Pax Anlage anticipates slump in profits
Pax Anlage AG expects a slump in profits in the first half of 2017, the company announced in an ad hoc disclosure.
The reason for this is an impairment requirement of around CHF 24 million for the portfolio properties identified by the independent valuation expert, according to Pax Anlage. The value of the portfolio as at December 31, 2016 is CHF 185 million.
The main drivers for the value adjustment are, in particular, expected lower market rents and longer vacancy periods in the existing portfolio. In contrast, the development properties can be revalued by around seven million.
The further course of business, in particular the sale of development properties, is now progressing positively in line with expectations, Pax Anlage continues. Nevertheless, the company anticipates a significantly negative half-year result for 2017 due to the expected value adjustments.
In the 2016 financial year, the company, which has since taken over by Basler Leben was still a Profit of 14.1 million which was an increase of 30 percent.
Pax Anlage will publish its detailed half-year results on August 30, 2017.
