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Investing.com -- Swiss property company Allreal reported first-half results broadly in line with consensus expectations, with revaluation gains exceeding forecasts, while reiterating its full-year guidance.
Rental income declined 6% year-over-year to CHF103 million, which was stronger than expected compared to analyst estimates of CHF109 million. The decrease was attributed to property sell-downs and the commencement of development projects.
Income from development and realization increased by 22.1%, primarily driven by higher condominium sales. This growth, combined with lower interest rate costs, more than offset the decline in rental income, resulting in net profit excluding revaluations of CHF62.6 million, above analyst expectations of CHF60.4 million.
The vacancy rate rose to 2.9% from 1.5% in the first half of 2024. Valuation gains came in at CHF70 million, significantly beating estimates of CHF23-24 million.
The company’s loan-to-value ratio remained unchanged at 47.5%, while the average cost on outstanding debt reduced to 1.16% from 1.25% at the end of fiscal year 2024.
Looking ahead, Allreal maintained its full-year outlook, expecting stable loan-to-value ratio and flat year-over-year operating income excluding revaluations. The company continues to anticipate slightly lower rental income and higher vacancies due to tenant turnover and ongoing developments, while income from condominium sales is expected to increase compared to the previous year.
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