Plazza increases profit
Plazza reported a profit of CHF 36.7 million for fiscal 2019, up from CHF 23.6 million in the previous year. A key driver was the success from revaluation, the company said.
Operating income before depreciation and revaluation increased by 16% to 18.9 million (previous year: 16.4 million). The increase in real estate income from 20.7 to 24.3 million contributed to the plus, Plazza reports. Operating expenses increased from 4.7 to 6.1 million in 2019, partly due to a school building project in Crissier. In addition, there had been a positive special effect in the previous year, the real estate company adds.
Profit increased from 23.6 to 36.7 million, to which, according to the company, the revaluation gain of 25.3 million contributed (previous year: 14.5 million). Profit before revaluation was 17.0 million, compared with 13.7 million in the previous year. The value of the real estate portfolio held as fixed assets increased by 29.7 million to 660.9 million (previous year: 631.2 million).
Dividend to increase by 20%
The Board of Directors proposes to the Annual General Meeting to increase the dividend to CHF 6.00 per class A registered share (previously CHF 5.00) and CHF 1.20 per class B registered share (previously CHF 1.00).
Measured in terms of target net rental income, the share of residential properties remains unchanged at 73%, it continues. Across all usable space in the residential segment, the vacancy rate at the end of the reporting year was 3.2% (previous year: 3.3%). Vacancies in the commercial segment fell from 7.3% to 6.4%.
Projects in Crissier and Regensdorf
Plazza currently has development projects in the pipeline in Crissier and Regensdorf: Planning for the construction project for the development site in Crissier near Lausanne began in 2019, and Plazza estimates the investment sum for the entire project at up to 300 million. A primary school building is being constructed, and a long-term building lease agreement has also been signed with a state-supported foundation to build a nursing home with around 60 beds. Plazza is considering involving third-party investors in the project, the company said. The building application is scheduled to be submitted this year, with construction starting at the end of 2021 at the earliest.
The realization of the project in Regensdorf is planned in four to seven years at the earliest, Plazza further announces. A new quarter is to be built on a former industrial area north of the train station. The real estate company owns development sites for housing and services on one of the subareas.
For the full year 2020, Plazza expects stable rental income from its portfolio properties and operating income before depreciation and revaluation in line with 2019. (ah)
