Glattpark (Opfikon), 20 August 2024 – Ina Invest, the Swiss real estate company listed on the SIX Swiss Exchange, generated an operat-ing result (EBIT) of CHF 6.9 million in the first half of 2024, an increase of 63% from the previous year's figure of CHF 4.2 million. The operating result excluding market value changes amounted to CHF 2.6 million, compared with CHF 3.4 million in the same period of the previous year. Consolidated profit reached CHF 2.1 million (HY 2023: CHF 1.2 million).
Solid rental income from the completed properties and positive changes in market value, primarily due to progress made in development projects, contributed to the result. Despite the larger real estate portfolio, operating expenses were only slightly higher, mainly due to the higher cost of debt capital.
Market value of the real estate portfolio increased
The market value of Ina Invest's real estate portfolio rose by CHF 10.5 million or 1.3% to CHF 847 million in the first half of 2024. The increase was due to positive net changes in market value of CHF 4.3 million as a result of steady progress in the projects and investments in the portfolio of CHF 8.5 million. Particularly notable are the "Rocket & Tigerli" (Lokstadt) project in Winterthur and the "Schaffhauserstrasse" project in Zurich, which contributed to the positive changes in market value. By contrast, there were negative value adjustments for office properties, as the current lower demand led to higher discount rates in the valuation.
Overall, real estate valuers have a positive view of residential properties due to the high demand, while office properties are viewed more critically. The strategic focus of Ina Invest's portfolio on a high residential share of over 50% (after completion) is clearly advantageous.
At CHF 7.6 million, rental income was roughly on the level of the first half of 2023 (HY 2023: CHF 7.9 million). The "Elefant" building (Lokstadt) in Winterthur contributed a full semester of rental income. In the "Chemin des Olliquettes" property in Lancy (Geneva), three out of four floors were leased to the Canton of Geneva on a long-term basis. On the other hand, there were properties that became vacant due to an upcoming renovation, such as the "Rue du Valais" in Geneva.
Significant development successes
Ina Invest made good progress with the development of key projects in the first half of 2024. Construction of the casino in the "Lokstadt-Hallen" in Winterthur began in January. We received the building permit for the Schaffhauserstrasse project in Zurich, and construction is scheduled to start in the second half of 2024. A building permit has also been received for the Rue du Valais project in Geneva, and construction is expected to start in the first quarter of 2025 – a full year earlier than originally planned. The Rocket & Tigerli preliminary project in timber hybrid construction in the Lokstadt in Winterthur has been completed. The building application will be submitted in the third quarter of 2024, and construction is expected to start in the first quarter of 2025. The preliminary project "Unterfeld, plot 3" in Baar has also been completed. The vote on the development plan will take place on September 22, 2024, and the building application will be submitted immediately afterwards. We have scheduled the start of construction for the third quarter of 2025.
Finally, at the end of June, the Pratteln residents’ council approved the "Bredella West" master plan by a clear majority. A referendum has been called against this decision, meaning that a public vote is expected to take place in the fall of 2024. Over the coming years, Ina Invest intends to gradually transform the development site, currently used for commercial and industrial purposes, into an attractive, green central quarter with a high proportion of residential units.
Sustainability as a competitive factor and part of our DNA
Ina Invest consistently pursued its sustainability initiatives in the reporting period. Our vision remains to maintain and continuously develop one of the most sustainable real estate portfolios in Switzerland. With this in mind, we allocate CO₂ budgets for emissions to development projects, which must be adhered to throughout the development phase. In future, every project is to be certified in accordance with the requirements of an energy or sustainability label such as SNBS Gold. Additionally, the energy, water and waste consumption of the old existing properties on the Bredella site was evaluated for the first time. These values are to be gradually reduced as part of the site’s transformation. Sustainable action is part of our DNA – out of the conviction that this will have a positive impact on the performance of our portfolio in the long term. More detailed information can be found in the sustainability report published in June 2024.
Merger successfully completed
At the Annual General Meeting of Ina Invest Holding Ltd on April 3, 2024, you, our valued shareholders, approved the merger with Ina Invest Ltd by 99.64%. The intended simplification of the company structure was realized and the name was changed to Ina Invest Ltd. The merger resulted in an increase in market capitalization of around 40% to CHF 282 million (closing price on April 5, 2024), giving the company greater weight on the capital market.
Confident outlook
The market environment for real estate in Switzerland remains friendly: interest rates are likely to remain stable or fall slightly again, which will keep debt capital costs low. Inflation is low and construction prices are falling slightly. Demand for user-friendly commercial space is relatively intact, while demand for office space is more selective. The demand for residential space remains unabated, as net immigration coupled with lower construction activity is reducing the supply in urban centers.
In light of this, the Board of Directors and Executive Board of Ina Invest are looking to the future with confidence. The priorities for the second half of 2024 are the ongoing projects – the construction of the casino in the Lokstadt-Hallen, the start of construction on Schaffhauserstrasse and the development of the Rocket & Tigerli and Rue du Valais projects as well as the "Unterfeld Baar" development plan to prepare for construction. We are reaffirming our medium-term goals for Ina Invest – a portfolio size of over CHF 2 billion and a return on equity (ROE) of over 6%.
All information on the 2024 half year results can be found at report.ina-invest.com.
Media and analysts’ conference on the 2024 half year results
Today at 3:00pm, CEO Marc Pointet and CFO Daniel Baumann will present the 2024 half year results and will be available to answer questions. You can watch the livestream with presentation and audio feed at ina-invest.com/webcast. To take part in the Q&A session, please register for the conference call at ina-invest.com/telefonkonferenz. You will then receive your individual dial-in details.
