Allreal records jump in profits
Allreal reports a net profit of CHF 182.6 million for the 2021 financial year. This is a good 9% more than in the previous year.
Net profit including revaluation effect was CHF 182.6 million in 2021, up 9.2% from 167.2 million a year earlier. According to Allreal, the result was again positively influenced by revaluation gains on investment properties. Excluding revaluation effects, the real estate company generated an operating net profit of 133.3 million (2020: 124.7 million). The increase of 6.9% resulted in particular from higher rental income due to portfolio growth and from gains on the disposal of development properties in the general contracting business.
The dividend is to increase by CHF 0.25 to CHF 7.00 per share. For the current financial year, Allreal expects rising property income due to portfolio growth in Western Switzerland and thus also higher profit in the Real Estate business segment. The company's operating result is expected to be above the 2021 figure.
Portfolio expansion pays off
In the Real Estate business segment, Allreal achieved a net profit excluding revaluation effect of 123.4 million (2020: 118.6 million). With the portfolio expansion in Western Switzerland, the market value of the investment properties had increased to 5.11 billion (+12.8%). The properties newly added to the portfolio have been earning since mid-October 2021 and generated rental income of 2.2 million by the end of the year, he added. In fiscal 2021, rental income was 204.4 million (2020: 200.4 million). Unlike in the previous year, rent reductions in connection with the Corona crisis no longer had a major impact, Allreal said. They amounted to 0.5 million (2020: 1.5 million).
The net yield is 4.0%. This underlines the quality of both the previously owned portfolio and the newly acquired investment properties in Western Switzerland, the company says.
Due to lower discount and capitalization rates, the unchanged low vacancy rate and stable cash flows from the real estate business, the total portfolio appreciated by
General contractor benefits from sales
In the general contracting business segment, Allreal achieved a profit of 53.4 million (2020: 46.6 million). According to Allreal, the company benefited significantly from positive one-off effects from the sale of development properties.
In the Realization division, the Corona crisis had made itself felt in particular through inefficiencies in the construction process. Despite this, almost all projects were completed on time and in the required quality, but this had noticeable consequences for the development of margins.
The volume of projects completed amounted to 343.2 million (2020: 363.4 million). Income from general contracting amounted to24.5 million in the reporting period, compared with33.7 million in the previous year. The gross margin in third-party business decreased to 9.1%.
The sale of development properties resulted in income of 21.0 million (2020: 3.7 million). The operating result in the business segment was 20.9 million (2020: 10.6 million), and net profit reached 13.8 million (2020: 7.8 million). (ah)
