Novavest Real Estate AG: On course
For Novavest Real Estate AG, the 2020 financial year was pleasing. Earnings before interest and taxes (EBIT) rose to CHF 22.9 million, up 11% on the previous year.
Profit including revaluation gains increased to CHF 17.8 million (+25 %). Net rental income increased to 24.3 million (+13%). The net yield on investment properties amounted to 3.7% in 2020 (PY 3.8%). The value of the property portfolio as of December 31, 2020, amounted to 645.4 million - an increase of 16%.
The company attributes the growth mainly to the additional rental income from the property in Olten, which was fully acquired as of September 2019, and from the acquisitions of the ten properties in the 2020 reporting year. The vacancy rate of the investment properties (excluding projects) was 4.0% (Dec. 31, 2019: 5.9%).
The market valuation of the real estate portfolio by Wüest Partner resulted in income from revaluation of 8.3 million (2019: 6.6 million) due to higher valuations of various investment properties, targeted investments and leasing measures.
The Board of Directors proposes to the Annual General Meeting (24.3.21) a cash distribution in the form of a par value reduction of CHF 1.65/registered share. Based on the closing price of the registered share as of December 31, 2020, the yield of the distribution amounts to 3.8%.
With the election of Daniel Ménard, a proven real estate specialist, the BoD will be expanded to four members. The existing members of the Board of Directors are standing for re-election. Gian Reto Lazzarini is proposed as Chairman of the Board of Directors and Markus Neff and Stefan Hiestand as members of the Compensation Committee.
In addition, the renewed creation of authorized capital in the amount of 706,000 registered shares, i.e. below 10% of the ordinary share capital, will be proposed to the Annual General Meeting. (bw)
