Fundamenta Real Estate expects record result
Fundamenta Real Estate sees itself on track for a record result in fiscal 2018 after preliminary figures for the third quarter. The real estate stock corporation therefore plans to significantly increase its dividend.
According to the preliminary results as of September 30, 2018, which Fundamenta published on Wednesday, net profit as of the reporting date was CHF 19.07 million (return on equity: 8.0%). This is already around 49 percent above the full-year result of 2017 after three quarters and around 34 percent above the previous record result from 2016, the real estate company says.
Rental income from real estate in the first nine months of the financial year was reported at CHF 19 million; around 92 percent of this came from residential use.
The external valuation of the property portfolio by JLL resulted in a total revaluation gain (before deferred taxes) of 14.52 million for the current reporting period, with 6.01 million attributable to an adjustment of the valuation methodology to the SIX standard, the statement added. The NAV as of the end of September 2018 was CHF 15.06 per share.
In the third quarter, Fundamenta expanded its portfolio with four properties in the canton of Zurich and the city of Zurich, which have a total market value of 47.23 million.
The Board of Directors intends to propose a significant increase in the distribution to the next Annual General Meeting. According to Fundamenta, the distribution per share should now be in a range of CHF 0.45 (+13%) to CHF 0.50 (+25%), although the decision will only be made once the 2018 annual financial statements are available.
The interim financial statements as of September 30, 2018 and further key figures are scheduled to be published on November 9, 2018. The company intends to communicate detailed information on the planned capital increase and the relisting on the SIX Swiss Exchange at a later date. (ah)
