SF URBAN PROPERTIES AG for immediate publication 9 March 2017
A very successful 2016 fiscal year- Significant rise in net profit excluding revaluation effects by 15.3% to CHF 14.5 million or CHF 5.72 per share
- Substantial increase in operating profit before revaluation by 38.8% to CHF 44.0 million
- Increase in EBIT by 20.6% to CHF 37.4 million
- Portfolio expansion by 11.4% to CHF 498.5 million
- Proposal by the Board of Directors to increase the cash distribution from the capital reserves by CHF 0.20 to CHF 3.60 per share
Swiss Finance & Property Investment AG has a very successful 2016 fiscal year to look back upon. The company's performance significantly exceeded even last year's excellent results. The Board of Directors is proposing a cash distribution of CHF 3.60 per listed share, which represents an increase of CHF 0.20. Based on the share price as of 31 December 2016, this puts the distribution yield at an attractive 3.96%.
Annual result for 2016
In 2016, Swiss Finance & Property Investment AG (SIX Swiss Exchange: SFPN) once again closed the fiscal year with a significant rise in profits. The net profit excluding revaluation effects rose by 15.3% from CHF 12.6 million to CHF 14.5 million. The operating income before revaluation increased by 38.8% from CHF 31.7 million to CHF 44.0 million. The earnings before interest and taxes (EBIT) in the 2016 fiscal year were CHF 37.4 million (2015: CHF 31.0 million) and the net profit was CHF 24.4 million (2015: CHF 22.7 million). Positive revaluation gains and sales results supported this increase in the EBIT and net profit. Earnings per share, excluding revaluation effects, were CHF 5.72 (2015: CHF 5.05); net asset value (NAV) per listed share as of 31 December 2016 was CHF 91.93 (2015: CHF 85.82) and the EPRA NAV was CHF 117.16
(2015: CHF 108.56).
Real estate portfolio
Due to four acquisitions in the Basel and Zurich regions as well as revaluation effects, the portfolio value rose by CHF 51.2 million (+11.45%) to a total of CHF 498.5 million as of 31 December 2016. A property in Winterthur was divested at a price substantially above the current valuation. This transaction allowed the company to further consolidate its strategic focus on good locations in Zurich and Basel. Due to sustained efforts on the part of the asset manager, it was possible to
Swiss Finance & Property Investment AG · Seefeldstrasse 275 · P.O. Box 7444 · CH-8008 Zurichphone +41 (0)43 344 61 31 · fax +41 (0)43 344 61 30 ·www.sfpi.com · CHE-261.764.843 VAT
reduce the vacancy rate to a very low 2.67% as of 31 December 2016 (2015: 7.28%), the full effect of which will not be seen until next year.
Current projects
Work at Steinenvorstadt 67 in Basel was successfully completed as of the end of June 2016. The 1,184 m2premium construction project at Klausstrasse 4 in Zurich was also completed on schedule. The promotion project Residenza Parco d'Oro in Ascona was completed as of mid- September 2016 and the sold residences were transferred to the new owners.
Solid financing
With an equity-to-assets ratio of 45.7% (2015: 42.47%), the company is very solidly financed. The equity return including new valuation effects is 10.61% (2015: 10.95%). The average interest rate on interest-bearing debt including swaps is 1.54% in the current reporting year (2015: 1.53%). The company further exploited the favourable interest rates and extended the average fixed interest period from 7.52 to 8.29 years.
Outlook for 2017
Swiss Finance & Property Investment AG is very well aware of the challenging environment. Due to low interest rates, institutional demand for investment properties will remain high, which suggests that it will continue to be a seller's market for well-developed locations. SFPI will respond to this market with a strategy of simultaneous consolidation and expansion of existing potential. Based on a thorough assessment of risks and opportunities, the Board of Directors and the senior management predict strong company results for 2017 as well, which will ensure a continuation of the attractive and stable dividend policy.
Proposals to the Annual General Meeting on 12 April 2017
The Board of Directors is proposing a distribution from the capital reserves of CHF 3.60 per registered shares at a nominal value of CHF 31.25 and CHF 0.72 per registered share at a nominal value of CHF 6.25. Based on the share price as of 31 December 2016, this represents a distribution yield of 3.96% for registered shares listed on the SIX Swiss Exchange at a nominal value of CHF 31.25.
If you have any questions, please contact:
Thomas Prajer CEO Stephan Ehrsam CFO
Swiss Finance & Property Investment AG Swiss Finance & Property Investment AG Seefeldstrasse 275 Seefeldstrasse 275
CH-8008 Zurich CH-8008 Zurich
tel.: +41 (0)43 344 62 96 tel.: +41 (0)43 344 61 36
prajer@sfp.chehrsam@sfp.ch
Comprehensive reporting and the 2016 annual report are available at:
http://www.sfpi.ch/investoren/reporting
Today, 9 March 2017/ 12:00 pm Investor and Analyst Conference Hotel Savoy Baur en Ville, ZurichThomas Prajer (CEO) and Stephan Ehrsam (CFO) will give comments on the company result.
Agenda:
Regular Annual General Meeting, 12 April 2017
Income Statement Unit | 1 Jan to 31 Dec 2016 | 1 Jan to 31 Dec 2015 |
Total operating income before revaluation CHF 1000 | 43 988 | 31 694 |
Profit from revaluation of properties CHF 1 000 | 14 461 | 15 393 |
Operating result (EBIT) CHF 1 000 | 37 437 | 31 046 |
EBIT margin % | 64.05 | 65.93 |
Net profit including valuation results 1I deferred taxes CHF 1 000 | 24 441 | 22 682 |
Net profit excluding valuation results 2I deferred taxes CHF 1 000 | 14 534 | 12 600 |
Balance | 31 Dec 2016 | 31 Dec 2015 |
Total assets CHF 1 000 | 539 163 | 504 057 |
Equity capital CHF 1 000 | 246 512 | 214 074 |
Equity ratio % | 45.72 | 42.47 |
Interest-bearing debt CHF 1 000 | 227 528 | 228 479 |
Interest-bearing debt in % of total assets % | 42.20 | 45.33 |
Leverage % | 54.28 | 57.53 |
Debt ration per property 3% | 43.95 | 48.09 |
Return on equity including valuation results (annualised) 4% | 10.61 | 10.95 |
Return on equity, valuation results excluded (annualised) 5% | 6.31 | 6.08 |
Portfolio Data | 31 Dec 2016 | 31 Dec 2015 |
Number of properties Number | 42 | 40 |
Total property portfolio and investment properties for sale CHF 1 000 | 498 535 | 447 313 |
Total development properties for sale CHF 1 000 | 19 186 | 27 801 |
Gross return6% | 4.61 | 4.82 |
Portfolio valuation's weighted real discount rate % | 3.43 | 3.61 |
Portfolio valuation's weighted nominal discount rate % | 3.94 | 4.61 |
Vacancy rate at the end of the period % | 2.67 | 7.28 |
Vacancy rate of existing properties at end of period % | 2.67 | 7.28 |
Current vacancies in the reporting period % | 6.05 | 10.13 |
Average interest rate (exclusive swaps) of interest-bearing debt % | 2.27 | 2.14 |
Average interest rate (inclusive swaps) of interest-bearing debt % | ||
Average fixed interest Years | 8.00 | 7.52 |
Key Figures per Share | 31 Dec 2016 | 31 Dec 2015 |
Net Asset value (NAV) per share of CHF 6.25 I CHF 6.93 CHF | 18.39 | 17.16 |
Net Asset Value (NAV) per share of CHF 31.25 I CHF 34.65 CHF | 91.93 | 85.82 |
Net Asset Value (NAV) per share of CHF 6.25 I CHF 6.93 before deferred taxes CHF | 20.29 | 18.86 |
Net Asset Value (NAV) per share of CHF 31.25 I CHF 34.65 before deferred taxes CHF | 101.43 | 94.29 |
Share price CHF | 90.90 | 84.00 |
Premium (+) and discount (-) on NAV % | - 1.12 | - 2.12 |
1 Jan to 31 Dec 2016 | 1 Jan to 31 Dec 2015 | |
Earnings per share (EPS) of CHF 6.25 I CHF 6.93 nominal including revaluation1CHF | 1.92 | 1.82 |
Earnings per share (EPS) of CHF 31.25 I CHF 34.65 nominal including revaluation 1CHF | 9.62 | 9.09 |
Earnings per share (EPS) of CHF 6.25 I CHF 6.93 nominal excluding revaluation 2CHF | 1.14 | 1.01 |
Earnings per share (EPS) of CHF 31.25 I CHF 34.65 nominal excluding revaluation 2CHF | 5.72 | 5.05 |
Net profit including revaluation effects on properties and derivative financial instruments
Net profit excluding revaluation effects on properties and derivative financial instruments and other deferred tax positions
Interest bearing debt in relation to properties including developments dedicated to be sold
Profit in relation to average equity
Net profit excluding revaluation effects on properties and derivative financial instruments and other deferred tax positions in relation to average equity
Gross profit yield equals targeted rental income as a percentage of market value (fair value)
Swiss Finance & Property Investment AG published this content on 09 March 2017 and is solely responsible for the information contained herein.
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