Plazza expects more profit

Plazza expects an operating result of at least CHF 18.3 million for the current year, which is around 17% more than in the previous year (excluding special effects). According to a company statement, the reason for this is that real estate income is rising more strongly than previously expected - namely to 24 million (previous year: 20.7 million). In September this year, Plazza had forecast an increase in property income of 15%.

The main growth driver was the rental income from a new residential property in Wallisellen, which was included in the portfolio for the first time for an entire financial year and was slightly above expectations. There was also an increase in rental income from the leasing of commercial space.

Furthermore, an additional significant profit from revaluation had become apparent, especially in the second half of the year: Real Estate will experience a renewed revaluation gain of around 24.0 million for the full year 2019 (previous year: 14.5 million) - mainly due to the further reduction in discount rates.

Plazza will publish its annual report for 2019 on March 11, 2020.

The real estate company manages an existing portfolio of residential and commercial properties with a focus on the Zurich economic area. In addition, Plazza has development properties and projects in the economic centers of Zurich and Lausanne in its portfolio. (ah)