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 2018, 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 services.

Principles

The unaudited interim consolidated financial statements of Investis Holding SA have been prepared in accordance with Swiss GAAP FER 31 “Complementary recommendation for listed companies” 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 2017 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 2017.

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 2018 using the DCF (discounted cash flow) method. The valuation method and technique applied for the half-year financial statements for 2018 are unchanged from the previous year.

Scope of consolidation

On 1 February 2018, Investis Properties SA acquired 100% of the shares in the real estate company Société d’investissements immobiliers SII SA, Geneva, and merged it into the acquiring company.

On 1 February 2018, 100% of the shares in Domus Flavia Investments AG, Geneva, were sold.

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 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.

		1st half 2018			1st half 2017
In CHF 1,000	Acquisitions	Disposals			Acquisitions
	Total	Total	Hauswartprofis	Others	Total
Cash and cash equivalents	106	-	5,942	125	6,067
Trade and other current receivables	19	370	899	2	901
Investment properties and properties held for sale	130,616	18,900	-	35,951	35,951
Fixed assets	-	-	1,223	-	1,223
Financial assets	-	-	-	-	-
Trade and other current liabilities	–1,754	–228	–1,877	–296	–2,173
Non-current liabilities	–22,357	–1,388	–286	–10,150	–10,437
Net assets acquired/disposed of	106,630	17,654	5,900	25,632	31,532
Goodwill (recognised in equity)	-	-	14,720	5	14,725
Recognised income from disposal of investment properties	-	6,529	-	-	-
Purchase/selling price	106,630	–24,183	20,619	25,638	46,257
Cash and cash equivalents acquired/disposed of	–106	-	–5,942	–125	–6,067
Unpaid purchase price consideration	–1,330	-
Purchase price consideration paid/received in prior years 1, 2)	–10,800	1,500
Cash outflow on acquisitions	94,394		14,678	25,513	40,190
Cash inflow from disposals		–22,683

1) With the sign-off of the purchase price agreement for the acquisition of Société d'investissements immobiliers SII SA, Geneva, a deposit of CHF 10.8 million was paid in December 2017. As the transaction was completed only in February 2018, the corresponding cash outflow was reported as increase in other receivables in the net cash from operating activities (cash flow) in the Annual Financial Statements 2017.

2) With the sign-off of the purchase price agreement for the sale of Domus Flavia Investment AG, Geneva, a deposit of CHF 1.5 million was received in December 2017. As the transaction was completed only in February 2018, the corresponding cash inflow was reported as increase in other payables in the net cash from operating activities (cash flow) in the Annual Financial Statements 2017.

Group internal mergers

As at 1 January 2018 following Group companies were merged:

–Casamar AG, Geneva, Jalu SA, Lens, Investis Patrimoine SA, Lens, Les Résidences Privées SA, Lens, Parallax SA, Geneva, Serge Spaggiari SA, Perly-Certoux, Transimo SA, Fribourg, and WEGRA Holding AG, Auenstein, were merged into Investis Properties SA, Lens.
–Hauswartprofis Baar GmbH, Baar, Hauswartprofis Mägenwil AG, Mägenwil, Hauswartprofis ZH AG, Dübendorf, and Treos AG, Volketswil, were merged into hauswartprofis AG, Mägenwil.
–Minas-Tirith SA, Wollerau, was merged into Investis Investments SA, Lens.

1. Segment reporting

Segment Information 1st half 2018

In CHF 1,000	Properties	Real Estate Services	Corporate	Eliminations	Investis Group
Revenue 1)	26,970	73,168	-	–2,286	97,852
Direct expenses	–7,800	–6,918	-	2,285	–12,433
Personnel expenses	–708	–51,393	–1,565	-	–53,666
Other operating expenses	–990	–10,313	–814	1	–12,116

Operating profit before revaluations, disposal of investment properties, depreciation and amortisation	17,473	4,544	–2,380	0	19,637

Income from revaluations	2,687				2,687
Income from disposal of investment properties	7,882				7,882
Operating profit before depreciation and amortisation	28,042	4,544	–2,380	-	30,206

Depreciation and amortisation	–7	–895	–94	-	–996
Operating profit (EBIT)	28,035	3,650	–2,473	-	29,211

Total segment assets as at 30 June 2018 2)	1,299,839	89,188	–2,937	–23,918	1,362,172
Total segment liabilities as at 30 June 2018 2)	45,210	65,067	720,151	–23,918	806,510

Headcount as at 30 June 2018	9	1,378	12		1,399
FTE as at 30 June 2018	9	1,134	11		1,153
FTE (full-time equivalent, average over the period)	8	1,142	11		1,162

1) Revenue is generated exclusively in Switzerland.

2) The assets and liabilities shown under “Corporate” include the corporate items from the balance sheet and the financial assets/liabilities and tax assets/liabilities of the Investis Group.

SEGMENT INFORMATION 1ST HALF 2017

In CHF 1,000	Properties	Real Estate Services	Corporate	Eliminations	Investis Group
Revenue 1)	23,339	72,635	-	–2,415	93,560
Direct expenses	–7,064	–7,077	-	2,430	–11,711
Personnel expenses	–182	–50,033	–1,748	-	–51,963
Other operating expenses	–760	–10,930	–622	–16	–12,327

Operating profit before revaluations, disposal of investment properties, depreciation and amortisation	15,333	4,596	–2,370	0	17,559

Income from revaluations	17,158				17,158
Income from disposal of investment properties	625				625
Operating profit before depreciation and amortisation	33,116	4,596	–2,370	-	35,342

Depreciation and amortisation	0	–935	–90	-	–1,025
Operating profit (EBIT)	33,116	3,661	–2,460	-	34,317

Total segment assets as at 30 June 2017 2)	1,049,193	75,037	34,541	–4,442	1,154,329
Total segment liabilities as at 30 June 2017 2)	7,665	53,362	557,326	–4,442	613,911

Headcount as at 30 June 2017	3	1,416	15		1,434
FTE as at 30 June 2017	3	1,133	14		1,149
FTE (full-time equivalent, average over the period)	2	1,121	14		1,138

1) Revenue is generated exclusively in Switzerland.

2) The assets and liabilities shown under “Corporate” include the corporate items from the balance sheet and the financial assets/liabilities and tax assets/liabilities of the Investis Group.

2. Revenue from letting of properties

Duration of existing fixed leases of commercial properties

The duration of existing fixed leases of commercial properties was:

	Annualised rental income
In CHF 1,000	30.06.2018	31.12.2017
Less than one year	650	492
1–5 years	2,020	3,109
More than 5 years	1,697	1,631

Most important tenants

The five most important tenants measured according to property income were (in alphabetical order):

–As of 30.06.2018: Hospice Général, Permanent Mission of India to the UN in Geneva, Valotel Management (Fribourg) Sàrl, Valotel Management (Rothrist) AG and Valotel Management (Sion) SA
–As of 31.12.2017: Hospice Général, Permanent Mission of India to the UN in Geneva, Valotel Management (Fribourg) Sàrl, Valotel Management (Rothrist) AG and Valotel Management (Sion) SA

Share of annualised rental income (%)	30.06.2018	31.12.2017
Most important tenant	1.3%	1.5%
Second to fifth most important tenants	3.3%	3.1%
Five most important tenants	4.6%	4.6%

3. Income from disposal of investment properties

In CHF 1,000	1st half 2018	1st half 2017
Sales proceeds, net	41,480	9,096
Investment costs	–38,066	–6,674
Gross profit from disposal of investment properties	3,414	2,422
Accumulated valuation losses	4,469	–1,797
Net profit on disposal of investment properties	7,882	625
Of which profits on disposal of properties held for sale	844	255
Of which profits on disposal of residential properties	470	–5
Of which profits on disposal of commercial properties	6,569	374

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.

Weighted average number of shares

	1st half 2018	1st half 2017
Shares issued as at 1 January	12,800,000	12,800,000
Effects of change in holdings of treasury shares	–37,751	-
Weighted average number of shares as at 30 June	12,762,249	12,800,000

Earnings per share

		1st half 2018	1st half 2017
Net profit attributable to Investis Holding SA shareholders	in CHF 1,000	21,715	27,640
Weighted average number of shares		12,762,249	12,800,000
Earnings per share (basic/diluted)	in CHF	1.70	2.16

Net asset value per share

		30.06.2018	31.12.2017
Equity attributable to the shareholders of Investis Holding SA at end of period	in CHF 1,000	554,800	568,002
Number of shares		12,800,000	12,800,000
NAV per share (basic/diluted)	in CHF	43.34	44.38

Net asset value excluding deferred taxes with regard to investment properties

		30.06.2018	31.12.2017
Equity attributable to the shareholders of Investis Holding SA at end of period	in CHF 1,000	554,800	568,002
Deferred taxes with regard to investment properties		168,086	147,625
Net asset value excluding deferred taxes with regard to investment properties		722,886	715,626
Number of shares		12,800,000	12,800,000
NAV per share excluding deferred taxes with regard to investment properties (basic/diluted)	in CHF	56.48	55.91

5. Properties held for sale

In CHF 1,000	1st half 2018	1st half 2017
Acquisition costs as at 1 January	35,805	18,141
Changes in scope of consolidation	7,850	-
Increases	8,151	1,481
Capitalisation of borrowing costs	-	7
Disposals	–2,707	–504
Reclassifications	3,390	7,328
Acquisition costs as at 30 June	52,489	26,452

In the 1st half 2018, the two properties “Rue de Zurich 35” in Geneva and “Rue du Vieux-Chêne 20–22” in Chêne-Bougeries were acquired with the takeover of Société d’investissements immobiliers SII SA. The increases relate to ongoing construction activities of the properties “Saanen”, “Hérémence” and “Chemin des Chantres 8” in St.-Sulpice. The property “Rue du Vieux-Chêne 20–22” and one apartment in the jointly held (50%) property “Rue du Prado 19” in Lens were sold. The property “Chemin des Chantres 8” was reclassed from investment properties under construction (non-current assets, valued at fair value) and is subsequently valued at the lower of this value (including construction costs after reclassification) or fair value.

In the 1st half 2017, one apartment in the jointly held (50%) property “Rue du Prado 19” in Lens was sold and the land “Saanen”, previously undeveloped plots of land, was reclassified as property held for sale.

6. Investment properties

In CHF 1,000	Residential properties	Commercial properties	Properties under construction	Undeveloped plots of land	Total investment properties
Market value as at 1 January 2017	841,961	113,129	64	7,328	962,481

Acquisition costs as at 1 January 2017	332,905	97,747	64	7,328	438,044
Changes in scope of consolidation	12,971	22,859	122	-	35,951
Increases	1,651	50	6,231	1,688	9,619
Disposals	–1,205	–4,965	-	-	–6,170
Reclassifications	-	-	-	–7,328	–7,328
Acquisition costs as at 30 June 2017	346,323	115,691	6,416	1,688	470,117

Revaluation as at 1 January 2017	509,056	15,382	-	-	524,438
Gains on valuations	22,730	126	-	-	22,856
Losses on valuations	–2,418	–3,280	-	-	–5,698
Disposals	–1,700	–97	-	-	–1,797
Revaluation as at 30 June 2017	527,667	12,131	-	-	539,798
Market value as at 30 June 2017	873,990	127,822	6,416	1,688	1,009,916

Market value as at 1 January 2018	940,629	127,784	14,826	1,673	1,084,912

Acquisition costs as at 1 January 2018	405,432	115,999	14,701	1,673	537,804
Changes in scope of consolidation	122,766	–19,939	-	-	102,827
Increases	56,288	907	2,963	-	60,159
Disposals	–8,033	–7,387	-	-	–15,420
Reclassifications	–2,534	-	–730	-	–3,264
Acquisition costs as at 30 June 2018	573,919	89,581	16,933	1,673	682,106

Revaluation as at 1 January 2018	535,197	11,785	126	-	547,108
Changes in scope of consolidation	-	1,039	-	-	1,039
Gains on valuations	10,000	488	-	-	10,488
Losses on valuations	–6,255	–1,545	-	-	–7,801
Disposals	1,103	2,327	-	-	3,430
Reclassifications	-	-	–126	-	–126
Revaluation as at 30 June 2018	540,045	14,093	-	-	554,138
Market value as at 30 June 2018	1,113,964	103,674	16,933	1,673	1,236,244

Increases consisted of value-enhancing renovations, purchases of buildings and investments.

In the 1st half 2018, one residential property (Route de Pliany 16–18 in Crans-Montana) and one commercial property (Chemin Lambien in Sion) were sold. Additionally, the consolidated Group company “Domus Flavia Investments AG” and with it one commercial propery (Rue Peillonnex 39 in Chêne-Bourg) was disposed.

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.

The valuation of investment properties was carried out by Wüest Partner AG in accordance with national and international standards and guidelines.

7. Financial liabilities

In CHF 1,000	30.06.2018	31.12.2017
Amortisation obligations on mortgages	-	160
Loans from third parties	6,330	5,000
Current mortgages	6,495	6,532
Current bonds	140,000	-
Current financial liabilities	152,825	11,692

Mortgages	7,231	9,665
Bonds	380,000	420,000
Loans from third parties	3,979	4,916
Non-current financial liabilities	391,210	434,581
Total financial liabilities	544,035	446,273

Mortgages and fixed advances that are not repaid within twelve months but which are renewed are reported under “Non-current financial liabilities” to reflect the economic reality. Mortgages due for repayment within the next twelve months are reported under short-term financial debt.

In the 1st half 2018, a CHF 100 million bond, maturing on 12 June 2020, with a coupon of 0.35%, was issued on 12 June 2018.

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:

ISIN	CH 033 764 551 6	CH 035 259 586 9	CH 036 153 322 4	CH 037 347 679 2
Currency	CHF	CHF	CHF	CHF
Issuing volume	100 millions	140 millions	180 millions	100 millions
Listing	SIX Swiss Exchange	SIX Swiss Exchange	SIX Swiss Exchange	SIX Swiss Exchange
Coupon	0.55%	0.25%	0.75%	0.35%
Tenor	5 years	2 years	5 years	2 years
Payment date	15 November 2016	14 February 2017	3 October 2017	12 June 2018
Redemption date	15 November 2021	14 February 2019	3 October 2022	12 June 2020

Investment properties in the amount of CHF 241.9 million (31.12.2017: CHF 245.3 million) were pledged to secure mortgages.

Unused credit lines totalled CHF 216 million at 30 June 2018 (31.12.2017: CHF 201 million).

As at the balance sheet date, amounts falling due are as follows:

In CHF 1,000	30.06.2018	31.12.2017
Rollover mortgages	-	2,594
Due within the first year 1)	146,495	6,532
Due within the second year	105,080	145,080
Due within the third year	2,151	2,151
Due within the fourth year	100,000	100,000
Due within the fifth year and beyond	180,000	180,000
Total mortgages and bonds	533,727	436,357

Loans from third parties 2)	10,308	9,916
Total other financial liabilities	10,308	9,916

Total financial liabilities	544,035	446,273

1) Mortgages due within the first year are reported under non-current liabilities if extensions are planned.

2) Loans from third parties include as at 30 June 2018 unsettled purchase price consideration for the Privera Group acquisition (September 2014) of CHF 5 million (31.12.2017: CHF 5 million), which is interest-free and amortised annually by CHF 5 million, and a further unsettled purchase price consideration for the acquisition of Société dʼinvestissements immobiliers SII SA (February 2018) of CHF 1.3 million, which is interest-free and paid in July 2018. The remaining loans from third parties have no fixed maturity.

Interest maturity periods are as follows (composition until next interest rate adjustment):

In CHF 1,000	Interest rates as at 30.06.2018	30.06.2018	31.12.2017
Up to one year		153,727	16,357
Up to 2 years		100,000	140,000
Up to 3 years		-	-
Up to 4 years		100,000	100,000
Up to 5 years and beyond		180,000	180,000
Total mortgages and bonds	0.25%─1.05%	533,727	436,357

Loans from third parties		10,308	9,916
Total other financial liabilities	0.0%	10,308	9,916

Total financial liabilities		544,035	446,273

The weighted average interest rate for all mortgages and bonds amounts to 0.5% (1st half 2017: 0.7%).

8. Events after the balance sheet date

The Board of Directors approved the consolidated financial statements for publication on 28 August 2018.

No other events occurred between 30 June 2018 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 2018 or disclosure in this section.

9. Group companies

			30.06.2018		31.12.2017
	Domicile	Original currency	Share capital in CHF 1,000	Ownership interest 1)	Ownership interest 1)	Footnote
Properties
Investis Properties SA	Lens	CHF	1,650	100%	100%	C
Valotel SA	Lens	CHF	2,000	100%	100%	C
Domus Angelo S.à.r.l.	Luxembourg (LUX)	EUR	200	100%	100%	C
Alaïa Invest SA	Lens	CHF	100	100%	100%	C
Hotel Investissements et Management AG	Fribourg	CHF	100	100%	100%	C
Volki-Land AG	Volketswil	CHF	50	100%	100%	C
OR omiresidences Sàrl	Lens	CHF	20	100%	100%	C
La Foncière de la Dixence SA	Lens	CHF	200	75%	75%	C 2)
Raffaele Investissement SA	Lens	CHF	100	50%	50%	Q
Domus Flavia Investments AG	Geneva	CHF			100%	C 3)
Investis Patrimoine SA	Lens	CHF			100%	C 4)
Serge Spaggiari SA	Perly-Certoux	CHF			100%	C 4)
Jalu SA	Lens	CHF			100%	C 4)
Parallax SA	Geneva	CHF			100%	C 4)
Casamar AG	Geneva	CHF			100%	C 4)
Les Résidences Privées SA	Lens	CHF			100%	C 4)

Real Estate Services
Privera AG	Muri bei Bern	CHF	4,000	100%	100%	C
Régie du Rhône SA	Lancy	CHF	3,000	100%	100%	C
Régie du Rhône Crans-Montana SA	Lens	CHF	100	100%	100%	C
Hauswartprofis AG	Mägenwil	CHF	200	100%	100%	C
Synergie Services Facility Management SA	Lancy	CHF	100	100%	100%	C
AGD Renovationen AG	Neuenhof	CHF	500	53%	53%	C
Chauffage-Assistance SA	Geneva	CHF	100	100%	100%	C
Clim-Assistance SA	Geneva	CHF	100	100%	100%	C
SoRenova SA	Lens	CHF	100	100%	100%	C
WEGRA Holding AG	Auenstein	CHF			100%	C 4)
Hauswartprofis Mägenwil AG	Mägenwil	CHF			100%	C 5)
Hauswartprofis ZH AG	Dübendorf	CHF			100%	C 5)
Hauswartprofis Baar GmbH	Baar	CHF			100%	C 5)
Treos AG	Volketswil	CHF			100%	C 5)

Corporate
Investis Holding SA	Zurich	CHF	1,280	n.a.	n.a.	C
Investis Investments SA	Lens	CHF	1,000	100%	100%	C* )
Investis Management SA	Lens	CHF	100	100%	100%	C
Investis SA	Lens	CHF	100	100%	100%	C
Insite Management SA	Echandens	CHF	120	42%	42%	E
Polytech Ventures Holding SA	Ecublens	CHF	143	50%	50%	E
PropTech Partners SA	Ecublens	CHF	140	44%		E
YetiVisit SA	Bulle	CHF	167	40%		E
Minas-Tirith SA	Wollerau	CHF			100%	C 6)
Transimo SA	Fribourg	CHF			100%	C 4)

C) Consolidated

Q) Joint venture, consolidated proportionally

E) Included in the consolidated financial statements using the equity method

*) Investment held directly by Investis Holding SA

1) Ownership interest is equal to voting rights

2) Until 21 November 2017 quota consolidated

3) Sold in February 2018

4) As at 1 January 2018 merged into Investis Properties SA

5) As at 1 January 2018 merged into Hauswartprofis AG

6) As at 1 January 2018 merged into Investis Investments SA

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Half Year Report 2018	PDF	936 KB

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Press release half year results 2018 EN	PDF	229 KB
Press release half year results 2018 DE	PDF	233 KB
Press release half year results 2018 FR	PDF	237 KB

Documents	Type	Size
Presentation of the half year results 2018	PDF	3 MB

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Half-Year Report 2018

PRESS RELEASE HALF-YEAR RESULTS 2018

PRESENTATION OF THE HALF-YEAR RESULTS 2018

NOTES to the consolidated financial statements