Profit decline at SF Urban Properties
SF Urban Properties AG reports a significant decline in net profit for the first half of 2020. Overall, however, the real estate company speaks of a "solid result".
Due to a risk provision of CHF 0.74 million due to the Corona pandemic and the creation of del credere provisions of 0.2 million, property income decreased by 5.5% in the first half of 2020, SF Urban Properties AG reports. Looking at 2020 as a whole, the company expects the impact of the pandemic to be less than 3% of annual net rental income.
After years of sharply declining purchase yields, the revaluation effects were lower, the statement continues. The contribution of revaluations to the overall result was 0.8 million, compared with 2.0 million in the previous year.
Net profit excluding revaluation effects decreased by a goodTP2T 261, or 2.0 million, year-on-year to 5.5 million. Net profit including revaluations reached 4.8 million, aroundTP2T less than the previous year. EBIT decreased from 11.9 to 8.6 million, with the EBIT margin falling accordingly to 62.6% (previous year: 73.6%).
As far as the real estate portfolio is concerned, the company continues to focus on the cities of Zurich and Basel. The portfolio value increased slightly from 647.8 to 648.5 million in the reporting period due to revaluations. As of June 30, 2020, the vacancy rate stood at 2.3% (PY: 2.4%).
In May, SF Urban Properties decided to sell its 50%igen co-ownership share in Badenerstrasse 425-431 in Zurich. The purchase agreement, with a purchase price of 27.25 million, was signed on August 28, according to the company. After deduction of real estate gains tax, a net profit of around 7 million remains. (ah)
