Plazza: Lower revaluation depresses profit in the first half of 2023
Plazza performed well operationally in the first half of the year and slightly increased its operating result. At revaluation level, the result was significantly lower than in the previous year, but still positive.
Plazza AG generated real estate income of CHF 13.3 million in the first half of 2023, which was slightly higher than the previous year's figure of CHF 13.1 million. The vacancy rate for existing properties fell from 3.5% to 2.8%.
The operating result before depreciation, amortization and revaluation increased slightly to CHF 10.5 million (previous year: CHF 10.0 million). Income from revaluation amounted to CHF 0.6 million after CHF 9.2 million in the previous year. Valuation gains from development projects more than offset the slight devaluations in the rest of the portfolio, Plazza announced when presenting its half-year figures. Profit in the first half of the year fell from CHF 15.3 million to CHF 9.5 million. Profit before revaluation remained stable at CHF 8.6 million.
The real estate company invested CHF 26.1 million in the reporting period, primarily in the project in Crissier near Lausanne. The value of the real estate portfolio in fixed assets reached CHF 976.1 million (previous year: CHF 949.4 million).
First stage in Crissier nearing completion
The first stage of the development project in Crissier is currently underway and should be completed next year. According to Plazza, this stage has an investment volume of CHF 230 million and represents two thirds of the entire project. Over 400 apartments and around 7,000 square meters of commercial space will be created, with an annual rental potential of over CHF 10 million. According to Plazza, 100 apartments are currently let and occupancy will begin in the first quarter of 2024.
Plazza has development land in Regensdorf, where a new central district is to be built on the former industrial area north of the railroad station. The private design plan was approved by the municipality in the first half of the year and submitted for preliminary cantonal review. According to the real estate company, implementation of the project in Regensdorf will be possible in three to five years at the earliest.
Stable operating result expected for the year as a whole
For the year as a whole, Plazza expects an operating result before depreciation and revaluation in the region of the previous year. The rent adjustments resulting from the development of the reference interest rate will mainly have an impact next year. According to Plazza, progress in the development projects in the current year should at least partially compensate for possible devaluations due to rising discount rates. The value of the real estate portfolio is expected to reach the billion-euro mark - also in view of the investments in 2023 as a whole. (ah)
