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Investis Holding SA (XSWX:IREN) Full Year 2024 Earnings Call Highlights: Strong Financial ...

In This Article:

  • Property Portfolio Value: CHF2 billion.

  • Rental Income: CHF84 million as of the end of January.

  • Net Profit (Excluding Revaluation): CHF157 million.

  • Revaluation Gain: CHF105 million.

  • Dividend Increase: CHF2.6 per share.

  • Funds from Operations (FFO): CHF46 million.

  • Net Asset Value (NAV) per Share (Excluding Deferred Tax): CHF117.

  • Loan-to-Value (LTV) Ratio: 27.6%.

  • Equity Ratio: 64%.

  • Total Assets: CHF2.1 billion.

  • Net Profit: Almost CHF250 million.

  • Gain from Sale of Service Business: CHF122 million.

  • Gross Rental Income (January 1, 2025): CHF78.4 million.

  • Residential Rent Potential: 14%.

  • Commercial Rent Potential: 12%.

  • Average Gross Yield: 4.2%.

  • Vacancy Rate: Below 2%.

  • Equity Generated for Shareholders: CHF310 million.

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) successfully expanded its property portfolio, acquiring properties worth over CHF370 million in 2024.

  • The company reported a significant revaluation gain of CHF105 million, reflecting the quality of its portfolio.

  • Investis Holding SA increased its dividend to CHF2.6, demonstrating confidence in its financial stability.

  • The company maintains a conservative loan-to-value (LTV) ratio of 27.6%, indicating strong financial health.

  • Investis Holding SA's net profit, excluding revaluation, rose to CHF157 million, showcasing robust operational performance.

Negative Points

  • The vacancy rate increased slightly to 1.9%, which is higher than the previous year's all-time low.

  • The company faces challenges in the construction sector, with a shortage of land and complex authorization procedures hindering new developments.

  • Investis Holding SA's shares are trading at a discount to NAV, contrasting with the premium seen in other Swiss residential real estate investments.

  • The commercial segment of the portfolio grew to 19%, which may not align with the company's primary focus on residential properties.

  • The company anticipates a decrease in vacancy rates but acknowledges uncertainty in achieving the previous year's low levels.

Q & A Highlights

Q: Can you discuss the long-term strategy for the property mix, particularly the share of commercial use in the portfolio? A: Stephane Bonvin, CEO, stated that while the increase in commercial properties was opportunistic, the goal is to maintain approximately 80% residential and 20% commercial. The focus remains on residential properties, but opportunities to transform office buildings into residential will be considered.