Record result for Fundamenta Real Estate

Fundamenta Real Estate reports that all targets were significantly exceeded in fiscal 2018.
According to the company, rental income from real estate increased byTP15.9% to25.80 million (previous year:22.26 million) due to the significant portfolio expansion in the reporting period. The rental share from residential use was 91.8% (previous year: 91.5%). The vacancy rate (excluding repositioning) increased slightly from 4.2% to 4.5% in the reporting period. By contrast, the vacancy rate including temporary vacancies caused by ongoing repositioning fell slightly from 5.4% to 5.3%.

The real estate portfolio, including three development projects, comprised 59 properties with 1,622 residential units. Income from revaluation (before deferred taxes) amounted to 15.91 million.

Net profit increased to 22.98 million as of the balance sheet date (return on equity: 8.4%). Fundamenta thus exceeded the previous year's result of 12.80 million byTP2T 79.61 and the previous record result of 2016 (14.21 million) byTP2T 61.71. Operating net profit was 10.33 million, up 23.7% from the previous year's 8.35 million.

Net asset value (NAV) before deferred taxes was CHF 15.74 as of the end of December 2018 (previous year: 15.24). NAV after deferred taxes increased from CHF 14.45 per share as of December 31, 2017 to CHF 14.90 per share as of the end of the reporting period.

The Board of Directors proposes to the Annual General Meeting on April 11, 2019, to increase the distribution from CHF 0.40 to CHF 0.50 per registered share. Based on the share price as of the balance sheet date, the distribution yield would thus amount to 3.4%.

Two new additions to the Board of Directors

Fundamenta Real Estate wants to expand its board of directors from three to five members - due to the change of listing to the SIX Swiss Exchange and the growing size of the company. Frédéric de Boer and Herbert Stoop are to be newly elected to the board at the annual general meeting.

Frédéric de Boer (born 1961) is a founding partner and Chairman of the Board of Zetra International, a consulting firm for corporate acquisitions and divestitures and, among other things, real estate transactions.

Herbert Stoop (born 1957) is Chairman of the Board of Seitzmeier Immobilien AG, of which he was co-owner and Managing Director for around 20 years. He is currently an independent real estate consultant, president of the Swiss Chamber of Estate Agents SMK and a member of the arbitration board at the District Court of Zurich. (ah)