Release Date: March 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Investis Holding SA (XSWX:IREN, Financial) successfully expanded its property portfolio, acquiring properties worth over 370 million in 2024.
- The company reported a significant revaluation gain of 105 million, reflecting the quality of its portfolio.
- Investis Holding SA maintains a conservative loan-to-value (LTV) ratio of 27.6%, indicating strong financial health.
- The sale of the service business in 2024 generated a gain of 122 million, strengthening the company's equity base.
- The company plans to acquire an additional 300 million worth of properties in 2025, indicating continued growth and expansion.
Negative Points
- The vacancy rate increased slightly to 1.9%, although it is expected to decrease in 2025.
- The market for new construction remains challenging due to a shortage of land and complex authorization procedures.
- Investis Holding SA's shares are trading at a discount to NAV, contrasting with many Swiss residential real estate funds trading at a premium.
- The company faces regulatory constraints that could impact future construction and development activities.
- There is ongoing uncertainty in the political and economic environment, particularly in neighboring countries, which could affect market conditions.
Q & A Highlights
Q: Could you discuss the long-term strategy for the property mix in your portfolio, particularly regarding the commercial use?
A: (Stefan Bova, CEO) We aim to maintain approximately 80% residential and 20% commercial properties. While we have opportunistically increased our commercial holdings, our primary focus remains on residential properties. We are open to acquiring office buildings if they can be converted into residential spaces, but we do not plan to exceed the 20% commercial threshold.
Q: Can you clarify the acquisitions made in 2024, including the number of properties and their rental income?
A: (Rene Hessler, CFO) We acquired 15 properties for CHF 395 million and sold one property for CHF 22 million. The residential portfolio has a gross yield of 3.63%, while the commercial portfolio yields 5.24%. The acquisitions in the commercial sector had higher yields, and we did not pay for vacancies in these properties.
Q: What is the expected vacancy rate for 2025, and how does it compare to previous years?
A: (Rene Hessler, CFO) We anticipate a decrease in the vacancy rate in 2025 as we address vacancies in newly acquired properties. While it won't return to the all-time low of 2023, it will be lower than the current 1.9%.
Q: Can you provide details on the two acquisitions made in 2025, including their price, use, and location?
A: (Stefan Bova, CEO) One property is fully residential in Geneva, and the other is mainly residential with some office space on the first floor. The total income from these properties is CHF 2.7 million, and the cost was CHF 55 million.
Q: What is your assessment of the current real estate market in Geneva, particularly regarding net yields for residential and commercial properties?
A: (Stefan Bova, CEO) We recently acquired properties with a gross yield of around 5% for residential and potentially up to 6% for commercial offices in special cases. However, we are primarily focused on residential properties unless an office building can be immediately converted to residential use.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
