Novavest closes 2023 with a loss
Novavest Real Estate has presented its annual figures - in view of the market environment, this is a "solid operating result at profit level excluding revaluations".
Novavest sold two properties in 2023: a rather small residential property in Wil (SG) and an older residential and commercial property in Bülach (ZH). The sales prices correspond to a total profit of CHF 0.5 million, according to the statement. Meanwhile, the value of the real estate portfolio fell from CHF 811.8 million to CHF 783.6 million. The market value was influenced by the sale of the two properties mentioned above to the tune of CHF 19.0 million. The portfolio valuation resulted in a devaluation of 2.6% (CHF 20.6 million). Investments in existing properties and projects amounted to CHF 11.4 million. Target rental income amounted to CHF 30.8 million, with a rental income share from residential use of CHF 63% (2022: CHF 61%). Net rental income increased by over CHF 2% to CHF 29.9 million. This increase was mainly due to the acquisitions in the previous year, namely in Volketswil (ZH) in June 2022 and Kappel (SO) in December 2022, as well as the completed conversion projects in Lucerne (LU) and Neuhausen (SH).
Operating result before revaluation up by 4%
The market valuation of the real estate portfolio led to a devaluation of CHF 20.6 million (previous year: +CHF 11.9 million). As a result, EBIT fell to CHF -0.6 million (previous year: +CHF 30.7 million). However, excluding the effects of revaluation and the one-off gain from the sale of investment properties, the operating result increased by 4% to CHF 19.5 million. Net financial expenses amounted to CHF 4.6 million (previous year: CHF 3.1 million). The average interest rate on financial liabilities increased from 0.9% to 1.2%.
Loss of 4 million francs
The lower portfolio valuation also affected the final result including revaluation gains, which fell from CHF 22.4 million to CHF -4.0 million. Excluding the revaluation result, the operating profit excluding revaluation result was on a par with the previous year's figure of CHF 12.7 million.
Equity fell from CHF 345.5 million to CHF 331.9 million as at December 31. In addition to the loss, this was mainly due to the devaluation of the par value repayment of CHF 9.6 million, which was paid out in June 2023. The equity ratio fell from 42.0 to 41.8%.
Board members on committee for merger with senior citizens' residence
As reportedIn January, the Board of Directors of Novavest decided to examine the possibility of a merger with Senioresidenz AG. The talks are still at an early stage, it is now reported. An independent committee consisting of Board members Markus Neff, Floriana Scarlato and Daniel Ménard has been set up for "specific tasks within the merger project".
All incumbent members of the Board of Directors are standing for re-election. The Board of Directors proposes to the Annual General Meeting a cash distribution in the form of a nominal value reduction of 1.25 per registered share. Based on the closing price as at December 31, the return on the proposed distribution amounts to 3.4%. (aw)
