Novavest Real Estate (NREN) H1 2025 earnings summary

Executive summary

• Achieved strong H1 2025 results with significant profit growth, driven by operational improvements, portfolio optimization, and the strategic value of the 2024 merger with SenioResidenz AG, focusing on 'housing for young and old'.

• Net profit including revaluations reached CHF 16.0 million; operating profit excluding revaluations was CHF 12.7 million.

• Vacancy rate reduced to 2.3%, with increased rental income and a residential share of rental income rising to 60%.

• Five smaller properties sold in H1 2025, generating a sales profit of CHF 0.3 million and supporting portfolio streamlining and leverage reduction.

• Major residential projects in Basel and Oberburg completed, increasing rental potential and supporting portfolio repositioning.

Financial highlights

• Rental income for H1 2025 was CHF 21.2 million, up 2.8% like-for-like versus pro forma H1 2024, despite property disposals.

• EBIT reached CHF 21.5 million (H1 2024 pro forma: CHF 11.7 million).

• Net asset value per share at CHF 41.79, up from CHF 41.61 at year-end 2024.

• Portfolio value at CHF 1,004.2 million, down 3% from year-end due to sales and revaluations.

• Net yield stable at 3.5%; equity ratio improved to 41.6%.

Outlook and guidance

• Focus remains on core business, leveraging merger synergies, portfolio optimization, and efficiency gains.

• Plans to use excess liquidity for further loan-to-value reduction or share buybacks.

• Commitment to attractive dividend policy and further reduction of greenhouse gas emissions.

• Expects positive momentum in Swiss real estate for 2025, especially in residential, despite global uncertainties.

• Swiss National Bank reduced key interest rate to 0% by mid-2025; inflation forecast at 0.2% for 2025.