Warteck Invest: Half-year profit falls by 28 percent
The real estate company posted a profit of CHF 10.6 million in the first half of the year due to a lower revaluation. Excluding the revaluation effect, there was a plus of 9%.
Warteck Invest reports a result of CHF 10.6 million for the first half of 2023, which is CHF 28.1% less than in the previous year (CHF 14.8 million). This is due to a significantly lower revaluation result of CHF 2.6 million compared to the previous year (previous year: CHF 7.4 million), as the company announced when presenting its half-year figures. Excluding the revaluation effect, the half-year profit increased by CHF 9.0% to CHF 9.3 million. The return on equity fell from 7.1% to 5.1%.
Target rents amounted to CHF 18.8 million in the first half of the year, an increase of 1.3%, which was partly due to adjustments to commercial rents in line with inflation. The vacancy rate amounted to 1.2% after 2.3% in the previous year. Rental income amounted to CHF 16.4 million (previous year: CHF 15.9 million; +2.7%).
The gross return on the portfolio fell from 4.4% to 4.2%, while the net return remained constant at 3.7%. Performance fell to 3.9% (previous year: 4.2%) due to the lower valuation result.
The value of the real estate portfolio increased by CHF 2.6% to CHF 924.2 million compared to the end of 2022 due to investments in the portfolio and in projects, an acquisition in Aargau and the revaluation due to the revaluation of the properties.
Acquisitions in Aargau and Thurgau
The acquisition concerns a renovated residential property (24 units) in the canton of Aargau with a market value of CHF 12.2 million, which Warteck Invest acquired in June. The rental income of around CHF 0.5 million will be recognized in the income statement from the second half of the year. In July, a public limited company was acquired that owns four properties in Basel and Binningen (BL) as well as a securities portfolio. The properties have a market value of CHF 29.0 million and generate annual target rental income of CHF 1.1 million, which will be recognized in the income statement in the second half of the year. The securities portfolio has a market value of CHF 63.5 million; Warteck Invest sold it shortly after acquiring the company.
The real estate company invested a large part of the proceeds from the sale in the acquisition of a property portfolio in the canton of Thurgau, consisting of three senior residences, a residential building and a plot of building land. These properties, with a market value of CHF 43.5 million, are let on long-term leases and generate annual target rental income of CHF 2.1 million.
New Syd building in Basel is finished
Warteck Invest also announces that the new construction of the Syd residential and commercial building in Basel was completed in April. 48 of the 45 apartments have been let, and some of the commercial space on the 1st to 4th floors has been let. Coop has opened a supermarket on the first floor. The company has invested CHF 48 million in the new building. After deduction of building lease interest, annual rental income of CHF 2.1 million is expected.
Meanwhile, the three site developments in Allschwil, Muttenz and Buchs (AG) are continuing: in Allschwil, a complete renewal of the development and redensification of the site is planned. The district plan has now been approved by the municipal council and sent to the cantonal preliminary review and public consultation. In Muttenz, the planning of a preliminary project has begun. A residential and commercial building with a gross floor area of 12,500 square meters can be built on the Warteck Invest plot. In Buchs, an existing office building is to be replaced by a new residential development. The planning partner has been selected for this project.
Overall, Warteck Invest has a pipeline of extension, refurbishment and site development projects with a total volume of CHF 220 million for the next five to seven years. (ah)
