Espace significantly increases rental income in 2023
According to the real estate company, rental income increased by over six percent. This growth is due to successful lettings as well as acquisitions.
Espace Real Estate Holding AG is satisfied with the course of the 2023 financial year and intends to increase the dividend to CHF 6.00 per share (previous year: CHF 5.7) "in recognition of the strong operating result and solid financial position".
Acquisitions pay off
Rental income increased by CHF 2.2 million or 6.3% to CHF 37.9 million. The vacancy rate for investment properties fell from 3.9% to 3.6%. According to Espace, the increase in rental income is mainly due to the successful letting of all new construction and renovation projects as well as acquisitions.
Last year, the real estate company acquired Kofmehl AG (medical center with residential land reserve) in Subingen, and at the end of 2022 it took over a residential property with 75 apartments in Zuchwil. A new construction project on the Aebi site in Burgdorf was completed in the reporting year. It comprises residential space and medical facilities, all of which have been let, according to Espace. The first stage (41 apartments) of the Amselweg 43 / Lerchenweg 26 renovation project in Zuchwil was completed in fall 2023. The second stage is expected to be completed in spring 2025, according to Espace. There have also been successful lettings in the commercially used properties, particularly for the Cube 116 properties in Biel and at Solothurn Süd railroad station.
Operating profit for the period rose by 6.5% to CHF 19.4 million (previous year: CHF 18.2 million). By contrast, profit for the period including revaluation and income from the sale of properties fell slightly from CHF 21.4 million in the previous year to CHF 19.6 million.
Revaluations offset devaluations
Despite devaluations of office and commercial properties, the value of the real estate portfolio remained largely stable: revaluation gains of CHF 5.9 million on properties under construction offset the interest-related value adjustments of CHF 5.7 million on the existing portfolio, resulting in a small revaluation gain of CHF 0.2 million (previous year: CHF 3.1 million). The value of the entire real estate portfolio was CHF 820.0 million at the end of 2023 (previous year: CHF 781.8 million).
For 2024, Espace expects "another solid annual result", as the real estate company writes. The company believes it is well positioned to take advantage of market opportunities and manage risks. Espace expects further growth in particular from the "Visavie" project in Biel with 76 apartments and a development in Grenchen with 41 apartments. (ah)
