Novavest: EBIT and profit significantly higher
In the first six months of this year, Novavest Real Estate AG more than doubled its operating result before interest and taxes (EBIT) compared to the same period last year, with an increase of 124 percent.
Novavest's EBIT was 5.9 million in the first half of 2017, compared with 2.6 million in H1 2016. Profit including revaluation gains increased by 160 percent year-on-year to 4.2 million. Excluding revaluation gains, the figure was 3.5 million. Total assets at Novavest increased by around 67 million to now 415.8 million. Net rental income rose by 52 percent to 7.7 million in the 2017 reporting period, mainly thanks to acquisitions.
Equity increased to 168 million
Cash and cash equivalents as of June 30, 2017 amounted to 11.9 million. Non-current assets of 398.5 million consisted mainly of investment properties (371.8 million), the conversion project at Badenerstrasse 701 in Zurich (17.4 million) and the down payment for a residential/commercial property in Münchwilen (6.0 million).
Mortgage liabilities totaled 231.6 million and other borrowed capital 15.9 million at the end of June. As a result of the capital increase of 33.7 million completed in June 2017, Novavest Real Estate AG's equity rose to 168.3 (end of 2016: 135.2) million. The equity ratio now amounts to 40.5 (38.8) percent.
Another project on Badenerstrasse in Zurich
On the project side, Novavest plans to complete the Badenerstrasse 696 conversion project in Zurich, which has been in operation since 2015, in the second half of 2017. Re-letting of the residential space is planned from September. Meanwhile, planning work for the new conversion project at Badenerstrasse 701 in Zurich (formerly commercial, now residential property) has progressed. Novavest expects the construction phase for 2018/2019 and re-letting from autumn 2019.
