Swiss Prime Site, a leading Swiss real-estate company, has reported a decrease in net profit for the first half of the year. Despite a gain from the sale of its Wincasa real-estate services business, the company was impacted by a devaluation of its property portfolio.
During the first six months of the year, Swiss Prime Site achieved a net profit of 215.5 million Swiss francs ($245.5 million), compared to CHF267.4 million in the same period last year.
The decrease in net profit can be attributed to a loss of CHF98.8 million resulting from a property-portfolio revaluation by an external appraiser, primarily due to higher interest rates. In contrast, the company recorded a gain from last year's revaluation. Additionally, Swiss Prime Site booked a gain of CHF145.9 million from the sale of the Wincasa business.
Aftertax profit from continuing operations also experienced a decline, decreasing to CHF65.9 million from CHF262.1 million, according to the company's statement.
Although Swiss Prime Site's first-half operating income slightly declined to CHF307.6 million from CHF310.6 million, the company witnessed a 3.4% increase in like-for-like rental income. Furthermore, Swiss Prime Site achieved a record low vacancy rate of 4.1%, down from 4.3% as of December 31.
Despite the challenges faced in the first half, Swiss Prime Site remains optimistic about the second half of the year, considering current market conditions. The company also confirmed its expectations of an increase in rental income and stable funds from operations in 2023.