Revaluations reduce Fundamenta Real Estate’s profits
Fundamenta Real Estate reported a significantly lower net profit of 8.3 million francs in 2023 compared to the previous year. The background to this is impairments in the portfolio. Without these, net profit increased by 2.3 percent to 20.3 million francs.
Fundamenta Real Estate has maintained its net actual rental income for 2023 at the previous year’s level of CHF 41.0 million, the Zug-based real estate company announced in a press release. At the same time, the vacancy rate was reduced from 1.6 to 1.3 per cent. Revaluations in the property portfolio reduced net profit from 22.3 million francs in the previous year to 8.3 million francs in the reporting year.
Excluding revaluations, however, net profit was 2.3 per cent higher than in 2022 at CHF 20.3 million. Fundamenta Real Estate attributes this primarily to a year-on-year reduction in administrative expenses of 20.6 per cent and lower income taxes. At CHF 10.0 million, impairments also accounted for only 0.8 per cent of the volume of the property portfolio. The portfolio was valued at CHF 1.20 billion at the end of 2023.
“Despite a significantly changed market environment with significantly higher interest costs and ongoing developments in the portfolio, we have demonstrated our operational profitability and stability,” said Andreas Spahni, Chairman and Delegate of the Board of Directors of Fundamenta Real Estate, in the press release. “We also see opportunities to further expand our portfolio, which is already highly sustainable and value-preserving, in order to continuously improve our earnings structure.”
The shareholders of the property company are to participate in the profits with a dividend of CHF 0.55 per share. The necessary distribution totalling CHF 16.5 million corresponds to 81.3 percent of net profit excluding revaluation.