Decline in earnings at Allreal Holding
Due to the absence of positive one-off effects from the previous year, Allreal Holding achieved a significantly lower result in 2020 than in 2019. Nevertheless, the company is satisfied with the course of the financial year.
According to Allreal, net profit including revaluation effect was CHF 167.2 million (2019: 243.2 million) and, as in the previous year, was positively impacted by revaluation gains. Excluding revaluation effect, Allreal posted a net profit of 124.7 million, down from 142 million in 2019. According to the company, the decline of around 12% is mainly due to one-off effects from the sale of development properties in the previous year.
Real Estate Business Area proves stable
In the second half of 2020, Allreal acquired an office property in Wetzikon (ZH) for around 84 million, which was fully recognized in income as of November 2020. In the previous year, a residential property in Zurich Schwamendingen also became the sole property of the company. Together with the properties completed from the company's own development at the end of 2020, higher rental income is foreseeable, Allreal said. In the reporting period, rental income of 200.4 million (2019: 203.1 million) resulted. An agreement has been reached with tenants affected by the lockdown in spring 2020 and rent waivers of 1.5 million have been granted, it added.
The cumulative vacancy rate declined by 0.8 percentage points year-on-year and now stands at 1.4% - the lowest level ever achieved by Allreal, according to the company. Despite the Corona crisis, the company expects only a slight increase in vacancy in 2021.
The total portfolio was upgraded by 55.2 million. It now reaches a market value of 4.53 billion (+5%).
General Contracting business area below prior year
Income from general contracting was 46.6 million in the reporting period, down from 66.3 million in the previous year, a decline of almost 30%. In fiscal 2019, however, the business segment had benefited significantly from a positive one-off effect due to a partial sale of a development reserve, Allreal said. At the general contracting EBIT level, the company generated an operating profit of 10.6 million (2019: 25.5 million).
For 2021, Allreal expects rising real estate revenues in the Real Estate business segment and an improved result from the general contracting business, but the effects and consequences of the Corona pandemic are difficult to assess. After weighing up all opportunities and risks, the company expects an operating result in excess of 125 million euros. (ah)
