Fundamenta: Operating net profit increases
Fundamenta Real Estate increased its net operating profit by 13.6 percent to CHF 8.35 million in the 2017 financial year. Rental income increased by 14.9 percent to 22.26 million.
According to Fundamenta Real Estate AG, rental income from properties increased by almost 15 percent to 22.26 million (previous year: 19.37 million) in the reporting period - due to the portfolio expansion. 91.5 percent of rental income comes from residential use, with Fundamenta focusing on the mid-range rental segment: Around 96 percent of the rental apartments held as of December 31, 2017, show a net rent of less than CHF 2,000 per month.
Net operating profit increased by 13.6 million to 8.35 million, which the real estate company attributes in particular to acquisitions of existing properties and the completion of two new construction projects. The operating return on equity (excluding revaluation effect) rose from 3.9 to 4.1 percent.
The valuation result (before deferred taxes) came to 5.58 million (previous year: 8.61 million). This, together with the increase in operating profit, resulted in a net profit of 12.80 million, which is below the previous year's figure of 14.21 million The return on equity was thus 6.2 percent (previous year: 7.6%).
The vacancy rate, including vacancies resulting from refurbishments or conversions, fell from 6.3 to 5.4 percent.
Largest capital increase in the company's history
In November 2017, Fundamenta carried out the largest capital increase in its corporate history to date, with net proceeds amounting to 65.8 million. The shareholder base was expanded by notable new investors, the company says. Taking into account the distribution, the capital increase and the net profit generated, the equity base as of the balance sheet date amounted to 273.42 million (previous year: 200.50 million), corresponding to an equity ratio of 45.6 percent (previous year: 40.5%).
The net asset value (NAV) per share before deferred taxes was CHF 15.24 at the end of 2017 (previous year: 14.94). After deferred taxes, NAV per share was CHF 14.45 (previous year: 14.13). Earnings per share amounted to CHF 0.86 after CHF 1.00 in the previous year.
The real estate portfolio (taking into account the development and new construction projects in Zurich and Schlieren) comprises a total of 51 properties with 1,456 residential units and annual net target rental income of around 27.80 million.
In the 2018 financial year, Fundamenta intends to make further acquisitions and reposition or modernize existing properties, for example in Muri, Zurich and Lucerne. The development and new construction projects in Zurich and Schlieren are to be driven forward. The aim is to start construction in Zurich in the second half of 2018 and to obtain a legally binding building permit for Schlieren in the near future, Fundamenta said.
