Investis (IREN) H1 2024 earnings summary

Executive summary

• Achieved strong H1 2024 results with revenue up 1.5% to CHF 117 million and net profit of CHF 143 million, driven by property acquisitions and the sale of the Real Estate Services segment, which generated a gain of CHF 122.2 million.

• Maintained a low loan-to-value (LTV) ratio at 18.7% and a high equity ratio of 72%, reflecting a solid capital structure and positioning for future growth.

• Portfolio value reached CHF 1.8 billion post-transactions, with a focus on residential real estate in the Lake Geneva region and a unique market position as a pure residential player in French-speaking Switzerland.

• Vacancy rate remained at a low 1.0%, supporting stable rental income and strong market positioning in high-demand, low-vacancy areas.

• Strategic portfolio sales and acquisitions since 2022 have strengthened equity and enabled opportunistic purchases under favorable market conditions.

Financial highlights

• Revenue increased to CHF 117 million in H1 2024, up 1.5% year-over-year, mainly due to acquisitions and rent increases.

• Net profit reached CHF 143 million, compared to a net loss in the prior year, largely due to the gain on the sale of the Real Estate Services segment.

• Net profit excluding revaluation effects was CHF 139 million; NAV per share at CHF 107.92 (excluding deferred taxes).

• Gross rental income increased to CHF 62 million, with like-for-like rental growth of 1.8% overall and 2% for residential properties.

• Real Estate Services segment sale generated a gain of CHF 122.2 million.

Outlook and guidance

• Targeting additional property acquisitions by year-end 2024, with a focus on the Lake Geneva region and ongoing strong demand.

• Expects continued strong operating performance for full-year 2024, supported by high rental potential and low LTV.

• Anticipates further interest rate cuts in Switzerland, supporting real estate investment activity and residential demand.

• Rent potential remains in the double digits, supported by tenant turnover and indexed contracts.

• Stable yet competitive market environment anticipated for residential real estate in 2024.