Espace Real Estate with profit increase in the first half-year
Espace Real Estate says it has come through the past few months, which were marked by the Covid 19 pandemic, well. Net profit for the period rose from CHF 6.8 million to CHF 12.3 million in the first half of the year.
According to Espace Real Estate, the increase in profit was positively influenced by the adjustment of provisions for deferred taxes in the amount of 3.8 million as a result of the tax reform in the canton of Solothurn. Excluding these special effects, the profit for the period had increased by around 25% compared with the same period last year.
Espace currently estimates the expected loss of commercial rents due to the lockdown at 0.7 million. Nevertheless, net rental income increased byTP2T8.31 to13.95 million (PY: 12.88 million). In the first half of the year, rental income from the 171 apartments completed in the previous year and rental income from the new Schaffner headquarters were included in the result, the company said. In addition, the rejuvenation of the portfolio and the associated reduction in real estate expenses had a positive impact on the result.
The vacancy rate of the investment properties is estimated at 5.85% and also includes the vacant premises of the property at Zuchwilerstrasse 41/43 in Solothurn, which is undergoing general renovation. New leases have already been signed for a large part of the service spaces under renovation directly at Solothurn station, Espace said.
Income from revaluation amounted to 1.02 million (previous year: 0.48 million). There were no acquisitions in the reporting period; condominium units in Solothurn that were not in line with the strategy were sold. The market value of the real estate portfolio increased in the first half of 2020 from 700.3 million at the end of 2019 to 702.6 million.
Project pipeline of CHF 80 million
Espace currently has investments in investment properties mainly in the residential segment in the pipeline amounting to around 80.0 million. The development projects are geared to social changes and developments in the real estate market, for example with regard to demand for small apartments, sharing concepts, or resource-efficient and sustainable forms of living. Special attention is also being paid to the rising demand for affordable housing, he said.
Furthermore, the real estate company announces that in addition to the core business, investments in solar plants are becoming a valid investment alternative. Within the framework of a self-consumption association (ZEV), systems have been installed on seven buildings, which made a positive contribution to operating income in the first half of 2020. Further installations are in the planning stage, Espace said.
Although the effects of the coronavirus pandemic are not expected to become apparent until the current or next quarter at the earliest, Espace is confident that the company will "weather the crisis robustly." The company expects a "solid annual result in 2020" provided that the economic environment does not deteriorate. (ah)
