Novavest: First half-year figures after merger
The profit calculated on a pro forma basis for the new company, which was created through the merger of Novavest and Senioresidenz, shows a significant increase. This reflects not least lower devaluations than in the comparable period.
Novavest Real Estate AG has presented its first half-year figures following the merger with Senioresidenz. According to the figures, rental income rose by CHF 37% to CHF 20.9 million in the first half of 2024 due to the enlarged portfolio. Profit including revaluations improved from CHF -1.5 million to CHF 6.4 million, and excluding revaluations, the profit of Novavest, which has grown to include Senioresidenz, climbed from CHF 6.6 million to CHF 8.4 million. As the merger was not officially completed until the middle of the year for accounting reasons, the calculation was made on a pro forma basis. If the figures for both companies rather than Novavest alone are used as a basis for comparison, rental income remained virtually unchanged at CHF 20.9 million (H1 2023: around CHF 21.0 million) and profit excluding revaluations fell from CHF 9.6 million to CHF 8.4 million. The revaluation of the two combined portfolios improved from CHF -13.4 million in H1 2023 to CHF -2.4 million, while profit after revaluation rose from CHF -1.2 million to CHF 6.4 million.
The market value of the overall portfolio increased to CHF 1.1 billion as a result of the merger and taking into account the market valuations and investments in the portfolio. No transactions took place in the first half of 2024. The net yield of the investment properties in the merged portfolio amounted to 3.5% as at 30 June, which is 0.2 percentage points more than in Novavest's stand-alone portfolio at the end of 2023.
Two conversion projects are currently being realized at Rorschacherstrasse 135 in St. Gallen and Johanniterstrasse 5, 11 in Basel. Once completed, they are expected to contribute further target rental income of around CHF 1.7 million. The project in St. Gallen will be managed as an investment property in the second half of 2024 and will generate rental income from August onwards. The project in Basel is expected to be completed in the first quarter of 2025. (aw)
