Warteck Invest reports record profit
The real estate company Warteck Invest generated a profit of CHF 16.4 million in the 2017 financial year. This is almost nine percent more than in the previous year and, according to the company, the highest profit in its history.
In the 2017 financial year, Warteck Invest generated an operating result (EBIT) of 27.6 million, an increase of 3.8% compared to the previous year (26.6 million). At 83.8%, the EBIT margin was slightly lower than in 2016 (86.1%). Consolidated net profit of 16.4 million exceeded the previous year's result of 15.1 million by 8.7%. The return on equity rose from 5.2% to 5.6%. Excluding the revaluation result, consolidated profit amounted to 13.6 million (previous year: 12.5 million). This corresponds to earnings per share of CHF 83.03 after CHF 76.35 in the previous year.
According to Warteck Invest, target rental income rose by 6.8% to 33 million - in particular due to acquisitions and the completion of new construction and renovation projects. Apartments accounted for 42 percent of target rents, offices for 28 percent and retail space for 14 percent. According to the company, the remainder was divided between parking spaces, gastronomy, commercial, storage and income from ground rents. The vacancy rate fell from 4.2 to 3.9 percent. After deducting vacancies and bad debt losses, rental income amounted to 31.7 million, an increase of 7.2 percent compared to the previous year (29.6 million).
At 3.7 million, real estate expenses (operating costs and maintenance expenses) were 27.5% higher than in the previous year, when the figure was 2.9 million. The expenses correspond to 11.1% (previous year: 9.3%) of the target rental income. Rental income amounted to 28 million, five percent more than in 2016 (26.7 million).
Portfolio value increases by more than 50 million
The market value of Warteck Invest's real estate portfolio grew by 50.3 million or 7.5% to 717.7 million in the reporting period (previous year: 667.4 million). Of this amount, 3.6 million was attributable to the periodic revaluation of properties, while the remaining increase in value was due to the acquisition of three properties and one building lease parcel as well as investments in ongoing projects and existing properties. Warteck Invest is invested in eleven cantons, with the Basel and Zurich regions accounting for 47% and 31% of the portfolio's market value respectively.
The gross yield (target rental income in relation to market value) fell slightly from 5.0% to 4.9%. The net yield (gross yield less vacancies, bad debt losses, operating costs and maintenance) amounted to 4.2% (previous year: 4.3%) and the performance, which also takes into account the change in value, reached 4.7% (previous year: 4.5%).
The Board of Directors intends to propose a slight increase in the distribution to CHF 70 per share at the Annual General Meeting on May 23, 2018. This would result in a payout ratio of 84% and - based on the year-end share price - a dividend yield of 3.6%.
