Novavest earned significantly more in 2021
Novavest Real Estate reported a profit increase of 64% for fiscal 2021. The portfolio value also increased noticeably.
For Novavest Real Estate AG, the financial year 2021 has been gratifying: The total value of the real estate portfolio increased by 15% to CHF 741.3 million (previous year: 645.4 million). Ebit increased by 71% to 39.1 million (previous year: 22.9 million), and profit including revaluation gains climbed to 29.3 million, up 64% on the previous year (17.8 million).
As Novavest further discloses, the target rental income of the investment properties increased to 29.4 million per annum as of December 31, 2021 (previous year: 26.2 million). The change was mainly attributable to acquisitions. The rental income share from residential use was 63%. Net rental income increased by 10% to 26.7 million in 2021 (previous year: 24.3 million), Novavest added. This was mostly due to additional rental income from the new properties acquired in 2020 and 2021, it added. In connection with the Covid 19 pandemic, the real estate company said it granted 0.3 million in rent reductions, equivalent to about 1% of target rental income.
The net return generated on investment properties was reported to be 3.3% in 2021 (previous year: 3.7%). The vacancy rate of the investment properties (excluding projects) is put at 3.7% (previous year: 4.0%).
Portfolio value increases thanks to valuation gains
The market valuation of the real estate portfolio resulted in income from revaluation of 21.8 million, Novavest added (previous year: 8.3 million). This was due to higher valuations of various investment properties as well as investments and leasing measures.
Ebit increased by 71% from 22.9 million to 39.1 million. Profit including revaluation gains increased from 17.8 million to 29.3 million; excluding revaluation gains, profit was 11.7 million compared with 11.1 million in the previous year.
Organic growth and portfolio optimizations
For the current fiscal year 2022, Novavest expects a "certain normalization in the global and also in the Swiss economy" after the two pandemic years. With a residential-focused portfolio and a residential share of rental income of over 60%, the company has a robust business model.
At a strategy meeting, the Board of Directors decided on organic growth with portfolio optimization for the next twelve months, the statement continues. Any acquisition opportunities in line with the investment strategy can still be seized. (ah)
