundamental business strengths Value proposition HALF-YEAR 2023 RESULTS – IR PRESENTATION – 29 AUGUST 2023 36
Slide 37: Focused and attractive portfolio around 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: 23% ▪ Lake Geneva region ▪ Middle segment (no luxury apartments) ▪ Low vacancy rates GE: 71% VS: 6% HA
Slide 38: 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 39: Organisation
Organisation HALF-YEAR 2023 RESULTS – IR PRESENTATION – 29 AUGUST 2023 39
Slide 40: Thank you for your attention
THANK YOU FOR YOUR ATTENTION HALF-YEAR 2023 RESULTS – IR PRESENTATION – 29 AUGUST 2023 40