Zurich, 28 February 2023 The Swiss real estate company Ina Invest, which is listed on the SIX Swiss Exchange, can look back on 2022 as a strategically and operationally successful financial year. Operating profit (EBIT) increased to CHF 16.1 million, 12% up on the previous year, despite the noticeable rise in building costs (2021 financial year: CHF 14.4 million). Net profit rose significantly, by 59% to CHF 19.1 million (2021: CHF 12.0 million). This means that Ina Invest exceeded the financial targets set for 2022. The primary contributors to this were higher profit from rental income of CHF 11.3 million (2021: CHF 2.8 million) and positive revaluations of investment property of CHF 12.8 million (2021: CHF 16.3 million). The latter were the result of operating performance and a positive financial income from the sale of an interest rate swap. The NAV per share increased to CHF 23.28 in the reporting year (2021: CHF 22.70).
Real estate portfolio significantly expanded
Ina Invest increased the value of its real estate portfolio by 94% to CHF 842 million during the reporting period. In January 2022, the acquisition of the CERES Group, owner of the strategic Bredella development site in Pratteln., was finalised. Its integration was completed during the reporting year. The development of the Bredella site, which covers an area of 82,600m2, is proceeding according to plan; an ancillary property has now been sold at a profit. The Grand-Pré development property in Geneva was also purchased and integrated in 2022, representing another key acquisition by Ina Invest. The Ina Invest portfolio now comprises a total of 40 buildings in prime, urban locations double the number held at the end of 2021.
Portfolio development on track
The development of the portfolio is on track. The new Elefant complex in Lokstadt, Winthertur, is let out in its entirety to a health insurance company. It was handed over to the tenants in December 2022 to carry out the tenant fit-out. The Holiday Inn Express & Suites hotel on the Baselink site in Allschwil has been completed; it opened in January 2023. It was agreed unanimously by the Municipal Parliament to put the Bredella West design plan out for consultation, with approval expected in the first quarter of 2024. Planning permission has been received for the Schaffhauserstrasse project in Zurich and building permit applications have been submitted for the Lokstadt-Hallen project in Winterthur and the Birspark commercial park in Aesch.
Resolute pursuit of sustainability goals
In 2022 Ina Invest exceeded the very good result obtained the previous year (92/100) in the GRESB Real Estate Development Benchmark Assessment in its peer group in Western Europe, scoring 93 out of 100 and receiving the Green Star designation. The company vigorously pursued its goal of developing and holding the most sustainable real estate portfolio in Switzerland. In light of this, in Ina Invest defined ambitious decarbonisation targets: by 2030 all new buildings are to achieve net zero operational emissions; by 2040 this should also be the case with regard to embodied emissions. Ina wants to achieve climate neutrality in relation to the operational emissions from existing buildings by 2050.
Proposals to the Annual General Meeting in 2023
The Board of Directors will propose, to the Annual General Meeting of 29 March 2023, a revision of the Articles of Association that both implements the requirements imposed by the recent reform of the law on public limited companies and takes into account current best practices in corporate governance. The Board of Directors will also propose introducing a capital band in place of the authorised capital valid until June 2022. Within the framework of the capital band, the subscription rights of existing shareholders would be fully preserved. The introduction of a capital band would give the Board of Directors the necessary flexibility to realise the investments in its real estate portfolio planned in accordance with Ina Invests strategy.
In the first quarter of 2023 Ina Invest will transfer the new Elefant complex and the hotel on the Baselink site to its existing property portfolio. Construction is expected to start on the Schaffhauserstrasse project in Zurich in summer 2023, while construction of the kindergarten in Lokstadt-Hallen is due to be completed and the building handed over to the city of Winterthur by August 2023. Construction of the Casino sub-project in Lokstadt-Hallen is scheduled to start in autumn 2023.
The Board of Directors and Management Board of Ina Invest are looking ahead to the current year and further into the future with confidence. Although the economy has cooled down somewhat over the last year and interest rates have climbed from a record low, Switzerland remains an attractive location for property. There is still demand for owner-occupied or rented residential property in good locations. And Ina Invest also expects its commercial projects, designed to the latest standards, to be highly sought after. Ina Invest is pressing ahead resolutely with the implementation of its strategy and, underpinned by its balanced usage profile, is able to react flexibly to opportunities and challenges.
Against this backdrop, Ina Invest is reaffirming its medium-term goals of a portfolio valued at over CHF 2 billion and a return on equity of over 6%.
1GRESB is the leading rating system for measuring the sustainability performance of real estate companies and real estate funds. Seven different aspects are weighted to produce the GRESB Score, which contributes significantly to the transparency of the real estate industry in sustainability issues.
Ina Invest is an independent Swiss real estate company that develops sustainable spaces to live, work and relax in, with a focus on hybrid real estate that ensures long-term flexibility of use and profitability. Ina Invest, which was created as a spin-off from Implenia, now has one of the largest and most high-potential development portfolios on the Swiss market. The properties are situated in high-quality locations and can be used in a variety of ways. Ina Invest plans to keep on investing and growing while maintaining an above-average development ratio and at least 50% residential space in its portfolio. Ina Invest achieves the highest sustainability standards by taking a holistic approach to sustainability across all parts of the value chain. In addition, the GRESB Real Estate Development Benchmark Assessment found that Ina Invest is one of the most sustainable company in its peer group in Western Europe. Ina Invest has been listed on the SIX Swiss Exchange since June 2020 (INA, CH0524026959). Further information is available at ina-invest.com.