Promaxima: Decline in profits in the first half of the year
Promaxima Immobilien AG reports a significant decline in operating result and profit for the first half of 2017. The reason is the settlement of legacy issues, the company says.
In the first half of the year (as of June 30, 2017), Promaxima generated earnings after tax of CHF 25,378, compared with around 1.7 million in the same period of the previous year. The operating result at EBIT level came in at 432,780, compared to 2.4 million in the previous year. The result was reduced by the adjustment of balance sheet items in the course of the settlement of legacy issues, particularly in loans and special expenses, Promaxima says.
Rental income decreased from 1.7 to 1.5 million due to individual vacancies which had not been remarketed by the pre-management at the beginning of the year. Income increased by CHF 386,000 due to the provision of collateral to the shareholder Schweizer Kredit AG, and property expenses fell significantly from CHF 527,000 to CHF 342,000.
All properties were revalued in the first half of the year. The properties in Zurzach (-199,000), Lucerne (-19,000) and Aarau (-58,000) were adjusted downwards in value. The property in Grenchen, which was renovated and converted at a cost of more than 1.1 million, experienced an appreciation of CHF 415,000. Due to the change of manager - Since March, Livit has been managing the properties - the overall vacancy rate fell from 16.4 to 13.1 percent.
Promaxima Immobilien AG was founded in 2006 and invests primarily in residential, office and commercial properties in Switzerland. The company's shares have been listed on the BX Berne eXchange since September 30, 2016.
