Swiss real estate and general contractor Allreal reported a first-half 2026 operating performance that significantly exceeded expectations, though headline net income declined due to lower valuation gains.
Net profit fell 9.6% year-on-year to CHF 105.6 million as revaluation effects dropped 42% to CHF 40.8 million, compared with CHF 70.5 million in the same period of 2025. Excluding revaluations, underlying net profit rose 20.8% to CHF 75.6 million, while underlying EBIT increased 14.3% to CHF 108.8 million.
Rental income declined 0.9% to CHF 102.6 million, reflecting portfolio changes that impacted the revenue base. Vacancy rates edged up to 3.6% from 3.4% at year-end 2025. The company attributed the stronger operating results primarily to gains from asset sales, including CHF 15.7 million from the disposal of smaller residential properties in Geneva and Basel. Realization gains rose 33% to CHF 12.0 million, while financing costs fell 6% year-on-year.
Allreal outperformed analyst consensus on underlying EBIT and net profit, though rental income and revaluation effects came in slightly below expectations. The company maintained its 2026 outlook, forecasting higher operating earnings, stable balance sheet metrics, and a rebound in rental income. Within the real estate segment, Allreal expects a lower vacancy rate by year-end, supported by portfolio adjustments that strengthen the earnings base. In development and realization, the group anticipates modestly higher gains from condominium sales, a slight increase in construction volume, and stable operating expenses, while financing costs are projected to rise moderately as low-interest liabilities matured in the first half.
Allreal confirmed its full-year 2026 guidance, reiterating expectations for improved operating results alongside stable financial ratios.
