Investis Group records strong operating performance in 2023

   INVESTIS Holding SA / Key word(s): Annual Results
   Investis Group records strong operating performance in 2023
   27-March-2024 / 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.
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     * Rental income +3.1% on a like-for-like basis
     * Excellent EBIT margin of 9.9% at Real Estate Services
     * Unchanged dividend of CHF 2.50 and positive outlook

   "I am delighted with our strong operating performance in both
   segments in 2023. In the Real Estate Services segment, we were
   able to increase revenues while maintaining a remarkable EBIT
   margin. Our decision in autumn 2021 to sell a portfolio of eleven
   properties in order to reduce our LTV has proved correct. The
   balance sheet has been further strengthened, giving us a solid
   basis for future growth. The vacancy rate has continued to fall.
   Given the record-high level of immigration into Switzerland, the
   housing shortage is likely to get even more acute - especially in
   the two hotspots in western Switzerland. Despite the economic
   uncertainties, we were able to increase rents thanks to
   persistently high demand and a low level of construction
   activity. The lower valuation of our portfolio is due to a rise
   in interest rates and is market-driven. This does not affect the
   strong profitability and above-average quality of the portfolio.
   In an environment where the industry has had to adjust to higher
   capital costs, we managed to create value in both our segments. I
   am very satisfied with these results," says Stéphane Bonvin, CEO
   of Investis Group.

   Impressive Group operating result
   Despite the successful sale of eleven properties in 2022, the
   Group succeeded in increasing revenue by 1.7% to CHF 231.5
   million (previous year CHF 227.5 million) during the year under
   review. This net increase was achieved organically and through
   acquisitions. EBITDA before revaluations and disposal gains was
   CHF 50.1 million (CHF 53.5 million).

   The continued increase in cash flow from investment properties
   underlines the quality of the portfolio. The higher average real
   discount rate of 2.97% (2.74% as of 31.12.2022) led to a
   devaluation of CHF 47.7 million in the reporting year. This
   resulted in an overall operating loss (EBIT) of CHF 1.5 million.
   The previous year had been marked by high disposal and
   revaluation gains, which helped produce an operating profit of
   CHF 180.4 million.

   The net loss in 2023 was CHF 5.4 million (net profit 2022: CHF
   151.8 million), or CHF -0.42 per share (CHF 11.90). Excluding
   revaluation effects, net profit came to CHF 35.5 million,
   compared to CHF 93.8 million in 2022, which included CHF 63.4
   million of disposal gains.
   Increased rental income and sustainably high operating margin in
   the Service segment
   The Properties segment recorded revenue of CHF 53.1 million (CHF
   57.8 million), with the net decline being solely attributable to
   the rental income lost from the properties that were sold in
   2022. Rental income increased by an excellent 3.1% on a
   like-for-like basis (also +3.1% for residential properties). The
   vacancy rate was further reduced to a very low 0.9% (1.3% as of
   31.12.2022). Due to the higher discount rates, the revaluation
   effect came to CHF ¬ 47.7 million. The purchase of two properties
   and the increase in like-for-like rental income pushed gross
   rental income up to CHF 57.9 million as of 31.12.2023 (CHF 53.9
   million as of 31.12.2022). This segment achieved an impressive
   EBITDA of CHF 33.7 million (CHF 36.8 million). EBIT came to CHF
   -13.9 million (CHF 167.3 million). The prior-year figure included
   disposal gains of CHF 63.4 million from the aforementioned
   property sales, as well as revaluation effects of CHF 67.2
   million.

   The Real Estate Services segment saw revenue increase by another
   4.7% to CHF 181.7 million (CHF 173.5 million). EBIT margin for
   the segment reached an excellent 9.9% (10.6%). This segment thus
   contributes around 40% of the Group's operating result. Rents
   under management in the property management sector reached CHF
   1.53 billion, with revenue slightly below the previous year. The
   Facility Services business increased revenue to CHF 122.6
   million, an increase of +8.5%. Facility Services now accounts for
   67% of the segment revenue.
   Capital structure remains very solid - LTV of 26%
   Total assets came to CHF 1.6 billion as at 31 December 2023, with
   the equity ratio remaining very comfortable at 64% (31.12.2022:
   67%). The ratio between the value of the portfolio and the
   interest-bearing financial liabilities of just CHF 397.0 million
   (CHF 319.0 million) resulted in a low loan-to-value (LTV) of 26%.
   The property portfolio was valued at CHF 1,518 million. On the
   balance sheet date, it comprised 152 buildings with 2,477
   residential units. Deferred tax liabilities fell to CHF 140.8
   million (CHF 142.6 million).

   Net proceeds from the previous year's property sales were used
   entirely to reduce financial liabilities. Two properties were
   acquired in the year under review. The Group's strong capacity
   for future investments thus remains as high as before.

   Net asset value (NAV) per share excluding deferred tax relating
   to properties came to CHF 92.00 (31.12.2022: CHF 95.07).

   Non-financial reporting
   Investis strives to create long-term value by integrating
   economic, social and environmental factors (ESG) at all levels of
   the company. Investis is committed to the sustainable development
   of its real estate portfolio. While the focus of renovation
   activity over the past ten years has been on interiors and thus
   on tenant comfort ("S"), Investis is increasingly investing in
   renovations that reduce the environmental footprint of its real
   estate portfolio in order to comply with the Swiss government's
   2050 net-zero strategy. To achieve this goal, Investis, in
   collaboration with Signa-Terre, Services Industriels de Genève
   and SSREI, carried out a comprehensive assessment of its
   buildings' energy consumption and greenhouse gas emissions with
   the aim of identifying energy-saving potential.
   Within the Real Estate Services segment, Investis is striving to
   further reduce its environmental impact: by improving operations,
   consistently using environmentally friendly products, promoting
   innovative, resource-efficient solutions, and by offering
   training to customers and employees. The companies are in the
   process of converting to electric vehicles and using local
   suppliers wherever possible. For Investis, sustainability is a
   long-term commitment.
   In addition to environmental aspects, Investis attaches great
   importance to specific social and governance practices. These
   include actively involving tenants through surveys to determine
   their expectations and overall rates of satisfaction, favouring
   high quality housing and providing homes for different income
   groups to ensure that the housing stock is inclusive. Investis'
   commitment also extends to creating a positive and safe working
   environment for its employees, with a focus on gender equality
   and a zero-tolerance policy towards discrimination.
   In accordance with Switzerland's Ordinance on Climate Reporting
   (KVI), Investis reports in detail on the status and progress of
   its non-financial reporting as part of its 2023 Annual Report.

   Proposals to the 2024 AGM
   At this year's Annual General Meeting on 18 April 2024, Investis
   shareholders will be asked to approve an unchanged dividend of
   CHF 2.50 per share. All members of the Board of Directors are
   standing for re-election.

   Market environment and outlook for 2024
   Investis expects the market to normalise in 2024. Rental market
   fundamentals are likely to remain solid. Continued immigration
   and below-average construction activity in Switzerland mean that
   demand for rental apartments remains high, creating sustained
   excess demand. Cantons Geneva and Vaud still have some of the
   lowest residential ownership rates in Switzerland, which
   continues to boost rental activity. Against this background, we
   can expect a further increase in market rents in the Lake Geneva
   region. In line with interest rates, residential yields in the
   region have moved slightly up in 2023. Investis expects an
   increased liquidity in the investment market as institutional
   investors return.

   Ninety percent of the Investis investment portfolio consists of
   centrally located residential properties in the middle price
   segment in the Lake Geneva region. Its concentration on this
   region is the Investis Group's USP. Vacancy rates in the Lake
   Geneva region are currently at a very low level. The Group's low
   LTV allows it to make targeted acquisitions to expand its
   portfolio.

   The subsidiaries of the Real Estate Services segment are
   excellently positioned. They offer an outstanding range of
   services throughout Switzerland over the entire property
   lifecycle. Their focus continues to be on recurring earnings from
   real estate management and maintenance/servicing. Consolidating
   the excellent EBIT margin, which facilitates healthy organic
   growth, remains another priority. The growing importance of
   sustainability in the real estate industry is a major diver of
   market development in this segment.

   Investis is confident that it is very well equipped and
   positioned to meet the current challenges, and it expects a very
   good operating result for the 2024 financial year.
   Full-year 2023 results presentation
   The detailed 2023 annual report is available at
   https://reports.investisgroup.com/23/ar and available on our
   website https://www.investisgroup.com/en/investors/reporting.

   Investis' management will present the full-year results 2023 in
   English as a conference call/webcast today at 09:00 CET.
   Following the presentation the management will be available for
   questions.

   Please dial in 5 - 10 minutes prior to the start of the
   conference call. The accompanying presentation will be available
   on our website as at 7 a.m. Please note that moderator can only
   take questions from dialled-in participants. Webcast participants
   may submit written questions. A webcast invitation was sent to
   Investis' news subscribers earlier this month. If you have not
   received it and wish to participate, please click here to
   pre-register by 08:30 CET latest to receive the link to the
   webcast and dedicated dial-in details. A replay of the webcast
   will be made available in the afternoon.

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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: 1867893

   End of Announcement EQS News Service
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1867893 27-March-2024 CET/CEST