Aevis Victoria: Spin-off of the real estate segment?

The 45 properties of Aevis Victoria are valued at more than CHF 1 billion in the annual report published at the end of March. Almost all properties are leased to Swiss Medical Network hospitals or Victoria-Jungfrau Collection hotels; there are no vacancies, the company says. Net sales in the real estate segment were CHF 58.4 million in fiscal 2017, up 14 percent from CHF 51.2 million the previous year. The operating result (EBITDAR) increased by 12.2 percent from 42.4 to 47.6 million.

Net sales of the five hotels - four of which are fully consolidated; one with a management contract - reached 64.3 million in the financial year, an increase of six percent over the previous year. The average room rate increased by seven percent to CHF 397. Operating profit (EBITDAR) reached 12.3 million, representing a margin of 19.1 percent.

Total sales of the Swiss Medical Network hospitals reached 586 million compared to 521 million in the previous year (+12.5%), with the increase mainly due to the integration of Clinique Générale-Beaulieu in Geneva in the fourth quarter of 2016. Net sales (excluding physician fees) increased by 13.4 percent to 506.1 million (2016: 446.2 million). EBITDAR was 95.6 million, corresponding to a margin of 18.9 percent.

Like Finance and economy reports, Aevis Victoria intends to list this real estate portfolio on the stock exchange. A group spokesman told the newspaper that "listing the real estate segment or parts of it" was one of the various options the company was considering for its properties. The spokesman ruled out a sale.

However, Aevis Victoria already hinted in its annual report release that an IPO was an option: a portfolio focused on real estate in the healthcare and hotel sectors was "hardly represented on the Swiss stock exchange so far, while it is widely available in most European and American markets," the company said at the time.