Fundamenta Real Estate (FREN) H1 2024 earnings summary

Executive summary

• Achieved solid operational results in H1 2024 amid a challenging market, with continued high demand for residential properties and low vacancy rates.

• Portfolio strengthened by a profitable sale in Berikon and acquisition in Kilchberg; ongoing development and repositioning projects in Zurich region.

• Dividend of CHF 0.55 per share distributed, supported by operational earnings; NAV per share at CHF 18.00 before and CHF 16.44 after deferred taxes.

• Swiss Prime Site AG completed acquisition of the asset management arm; strategy and management continuity ensured.

• Market environment remains stable for residential assets, with high immigration and low construction activity driving rental growth.

Financial highlights

• Net rental income rose slightly to CHF 20.7m in H1 2024 (H1 2023: CHF 20.6m); EBIT increased to CHF 19.4m (H1 2023: CHF 10.8m).

• Net profit surged to CHF 12.2m (H1 2023: CHF 5.0m), driven by a positive revaluation effect of CHF 4.5m (H1 2023: -CHF 3.8m).

• Equity ratio decreased to 39.8% (Dec 2023: 41.0%) due to dividend payout and investments; LTV at 55.8% (Dec 2023: 54.8%).

• Dividend yield at 3.3% based on year-end 2023 share price; total return for H1 2024 at -1.8%.

• NAV per share before deferred taxes at CHF 18.00 (Dec 2023: CHF 18.05); after deferred taxes at CHF 16.44 (Dec 2023: CHF 16.58).

Outlook and guidance

• Focus remains on portfolio optimization, cost control, and risk management to ensure income continuity.

• Plans to increase rental income in H2 2024 and further optimize costs; capital base options under review.

• Ongoing development projects in Zurich, Dietikon, and Wallisellen to strengthen future earnings.