Profit increase of almost 10% at Espace
Espace Real Estate Holding AG reports a profit for the period of CHF 13.06 million for the 2018 financial year. This is 9.2% more than in the previous year.
According to a statement from Espace, the operating result (EBIT) increased by 2.5% from 23.2 to 23.8 million. At 25.8 million, net rental income was on a par with the previous year. Due to the sale of two investment properties not in line with the strategy, rental income fell byTP2T 1.11 to 31.5 million, the company added (previous year: 31.6 million). On the other hand, property expenses decreased byTP2T 6.01 to 5.7 million (previous year: 6.0 million).
The market value of the real estate portfolio reportedly increased by 5.0% to 671.8 million (previous year 639.8 million). According to Espace, the main contributors to this increase in value were the investment properties under construction. In total, the company invested 35.1 million in new construction projects in the year under review.
Espace further reports that the vacancy rate of its investment properties decreased from 9.9% to 7.3% over the course of the past fiscal year.
Shareholders' equity amounted to CHF 302.0 million or CHF 156.41 per share at year-end, corresponding to an equity ratio of 44.06%. The dividend is to remain unchanged at CHF 4.75 per share.
In the current financial year, the focus will be on reducing vacancies and letting the 230 apartments currently under construction, Espace continues. In addition, further opportunities for sustainable and profitable growth are being examined on an ongoing basis. Renovations, extensions or site developments on the company's own building land reserves in the coming years should also make a significant contribution to increasing the value of the portfolio, it adds. The company has invested in real estate in the cantons of Bern, Solothurn, Aargau, Lucerne and Schaffhausen. (ah)
