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STATEMENT FROM STÉPHANE BONVIN, CEO INVESTIS GROUP

“Looking back over the last five years since our IPO in 2016, I am very proud of everything that has been achieved, with both segments, Properties and Real Estate Services, contributing to our excellent results. We have exceeded all the goals we set during the IPO. Our positioning is unique in the Swiss real estate market and we will continue to expand on this basis. Our business model has proved its resilience in a challenging environment, and our employees have made an exceptional contribution. We have created value for all our stakeholders.”

Stéphane Bonvin (CEO and Member of the BoD), Thomas Vettiger (Chairman of the BoD)

Strong Group results 

The Group increased its revenue by 21% to CHF 216 million (prior year: CHF 179 million). The increase was achieved through a combination of organic and acquisition-based growth. EBITDA before revaluations and disposal gains rose to CHF 54 million (CHF 46 million).

Continued higher cash flows from properties and a further decline in the average real-term discount rate to 2.84% (3.15% as of 31.12.2020) underline the quality of the portfolio and hence led to revaluation gains of CHF 184 million. This resulted in an impressive operating profit (EBIT) of CHF 235 million (CHF 136 million).

Net profit reached an excellent CHF 201 million (CHF 114 million) and earnings per share CHF 15.74 (previous year: CHF 8.91). Net profit excluding revaluation effects came to CHF 41.3 million.

BOTH SEGMENTS RECORD EXCELLENT OPERATING PERFORMANCE

PROPERTIES

The Properties segment achieved revenue of CHF 60 million (CHF 58 million). Rental income increased by 4%. There was another excellent rise in like-for-like rental income of +1.3%. The vacancy rate was reduced to 2.2% (3.0% as of 31.12.2020). Gross rental income as of 31.12.2021 stood at CHF 64.2 million (CHF 58.6 million as of 31.12.2020). The Segment achieved a notable EBIT of CHF 225 million (CHF 131 million). This includes the previously mentioned revaluation effects of CHF 184 million.

REAL ESTATE SERVICES

Within the Real Estate Services segment, the acquired companies Rohr AG and SEA lab were included in the consolidated results from 1 April. This segment’s revenue increased overall by 28% to CHF 160 million. There was a slight increase in revenue from Property Management of 0.6%. Complementary services were once again hurt by the effects of COVID-19. Nevertheless, rents under management were very successfully increased again to reach CHF 1.51 billion (CHF 1.42 billion as of 31.12.2020). The Facility Services unit achieved revenue of CHF 100 million (CHF 64 million), mainly due to the acquisitions of Rohr AG and SEA lab. Almost all subsidiaries improved their operating margins. The EBIT margin reached an excellent 9.3% (8.6%).

VERY SOLID BALANCE SHEET – GROSS LTV of 37%

Total assets amounted to CHF 1.8 billion as of 31 December 2021, with an increased and still very comfortable equity ratio of 53.2% (31.12.2020: 52.8 %). Most of the CHF 140 million of the bond falling due in February 2021 was refinanced on attractive terms with a new bond issue of CHF 115 million. The bond that fell due in November 2021 with a volume of CHF 100 million was repaid. Debt financing was diversified through bank loans and private placements. The property portfolio was valued at CHF 1,735 million. On the balance sheet date, it comprised 171 buildings with 3,073 residential units. In relation to the value of the property portfolio, the loan-to-value (LTV) figure remained solid at 37% (interest-bearing financial liabilities of CHF 648.5 million). Deferred tax liabilities increased to CHF 165 million (CHF 138 million).

Net asset value (NAV) per share excluding deferred tax relating to properties increased again to CHF 88.73 (31.12.2020: CHF 75.22).

Events after the balance sheet date

In January and February, three 0.0% private placements were issued with a total volume of CHF 70 million.

ESG

Investis is well aware of its responsibilities to its employees, society, and the environment. Responsible and sustainable action has long been embedded as part of the Group’s strategy.

In 2020, Investis had its property portfolio evaluated for the first time by an external specialist on the topic of sustainability. A second assessment took place in 2021. Based on data collected in 2022, we will be able to provide concrete answers to regularly asked questions in 2023. In addition to environmental aspects, and especially the effort to improve its energy balance associated with CO2 emissions, Investis attaches great importance to certain social criteria – particularly the health and comfort of tenants (>90% of properties owned by Investis are residential). For years, Investis has ensured that its annual renovation programmes follow all the specific cantonal regulations in Geneva (such as SABRA, LDTR, and LCI) and the Canton of Vaud (LPPL, LATC), as well as local initiatives (Eco21).

From 2022, Investis will be part of the Sustainable Real Estate Index (SSREI). By joining the index, Investis is helping to promote transparency and comparability within the Swiss real estate market, which should encourage sustainable investments throughout the entire sector. Sustainability is directly linked to maintaining and increasing the value of the portfolio.

2022 ANNUAL GENERAL MEETING OF SHAREHOLDERS

The Annual General Meeting will be held on 3 May 2022, once again with special restrictions. In accordance with Ordinance 3 on Measures to Combat Coronavirus (Covid-19 Ordinance 3), which the Federal Council has extended until the end of 2022, the General Meeting will again take place without any public in attendance.

Shareholders are again requested to cast their votes in advance by sending their voting instructions to the independent proxy holder. Neither the Chairman of the Board of Directors nor Group Management will be making a speech. The event will not be broadcasted. Only the independent proxy holder will be allowed to cast votes on behalf of shareholders. These measures are being taken to protect the health of shareholders, employees, and external service providers.

At this year’s General Meeting, Investis shareholders will be asked to approve an unchanged dividend of CHF 2.50 per share, half of which would be in the form of repayment from capital contributions. This represents a dividend payout ratio of 16.0%. In addition, all members of the Board of Directors are standing for re-election.

MARKET ENVIRONMENT AND OUTLOOK FOR 2022

93% of the Investis portfolio is made up of residential property containing mid-priced apartments in central locations in the Lake Geneva region. Its concentration in this region is the Investis Group’s USP. The Swiss housing market continues to be a stable anchor of the real estate market. Demand for precisely these kinds of homes in the Lake Geneva Region is growing steadily, reflected in price trends. This high demand is based on continuing jobs growth in Switzerland and this region in particular. According to the Federal Office of Statistics (FOS), Switzerland has more than 5.3 million jobs, with the Geneva Region moving up to just behind Zurich and the Mittelland region since the last survey in 2019. These three regions provide six out of ten jobs in Switzerland. Between 2011 and 2019, more than half a million new jobs were created throughout Switzerland. During this period, the Zurich and Lake Geneva regions recorded the strongest growth of all, with more than 100,000 new jobs each. If new jobs are created, employees will need appropriate accommodation. The population of the Canton of Geneva is growing continuously (+0.6% or 3,147 people in the last twelve months to the end of 2021 according to OCSTAT).

High demand, especially for mid-priced apartments, inevitably has an impact on rents. In Geneva, free-market rents rose by an average of 0.8% last year. Over the last 80 years, rents in the Canton of Geneva have risen by an average of 50% more than in the Swiss market as a whole (OCSTAT).

Investis announced for its segment Real Estate Services a new management organisation in January. The four subsidiaries (hauswartprofis AG, Rohr AG, PRIVERA AG and analysisLAB AG) are being brought close together organisationally. The internal service functions – finance, IT, HR, purchasing, etc. – will be provided centrally from a single source. This will enable the four brands to focus their expertise even more strongly on their operational businesses and on customer requirements. With this new management organisation, this segment will be more agile and focused. The combined knowledge of around 2,200 skilled and motivated employees at 40 locations in conjunction with the digital transformation will lead to sustainable added value for customers.

The targets for 2022 are:

• –In the Properties segment: further targeted optimisation of the real estate portfolio, with a focus on the Lake Geneva Region;
• –In the Real Estate Services segment: Focus on high-quality services and profitable growth as well as further push on digitalisation.

Investis continues to see strong demand for residential properties in central locations in Switzerland and for providers of high-quality real estate services. Investis will be aiming for a further increase in the EBIT margin in the services segment. It will also continue to use the current interest rate environment to keep funding costs low.

The Board of Directors and Executive Board of Investis Holding SA would like to express their sincere thanks to our valued shareholders for the trust they have placed in us, and to our staff for their great commitment and loyalty.