NOTES to the consolidated financial statements
Significant accounting and valuation policies
Investis Holding SA (“the Company”) is based in Zurich, Switzerland. Its shares have been traded on the SIX Swiss Exchange since 30 June 2016 (IREN). The unaudited consolidated financial statements, prepared as at 30 June 2017, include Investis Holding SA and all its direct or indirect subsidiaries and joint ventures (Investis Group) as well as its shareholdings in associated companies.
The business activity of the Investis Group includes the long-term holding of residential and commercial properties as well as comprehensive real estate services in the areas of property management and facility management.
Principles
The unaudited consolidated financial statements of Investis Holding SA have been prepared in accordance with Swiss GAAP FER as a whole and with the special provisions for real estate companies specified in Art. 17 of the SIX Swiss Exchange’s Directive on Financial Reporting. They give a true and fair view of the assets, liabilities and earnings of Investis Holding SA.
The consolidation and accounting policies applied to the present consolidated financial statements are unchanged from those applied to the 2016 consolidated financial statements.
These interim financial statements do not contain all information and disclosures required for annual financial reporting and should therefore be read in conjunction with the consolidated financial statements as at 31 December 2016.
Real estate valuation method and technique
The properties held for investment purposes were valued on the basis of the fair value assessments (update valuations) performed by a recognised independent real estate expert (Wüest Partner AG) as at 30 June 2017 using the DCF (discounted cash flow) method. The valuation method and technique applied for the half-year financial statements for 2017 are unchanged from the previous year.
Scope of consolidation
On 9 January 2017, Investis Properties SA acquired 100% of the shares in the real estate company Alaïa Invest SA, Lens.
On 10 January 2017, Investis Investments SA acquired 100% of the shares in Wegra Holding AG, which holds 100% of operating subsidiaries of “Hauswartsprofis”. The company provides services in the area of facility management and strengthens the facility management service range offered by the Real Estate Services segment in the greater Zurich area.
On 10 March 2017, Investis Properties SA acquired 100% of the shares in the real estate company Domus Angelo Sàrl, Luxembourg .
On 1 May 2017, Investis Properties SA acquired 100% of the shares in the real estate company Jalu SA, Geneva.
In May 2016 100% of the shares on Ooh networks Sàrl, Lens was sold for CHF 0.02 million.
On 7 June 2016, the Investis Holding SA, Zurich, was incorporated and registered in the commercial register of the canton of Zurich on 8 June 2016 with a share capital of CHF 1,000,000 divided into 10,000,000 registered shares with a nominal value of CHF 0.10 each. The share capital was paid-up by the contribution in kind of 1,000,000 registered shares in Investis Investments SA (former Investis Holding SA), Lens, the former ultimate parent company of Investis Group.
1. Segment reporting
Segment Information 1st half 2017
SEGMENT INFORMATION 1ST HALF 2016
2. Revenue from letting of properties
Duration of existing fixed leases of commercial properties
The duration of existing fixed leases of commercial properties was:
Most important tenants
The five most important tenants measured according to property income were (in alphabetical order):
- –As of 30.06.2017: Duca SA, Permanent Mission of India to the UN in Geneva, Valotel Management (Fribourg) Sàrl, Valotel Management (Rothrist) AG and Valotel Management (Sion) SA
- –As of 31.12.2016: Brandt SA, Duca SA, Valotel Management (Fribourg) Sàrl, Valotel Management (Rothrist) AG and Valotel Management (Sion) SA
3. Income from disposal of investment properties
For details of the investment properties sold see Note 5 and Note 6.
4. Earnings per share and net asset value
Earnings per share are calculated by dividing the net profit attributable to Investis Holding SA shareholders by the weighted average number of outstanding shares entitled to dividends. All new shares are entitled to full dividend rights. For both periods under review there were no dilutive effects.
Earnings per share
Net asset value per share
Net asset value not including deferred taxes with regard to investment properties
5. Properties held for sale
In the 1st half 2017, one apartment in the jointly held (50%) property “Rue du Prado 19” was sold and the land “Saanen”, previously undeveloped plots of land, was reclassified as property held for sale.
6. Investment properties
Increases consisted of value-enhancing renovations, purchases of buildings and investments.
In the 1st half 2017, two residential properties (Avenue Général-Guisan 40 in Pully, Route de Crans 87 in Lens) and one commercial property (Chemin de Planchy 15/15a in Bulle) were sold.
In the 1st half 2016 one residential property (Route du Pont du Diable 7 in Lens) and two commercial properties (Chocolatière 21 in Echandens, C.-F. Ramuz 106 in Pully) were sold.
The valuation of investment properties was carried out by Wüest Partner AG in accordance with national and international standards and guidelines.
7. Financial liabilities
Mortgages and fixed advances that are not repaid within 12 months but which are renewed are reported under “Non-current financial liabilities” to reflect the economic reality. Mortgages due for repayment within the next 12 months are reported under short-term financial debt.
In the 1st half 2017, a CHF 140 million bond maturing on 14 February 2019 was issued on 14 February 2017. The coupon is 0.25%.
As at the balance sheet date, the following bonds are outstanding:
Investment properties in the amount of CHF 361.5 million (31.12.2016: CHF 344.3 million) were pledged to secure mortgages.
Unused credit lines totalled CHF 215 million at 30 June 2017 (31.12.2016: CHF 136 million).
As at the balance sheet date, amounts falling due are as follows:
Interest maturity periods are as follows (composition until next interest rate adjustment):
The weighted average interest rate for all mortgages and bonds amounts to 0.7% (1st half 2016: 2.0%).
8. Events after the balance sheet date
The Board of Directors approved the consolidated financial statements for publication on 29 August 2017.
No other events occurred between 30 June 2017 and the date of approval of the consolidated financial statements, which would require adjustments to the carrying amounts of the Group’s assets and liabilities as at 30 June 2017 or disclosure in this section.