Novavest Real Estate (NREN) H2 2025 earnings summary

Executive summary

• Achieved strong operational results in FY 2025, with profit including revaluation gains up 49% to CHF 30.5 million and operating profit excluding revaluation up 20% to CHF 24.5 million.

• Vacancy rate reduced to 2.0% (down from 2.7% in 2024) through active management and project completions.

• Portfolio optimization via sale of six properties, targeted investments, and successful project completions, generating a profit of CHF 0.2 million.

• Integration of SenioResidenz AG completed, with synergy effects realized and full-year integration reflected in results.

• Board proposes a cash distribution of CHF 1.45 per share, yielding 3.6% based on year-end share price.

Financial highlights

• Rental income for 2025 was CHF 41.8 million, slightly down due to property sales, but like-for-like rental income up 1.9%.

• Net asset value per share increased to CHF 43.22 (from CHF 41.61 at end-2024).

• Net yield stable at 3.6%; gross yield at 4.3%.

• Equity ratio improved to 43.1% (up from 40.2%), with equity at CHF 439.5 million.

• Average interest rate on mortgage liabilities fell to 1.0%; average debt duration: 1.7 years.

Outlook and guidance

• Focus remains on core business, value-enhancing investments, and leveraging development reserves for organic growth.

• Plans to further reduce loan-to-value ratio, maintain low vacancy, and pursue organic growth; inorganic growth or share buybacks considered only if value-accretive.

• Monitoring macroeconomic risks, with real estate seen as an attractive inflation hedge.

• Ongoing commitment to sustainability, with further reduction of CO₂ emissions and increased use of renewables.

• Expects continued positive market conditions in 2026, with focus on affordable housing and a stable 59% residential share.