SF URBAN PROPERTIES AG for immediate release
5 September 2016
Highly successful operating result for SFPI in the first half of 2016- Boosting of net profit by 57.4% excluding revaluation effects
- Increase in rental income by 6.3%
- Growth in net asset value (NAV) to CHF 86.25 (+4.2%)
- Vacancy rate declines by 60%
Swiss Finance & Property Investment AG (SFPI) had a highly successful conclusion to the first half of 2016. Compared to the same period in the previous year, it succeeded in boosting net profits excluding revaluation effects/deferred taxes by CHF 3.8 million to CHF 10.5 million (first half of 2015: CHF 6.7 million). The operating income before revaluation effects rose by CHF 15.7 million to CHF 32.1 million (first half-year 2015: CHF 16.4 million). The sales successes in the Parco d'Oro project likewise contributed to this very gratifying result. Particularly pleasing is the decline in the vacancy rate by 60% to 2.87 % as of 30 June 2016.
Consolidated half-year results
Compared to the same period in the previous year, net profits excluding revaluation effects/deferred taxes rose by CHF 3.8 million to CHF 10.5 million (first half of 2015: CHF 6.7 million), corresponding to an increase of 57.4%. The corresponding profit per share excluding revaluation effects was CHF 4.19 (first half-year 2015: CHF 2.67). Net profit including revaluation effects was 13.0 million (first half-year 2015: 14.9 million). This resulted in a profit per share of CHF 5.23 (first half-year 2015: CHF 5.95). Rental income grew by 6.3% from CHF 9.0 million in the first half-year of 2015 to CHF 9.5 million in the first half-year of 2016. The operating income before revaluation effects rose by CHF 15.7 million to CHF 32.1 million (first half-year 2015: CHF 16.4 million). Direct operating costs in the reporting period rose by CHF 7.2 million to CHF 15.5 million (first half- year 2015: CHF 8.3 million). This increase is above all attributable to the greater expense in the Parco d'Oro project. Expenses rose by CHF 7.0 million to CHF 12.4 million (first half-year 2015: CHF 5.4 million), while the remaining operating expenses grew in proportion to the rental income from CHF 2.9 million to CHF 3.1 million. EBIT improved from CHF 19.0 million in the first half-year 2015 to CHF 21.7 million in the first half- year 2016.
Swiss Finance & Property Investment AG · Seefeldstrasse 275 · P.O. Box 7444 · CH-8008 Zürich Phone +41 (0)43 344 61 31 · Fax +41 (0)43 344 61 30 ·www.sfpi.ch · CHE-261.764.843 MWST
Financial result
Financial income in the first half-year 2016 was CHF 0.8 million (first half-year 2015: CHF 9.3 million) including interest income from interest rate swap financing. In the first half-year 2015 this item also included a net income valuation effect of a fixed mortgage priced at fair value of CHF 6.9 million apart from the interest income from interest rate swap financing of CHF 0.5 million and net income valuation effects on interest rate swaps of CHF 1.9 million. Financial expenses fell from CHF 9.3 million in the first half-year 2015 to CHF 3.6 million in the first half-year 2016. In the first half-year 2015 these amounts included depreciation from interest rate swaps of CHF 7.1 million, which occurred as part of the non-recurrent adjustment of the financing structure. In the first half-year 2016 the depreciation from interest rate swaps was still CHF 0.5 million.
Equity
Equity grew by CHF 1.1 million from CHF 214.0 million to CHF 215.1 million in the reporting period. The net profit of CHF 13.0 million was counterbalanced by a capital reduction through par-value reduction amounting to CHF 8.5 million and an increase in losses of 3.5 million in total in the cash flow hedge reserves from the interest rate swaps concluded. Accordingly, the net assets value (NAV) per share was CHF 86.25 on 30 June 2016 (30 June 2015: CHF 82.77). The NAV per share before deferred taxes was CHF 94.92 on 30 June 2016
(30 June 2015: CHF 90.37).
Real estate portfolio
It was possible to boost the value of the portfolio in the first half of 2016 by 5.1% to CHF 470.3 million. Thanks to the purchase of the Schwarzwaldallee 175-179/Rosentalstrasse 70 in Basel on 1 April 2016, an important milestone in the consolidation strategy around the Badischer Station and the development of the Basel location was reached. In Zurich the focus was on the transfer of title to the strategically important co- ownership share of 25% in Klausstrasse 4 in Zurich. On 1 July 2016 the company held 65% of the co- ownership shares of this prestigious business property. The decline in the vacancy rate in the real estate portfolio by 60% from 7.28% on 31 December 2015 to 2.87% on 30 June 2016 was particularly remarkable.
Outlook for the second half-year 2016
In the second half-year 2016 attention will be focused on leasing the remaining office area at Witikonerstrasse 15 in Zurich and individual business areas in the city of Basel. The company assumes that the low vacancy rate has stabilised at this level. SFPI expects a further increase in income from leasing at a high level of cost sensitivity. The return from the existing properties can be sustainably secured in this way. In addition, the company expects to obtain the building permit for the promotion project at Elsässerstrasse in Basel and with the sale of the remaining flats in Ascona in the second half of 2016. In combination with the full yield of the low vacancy rate becoming effective the society is confident for the remaining of 2016.
Contacts: | |
Thomas Prajer, CEO | Stephan Ehrsam, CFO |
Swiss Finance & Property Investment AG | Swiss Finance & Property Investment AG |
Seefeldstrasse 275 | Seefeldstrasse 275 |
CH-8008 Zürich | CH-8008 Zürich |
Tel. +41 43 344 61 31 | Tel. +41 43 344 61 36 |
prajer@sfp.ch | ehrsam@sfp.ch |
The Half Year Report 2016 and the related presentations can be found at:
http://www.sfpi.ch/en/investors/reporting
http://www.sfpi.ch/en/investors/presentations
Press and Analyst Web Conference Mo 5 September 2016, 10:00 UhrThomas Prajer (CEO) and Stephan Ehrsam (CFO) will present the results of Swiss Finance & Property Investment AG (SFPN; CH0032816131) for the first half-year 2016 as a web-conference in German.
Dial-in number: +41 58 262 07 11 / Konferenz-ID: 72 88 58 Participants access the conference via the link below:
https://conferencing.swisscom.ch/conference/preAuthLogin.do?token=88bf945dab94f4e4bda85caed2d371 990d77c8d5&Locale=de
The presentation will be followed by a Q/A session
Key figures as of 30 June 2016 Income Statement | Unit | 1 Jan to 30 June 2016 | 1 Jan to 30 June 2015 |
Total operating income before revaluation | CHF 1 000 | 32 076 | 16 360 |
Profit from revaluation | CHF 1 000 | 5 084 | 10 940 |
Operating result (EBIT) | CHF 1 000 | 21 667 | 19 036 |
EBIT margin | % | 58.31 | 69.73 |
Net profit including valuation results1/ deferred taxes | CHF 1 000 | 13 036 | 14 853 |
Net profit excluding valuation results2/ deferred taxes | CHF 1 000 | 10 462 | 6 648 |
Balance | 30 June 2016 | 31 Dec 2015 | |
Total assets | CHF 1 000 | 511 892 | 504 057 |
Equity capital | CHF 1 000 | 215 136 | 214 074 |
Equity ratio | % | 42.03 | 42.47 |
Interest-bearing debt | CHF 1 000 | 226 941 | 228 479 |
Interest-bearing debt in % of total assets | % | 44.33 | 45.33 |
Leverage | % | 57.97 | 57.53 |
Debt ration per property 3 | % | 48.26 | 51.08 |
Return on equity including valuation results (annualised) 4 | % | 12.15 | 10.95 |
Return on equity, valuation results excluded (annualised) 5 | % | 9.75 | 6.08 |
Portfolio Data | 30 June 2016 | 31 Dec 2015 | |
Number of properties | Number | 40 | 40 |
Total property portfolio | CHF 1 000 | 470 268 | 447 313 |
Gross return 6 | % | 4.59 | 4.82 |
Portfolio valuation's weighted real discount rate | % | 3.54 | 3.61 |
Portfolio valuation's weighted nominal discount rate | % | 4.56 | 4.61 |
Vacancy rate at the end of the period | % | 2.87 | 7.28 |
Current vacancies in the reporting period | % | 5.67 | 13.00 |
Average interest rate | % | 1.47 | 0.97 |
Average fixed interest | Years | 7.30 | 7.52 |
Key Figures per Share | 30 June 2016 | 30 June 2015 | |
Net asset value (NAV) per share of CHF 6.25 / CHF 6.93 | CHF | 17.25 | 16.55 |
Net Asset Value (NAV) per share of CHF 31.25 / CHF 34.65 | CHF | 86.25 | 82.77 |
Net Asset Value (NAV) per share of CHF 6.25 / CHF 6.93 before deferred taxes CHF | 18.86 | 18.98 | |
Net Asset Value (NAV) per share of CHF 31.25 / CHF 34.65 before deferred taxes CHF | 94.29 | 94.92 | |
Share price | CHF | 87.55 | 83.00 |
Premium (+) and discount (-) on NAV | % | 1.51 | 0.28 |
1 Jan to 30 June 2016 | 1 Jan to 30 June 2015 | ||
Earnings per share (EPS) of CHF 6.25 / CHF 6.93 nominal including revaluation 1CHF | 1.05 | 1.19 | |
Earnings per share (EPS) of CHF 31.25 / CHF 34.65nominal including revaluation 1CHF | 5.23 | 5.95 | |
Earnings per share (EPS) of CHF 6.25 / CHF 6.93 nominal excluding revaluation 2CHF | 0.84 | 0.53 | |
Earnings per share (EPS) of CHF 31.25 / CHF 34.65 nominal excluding revaluation 2CHF | 4.19 | 2.67 | |
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 05 September 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 05 September 2016 08:05:07 UTC.
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