Novavest: EBIT remains stable, profit falls slightly
Novavest Real Estate reports an Ebit of CHF 17.3 million for the 2018 financial year. Profit including revaluations was 11.9 million.
Earnings before interest and taxes (Ebit) were thus unchanged from the previous year. Profit including revaluation gains decreased from 12.3 to 11.9 million in the reporting period. By contrast, profit excluding revaluation gains increased from 8.4 to 9.0 million.
In fiscal 2018, Novavest Real Estate continued to expand its portfolio. In December, the company acquired a residential portfolio in the canton of Bern. In the first half of the year, two properties in St. Gallen were purchased; two properties in Adliswil and Teufen were sold. The total value of the property portfolio increased by a net 9% to 498.8 million (Dec. 31, 2017: 458 million) as a result of these property transactions and a slight appreciation of the overall portfolio, Novavest reports. Target rental income from investment properties was 23 million per annum at year-end 2018 (Dec. 31, 2017: 22.2 million). The rental income share from residential use increased from 53% to 59%.
According to Novavest, net rental income increased by 11% to 19.4 million in the reporting year 2018 (2017: 17.5 million). The net return generated on investment properties was 4.0%, as in the previous year. The vacancy rate of the overall portfolio (excluding conversion projects) decreased from 8.7% to 6.4% during the fiscal year.
The board of directors will propose a cash distribution in the form of a par value reduction of CHF1.65 per registered share to the annual general meeting of shareholders on March 27, 2019, it said. Based on the closing price of the registered share as of December 31, 2018, the yield of the distribution amounts to 4.2%, Novavest said. (ah)
