Profit increase at Espace Real Estate

Espace Real Estate further reports that the vacancy rate of investment properties decreased by 1.21 percentage points to 6.72%.

The market value of the real estate portfolio increased by 2.25% to CHF 686.9 million in the first half of the year. According to its own figures, Espace invested 19.1 million in new construction projects in the reporting period.

The operating result (EBIT) rose from 10.9 to 12.0 million. Excluding revaluation gains of 0.5 million (previous year: -0.5 million), EBIT amounted to 11.5 million after 11.4 million in the previous year.

Rental income increased from 12.6 to 12.9 million; according to the information provided, rental income remained at the previous year's level, as the first rentals in the new buildings compensated for the loss of income from the sold properties. Real estate expenses fell from 3.2 to 2.8 million.

For the 2019 financial year, revenues and profits are again expected to be higher, excluding income from revaluations.The overall performance (including dividends) of Espace shares in the first half of the year was +14.3%, outperforming the index of listed real estate shares (+13.9%; SXI Real Estate® Shares Broad Index).

The new buildings Volare in Zuchwil with 83 apartments and Visavie in Biel with 58 apartments are expected to be completed and handed over to tenants in the second half of 2019, Espace added. Initial leasing is proceeding according to plan, it added. In addition, the fully let new building of the Schaffner Group headquarters was handed over to the tenant on 1 September.

For the 2019 financial year, the company expects a higher result than in the previous year at revenue and profit level, excluding revaluations. Due to the completion of several properties, further revaluation gains are expected in the second half of 2019. (ah)