Fundamenta grows operationally, but net profit declines

Fundamenta Real Estate reports a 12.5 percent increase in net rental income for the first half of fiscal year 2022, rising from CHF 17.9 million to CHF 20.0 million. The reason for the growth was the acquisition of five properties and the implementation of four development and repositioning projects in the last twelve months. The vacancy rate fell from 2.5 percent at the end of 2021 to 1.7 percent.

Operating profit (excluding revaluation) increased by 17 percent to CHF 9.4 million (previous year: CHF 8.0 million) - partly because real estate expenses grew less strongly than in the previous year and interest expenses were also lower.

For the half-year reporting, approximately one third of the investment properties as well as the completed development project at Mutschellenstrasse 65 in Zurich have been valued. The income from revaluation (before deferred taxes) amounted to CHF 2.1 million as of June 30, 2022, which is significantly below the previous year's figure of CHF 5.3 million.

Due to the lower revaluation effect, net profit of CHF 10.9 million was also below the previous year's level of CHF 12.0 million. The annualized return on equity decreased from 4.7 percent to 4.1 percent.

As of the end of June, Fundamenta's real estate portfolio comprises 73 properties with a balance sheet value of CHF 1.16 billion.

In the second half of the year, Fundamenta plans to press ahead with its six repositioning and development projects, according to the release. Acquisitions are also under consideration. In September, the company acquired a residential property in Zurich with 24 residential units. (ah)