Investis posts strong operating results for the first half year - lower
portfolio valuation

   INVESTIS Holding SA / Key word(s): Half Year Results
   Investis posts strong operating results for the first half year -
   lower portfolio valuation
   29-Aug-2023 / 07:00 CET/CEST
   Release of an ad hoc announcement pursuant to Art. 53 LR
   The issuer is solely responsible for the content of this
   announcement.
     ____________________________________________________________

* Revenue up 3% to CHF 115 million

* 3.1% like-for-like increase in rental income for residential properties

* Further increase in EBIT margin at Real Estate Services to 9.9% (9.7%)

  * NAV per share of CHF 90.21 excluding deferred taxes with regard to
    properties

Stéphane Bonvin, CEO of Investis Group said: "I am pleased with the solid
results for the first half of 2023 and the strong operating performance from
both segments. The negative valuation changes caused by higher interest
rates are market-driven and do not affect the underlying operating
performance of our business or the quality of the properties. Our solid
balance sheet and low level of debt provide a stable base for the future.
The fundamentals for the real estate market in the Lake Geneva region remain
robust. Rents are rising as a consequence of a housing shortage caused on
the one hand by accelerated demand for homes, which is being driven by high
levels of immigration, and on the other hand by ongoing weak construction
activity. We expect the operating business to remain strong in both
segments. The Group is performing extremely well in a challenging market
environment."

Group revenue rose 3% to CHF 115 million (prior year: CHF 112 million). The
previous year's property disposals resulted in lower rental income for the
Properties segment. The Real Estate Services segment posted growth of 9%.
Before revaluations and disposals, Group EBITDA stood at CHF 25 million (CHF
27 million).

The portfolio valuation was lower owing to the 10 basis points (bp) increase
in the average real-term discount rate to 2.84% (2.74% as at 31.12.2022) and
higher future investments in energetic renovations. These two negative
effects were partially offset by a continuing increase in rental cash flow.
The overall net reduction in valuation comes to CHF 49 million (CHF +64
million). This produced an operating result (EBIT) of CHF -26 million (CHF
+148 million) for the first half of 2023. The property disposals mentioned
above positively influenced the result for the first half of 2022 by CHF 58
million.

Excellent operating performance by both segments

The Properties segment achieved revenue of CHF 26 million (CHF 31 million).
The figure is lower because of last year's property disposals. There was an
excellent +3.1% rise in like-for-like rental income from residential
properties. This increase is due to rent increases in current tenancy
agreements, which have been implemented continuously since the beginning of
2023, and tenant changes. The vast majority of rental contracts are linked
to the consumer price index. The vacancy rate was further reduced to a
record low of 1.0% (1.3% as at 31.12.2022). Gross rental income as at
30.06.2023 stood at CHF 54.5 million (CHF 53.9 million as at 31.12.2022).
EBITDA before revaluations and disposals was CHF 16.5 million. After a
prolonged period of repeated value appreciation due to falling interest
rates, the Swiss National Bank's successive key interest rate increases in
the first half of the year showed effects on the discount rates used for
real estate valuations. Thus, the increase in the average discount rate by
10 bp led to a lower valuation of the portfolio of CHF -48.8 million. As a
result, the segment posted an EBIT of CHF -32 million (CHF +142 million).

The Real Estate Services segment reported revenue of CHF 90 million (CHF 83
million). Revenue at Property Management remained steady at CHF 31 million,
while rents under management stood at CHF 1.54 billion. Facility Services
achieved revenue of CHF 59 million (CHF 52 million). The already very good
EBIT margin for the entire segment increased still further to an excellent
9.9% (9.7%).

Financial result

Thanks to the significantly lower level of debt, the net financial result
was CHF -0.7 million (CHF -0.9 million), although the average interest rate
rose by 20 basis points to 0.55% in the first half of 2023 due to changes in
borrowing conditions.

Income taxes

Lower valuation reserves on the property portfolio led to an overall net tax
income for the first half of CHF 2.2 million (previous year: tax expense of
CHF 21.0 million).

Net result

Net profit excluding revaluation effect came to a healthy CHF 17.4 million.
Net result amounted to CHF -24.4 million, or CHF -1.91 per share.

Very solid balance sheet - strong LTV of 24.9%

Total assets came to CHF 1.6 billion as at 30 June 2023, with the equity
ratio still very comfortable at 65% (31.12.2022: 67%). The property
portfolio was valued at CHF 1,460 million. On the reporting date, it
included 149 buildings with 2,450 residential units. In relation to the
value of the property portfolio, the loan-to-value (LTV) is very
conservative at 24.9% (interest-bearing financial liabilities of CHF 364
million). Deferred tax liabilities amounted to CHF 137 million (CHF 143
million as at 31.12.2022).

Net asset value (NAV) per share excluding deferred taxes with regard to
properties came to CHF 90.21 on the reporting date (31.12.2022: CHF 95.07).

Market environment and outlook for 2023

Rising interest rates and the uncertain economic situation are influencing
not only the real estate market but the entire Swiss economy. Housing in
Switzerland became significantly scarcer last year. The shortage is felt
when there are hardly any apartments available at affordable prices within a
particular geographical area, when the cost of finding accommodation goes up
significantly or when an unusually high proportion of income has to be spent
on rent.

Immigration has increased sharply since 2022, in Switzerland as a whole and
especially in Cantons Geneva and Vaud. The rising population and the
pandemic have led to an increase in the formation of households, meaning
that demand has risen disproportionately. Smaller apartments (Investis' core
market) are in greater demand than larger ones (four rooms or more). Rising
rents and a lack of affordability are also driving demand for smaller homes.
As the number of ageing people increases within the population, the demand
for small, well-located homes suitable for the elderly will continue to
grow.

In summary, the Swiss real estate market is structurally driven by a
steadily growing population, a rising number of households, more jobs, a
higher overall income level, low vacancy rates and a dampened supply.
Against the backdrop of a persistent imbalance between supply and demand,
particularly in Swiss residential properties, the value of Investis'
property portfolio is highlighted.

93% of the Investis investment portfolio is made up of residential buildings
offering mid-priced apartments in central locations within the Lake Geneva
region. Its concentration on this region is the Investis Group's USP.
Vacancy rates in the Lake Geneva region continue to decline in all segments.
By national comparison, Geneva is well below the Swiss average. The Group's
low LTV means its Properties segment can further optimise its existing
portfolio through targeted purchases, despite the weakening transaction
market.

Our subsidiaries in the Real Estate Services segment offer a remarkable
range of services over the entire property life cycle. This gives the
segment an excellent position as a Swiss-wide provider of real estate
services with a strong focus on recurring revenues from property management,
house care and maintenance. The focus is on consolidating its outstanding
EBIT margin.

The supplier market remains very fragmented and competitive. It is
characterised by a diversity of service providers and a wide breadth of
services offered.

Investis is confident about the 2023 financial year as a whole and expects a
very good operating performance from both segments.

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   End of Inside Information
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   Language:    English
   Company:     INVESTIS Holding SA
                Neumühlequai 6
                8001 Zürich
                Switzerland
   Phone:       +41 58 201 7242
   E-mail:      laurence.bienz@investisgroup.com
   ISIN:        CH0325094297
   Listed:      SIX Swiss Exchange
   EQS News ID: 1713353

   End of Announcement EQS News Service
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1713353 29-Aug-2023 CET/CEST