Economy

Allreal combines a stable-income real estate portfolio with the activities of a general contractor. With this business model, the company covers the entire real estate value chain: from project development, through realisation, to sustainable, profitable real estate investment. Thanks to the synergies that result from this, combined with financial strength and short decision-making paths, Allreal is in an excellent position in every respect.

Allreal creates value

Allreal endeavours to achieve a return comparable to a direct investment in real estate for its shareholders, thus allowing them to participate in the company’s economic success. Up to 100 percent of the Real Estate division’s operating net profit is distributed to shareholders. For the 2019 financial year, the Board of Directors will propose a distribution of CHF 6.75 per share, corresponding to a distribution yield of 3.5 percent.
Since its flotation in 2000, Allreal has distributed a total of CHF 1.29 billion to shareholders.

Thanks to the careful handling of risk, sound financing and high earnings power, Allreal provides good conditions for sustainable, continuous growth in shareholder value.

Key operating and financial targets 
Return on equity excl. revaluation effect> 5% p. a.
Share of residential properties of total rental income> 20%
Equity ratio> 35%
Net gearing (ratio of net financial debt to equity)< 150%
Interest coverage ratio> 2.0
Share of debt for portfolio and development properties< 70%
Dividend policy
≤ 100% of the Real Estate division’s operating net profit (excl. revaluation effect)

Real Estate division

Active management and continuous expansion of the portfolio guarantee long-term, stable value creation for the company. Allreal runs it own in-house real estate management, which manages around 70 percent of properties in terms of market value. In-house specialists in building management and building services provide advice on new-builds right from the planning phase, and also ensure an economic course of action in the operation of yield-producing properties.

With residential and commercial properties with a market value of around CHF 4.28 billion, Allreal has the third-largest real estate portfolio of listed Swiss real estate companies.

Projects & Development division

The Projects & Development division develops, plans and realises new-builds, refurbishments and renovations of all sizes and levels of complexity from a single source for private and institutional investors and developers, as well as for its own portfolio: from acquisition, through use and cost analyses, to the finished building with long-term value creation.

Other services include the initial letting of rental premises and the sale of residential property developed and realised in-house by Allreal, as well as providing advice to private individuals, companies and institutional investors in real estate transactions.

Allreal operates exclusively in Switzerland. Its investment real estate is located predominantly in the economic centres of Zurich, Bern and Basel, and along the Lake Geneva area. The Projects & Development division, which has offices in Zurich and Bern, provides its services to large parts of German-speaking Switzerland.

Incl. revaluation gains

Key figures at a glance

  

2019*
31.12.2019

2018*
31.12.2018

Change
in %1

Total sales2

CHF million

545.1

549.9

–0.9

Operating profit (EBIT) incl. revaluation gains

CHF million

328.8

235.6

39.6

Net profit incl. revaluation effect3

CHF million

234.8

161.0

45.8

Operating profit (EBIT) excl. revaluation gains

CHF million

189.7

175.0

8.4

Net profit excl. revaluation effect3

CHF million

134.6

115.6

16.4

Return on equity incl. revaluation effect3

%

10.2

7.3

2.9

Return on equity excl. revaluation effect3

%

6.8

5.9

0.9

Equity ratio on cut-off date

%

49.4

48.1

1.3

Net gearing4 on cut-off date

%

83.2

91.5

–8.3

* Should no further particulars be given, values referring to the income statement concern the full year and balance sheet value the cut-off dates 31.12.2019 resp. 31.12.2018

1 Changes in quantum and percentage values shown as absolute difference

2 Sales resulting from rental of investment real estate plus completed project volume Projects & Development division

3 Revaluation effects correspond to gains from the revaluation of investment real estate less deferred taxes on revaluation

4 Finance liabilities minus cash and marketable securities as percentage of equity