Fundamenta Real Estate: Profit rises significantly
Fundamenta Real Estate reports a net profit of CHF 10.09 million for the first half of 2019. This is 54% more than in the previous year, when the profit was 6.54 million.
Fundamenta Real Estate said the profit increase was driven by a significant improvement in operating profit and a revaluation effect achieved on investment properties. The company put return on equity at 4.5%, up from 4.3% in the same period last year.
Operationally, Fundamenta reported net income (excluding revaluation effect) of 6.61 million, up almost one-third year-on-year (5.03 million).
The review and valuation of selected portfolio properties by JLL resulted in a total gain from the revaluation of investment properties (before deferred taxes) of 4.34 million (prior-year period: 1.90 million). Of this amount, 1.04 million was attributable to ongoing development projects and 0.95 million to implemented or ongoing repositioning of portfolio properties.
Due to acquisitions, rental income from real estate increased byTP2T 14.61 toTP2T 14.28 million (prior-year period:TP12.46 million). The vacancy rate decreased from 5.1% to 3.4%.
Three properties in the cantons of Zurich, Bern and Aargau with a total market value of 48.29 million and one development project in Zofingen were acquired in the first half of 2019. Including the four development projects in Zurich, Schlieren and Zofingen, the real estate portfolio comprised a total of 63 properties with 1,782 residential units at the end of the reporting period.
In the third quarter, Fundamenta acquired a portfolio property in Männedorf (ZH) with a market value of 17.55 million. The portfolio of investment properties now has a market value of 777.52 million with a target annual net rental income of 32.41 million. (ah)
