bfw liegenschaften increases earnings
In the first half of 2016, bfw liegenschaften increased net rental income by five percent year-on-year to CHF 9.9 million.
At EBIT level, the company posted a profit of CHF 17.5 million, up from CHF 12.5 million in the first half of 2015, due to a slightly higher rental income base and income from revaluations, bfw says.
Profit including revaluation and deferred taxes and excluding the fair value measurement of the interest rate swaps and receiver swaptions amounted to CHF 12.6 million (previous year: 8.5 million). However, the fair value measurement of the interest rate swaps and receiver swaptions resulted in a negative effect before taxes of CHF 7.9 million (previous year: negative effect of 1.8 million). Taking these effects into account, profit including revaluation gains and attributable deferred taxes decreased from seven to six million CHF.
Net asset value excluding valuation differences from interest rate swaps and receiver swaptions was CHF 39.99 per share, according to the company.
Portfolio value increases by four percent
As of June 30, 2016, bfw's real estate portfolio comprised 45 investment properties and one conversion project. The value of the portfolio increased by four percent to CHF 416.4 million in the first half of 2016, mainly due to the successful development and investments in the conversion projects as well as positive valuation effects on the existing portfolio, bfw reports. Income from revaluation came to CHF 10.7 million (previous year: 6 million).
Annualized, the target rental income with the current portfolio amounts to around CHF 23.5 million; the proportion of rental income from residential use is currently around 75 percent. The vacancy rate excluding new construction and conversion projects was 7.5 percent, a slight increase on the first half of 2015 (6.9%).
The net return generated on investment properties during the reporting period was 3.9 percent, or four percent excluding new construction and conversion projects (previous year: 4% and 4.3%, respectively).
For the second half of 2016, the company expects a similar result from operating activities at EBIT level (excluding revaluation effects of the properties) as in the first half of the year. (ah)
