Plazza raises profit forecast
The real estate company Plazza expects a significantly higher profit than planned for the first half of 2021. The reason for this is a strong increase in income from revaluation.
According to an ad hoc announcement, Plazza AG expects revaluation income in the order of more than CHF 35 million for the first half of 2021 - almost twice as much as in the same period of the previous year (CHF 18.7 million). According to the real estate company, the main reason for this is market-related factors: the continuing strong demand for real estate investments and the lower yield expectations of investors will cause the discount rates for the valuation to fall further.
The market value of the real estate portfolio was over CHF 733 million at the end of 2020. At the beginning of 2021, the company acquired residential properties in the Im Tiergarten development in Zurich for CHF 61 million.
Thanks to the rising revaluation result, Plazza also expects a significantly higher profit than forecast for the first half of 2021. In operational terms, the result will remain in line with expectations, i.e. operating income before depreciation and revaluation is expected to be at least on a par with the previous year (9.7 million).
The company will publish its detailed half-year report on 3 September 2021. (ah)
