Novavest increases profit in the first half of 2022
Novavest Real Estate reports a profit including revaluations of CHF 11.2 million for the first half of 2022. This is six percent more than in the previous year. Ebit also increased by six percent.
Novavest Real Estate AG is satisfied with its performance in the first half of the financial year. According to the company, EBIT increased from CHF 14.5 million in the previous year to now CHF 15.4 million (+6%). Profit including revaluation gains reached CHF 11.2 million, compared to CHF 10.6 million in the first half of 2021. Profit excluding revaluation gains increased by ten percent to CHF 6.0 million (PY: 5.5 million).
Novavest's portfolio consists of 51 investment properties and three project properties. Due to the acquisition of a commercial property in Volketswil, investments in investment properties and in development and conversion projects, as well as positive revaluation effects of CHF 6.4 million, the value increased by seven percent to CHF 790.2 million, Novavest announced. At the end of 2021, it still stood at CHF 741.3 million.
Rental income climbs 13 percent
Annualized target rental income from investment properties (excluding projects) amounted to CHF 30.9 million as of June 30, 2022 (previous year: CHF 26.1 million). Net rental income in the first half of the year was CHF 14.2 million (PY: 12.6 million; +13%). The increase was mainly due to rental income from the four properties in Moosseedorf, Ostermundigen, Schaffhausen and St. Gallen, which were acquired in the second half of 2021, Novavest said. There were no more Corona-related rent reductions in the reporting period.
Novavest puts the net yield on investment properties for the first half of 2022 at 3.3 percent (previous year: 3.7%). The vacancy rate of investment properties (excluding projects) increased slightly to 4.7 percent (Dec. 31, 2021: 3.7%; June 30, 2021: 4.3%).
Portfolio optimization in the foreground
In the second half of the year, the real estate company intends to focus on "organic growth of the real estate portfolio with possible portfolio optimizations. However, the company also intends to take advantage of acquisition opportunities in line with its investment strategy. Novavest expects the three development projects in Lucerne (by the end of 2022), Neuhausen (by the first half of 2023) and St. Gallen (by the fall of 2024) to have a positive effect on the residential occupancy rate in the portfolio, which currently stands at 60 percent, as well as significant potential for value appreciation. (ah)
