Senioresidenz: Revaluation loss depresses half-year result
Profit including revaluations fell from CHF 2.4 million in the previous year to CHF 0.3 million. Excluding the revaluation loss, however, profit increased by over a third.
Senioresidenz AG reported a portfolio value of CHF 258.3 million for the first half of 2023, an increase of almost CHF 30 million compared to the end of 2022. The increase in value is primarily attributable to the acquisitions in Salmsach and "Domum Saline II" in Bad Zurzach (+CHF 22.1 million) as well as investments in the new construction projects "Croix Blanche" in Aigle (VD) and Oberdiessbach (+CHF 11.2 million), the real estate company announced when presenting its half-year results. Target rents for investment properties increased by CHF 17% to CHF 13.0 million (on an annualized basis) compared to the end of 2022.
Rental income amounted to CHF 5.7 million in the first half of 2023 (previous year: CHF 5.3 million); the vacancy rate was 2.9% as at June 30. Senioresidenz reports a gross yield of 5.3% and a net yield of 4.7% (both annualized). Operating income amounted to CHF 6.1 million (previous year: CHF 5.3 million). This compares with operating expenses of CHF 1.8 million (previous year: CHF 2.1 million).
Devaluation reduces profit by over 2 million
The valuation of the real estate portfolio led to a result from revaluation of CHF -3.4 million (previous year: CHF +0.1 million). According to Senioresidenz, this is due on the one hand to the higher discount rates for the existing investment properties as a result of the higher interest rate environment, and on the other hand to the investment requirements for the properties in Leukerbad and Richterswil.
Due to the revaluation loss, earnings before interest and taxes (EBIT) fell to CHF 0.9 million in the first half of 2023 (previous year: CHF 3.3 million). Profit including revaluation result amounted to CHF 0.3 million after CHF 2.4 million in the same period of the previous year. Profit excluding revaluation result increased by 35% from CHF 2.3 million to CHF 3.1 million.
Senioresidenz expects a "significant contribution" to total rental income from the completed new construction projects and acquisitions in the second half of the year. The company also announced that it had extended the rental agreement with the canton of Zurich for the interim use of two buildings at Bergstrasse 16 and Bodenstrasse 10 in Richterswil ahead of schedule until the end of 2024. (ah)
