Fundamenta achieves record operating result

Fundamenta Real Estate reports that the significant increase in the operating result is primarily the result of the reduced vacancy rate, the disproportionately low growth in real estate expenses and the lower financing costs. In addition, deferred tax liabilities were reduced by CHF 0.89 million due to the tax reform (STAF).

Reported net profit of 22.51 million was slightly below the previous year's level of 22.98 million. However, in the previous year, the valuation of the real estate portfolio was affected by a one-off effect of 6.09 million, Fundamenta said. Return on equity (ROE) is 6.2%, down from 8.4% a year earlier.

Net rental income reportedly increased by 14.4% to 29.51 million in fiscal 2019 (prev. yr.: 25.80 million), mainly due to the purchase of five existing properties in the cantons of Zurich, Bern, Lucerne and Aargau and the development of two properties in the portfolio. Residential properties contributed 92.2% to total rental income (PY: 91.8%). The vacancy rate decreased from 5.3% to 3.7%.

Balance sheet value of portfolio rises to over 900 million

The balance sheet value of the real estate portfolio increased in fiscal year 2019 from 748.62 to 908.91 million (+21.4%). The increase is due to the acquisition of the five existing properties and a development project in Zofingen, the construction or project progress of the ongoing development projects (new and existing) and the revaluation as of the balance sheet date, Fundamenta says.

The existing portfolio reached a market value of 841.22 million (previous year: 704.65 million) with annual net target rental income of 33.73 million (previous year: 30.02 million). The newly acquired portfolio properties have a market value of 110.12 million. Two developments in the portfolio (repositionings) in Zurich and Lucerne were implemented on schedule in the reporting year and let in the fourth quarter of 2019, the statement added.

Income from revaluation of investment properties and developments (before deferred taxes) amounted to 11.69 million (previous year: 15.91 million). Costs for energy measures to improve energy efficiency and CO2 reduction were taken into account in the year-end valuation, Fundamenta reports.

NAV rises to CHF 16.30

Net asset value (NAV) before deferred taxes was CHF 16.30 per share at the end of the year, compared with CHF 15.74 in the previous year. NAV after deferred taxes amounted to CHF 15.29 (previous year: CHF 14.90). Adjusted for a distribution from capital contribution reserves of CHF 0.50 per share, NAV per share increased by CHF 0.89 or 6.0% in fiscal year 2019. Weighted earnings per share were CHF 0.90 compared to CHF 1.19 in the previous year.

The Board of Directors will again propose a distribution of CHF 0.50 per registered share to the Annual General Meeting on April 8 of this year. As in the previous year, the payout is to be made from the reserves from capital contributions. Based on the share price as of the balance sheet date, the distribution yield is 3.3%.

In the current year, Fundamenta is focusing on the realization of four development projects with around 150 residential units. This is expected to generate rental income of around 3.1 million per year, the company says. (ah)