Novavest Real Estate (NREN) H2 2024 earnings summary

Executive summary

• Fusion with SenioResidenz in June 2024 increased portfolio value by 33% to CHF 1,038.5 million and expanded to 75 properties, enhancing diversification and resilience.

• Annual rental income rose 42% year-over-year to CHF 43.6 million, with a 59% residential share and a reduced vacancy rate of 2.7%.

• Net Asset Value per share at year-end was CHF 41.61, with an additional CHF 2.13 per share from negative goodwill.

• Solid earnings growth: pro forma net profit excluding revaluations up 61% year-over-year to CHF 20.4 million.

• Strategic focus on further portfolio optimization, sustainability, and attractive dividend policy.

Financial highlights

• Pro forma rental income for 2024 reached CHF 42.2 million, up from CHF 36.1 million in 2023.

• EBIT (Swiss GAAP FER) for 2024 was CHF 28.8 million, compared to a loss of CHF 0.6 million in 2023.

• Net profit (Swiss GAAP FER) for 2024 was CHF 19.1 million, versus a loss of CHF 4.0 million in 2023.

• Dividend proposal of CHF 1.40 per share, with a yield of 3.1% on year-end price.

• Equity ratio at 40.2%, loan-to-value at 53.8%, and average mortgage interest rate stable at 1.2%.

Outlook and guidance

• Plans to optimize the portfolio, including potential property sales of CHF 40–70 million.

• Continued focus on value-enhancing investments, densification, and redevelopment projects.

• Ongoing reduction of portfolio leverage and possible share buyback from 2025.

• Commitment to further reduce greenhouse gas emissions and increase renewable energy use.

• Active monitoring of interest rates, inflation, and geopolitical risks; real estate seen as an attractive inflation hedge.