Fundamenta Real Estate (FREN) H1 2025 earnings summary

Executive summary

• Achieved strong earnings growth in H1 2025, with net profit up 136% year-over-year to CHF 28.9 million, driven by positive revaluations and successful property sales.

• Portfolio value reached CHF 1,222 million, with a low vacancy rate of 1.3% and continued optimization through profitable disposals and reinvestment in high-yield development projects.

• Dividend per share increased by 9.1% to CHF 0.60, distributed tax-free from capital reserves, reflecting robust operational performance.

• Market environment remains favorable for residential real estate, supported by high demand and low vacancy.

Financial highlights

• Net rental income rose 1.4% year-over-year to CHF 21.0 million, a record level.

• EBIT excluding revaluation and sales up 30.2% to CHF 19.4 million; total EBIT reached CHF 39.7 million.

• Net profit per share (excluding revaluation) increased 12.4% to CHF 0.34; total net profit per share reached CHF 0.96.

• NAV per share after deferred taxes at CHF 17.41 (+2.1% vs. year-end 2024); before taxes, CHF 19.22.

• Total return for H1 2025 was 12.1%, outperforming the SXI Real Estate Broad TR index.

Outlook and guidance

• Expects stable rental income with further growth potential from development pipeline and ongoing repositioning projects.

• Targeting a net rental income of around CHF 42.6 million for 2025.

• Aims to keep vacancy rate below 1.5% and maintain equity ratio above 40%.

• Board is considering a capital increase in Q4 2025 to support further growth and strengthen equity base.

• Long-term dividend policy and updated sustainability strategy for 2026–2030 in progress.