Allreal: Result rises by almost 25 percent
Allreal achieved a net profit including revaluation effect of CHF 161 million in the 2018 financial year. This is 31.8 million or 24.6% more than in the previous year.
At CHF 115.6 million, net profit excluding revaluation effect was 2.0% higher than the previous year's figure of CHF 113.3 million, Allreal reports. In addition to the profits of the general contracting business, the "excellent property result" was the main contributor to the good result, the real estate company said.
Due to the portfolio expansion through acquisitions and own projects, which had an impact on earnings over twelve months for the first time in the 2018 financial year, and a reduction in vacancy-related income losses, rental income rose by 15.6 million to 194.8 million, it added. The cumulative vacancy rate decreased by 0.6 percentage points to 2.0%. Direct investment property expenses were reported to be 22.6 million. The net yield is put at 4.4%.
Market value of the portfolio increases significantly
The investment property portfolio recorded the addition of one residential and one commercial property. In the portfolio of investment properties under construction, there were two additions and one disposal. As at the reporting date, the portfolio comprised 21 residential and 44 commercial properties as well as two investment properties under construction.
The addition of three net properties to the portfolio and the revaluation resulted in a year-on-year increase in the market value of the overall portfolio by 203.3 million to a total of 4.16 billion, Allreal added.
Income from general contracting over 20% lower than 2017
Income from the general contracting business field amounted to 52.6 million, which is 21.1% less than in the previous year. Allreal attributes this to lower profits from the sale of condominiums and a lower project volume for third parties. The operating result (EBIT) of General Contracting amounted to 12.1 million.
The project volume handled with the realization of projects for third parties and for own account amounted to 351.9 million in the 2018 financial year. Of this, 82.5% was attributable to third-party projects and 17.5% to own-account projects, the share of which in the project volume handled will continue to increase in the future. The work in progress of 657 million secured as of the reporting date will enable the existing capacities to be utilized for around 18 months.
The Board of Directors will propose an increased distribution of 6.50 per share compared to the previous year at the Annual General Meeting to be held on 12 April 2019, Allreal announced. Based on the closing price as of 31 December 2018, this corresponds to a cash yield of 4.2%, it said. For the 2019 financial year, the company expects its operating result to remain at the previous year's level.. (ah)
