Allreal Group significantly increases result
In the 2015 financial year, the Allreal Group generated net income including revaluation effects of CHF 121.9 million. This was 16.8 percent above the comparable figure for the previous year. The main contributors to the good result were significantly higher rental income and gains from the sale of investment properties.
The Allreal Board of Directors will propose to the Annual General Meeting an increase in the distribution by CHF 0.25 to CHF 5.75 per share. As of December 31, 2015, the portfolio of Allreal investment properties experienced an overall positive value adjustment of 15.8 million. Excluding the revaluation effect, this resulted in a corporate operating result of 109.7 million. Income from rental and management of properties and the project volume handled by the general contractor resulted in total operating performance of 793.9 million. For the 2016 financial year, Allreal expects a corporate operating result on a par with the previous year's level
Income from rental of Allreal investment properties recorded a year-on-year increase of 9.9 percent to 174.9 million. The significant increase primarily reflects the fact that several investment properties were recognized in income for the entire reporting period for the first time in the 2015 financial year, the Group writes. The cumulative vacancy rate, which fell by 0.4 percentage points year-on-year to 7.5 percent, and a real estate expense ratio of 18.2 percent resulted in a net return of 4.2 percent for the 2015 financial year.
In the reporting period, the investment property portfolio saw the addition of a fully rented commercial building in Dübendorf in the canton of Zurich. The sales of two commercial properties and one residential property in the 2015 financial year resulted in a pre-tax gain of 21.1 million. Taking into account additions and disposals, the Allreal portfolio comprised 19 residential and 43 commercial properties as of the reporting date. Following the reclassification of an office building at Schiffbauplatz in Zurich West, the portfolio of investment properties under construction comprised a total of two properties as at the reporting date. Taking into account the changes in the portfolio and the overall positive value adjustment, the value of the total portfolio as of December 31, 2015 amounted to 3.53 billion. (mr)
