Allreal reported a first-half 2026 net profit of 105.6 million Swiss francs, down 9.6% from 116.8 million francs in the same period last year, primarily due to lower portfolio valuation effects.
The company's valuation gains from its real estate portfolio totaled 40.8 million francs in the first half of 2026, compared with 70.3 million francs a year earlier. Excluding these valuation effects, Allreal's core net profit rose 20.8% to 75.6 million francs, while EBIT excluding revaluations increased 14.3% to 108.8 million francs.
The improvement was supported by portfolio optimization. Allreal sold seven properties—six residential units in western Switzerland and one in Basel—for a combined gain of 15.7 million francs. The company also acquired a 7.8-million-franc annual rental office building in Geneva, leased to high-quality tenants.
The total portfolio's market value rose from 5.27 billion francs at the end of 2025 to approximately 5.36 billion francs by June 30, 2026. However, rental income declined 0.9% to 102.6 million francs, with vacancy rates increasing to 3.6% from 3.4% at year-end 2025. Allreal attributed the rise to vacancies at sites in Bern, Geneva, and Wallisellen, though it expects vacancy rates to decline by year-end.
Operating expenses for leased properties fell 12.1% to 9.4 million francs, improving the cost ratio to 9.2%. The portfolio's net yield stood at 3.6%. The real estate segment's operating result rose sharply from 57.8 million to 72.0 million francs.
Allreal's development and realization segment also strengthened. Realization gains climbed by a third to 12.0 million francs, while gross margins on third-party projects increased from 11.9% to 14.5%. The executed project volume remained stable at 124.9 million francs, with one-third comprising proprietary projects. The secured order backlog rose slightly to 885 million francs, covering more than two years of capacity utilization.
The company expects higher results from condominium sales in the second half, including over 100 units at the Baarermatte site in Baar. Financing costs eased 6% year-over-year, though total financial liabilities increased from 2.67 billion to 2.82 billion francs. The average borrowing rate was 1.14%, and Allreal issued an eight-year 105-million-franc bond in July at a 1.255% coupon. The loan-to-value ratio rose from 45.8% to 46.8%.
Allreal reiterated its full-year guidance, anticipating higher operating results alongside stable balance sheet metrics. It projects rising rental income and lower vacancy rates in the second half, with modest gains in condominium sales and construction volume.
