Warteck Invest reports record profit
Warteck Invest reports a record profit of CHF 20.6 million for the first half of 2019. However, the result was influenced by special factors, the real estate company said.
The half-year profit of CHF 20.6 million is 143.4% higher than the previous year's figure (8.4 million) and is the highest profit in the company's history, according to Warteck Invest.
However, two special factors were responsible for the result, Warteck Invest reports: Firstly, the adjustment of provisions for deferred taxes amounting to 6.3 million as a result of the tax reforms in the canton of Basel-Stadt and at federal level, and the revaluation of properties by 8.5 million (previous year: 1.6 million) due to the renewed fall in interest rates. The result was also boosted by a 5.5% increase in income from rentals to 15.2 million (previous year: 14.4 million).
Excluding the special tax effect and revaluations, net profit in the first half increased byTP2T 13.51 year-on-year fromTP2T 7.2 million toTP2T 8.2 million. The return on equity was 12%.
Vacancy rate of 5.3%
Due to acquisitions in the previous year and the completion of projects, target rental income increased by 7.5% to 18.6 million in the reporting period. The vacancy rate of investment properties was 5.3%, higher than the same period last year (4.7%), but lower than the full year 2018 (6%). 1.5 percentage points of the vacancy rate was due to longer absorption periods of newly built apartments, Warteck Invest said. Actual rental income increased by 7.7% year-on-year to 17.6 million.
Expenses for operation and maintenance of the properties amounted to 2.4 million in the reporting period, representing 12.1% of target rents. The gross yield of the portfolio decreased slightly from 4.9% to 4.8%. Net yield was 3.9%, down from 4.1% in the same period last year. Performance, on the other hand, increased slightly from 4.4% to 4.6% due to the success from revaluations.
The market value of the real estate portfolio increased by 1.8% during the reporting period and now stands at 796.9 million compared to 782.7 million at the end of 2018.
Well-filled pipeline
Warteck Invest has a project pipeline for the next five years with a total volume of around 230 million. For the Hagnau-Schänzli area in Muttenz (BL), the neighborhood plans are expected to be approved by the government council of the canton of Basel-Landschaft in the second half of the year. The real estate company plans to build a residential and commercial building with around 12,000 square meters of gross floor area there from 2022.
Also the planning of the new Residential and commercial building at Dreispitz in Basel is at an advanced stage, according to the real estate company. A building application is to be submitted in the third quarter. The plan is for a twelve-story residential and commercial building around 40 meters high with a gross floor area of around 10,000 square meters. The investment costs are estimated at 45 million. After completion, scheduled for 2022, the property is expected to generate annual rental income of around 1.9 million after deduction of the building lease interest. (ah)
