Release Date: September 02, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Investis Holding SA successfully executed a strategy to sell part of its portfolio in 2022, generating CHF10 million in revenue and reducing debt.
- The company acquired properties worth CHF289 million by August 2024, generating CHF17.1 million, and plans to acquire an additional CHF150 million worth of properties by the end of 2024.
- Investis Holding SA maintained a low loan-to-value (LTV) ratio of 19% and an equity ratio of 72%, indicating a strong capital structure.
- The vacancy rate for their properties remains exceptionally low at 1%, demonstrating high demand.
- The sale of the real estate services division for over CHF240 million to PHM was strategically beneficial, doubling the value of invested capital over the years.
Negative Points
- Interest expenses tripled compared to the previous year due to the repayment of a low-interest bond, increasing financial costs.
- The average discount rate for properties increased slightly by 2 basis points, reflecting current market conditions.
- The company faces challenges in the market with rising interest rates and economic pressures from neighboring countries.
- Despite a strong market position, the company acknowledges potential risks in acquiring properties with a riskier profile.
- The financial outlook includes a future tax rate increase to around 15%, up from the current 2.9% due to tax-free gains on sales.
Q & A Highlights
Q: Can you explain the details of your recent property acquisitions and their financial implications?
A: Rene Haesler, CFO, clarified that five acquisitions were concluded by the end of June for CHF78 million. Additional transactions were completed in July and August for CHF159 million. These acquisitions were part of a strategic plan to enhance the portfolio, with a focus on residential properties, although some opportunistic commercial purchases were made.
Q: What is the current status and future plan for your property portfolio, particularly regarding residential and commercial properties?
A: Stephane Bonvin, CEO, stated that the portfolio currently consists of 80% residential and 20% commercial properties. The focus remains on residential acquisitions, but they remain open to opportunistic commercial investments, especially if they can be converted to residential.
Q: What is the yield and vacancy rate for the Geneva business center acquisition?
A: Stephane Bonvin, CEO, reported that the Geneva business center was acquired with a yield of 7.3%. The vacancy rate is low, primarily due to a data center within the property, which has a conservative pricing strategy.
Q: How does Investis plan to manage its financial structure following recent acquisitions and sales?
A: Rene Haesler, CFO, emphasized that despite recent acquisitions, Investis maintains a low loan-to-value (LTV) ratio of 19% and a strong equity ratio of 72%. The company plans to continue leveraging its solid balance sheet to pursue further acquisitions.
Q: What are the strategic goals for Investis in the coming months?
A: Stephane Bonvin, CEO, highlighted the goal to acquire an additional CHF150 million worth of properties by the end of the year. The focus will be on expanding the residential portfolio in the Lake Geneva region, capitalizing on strong market demand and low vacancy rates.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
