Fundamenta Real Estate (FREN) investor relations material

Executive summary

• Portfolio value increased to CHF 1,272.3 million, driven by acquisitions, CAPEX, and project completions, with a 94% residential share and strong demand supporting low vacancy rates.

• Net rental income rose 4.6% year-over-year to CHF 21.9 million, supported by completed development and repositioning projects.

• Ordinary net profit (excluding revaluation) surged 54.1% to CHF 15.9 million (CHF 0.47 per share), reflecting stronger operational performance and successful property sales.

• Dividend payout increased 13.7% to CHF 20.5 million, with CHF 0.60 per share distributed, yielding 3.4% on year-end share price.

• Sustainability strategy reinforced, increasing energy-efficient buildings and integrating ESG factors into asset management.

Financial highlights

• EBIT (excluding revaluation) increased 14.5% to CHF 22.2 million; operating EBT margin improved to 87.2%.

• Sales profit before tax rose 46.0% to CHF 6.5 million, with properties sold at 19.4% above book value.

• NAV per share before deferred taxes increased to CHF 19.59; after taxes, CHF 17.86.

• Equity ratio at 46.2%; loan-to-value (LTV) at 47.0%; average interest rate on debt at 1.07% with a 6.1-year average maturity.

• Return on equity (ROE) annualized at 6.7%.

Outlook and guidance

• Projected net target rental income for 2026 is CHF 44.9 million, with stable actual rental income and gradual strengthening from project completions.

• Vacancy rate expected at 1.5% for 2026, slightly higher due to longer re-letting periods.

• Operating result per share (excluding revaluation) forecasted at CHF 0.65–0.70 for 2026.

• Equity ratio guidance in the 40–45% range, supporting further growth.

• Focus on disciplined capital allocation, portfolio optimization, and sustainability, with a robust acquisition and development pipeline.