Economy

Allreal covers the entire property value chain, from development and realisation to long-term property investment including portfolio management, building management and property management. In all that it does, Allreal strives to achieve consistent qualitative growth, steady returns and a stable dividend payout policy for its shareholders aimed at dividend growth. 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 builds value

Allreal endeavours to achieve a return comparable to a direct investment in property for its shareholders, thus allowing them to participate in the company’s economic success. Up to 100% of the Real Estate division’s operating net profit is distributed to shareholders. For the 2020 financial year, the Board of Directors will propose a distribution of CHF 6.75 per share, corresponding to a distribution yield of 3.3%.

Since its flotation in 2000, Allreal has distributed a total of CHF 1.40 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
 

Financial target 
Return on equity excl. revaluation effect (annualised)> 5%
Dividend payout policy – net profit within the Real Estate division≤ 100%
Relative share performance – positive deviation from the SXI Real Estate Shares TR comparison index> 0
Fixed interest rate period for financial liabilities> 48 months
Weighted average unexpired lease term (WAULT)> 48 months
Share of residential segment in total rental income

> 20%

Gross margin third-party projects Projects &   Development division> 12%
Financial covenants 
Equity ratio> 35%
Net gearing (ratio of net financial debt to equity)< 150%
Interest coverage ratio

> 2.0

Debt relating to portfolio and development properties< 70%

Real Estate division

Active management and continuous expansion of the portfolio guarantee stable value creation for the company in the long term. Allreal has its own in-house property management team, which manages just under 70% 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 full and partial renovation work being performed on a regular basis, the economic age of a third of the portfolio is under ten years and around two thirds of the portfolio have been modernised within the past 20 years.

With residential and commercial properties with a market value of around CHF 4.53 billion,  Allreal has the third-largest property portfolio of all property companies listed on the Swiss Exchange.

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

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 and use and cost analyses to the finished building with value creation that is sustainable in the long term.

Allreal is relying more and more on digital processes within its workflows. In 2020, the company started using BIM to plan and realise all of its own projects and selected projects for third parties.

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.

Including revaluation gains

Key figures for 2020 at a glance

  

2020*
31.12.2020

2019*

31.12.2019

Change
in %1

Total sales2

CHF million563.8543.83.7
Operating profit (EBIT) incl. revaluation gainsCHF million225.3329.8–31.7

Net profit incl. revaluation effect3

CHF million167.2243.2–31.3
Operating profit (EBIT) excl. revaluation gainsCHF million170.1189.8–10.4

Net profit excl. revaluation effect3

CHF million124.7142.0–12.2

Return on equity incl. revaluation effect3

%

7.010.6–3.6

Return on equity excl. revaluation effect3

%

6.27.2–1.0
Equity ratio on cut-off date

%

48.449.6–1.2
Net gearing4 on cut-off date

%

88.683.55.1

* Should no further particulars be given, values referring to the income statement concern the full year and balance sheet value the cut-off dates 31.12.2020 and 31.12.2019. The consolidated financial statements for 2020 were prepared in accordance with Swiss GAAP FER for the first time. The previous year’s figures were adjusted accordingly.
 

1 Changes in number and percentage values are shown as an absolute difference

2 Income from rental of investment real estate plus completed project volume in the Projects & Development division

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

4 Borrowings minus cash and marketable securities as a percentage of equity