Novavest is growing profitably
Novavest Real Estate AG was able to increase the value of its real estate portfolio by 3 percent to around CHF 664 million in the first half of 2021. Rental income rose 8 percent year-on-year. The operating result increased by 29 percent to 14.5 million francs.
According to a notification from Novavest Real Estate AG , the value of the real estate company's real estate portfolio as of June 30th of this year was CHF 664.3 million. At the end of 2020, the value was 645.4 million francs. The growth was generated primarily through investments in investment properties and projects, explains Novavest. Revaluations contributed CHF 6.3 million to the portfolio's increase in value.
Rental entries increased by 8 percent year-on-year to CHF 12.6 million. Around 62 percent of rental income is currently generated by residential properties, informs Novavest. The net return on investment properties was unchanged at 3.7 percent in the reporting semester. Compared to the end of 2020, the vacancy rate increased by 0.3 percentage points to 4.3 percent.
The income was offset by direct expenses for rented properties amounting to CHF 2.0 million. Overall, Novavest's expenses increased by 6 percent year-on-year to CHF 4.4 million. The bottom line was an operating result at EBIT level of 14.5 million francs. In a year-on-year comparison, this corresponds to an increase of 29 percent. At 10.6 million francs, net profit including revaluations was 30 percent higher than in the same period of the previous year.