BFW Liegenschaften: Profit increase in the first half-year
BFW Liegenschaften increased its profit including revaluation gains to CHF 13.4 million in the first half of 2018. However, the operating result fell.
Profit excluding revaluation gains amounted to 7.5 million (previous year: 5.9 million). Earnings before interest and taxes (EBIT) amounted to 15.8 million after 16.3 million in the first half of 2017.
As at June 30, 2018, the real estate company's portfolio consisted of 44 properties with a total value of 434.5 million (31.12.2017: 437.1 million), which generated net rental income of 10.0 million. According to the real estate company, the change in value compared to the end of 2017 is due to the sale of two smaller residential properties in Sevelen (SG) and Aristau (AG), which had a negative impact of -11.7 million. This was offset by positive valuation effects of 7.5 million and investments in investment properties of 1.7 million.
The sale of the properties in Sevelen and Aristau resulted in a one-off gain of 2.0 million in the reporting period. According to the information provided, the sales prices achieved were 16% and 24% higher than the DCF property valuations as at December 31, 2017. The net yield generated on the investment properties in the 2018 reporting period is stated as 3.6%. This compares with 3.9% as at the reporting date of December 31, 2017. The vacancy rate for investment properties increased from 7.5% to 9.1% in the first half of the year.
The direct expenses for rented investment properties increased from 1.8 million to 2.2 million compared to the previous year due to higher maintenance costs. Other operating expenses amounted to 1.6 million (previous year: 1.4 million).
Further sales planned
BFW Liegenschaften sold two of its six investment properties held for sale in August 2018. The two properties in Dulliken (SO) are reported to have a total value of 12.6 million and achieved sales values of 11% and 18% above the DCF property valuations as at June 30, 2018.
In connection with this, the Board of Directors of BFW Liegenschaften has amended the investment regulations and, among other things, reduced the minimum number of properties in the portfolio from 40 to 30.
Despite the sale of some smaller properties, BFW Liegenschaften remains convinced of the attractiveness of the Swiss real estate market - especially in the residential sector. The company expects EBIT in the second half of the year to be similar to the first half of 2018. (ah)
