Fundamenta Real Estate (FREN) H2 2024 earnings summary

Executive summary

• Portfolio value increased to CHF 1,222 million, with net rental income up 2.0% year-over-year to CHF 41.9 million.

• Net profit excluding revaluation rose 6.9% to CHF 21.7 million; total net profit surged 267% to CHF 30.5 million, driven by revaluation and sales gains.

• Sale of four properties generated CHF 36.5 million, 15.8% above book value, contributing CHF 4.8 million in pre-tax profit.

• Dividend increase of 9.1% to CHF 0.60 per share proposed, with payout ratio at 83% of net profit excluding revaluation.

• Return on equity improved to 6.3% from 1.7% year-over-year.

Financial highlights

• EBIT excluding revaluation up 16.2% to CHF 34.7 million; operating expenses stable at CHF 12.1 million.

• Net asset value (NAV) per share after deferred taxes rose 2.8% to CHF 17.04.

• Loan-to-value ratio improved to 53.9% from 54.8%; equity ratio increased to 41.6%.

• Average interest rate on financial liabilities reduced to 1.15% with an average maturity of 6.5 years.

• Vacancy rate further reduced to 1.3%.

Outlook and guidance

• Net target rental income for 2025 expected at around CHF 43 million.

• Ongoing focus on like-for-like growth, cost optimization, and capital recycling to further strengthen equity and portfolio quality.

• Dividend payout expected to remain stable or increase, with continued emphasis on sustainable earnings and low vacancy.

• Completion of development projects to gradually enhance earnings power.

• Continued reduction in energy and CO2 intensity as part of sustainability strategy.