Plazza defies the pandemic
Plazza AG was able to slightly increase property income and operating profit in 2020. High revaluations led to a significantly higher profit than in 2019. The real estate company attributes its resistance to crises to its high proportion of residential properties.
Plazza AG achieved a very positive result in 2020 and exceeded its own expectations, writes the Zurich real estate company in a press release . Specifically, the company, which has been listed on the SIX since 2015, was able to increase its property income from CHF 24.3 million in the previous year to CHF 24.6 million in the year under review. At the same time, the operating result before depreciation and revaluation increased from 18.9 million to 20.0 million francs.
The profit was 63.3 million francs, compared to 36.7 million francs in the previous year. The increase is primarily due to success in revaluations, explains Plazza in the press release. Without taking them into account, the profit remained unchanged from 2019 at 17.0 million francs.
Plazza cites the high proportion of residential properties in its own portfolio as the background for the good developments. It was unchanged at 73 percent in the year under review and will continue to rise this year through the purchase of 80 apartments in the Tiergarten estate in Zurich's Friesenberg district, the statement said. According to her, none of the apartments managed by Plazza had been vacant by the end of 2020. Overall, the real estate company was able to reduce its vacancy rate year-on-year from 4.0 to 3.7 percent. The company writes that it mainly affects free commercial space.
For the current year, Plazza is aiming for an operating result before depreciation and revaluation "at least in the order of 2020". Subject to the building permit expected in the first half of the year, the first stage of the development project in Crissier VD is to be tackled. The construction of a nursing home for a foundation and a primary school for the community of Crissier were agreed in the reporting year.