Allreal (ALLN) H1 2024 earnings summary

Executive summary

• Net profit including revaluation effect rose to CHF 67.2m (H1 2023: CHF 44.3m), driven by higher rental income and positive property revaluation.

• Excluding revaluation, net profit was CHF 60.5m (H1 2023: CHF 66.7m), reflecting higher financial expenses and absence of prior year’s special property sale.

• High-quality portfolio focused on Swiss business centers, with a 1.5% vacancy rate and low demand risks.

• Improved results in the Development & Realisation segment, supported by strong condominium sales and a robust project pipeline.

• Two Basel commercial properties were sold above book value after the reporting period, strengthening the balance sheet.

Financial highlights

• Net profit incl. revaluation effect rose to CHF 67.2m; excl. revaluation, net profit was CHF 60.5m.

• Operating profit (EBIT) excl. revaluation effect was CHF 91.6m (H1 2023: CHF 95.1m); incl. revaluation, EBIT was CHF 98.3m.

• Target rental income increased to CHF 111.0m (up 2.3%), with a net yield of 3.9%.

• Gross margin on third-party projects improved to 13.4% (H1 2023: 9.9%).

• Financial expense increased by 36.4% to CHF 18.0m.

Outlook and guidance

• 2024 outlook confirmed: net operating profit expected slightly down from previous year due to higher financial expense.

• Rental income projected marginally higher, with low vacancy rates and stable LTV.

• The company remains optimistic about long-term value creation, supported by a robust development pipeline and strong demand.