Investis Holding SA · SIX:IREN
Investis Holding SA — H1 2022 Earnings Presentation
44 slides from Investis Holding SA's earnings presentation, Aug 31, 2022
Slide 1: Half-Year 2022 Results, 31 August 2022
31 August 2022
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 HY 2022 Market trends Financial overview HY 2022 Outlook ESG Q&A Annexes HALF-YEAR 2022 RESULTS – IR PRESENTATION – 31 AUGUST 2022 3
Slide 4: Highlights HY 2022: Strong accents set in both segments
Highlights HY 2022 Strong accents set in both segments Group ▪ Revenue up 10% to CHF 112m ▪ Further increase by 8% of EBITDA before revaluation effect ▪ Strong EBIT of CHF 148m ▪ Substantial increase in NAV per share to CHF 93.38 (+13%) excluding deferred taxes with regard to properties ▪ Income fro
Slide 5: Agenda: Market trends
Agenda Highlights HY 2022 Market trends Financial overview HY 2022 Outlook ESG Q&A Annexes HALF-YEAR 2022 RESULTS – IR PRESENTATION – 31 AUGUST 2022 5
Slide 6: Real Estate Market in Switzerland and Geneva in particular
Real Estate Market in Switzerland and Geneva in particular Lake Geneva region is an attractive location – demand exceeds supply Migration/Demography ▪ Free movement of persons in Europe as an advantage ▪ Highest proportion of foreigners of all major Swiss regions ▪ Growing at an above-average rate f
Slide 7: Rents have further increased in the last twelve months / vacancy down
Real Estate Market in Switzerland and Geneva in particular Rents have further increased in the last twelve months / vacancy down Rents ▪ Rents for all non-new homes on the free market in the canton of GE from May 21-May 22 up by +1.0% − Increase in 2019 +0.6% and +0.8% in 2020 and 2021 ▪ Rents in th
Slide 8: Above-average demographic growth supporting strong demand for rental apartments
Real Estate Market in Switzerland Above-average demographic growth in the lake Geneva region supporting strong demand for rental apartments Population decline Population growth: Up to 0.25% 0.25% to 0.50% Demographic growth 2010-2019 0.50% to 0.75% (annual average) 0.75 % to 1.00% 1.00 % to 1.50% >1
Slide 9: Ownership affordability remains an issue in the Lake Geneva region
Real Estate Market in Switzerland Ownership affordability remains an issue in the lake Geneva region > 70% 60 – 70% 50 – 60% 40 – 50% 30 – 40% Share of advertised properties with four rooms or more 20 – 30% that are affordable for a middle-income household 10 – 20% Single-family homes and condominiu
Slide 10: Geneva's vacancy is getting even scarcer in all segment sizes
Real Estate Market in Switzerland Geneva’s vacancy is getting even scarcer in all segment sizes ….. Apartments available and vacancy rate by size categories in the canton of Geneva 1-2 rooms Other 1-2 rooms % Other% 1'200 1.00 1'000 0.80 800 # of apartments 0.60 in % 600 0.40 400 0.20 200 0 2013 0.0
Slide 11: Vacancy rate remaining well below Swiss average
Real Estate Market in Switzerland ….. with vacancy rate remaining well below Swiss-average … Housing vacancy rate in the canton of Geneva and in Switzerland (as of July 2022) Switzerland Geneva 2.00 1.80 1.60 Vacany rate (in %) 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 Source: OCSTAT HALF-YEAR 2022 RE
Slide 12: Housing construction activity in Geneva is slowing down
Real Estate Market in Switzerland … while housing construction activity in Geneva is slowing down from its historic heights (Housing space under construction) 10'000 9'000 8'000 7'000 6'000 Number of units 5'000 4'000 3'000 2'000 1'000 0 Q1 2010 Q3 2010 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 201
Slide 13: Residential prime yields in Switzerland
Real Estate Market in Switzerland Residential prime yields in Switzerland (in%) Geneva Zurich Swiss 10-y Bond 4.0% 10y bonds yield volatility: 3.0% ▪ As of June 30, 2022: 1.15% ▪ As of July 31, 2022: 0.51% 2.0% 1.0% 0.0% -1.0% Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 2012 2013 201
Slide 14: Strategy: Buy and hold while improving efficiency of the building
Strategy: Buy and hold while improving efficiency of the building where appropriate 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 kit
Slide 15: Investis' position in the Real Estate Market in Switzerland 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 − High im-/migration ▪ Focus on middle segment of the market – no luxury homes ▪ Number of residential properties in city centers does not
Slide 16: Agenda: Financial overview HY 2022
Agenda Highlights HY 2022 Market trends Financial overview HY 2022 Outlook ESG Q&A Annexes HALF-YEAR 2022 RESULTS – IR PRESENTATION – 31 AUGUST 2022 16
Slide 17: Remarkable operating results coupled with substantial revaluation effects
Remarkable operating results coupled with substantial revaluation effects Substantial increase in NAV per share to CHF 93.38 (excluding deferred taxes with regard to properties) ▪ Investis Group: − Revenue of CHF 112m (HY 2021: CHF 102m) – a 10% growth − EBITDA before revaluations/disposals up 8% to
Slide 18: Investis Group: Overview on the excellent financial performance HY 2022
Investis Group: Overview on the excellent financial performance HY 2022 HY 2022 HY 2022 (CHFm) HY 2022 Δ in % HY 2021 FY 2021 FY 2020 Revenues Invested Capital Revenue 111.7 9.8 101.7 216.0 178.7 3% EBITDA 27.2 8.4 25.1 53.7 45.5 27% before revaluations/disposals Income from revaluations 64.1 -51.1
Slide 19: Properties: further increase in valuation coupled with substantial gains on disposal
Properties: further increase in valuation coupled with substantial gains on disposal Impressive CAGR over the years Revenue and like-for-like rental growth (CHFm) HY 2022 Δ in % HY 2021 FY 2021 FY 2020 (Revenue in CHFm) Revenue 30.6 +4.8 29.2 60.0 57.9 60.0 57.0 57.9 EBITDA 55.0 20.1 +4.1 19.3 40.0
Slide 20: Properties: vacancies almost only when buildings are refurbished
Properties: vacancies almost only when buildings are refurbished Property Portfolio: 151 buildings – 2,563 residential units – value CHF 1,551m by category: by canton: by apartment type 1) : 7% 14% 6% 30% 26% 29% 68% 93% 27% Residential Commercial GE VD VS 1-room 2-room 3-room other Low vacancy 1.4%
Slide 21: Properties: like-for-like rental growth above targets set
Properties: like-for-like rental growth above targets set Room for further growth maintained Rent potential based on CBRE appraisal (CHFm) 64.2 61.2 57.7 58.6 60.0 +11% 57.9 55.8 57.0 +4.1% 51.5 55.0 30.8 28.9 28.8 47.5 28.0 (CHFm) 24.2 40.0 +1.0% 37.8 37.2 35.0 32.4 19.7 17.6 20.6 17.5 29.0 29.2 30
Slide 22: Real Estate Services: excellent EBIT margin of 9.7%
Real Estate Services: excellent EBIT margin of 9.7% Excellent EBIT margin underlines efforts for delivering quality combined with cost-efficiency (CHFm) HY 2022 Δ in % HY 2021 FY 2021 FY 2020 HY 2022 Revenues Revenue 83.1 +11.6 74.4 159.8 124.6 EBIT 8.0 +23.1 6.5 14.9 10.8 37% EBIT margin 9.7% n/a 8
Slide 23: Real Estate Services: evolution over the years
Real Estate Services: evolution over the years Steady growth of top line and much improved profitability Revenue evolution EBIT margin evolution (CHFm) 83 80 74 12.0% 73 73 74 70 9.7% 62 10.0% 60 8.7% 8.8% 8.3% 8.0% 50 40 6.0% 5.0% 5.0% 30 4.0% 20 2.0% 10 0 0.0% HY 2017 HY 2018 HY 2019 HY 2020 HY 20
Slide 24: Investis Group: Excellent Net profit
Investis Group: Excellent Net profit Maintaining conservative financial leverage keeps financial expenses low (CHFm) HY 2022 Δ in % HY 2021 FY 2021 FY 2020 ▪ Weighted average interest rate further EBIT 147.7 -4.5 154.6 235.1 136.2 decreased by 9 basis points to 0.35% Financial income 0.3 -90.1 2.7 3
Slide 25: Solid capital structure and prudent financing policy
Solid capital structure and prudent financing policy Strong balance sheet – NAV per share at CHF 93.38 (CHF 82.85) excl. deferred taxes with regard to properties Balance Sheet (CHFm) 30.06.2022 Δ in % 31.12.2021 31.12.2020 31.12.2019 Debt structure (CHFm) 30.06.2022 Cash and cash equivalents 10 +111
Slide 26: Debt structure
Debt structure Further reduction of LTV to around 25% expected 800 700 Maturity of financial liabilities as at 660 600 30.06.2022 (CHFm) 184 (CHFm) 520 560 500 36 Due within the first year 36 20 180 30 20 400 420 435 435 Due within the second year 140 300 Due within the third year 115 200 Due within
Slide 27: Agenda: Outlook
Agenda Highlights HY 2022 Market trends Financial overview HY 2022 Outlook ESG Q&A Annexes HALF-YEAR 2022 RESULTS – IR PRESENTATION – 31 AUGUST 2022 27
Slide 28: Outlook 2022
Outlook 2022 Both segments are expected to perform very well ▪ Excess demand in Investis’ key markets continues, supported by undersupply and above-average demographic growth − Rents on the rise and low vacancies ▪ Demand for residential properties in prime Swiss locations expected to remain healthy
Slide 29: What makes INVESTIS unique?
What makes INVESTIS unique? ▪ Quality of the portfolio with well-maintained properties ▪ Largest listed residential property owner in the undersupplied Lake Geneva region – sustaining demand, high return, low vacancies – continuous rent potential – low exposure to commercial properties lower cyclica
Slide 30: Agenda: ESG
Agenda Highlights of HY 2022 Market trends Financial overview HY 2022 Outlook ESG Q&A Annexes HALF-YEAR 2022 RESULTS – IR PRESENTATION – 31 AUGUST 2022 30
Slide 31: ESG: Responsible and sustainable action is anchored in the strategy
ESG Responsible and sustainable action is anchored in the strategy ▪ In 2020 property portfolio was assessed for the first time by Signa-Terre – yearly monitoring ▪ Over 90% of the portfolio is situated in central locations in city centers with higher complexity to fulfil ESG requirements ▪ For year
Slide 32: Sustainability on Portfolio
Sustainability on Portfolio Portfolio focused on city centers, hence building with older substance (homeland conservation) Predominantly elderly buildings in city centers Heating systems ▪ >90% of the portfolio has an excellent location and ▪ Fossil energy used in most of the buildings: hence very g
Slide 33: Agenda: Q&A
Agenda Highlights of HY 2022 Market trends Financial overview HY 2022 Outlook ESG Q&A Annexes HALF-YEAR 2022 RESULTS – IR PRESENTATION – 31 AUGUST 2022 33
Slide 34: Thank you for your attention
Thank you for your attention 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 realisation of rent potential ▪ Expansion of portfolio t
Slide 36: Fundamental business strengths
Fundamental business strengths Value proposition HALF-YEAR 2022 RESULTS – IR PRESENTATION – 31 AUGUST 2022 36
Slide 37: Very focused and attractive portfolio around the 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: 26% ▪ Lake Geneva region ▪ Middle segment (no luxury apartments) ▪ Low vacancy rates GE: 68% VS: 6% HA
Slide 38: Real Estate Services: active nationwide with well-known local brands
Real Estate Services: active nationwide with well-known local 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 ▪ Letti
Slide 39: Property Management – focused on recurring contracts
Property Management – focused on recurring contracts HALF-YEAR 2022 RESULTS – IR PRESENTATION – 31 AUGUST 2022 39
Slide 40: Facility Services – hauswartprofis/conciergepro and home service
Facility Services – hauswartprofis/conciergepro and home service…. HALF-YEAR 2022 RESULTS – IR PRESENTATION – 31 AUGUST 2022 40
Slide 41: Facility Services – rohr ag
Facility Services – rohr ag …. HALF-YEAR 2022 RESULTS – IR PRESENTATION – 31 AUGUST 2022 41
Slide 42: Facility Services – analysis LAB and aatest
Facility Services – analysis LAB and aatest HALF-YEAR 2022 RESULTS – IR PRESENTATION – 31 AUGUST 2022 42
Slide 43: Organisation
Organisation HALF-YEAR 2022 RESULTS – IR PRESENTATION – 31 AUGUST 2022 43
Slide 44: Thank you for your attention
Thank you for your attention 44