Allreal: profit increase of over 20%

Allreal achieved a corporate result of CHF 85.1 million in the first half of the year, which is over 20% more than in the previous year. One reason for the plus is an appreciation of the portfolio by almost 30 million.

Allreal posted a profit of 85.1 million in the first half of 2019 (Image: stokkete - depositphotos)

Allreal's net profit, including revaluation effect, increased byTP21.1% to 85.1 million compared to the same period last year and was strongly influenced by a market-driven appreciation of the portfolio by 29.7 million, according to the company. The operating result of the two business units, Real Estate and General Contracting, amounted to 63.8 million.

Rental income increased by 4.8% to 102.6 million; the cumulative vacancy rate was 1.9% in the first half of 2019. The net yield of investment properties was 4.5%.

Excluding the revaluation effect, the Real Estate Business Area achieved an operating profit (EBIT) of 85.8 million in the reporting period.

As of the reporting date, the investment property portfolio comprised 65 investment properties - 21 residential and 44 commercial properties - as well as two investment properties under construction. The total value amounted to 4.24 billion as of June 30, 2019.

Allreal raises annual targets

For the 2019 financial year, Allreal now expects a higher operating result than in the previous year.

In the Real Estate Business Area, thanks to the low number of leases to be extended or new leases to be concluded, a continued low vacancy rate and a stable earnings situation can be expected despite a project-related increase in real estate expenses.

Allreal considers itself "excellently positioned" in the general contractor business segment. The focus on the development and realization of long-term profitable projects for third parties and the company's own portfolio will enable the company to continue its profitable business activities, specialize in high-quality and technically demanding construction projects and expand its range of services.

With its own portfolio and development properties, it has "considerable potential for long-term growth," Allreal said. (ah)

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