Aevis Victoria: partial spin-off of hospital properties?
In its report for the first half of 2018, Aevis Victoria writes that it is considering a partial spin-off for Swiss Healthcare Properties. In addition, the company, in which the portfolio of hospital properties is bundled, is to be renamed Infracore and receive a new board of directors and management.
Several strategic options for the hospital real estate portfolio have been explored and the company believes that significant value can be created by strengthening the independence of Swiss Healthcare Properties and thus potentially expanding its healthcare infrastructure portfolio in Switzerland, Aevis Victoria said.
In the Real Estate segment, the Group reported net sales of CHF 28.9 million for the first half of 2018 (2017: 29.3 million), of which CHF 26 million was attributable to hospital properties and CHF 2.9 million to hotel properties. The Hotel Eden au Lac in Zurich is closed for a total renovation and therefore did not pay any rent in the reporting period. EBITDAR reached 24.9 million, corresponding to an EBITDAR margin of 86.1 percent (previous year: 24.8 million or 84.7%). The market value of the entire real estate portfolio is reported to be 1.2 billion.
The three hotels of the Victoria-Jungfrau Collection generated net sales of 28.2 million in the first half of 2018, up from 28.8 million a year earlier, according to the report. Adjusted for the 3.5 million contribution from Eden au Lac in Zurich, which has been closed since the end of 2017, revenue increased by more than 11 percent in the reporting period, it said. The number of overnight stays at the properties was around 56,400 with an average room rate of CHF 364 (previous year: CHF 354). EBITDAR rose from 3.3 to 3.9 million, corresponding to a margin of 13.7 percent.
Loss due to one-time effects
Group revenue of Aevis Victoria decreased by 5.2 percent to 319.1 million in the reporting period (previous year: 336.6 million). The reason for the decline, the company said, was one-off effects in the Swiss Medical Network hospital segment: lower TARMED tariffs since the beginning of 2018, a one-off write-down due to a ruling by the Federal Supreme Court that required a retroactive TARMED reduction for fiscal years 2014 to 2017, and temporarily reduced activity due to construction work at the hospitals in Rothrist, Geneva and Sion. Excluding these effects, total revenue would have increased by three percent, according to the company. At Group level, EBITDA amounted to 31.8 million compared to 42.9 million in the previous year. For the period under review, Aevis Victoria reported a net loss of 1.6 million, following a net profit of 12.2 million in the first half. Excluding non-recurring items, net profit would have been 2 million in the first six months of 2018, the company said.
For the current fiscal year, Aevis Victoria expects single-digit sales growth and improved profitability. Further acquisitions are planned. In addition to Swiss Medical Network, the Victoria-Jungfrau Collection hotel group and Swiss Healthcare Properties, the Aevis Victoria Group also includes the telemedicine provider Medgate and the Nescens brand, an anti-aging provider that also operates its own health centers and spas. (ah)
