bfw liegenschaften: CHF 18 million profit
In the 2017 financial year, bfw liegenschaften failed to match the record result of the previous year, but still achieved a good operating result: EBIT was CHF 22.6 million, profit including revaluation gains CHF 18 million.
The value of the property portfolio increased by three percent to CHF 437.1 million in 2017 (previous year CHF 424.4 million). The change was mainly due to the completion of the conversion project Freiestrasse 4 in Weinfelden (+5.6 million), positive valuation effects (+8.1 million), the purchase of building land in Steckborn for a future residential project (+1.3 million), further investments in investment properties (+0.9 million) and the sale of a residential property in Amriswil (-3.3 million), bfw liegenschaften reports.
Target rental income in the portfolio was 23.0 million, compared with 22.8 million in the previous year. The proportion of rental income from residential use was 78 percent.
Net rental income increased by around two percent to 20.8 million in the 2017 reporting year (previous year: 20.4 million). According to the company, the reason for the increase is the conversion project in Weinfelden, which was completed on September 1, 2017. At 7.5 percent, the vacancy rate excluding new buildings/conversion projects was slightly higher than in the previous year (7.1%). The sale of the residential property in Amriswil resulted in a gain on sale of 0.3 million; there were no sales in the previous year.
The market valuation of the portfolio by KPMG resulted in income from revaluation of 8.1 million as of December 31, 2017 (previous year: 13.2 million). The change in market values resulted mainly from the successful development of the conversion project Weinfelden, Freiestrasse 4, as well as a discount rate reduction by KPMG for residential and residential/commercial properties, bfw liegenschaften reports.
EBIT down by 4.7 million
At operating earnings before interest and taxes (EBIT) level, the company generated a profit of 22.6 million compared with 27.3 million in the previous year. The decrease of 4.7 million was mainly due to the different revaluation gains in the comparative years, bfw said. Excluding the revaluation gains, EBIT was 14.5 million, slightly higher than the previous year's 14.1 million.
Taking into account the effects of the fair value adjustments of interest rate swaps and receiver swaptions, profit including revaluation gains and attributable deferred taxes was 18.0 million (previous year 18.2 million). Excluding the fair value adjustments of interest rate swaps and receiver swaptions, profit was 15.9 million (previous year 18.7 million).
The Board of Directors will propose a higher dividend to the Annual General Meeting on May 3, 2018, despite the lower profit: A cash distribution from capital reserves of CHF 1.40 per class A registered share (previous year: CHF 1.35) and CHF 0.14 per class B registered share is planned. This corresponds to a distribution yield of 3.24 percent (based on the closing price of class A registered shares as of December 31, 2017).
As of January 1 and February 1, 2018, two smaller residential properties in Sevelen and Aristau were sold for a total value of 14.1 million. According to bfw, the sales values achieved were 16 and 24 percent above the DCF property valuations as of December 31, 2017. The transactions will result in a one-off gain on sale of around 2 million for the 2018 reporting year.
