Iris Energy (US:IREN)2025-08-27 08:02Financial Data and Key Metrics Changes - Rental income increased by 38% to €38,800,000, reflecting strong organic growth and acquisitions [4] - Total EBIT reached €95,700,000, with a significant revaluation gain of €71,000,000 [10][22] - The company maintained a conservative loan-to-value (LTV) ratio of around 30% [4] Business Line Data and Key Metrics Changes - The service division was divested, and the focus shifted to the property portfolio, resulting in solid recurring profits from the portfolio [20] - The vacancy rate decreased to 1.4%, indicating strong demand and effective management of the rental portfolio [21] Market Data and Key Metrics Changes - The population in the Geneva region increased by 4,360 inhabitants, contributing to strong demand for residential properties [10] - Construction activity remains insufficient, with only 345 units added in Q1 2025 and 570 in Q2, against an annual demand of nearly 6,000 new inhabitants [11] Company Strategy and Development Direction - The company aims to create long-term value for shareholders by focusing on residential properties in the Lake Geneva region and maintaining a low-risk profile [7][30] - Future acquisitions will be approached cautiously, prioritizing properties that can be transformed into residential units [35] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in exceeding the 21% full-year guidance for rental income growth due to strong demand and recent acquisitions [30] - The current macroeconomic environment remains volatile, but Switzerland is viewed as a safe haven for real estate investments [12] Other Important Information - The company has a strong balance sheet with 62% equity, indicating financial stability [28] - The dividend is well covered by recurring income, with potential for future growth [8][31] Q&A Session Summary Question: Details on July acquisitions - The July acquisition involved a commercial building purchased for €50,000,000, with a full occupancy rent potential of €3,800,000 [32] Question: Acquisition strategy regarding commercial properties - The company is open to acquiring commercial properties only if they can be transformed into residential units [34][35] Question: Potential purchases blocked by municipality rights - Currently, there are no signed acquisition contracts under review by the authority, and past acquisitions have generally received clearance within the expected deadlines [36][37]