Fundamenta Real Estate increases net profit
Fundamenta Real Estate AG reports a net operating profit of CHF 5.03 million for the first half of 2018 - 32 percent more than in the same period last year.
Rental income from real estate increased by almost 20 percent to 12.46 million (previous year: 10.41 million), with around 92 percent of rental income coming from residential use.
The review and valuation of selected portfolio properties resulted in a valuation gain (before deferred taxes) of 1.90 million (previous year: 2.26 million), Fundamenta reports. This revaluation and the significant increase in operating income led to a net profit of 6.54 million (previous year: 5.61 million). This corresponded to a return on equity of 4.3 percent.
The vacancy rate - including temporary vacancies due to ongoing repositioning - fell from 5.4 to 5.1 percent. The market-related vacancy rate excluding repositioning is 4.6 percent.
The net asset value (NAV) per share before deferred taxes was CHF 15.27 at the end of the reporting period (previous year: 15.24). After deferred taxes, this resulted in a NAV of CHF 14.39 (previous year: 14.45). Adjusted for a distribution from the reserves from capital contributions, which took place in April, NAV increased by CHF 0.34 or 2.4 percent in the reporting period. Earnings per share amounted to CHF 0.35 (previous year: 0.40).
The equity base as of the balance sheet date was 272.40 million (previous year: 273.42 million), corresponding to an equity ratio of 43.5 percent (previous year: 45.6%).
Portfolio expanded
During the reporting period, Fundamenta acquired two existing properties in the canton of Zurich. In addition, the modernization of a property in Muri with 88 residential units was started in April. According to the company, further repositioning of existing properties in Zurich, Lucerne and Basel is being prepared.
The real estate portfolio - including two development and new construction projects in Zurich and Schlieren - comprises a total of 53 properties with 1,482 residential units and annual net target rental income of around 28.43 million.
After the balance sheet date, Fundamenta acquired three additional residential properties in the canton of Zurich (Niederhasli, Tagelswangen and Dietikon) with a market value of 32.84 million. The portfolio thus increased to an expected market value of 672.17 million and annual net target rental income of around 29.66 million.
Capital increase and listing on the SIX Swiss Exchange planned
Fundamenta further announces that the Board of Directors intends to start planning a capital market issue in order to finance further growth. The board was encouraged by the "prospect of attractive acquisitions and the potential identified in the context of the portfolio development".
In connection with the next capital market issue, Fundamenta is also aiming for a listing on the SIX Swiss Exchange. Currently, the real estate company is listed on the BX Swiss. However, in view of developments on the capital market and Fundamenta's growth and portfolio size, the Board of Directors is convinced that a change of stock exchange would create a better starting position for the company's future development. In this context, the Board of Directors will also propose a personnel expansion to the Annual General Meeting in April 2019. (ah)
