Novavest: Significant profit increase
Novavest Real Estate AG increased its profit including revaluation by almost 20 percent year-on-year in the first half of the year. EBIT increased by 33 percent to CHF 2.6 million.
Novavest Real Estate AG expanded its real estate portfolio in the reporting period by acquiring two residential properties and one residential/commercial property; it now has a value of CHF 238.6 million (as at 30.06.2016), compared with CHF 207.7 million at the end of 2015. As at the reporting date, the portfolio consisted of 20 investment properties and two promotional properties. The net yield on the investment properties amounted to 3.5% in the first half of 2016 (H1 2015: 4%), while the gross yield was 5.1% (H1 2015: 5.6%).
The vacancy rate was 7.8%; including conversion projects, it was as high as 11.2%. According to the company, the rate had already fallen again by 1.5 percentage points to 6.3% by August as a result of new lettings and re-lettings at various properties and the sale of a condominium.
EBIT and profit increase
No substantial revaluations were carried out in the first half of 2016; Wüest & Partner's valuations only resulted in a slight revaluation gain of CHF 20,000 for the reporting period, compared with CHF 200,000 in the first half of 2015.
Earnings before interest and taxes (EBIT) increased by 33% from CHF 2 million to CHF 2.6 million. Profit including revaluation gains increased by 19% to CHF 1.6 million, while profit excluding revaluation gains also amounted to CHF 1.6 million.
The balance sheet total as at June 30, 2016 increased by CHF 20.8 million to CHF 256.5 million compared to the end of 2015. Equity amounted to CHF 97.1 million, which corresponds to an equity ratio of 37.9%. The net asset value as at June 30, 2016 was CHF 36.93 per registered share.
Capital increase in fall 2016
Novavest is planning further growth for the second half of 2016. At the beginning of July 2016, the company issued a mandatory convertible bond of four percent in the amount of CHF 5 million. This bond will mature on October 6, 2016 and will be converted into share capital of the company as part of a capital increase planned for September/October 2016 (conversion price CHF 36.23).
The issue volume of the capital increase amounts to a maximum of 30.07 million and the subscription ratio has been set at 3:1. The subscription period for the capital increase runs from September 14 to 29, 2016, and the capital increase is scheduled to be completed on October 7, 2016. The first trading day of the new registered shares on the BX Berne eXchange is scheduled for October 10, 2016. (ah)
