Erres increases net profit and raises dividend

Edmond de Rothschild Real Estate SICAV increased its net income by more than 17% in the 2022/23 financial year. However, the fund did not achieve the record result of the previous year.

Editorial - June 22, 2023

Edmond de Rothschild Real Estate SICAV (Erres) intends to distribute a dividend of CHF 3.80 for the past financial year, which is CHF 5.6% more than in the previous year. This is based on the "very good annual results of Erres", as Edmond de Rothschild REIM writes in an ad hoc release.

Growth through acquisitions

The net result for the 2022/23 financial year rose by 17.4% year-on-year to CHF 57.3 million; this was due to acquisitions and construction projects, among other things.

Income rose by CHF 16.4% to CHF 113.4 million, with the increase mainly attributable to additional income from acquisitions in the previous year (CHF 6.7 million), new acquisitions (CHF 4.1 million) and the completion of construction projects (CHF 3.9 million), according to the press release. Rental income increased by CHF 1.4 million, while the rental loss ratio amounted to 2.01% after 2.25% in the previous year. Vacancy rates fell significantly, particularly in the Corniche 3A/3B commercial buildings in Épalinges (VD) and Champ-Colin 2A-B-C in Nyon (VD).

The fund sold five buildings in the reporting period, generating an after-tax profit of CHF 4.7 million. This corresponds to a net margin of over 11% on the sales prices achieved, according to EdR REIM.

Profit increases by almost 20 percent

Realized profit for the year rose by 19.3% to CHF 62.0 million (previous year: 52.0 million). The overall result amounted to CHF 51.6 million and was therefore significantly lower than in the previous year, when profit amounted to CHF 119.6 million. The decline was due to the unrealized loss in 2022/23 (-10.4 million), while a high unrealized profit of CHF 67.6 million was recorded in 2021/22, according to EdR REIM.

At the end of the financial year (March 31), the portfolio consisted of 152 properties with total real estate assets of CHF 2.83 billion, with a focus on residential properties (61.6%). More than half of the market values (56.4%) are located in the canton of Geneva, followed by the canton of Vaud with just under 20%. 20 existing properties and three construction projects were newly acquired. The market value of the new buildings is CHF 206.4 million, while the cumulative value of the five sales amounts to CHF 41.3 million. The growth was primarily financed by the capital increase in September 2022. (ah)

(Visited 200 times, 1 visits today)

Erres increases net profit and raises dividend

Edmond de Rothschild Real Estate SICAV increased its net income by more than 17% in the 2022/23 financial year. However, the fund did not achieve the record result of the previous year.

Growth through acquisitions

Profit increases by almost 20 percent

More articles on the topic

Allreal: Significantly higher profit after revaluation

Zug Estates increases earnings

Apleona: FM service provider changes ownership