Significant drop in profits at Plazza
Because revaluation income was lower than in the previous year, Plazza AG recorded a sharp drop in profit in the first half of 2022. However, profit before revaluation remains stable.
Plazza AG has achieved an operating result before depreciation and revaluation of CHF 10.0 million in the first half of 2022, which is roughly on a par with the previous year (CHF 10.3 million). Market-related factors and progress in development projects additionally led to revaluation gains, but these were lower than in the previous year due to the general market trend, the real estate company wrote in a statement announcing the half-year results. Income from revaluation reached CHF 9.2 million in the reporting period, compared with CHF 35.5 million in the previous year.
Rental income amounted to CHF 13.1 million (previous year: CHF 13.0 million). The vacancy rate of the portfolio properties as of the balance sheet date remains unchanged at 4.4 percent. The profit after the first half-year amounts to CHF 15.3 million and is thus significantly lower than in the previous year (CHF 35.6 million). However, excluding the revaluation gain, the profit before revaluation of CHF 8.6 million remains practically unchanged compared to the previous year.
Vacancy rate to fall in the second half of the year
Vacancy at residential properties - Plazza's main earnings pillar, accounting for more than three-quarters of its target net rental income - stands at 2.2 percent and is mainly due to unrented parking spaces and ancillary areas, according to the company. In contrast, the vacancy rate for commercial properties currently stands at 12.5 percent, but will drop significantly in the second half of the year, Plazza said. Vacant office space in Zurich has been let and new leases and contract extensions have been signed.
Cautious outlook for the full year
For the full year 2022, Plazza expects operating income before depreciation and revaluation to be in the order of magnitude of the previous year. From today's perspective, the vacancy rate of the portfolio properties will fall below four percent again in the second half of the year, the company says.
The real estate company is cautious about further prospects: It is not yet possible to assess what impact possible further interest rate steps by the Swiss National Bank will have on the market situation and thus on the revaluation of the portfolio. The same applies to international developments that could lead to bottlenecks in energy supply or to deadline and cost risks. (ah)
