Fundamenta Real Estate (FREN) H2 2025 earnings summary

Executive summary

• Net profit rose 51.2% year-over-year to a record CHF 46.1 million, driven by a CHF 27.0 million revaluation gain and property sales.

• Portfolio value increased by 2.5% to CHF 1,253 million, with a 94% residential share, despite divestments.

• Successful capital increase of CHF 70 million, exceeding the CHF 50 million target, significantly strengthened the equity base.

• GRESB sustainability score improved from 71 to 82 points, and sustainability targets remain on track.

• Board proposes an unchanged dividend of CHF 0.60 per share, with total payout up 13.7% to CHF 20.5 million due to increased share count.

Financial highlights

• Net rental income grew 1.1% year-over-year to CHF 42.3 million, offsetting the impact of property disposals.

• Revaluation gains reached CHF 27.0 million, and property sales generated CHF 7.0 million above book value.

• EBIT increased 40.3% to CHF 63.9 million; EBIT excluding revaluation was CHF 36.9 million.

• Return on equity (ROE) improved to 9.0% from 6.3% year-over-year.

• Earnings per share rose 48.0% to CHF 1.50.

Outlook and guidance

• Net rental income expected to remain stable, with development completions gradually strengthening earnings.

• Vacancy rate projected below 1.75%; stable net profit per share (excluding revaluation) above CHF 0.60.

• Equity ratio guidance adjusted to a 40–45% range; continued focus on capital recycling and selective acquisitions.

• Ongoing implementation of sustainability strategy, targeting net-zero emissions by 2050 and revised for 2026–2030.

• Focus remains on sustainable growth, active asset management, and leveraging rental potential.