bfw liegenschaften improves income from rentals
According to preliminary and unaudited results, the listed company bfw liegenschaften ag increased its rental income by around five percent to CHF 8.2 million in the first half of 2016. In the previous year, this figure was still at 7.8 million.
The market valuation of the property portfolio of bfw liegenschaften ag resulted in income from revaluation of CHF 10.7 million (previous year: 6.0). The change in market values results "mainly from a reduction in discount rates by the independent real estate appraiser KPMG as well as from the successful development of the conversion projects", as bfw liegenschaften ag writes.
At EBIT level, bfw liegenschaften ag achieved a solid profit of 17.5 (12.5) million according to preliminary results. The fair value measurement of interest rate swaps and receiver swaptions resulted in a negative pre-tax effect of 7.9 (1.8) million.
Taking into account the effects of these valuation differences, profit including revaluation and attributable deferred taxes amounted to around 6.0 (7.0) million. Excluding the fair value adjustments of the interest rate swaps and receiver swaptions, profit was around 12.6 (8.5) million.
