Allreal presents half-year figures
In the first half of 2018, Allreal generated a net profit, including revaluation effect, of CHF 70.3 million, 6.5 percent more than in the same period of the previous year.
According to Allreal, net profit excluding revaluation effects amounted to 61.3 million in the period under review, up 3.4 percent on the same period of the previous year.
In the Real Estate business segment, rental income increased by 11.9 percent year-on-year to 97.9 million. The cumulative vacancy rate was 2.0 percent in the first half of 2018, 60 basis points below the comparable figure as at 31 December 2017, according to Allreal.
Direct expenses for investment properties amounted to 8.9 million in the reporting period, which corresponds to an expense ratio of 9.1 percent. For the second half of the year, Allreal expects only a slight increase in the total. The net return is estimated at 4.5 percent. From the sale of Hammer Retex resulted in a profit of 2.1 million. The proportion of investment properties managed by the company itself was around 60 percent on the reporting date, but will rise to 70 percent in the future, Allreal added.
Excluding the revaluation effect, the operating result (Ebit) in the Real Estate Business Area amounted to 86.4 million - up 19.2 percent on the same period of the previous year. The investment property portfolio comprised 20 residential and 43 commercial properties as at the reporting date.
In the portfolio of investment properties under construction, there were two additions totalling 40.6 million due to the partial reclassification of the company's own projects at Hardstrasse 301 (Escher-Wyss site) in Zurich West and Grünhof in Zurich Aussersihl.
The valuation of the investment properties resulted in an overall positive pre-tax value adjustment of 12.9 million. Of this amount, 5.7 million was attributable to the investment property portfolio and 7.2 million to the investment properties under construction portfolio. The total value of the portfolio thus reached 3.98 billion.
Success in general contracting declines by 27.3 percent
In the general contracting business segment, Allreal generated total income of 27.2 million in the period under review. This is 27.3 percent less than in the same period of the previous year. Allreal cites the lower profit from the sale of condominiums and the lower project volume in realisation for third parties as the reasons for this. In the first half of 2018, the business segment's operating expenses amounted to 24.6 million. The operating result (Ebit) amounted to 6.6 million.
In Lucerne Eggen, Allreal has acquired a plot of around 8,400 sqm from a private seller for 33.5 million. A development with 72 condominiums in the mid-price segment is to be built here. A study competition is to be held for this purpose in the second half of the year, which will serve as the basis for the design plan to be drawn up in 2019.
In the first half of 2018, Allreal handled a project volume of 166.0 million, with third-party projects accounting for 140.1 million (84.4%). The share of own projects for sale to third parties or the own portfolio was 25.9 million (15.6%), By the end of the year and in the following year, the share of third-party projects in the total volume should tend to decrease, Allreal informs. In the period under review, 129.1 million (77.8%) of the project volume was attributable to the realisation of new buildings and 36.9 million (22.2%) to renovation and conversion projects.
Allreal is optimistic for 2018 as a whole: it expects business to remain stable in both real estate and general contracting. Thanks to the low vacancy rate and the low number of commercial leases up for renewal, no significant changes are foreseeable in the portfolio in the second half of 2018. For the 2018 financial year, the company therefore expects a slightly higher operating result than in the previous year. (ah)
