Report on the first half of 2022

Good half-year result

Warteck Invest generated a good half-year profit of CHF 14.8 million in the first half of 2022. Due to the lower valuation result, the half-year profit was 10.0% below the previous year’s figure (CHF 16.4 million). Without the revaluation, the half-year result was CHF 8.6 million. and was thus 2.5% below the previous year’s result (CHF 8.8 million). The return on equity reached 7.1% (8.1%).

Persistently low vacancies, higher rental income

In contrast to the two previous years, no rent reductions were to be granted to tenants who got into financial difficulties due to the Corona crisis in the first half of the year. With CHF 18.6 million the target rent was 1.1% higher than in the same period last year (CHF 18.4 million). The low vacancies in the same period last year were almost maintained during the reporting period. Unemployment was 2.4% (2.2%). The actual rental income thus amounted to DKK 18.1 million. CHF (CHF 18.0 million).

During the period examined, 2.2 million was spent. CHF (CHF 2.5 million) on operation and maintenance of the properties. In relation to the targeted rental income, property expenses (excluding building rents) amounted to 11.0% (12.6%). This corresponds to an intact cost/income ratio. Rental income reached DKK 15.9 million. CHF, which exceeded the previous year by 3.0% (CHF 15.5 million). In line with the market trend, the portfolio’s gross return fell slightly to 4.4% in the reporting period (year 2021: 4.5%). The net yield increased slightly to 3.8% compared to 2021 (3.7%) due to the lower property costs. The performance reached 4.4% (year 2021: 5.0%).

Interest rate risk hedged in the long term

The financial expenses were 2.9 million. CHF 6.7% higher than the previous year (CHF 2.7 million) as a result of higher refinancing rates and a larger loan portfolio. The average capital-weighted interest rate paid decreased in return. to 1.36% in the reporting period (full year 2021: 1.41%). The average capital-weighted interest rate fixation of the loans was 7.9 years per 30 June 2022. The interest rate risk is thus hedged in the longer term. Mortgage lending in the properties amounted to 45.9% (45.8%) on the balance sheet date.

The market value of the portfolio increased

No properties were purchased during the reporting period. In addition to normal maintenance, DKK 9.3 million was invested in the period considered. CHF for repairs and modernization of existing buildings as well as for renovation, new construction and development projects.

As a result of these investments and the revaluation due to the independent valuation experts of PwC’s revaluation of the properties, the value of the property portfolio increased by 1.9% compared to the end of 2021 to 891.1 million. CHF (CHF 874.4 million) .

Progress on ongoing projects, planning additional projects, filled pipeline

In order to further develop the property portfolio in line with the strategy and create organic growth, the ongoing projects have been continued during the reporting period, and the planning of new projects has begun. In particular, the construction of the “Syd” residential and commercial building in Basel proceeded according to plan. Almost half of the apartments and part of the commercial space have already been let seven months before completion.

In addition to the ongoing projects, analyzes have been carried out for a number of other properties and plots of land for possible extensions, densifications, renovations and new buildings. In line with the sustainability strategy, the potential for additional solar installations was also assessed. Overall, there is a pipeline of expansion, renovation and site development projects with a total volume of around CHF 270 million for the next five to seven years.

Total return of the share slightly better than the index

In the first half of 2022, the registered shares of Warteck Invest fell by 8.4% compared to the beginning of the year, in line with the market trend. The closing price on 30 June 2022 was CHF 2,180, which corresponds to a premium to the net asset value (NAV) of 30.3%. Together with the distribution of CHF 70 per share, the total return for the first half of the year was minus 5.5%. The development of the Swiss real estate market (measured by the SXI Real Estate All Shares Index) was minus 7.3% during this period.

prospects

The geopolitical and economic environment is currently characterized by many challenges and uncertainties. In an international comparison, however, Switzerland can still be seen as an attractive place to live and invest. Warteck Invest is well positioned in this market. The full pipeline and the high-quality real estate portfolio with a focus on living ensure a sustainable income. The board and the management are therefore convinced that the conditions for a sustained positive development of Warteck Invest with the given financing structure and the efficient organization of the company still exist.

Semi-annual report for download

The entire half-year report 2022 of Warteck Invest is now available for download on our website www.warteck-invest.ch.

Key figures company and property portfolio

1st semester 2022 1st semester 2021 change
Operating profit before interest and tax (EBIT) million CHF 20.7 22.7 -8.70%
EBIT excluding revaluation effect million CHF 13.3 13 2.10%
The group’s result before tax million CHF 17.8 20 -10.80%
net profit million CHF 14.8 16.4 -10.00%
Group result excluding revaluation effect1 million CHF 8.6 8.8 -2.50%
leverage level2 % 54.1 53.1 1.90%
net leverage3 % 98.4 95.4 3.20%
equity share % 45.9 46.9 -2.20%
return on equity4 % 7.1 8.1 -12.00%
Market value property portfolio million CHF 891.1 854.5 4.30%
vacancy rate5 % 2.3 2.2 3.30%
gross return6 % 4.4 4.5 -1.00%
net return7 % 3.8 3.8 0.50%
performance8 % 4.4 4.9 -11.10%
market value million CHF 539.6 594 -9.20%
in relation to the intrinsic value 1.3 1.46 -34.80%
Number of employees on 30.6. 13 14 -7.10%
in job percentages % 1’240 1’340 -7.50%

1 Group profit minus revaluation gain of CHF 7.4 million. (PY: CHF 9.7 million) adjusted for the corresponding tax effect of CHF 1.2 million. (PY: CHF 2.0 million)
2Total debt as a percentage of total assets
3Financing obligations with deduction of cash and cash equivalents as a percentage of equity
4Group profit as a percentage of average equity
5Vacancies as a percentage of target rental income (investment properties only)
6Measure rental income as a percentage of the market value on 01.01. (investment properties only)
7Irental income minus operating costs/maintenance as a percentage of the market value 01.01. (investment properties only)
8Actual rental income less operating costs/maintenance plus valuation result as a percentage of the market value of
01.01. (investment properties only)

Key figure registered share

1st semester 2022 1st semester 2021 change
course on 30.6. CHF 2’180 2,400 -9.20%
inner value CHF 1’673 1’639 2.10%
bonus1 % 30.3 46.4 -34.80%
Net income per title CHF 59.64 66,27 -10.00%
Group profit excluding revaluation per securities CHF 34.65 35.52 -2.50%
Price-to-earnings ratio (P/E) 18.3 18.1 0.90%
Performance since 01.01.2 % -5.5 4.7

1Agio = premium or addition to the intrinsic value
2Price change plus distribution as a percentage of the market value on 01.01.

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