Half Year 2024 Investis Holding SA Earnings Call Transcript
Key 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.
- 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.
Good morning, ladies and gentlemen. Thank you for your interest in our company and for attending this presentation. Pleased to be joined today by René Häsler of Chief Financial Officer and Laurence Bienz of Investor Relations.
The agenda for today's presentation is as follows. I will start with the highlights, followed by an overview of the market trends. After that, René will provide you with the financial overview of this first half year. Finally, I will conclude with an outlook before we move on the Q&A session.
So before the highlights, I would like exactly to highlight what we have achieved since 2022 the value we have been able to generate thanks to our strategy. Firstly, back in 2021, we observed that interest rates were rising, we decided to sell part of our portfolio to reduce our debt and position ourselves high power to purchase properties under better condition when the opportunity arose.
In April 2022, we were able to successfully execute this
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