SFPI significantly increases its profit
Swiss Finance & Property Investment AG has reported a jump in profit of almost 25 percent for the 2015 financial year. Net profit excluding revaluation effects rose from CHF 10.1 million to CHF 12.6 million.
Earnings before interest and taxes (EBIT) amounted to CHF 31 million in the 2015 financial year - compared with CHF 16.5 million in the previous year - and net profit to CHF 22.7 million (previous year: CHF 10.5 million).
The increase in EBIT and net profit were boosted by revaluation and sales gains, the company wrote in a statement.
The portfolio value increased by CHF 36.95 million (+9%) to a total of CHF 447.31 million as of December 31, 2015, due to acquisitions of four properties in Basel and revaluation effects. In the second half of the year, SFPI secured two adjacent developed properties at Elsässerstrasse 1 and 3 in Basel through notarized purchase agreements with a limited right of withdrawal.
In the months of May to July, three properties in Bern and one in Yverdon were sold. In addition, the property in Liestal was sold as of October 30, 2015. All divestments were made above the current market value. The vacancy rate fell from 9.35 percent to 7.28 percent (as of December 31, 2015).
The equity ratio of the company is 42.47 percent and the return on equity is 10.95 percent (previous year: 5.11%).
For 2016, Swiss Finance & Property Investment AG expects the result to be roughly in line with the previous year. In view of low interest rates, institutional demand for investment properties will remain high, so that a seller's market can still be assumed for well-developed locations, the company said in an assessment. (ah)
