Decline in profits at BFW Liegenschaften

BFW Liegenschaften sold 13 investment properties in the past financial year, generating gross proceeds of CHF 97.6 million. According to the company, these were seven residential properties, four mixed-use properties and two commercial properties. The value of the property portfolio decreased from 414.4 million to 332.6 million as of December 31, 2019. The decrease is mainly due to the sale of the 13 properties (87.8 million).

The target rental income of the remaining investment properties was 16.1 million at year-end 2019, compared with 20.1 million in the previous year. Around 78% of this was from residential use. Net rental income would have decreased by around 7% to 18.2 million, mostly due to the sale of properties, BFW Liegenschaften further reports (previous year: 19.6 million). Nine of the thirteen properties had only fallen out of the portfolio with the transfer of ownership in November 2019.

EBIT and earnings down significantly

Net income from sales amounted to 5.9 million (PY: 4.1 million). The net return on investment properties in 2019 was 4.2% (PY: 3.7%). The vacancy rate of investment properties decreased slightly from 8.6% to 8.4%.

The operating result (EBIT) declined from 26.5 to 20.1 million. According to BFW Liegenschaften, this is partly due to lower rental income as a result of the sales. The financial result amounted to -6.0 million after -1.1 million in the previous year.

Profit including revaluation gains decreased to 13.1 million in the reporting year (previous year: 20.6 million). Profit excluding revaluation gains amounted to 7.8 million after 11.9 million in 2018.

Disagreement over distribution

The two independent members of the Board of Directors, André Robert Spathelf and Christian Wunderlin, propose to the Annual General Meeting of May 12, 2020, a cash distribution in the form of a par value reduction of CHF 1.40 per Class A registered share and CHF 0.14 per Class B registered share.

The main shareholder BFW Holding, however, rejects this application. It is not in its interest because of the intended privatization of the company, it says. It is also not seeking any other distributions, either as dividend payments or in the form of par value reductions.

Change in the Board of Directors

Christian Wunderlin will not stand for re-election at the Annual General Meeting, BFW LiegenschafteN further announces. The search for a successor as representative of the registered shareholders A on the Board of Directors has been initiated.

Beat Frischknecht is to be elected as Chairman of the Board of Directors. André Robert Spathelf and Christian Wunderlin's successor will be proposed to the Annual General Meeting for election as BoD members and members of the Compensation Committee.

Delisting planned

According to BFW Liegenschaften, the company is not pursuing a growth strategy and does not plan to substantially increase its existing portfolio. However, with the remaining real estate portfolio of 332.6 million, the company no longer has the size to justify a listing on the SIX Swiss Exchange as a public company.

The main shareholder BFW Holding is therefore sticking to the already announced privatization of BFW properties and the delisting from the SIX Swiss Exchange, the statement continues. (ah)