Senioresidenz expects a loss in the 2023 financial year
According to the company, this is due to a write-down on the clinic property in Leukerbad.
The fact that Leukerbad Clinic AG, its largest tenant, has applied for debt-restructuring moratorium (IB reported)This has an impact on the annual result of Senioresidenz AG.
The Board of Directors has decided to devalue the clinic property in Leukerbad (VS) in the range of CHF 8 to 13 million in the 2023 year-end valuation, writes the real estate company, which focuses on healthcare and retirement properties, in an ad hoc release. The market value as at June 30 of this year was CHF 34.95 million.
As a result of the devaluation, Senioresidenz will close the 2023 financial year with a loss including revaluations, the press release continues. In the previous year, the real estate company reported a profit including revaluations of CHF 3.1 million. The exact amount of the valuation adjustment will be determined in the 2023 annual financial statements. The 2023 annual report will be published on February 23, 2024.
Senioresidenz has acquired the property of the Leukerbad Clinic acquired in a sale and leaseback transaction in May 2018. The purchase price for the entire clinic complex, consisting of four buildings and an underground parking garage, was CHF 34 million. A 20-year leaseback agreement with staggered rent increases until May 2038 was agreed at the time.
In view of the tenant's current situation, the uncertain economic development and the higher interest rate environment, it is no longer possible to push through further rent increases, Senioresidenz now explains. A rent adjustment will therefore have to take place in order to enable the clinic operator to operate successfully in the long term. The aim is to conclude a corresponding rental agreement in the coming months. (ah)
