AD-HOC ANNOUNCEMENT ACCORDING TO ART. 16 OF THE BX SWISS LISTING RULES
Patrimonium Urban Opportunity (BX Swiss: PATRI), a real-estate investment firm focused on high-potential urban areas across Switzerland, reports a significant increase in both operating income and operating result before revaluations for the 2023 financial year. This in a context of rising interest rates and decreasing property valuations.
The positive operating performance is due in part to the acquisition of a building in Reinach, Basel-Landschaft, and an active asset-management approach. The rise in interest rates during the year impacted the firm’s borrowing costs and portfolio revaluations. The portfolio recorded a net revaluation loss for the first time, in the amount of CHF 3.4 million.
Operating income grew 14.3% in 2023 to CHF 12.6 million, up from CHF 11.0 million in 2022. Operating expenses rose by a smaller 10.3%. As a result, operating result before revaluations was up 17.6% to CHF 7.0 million, from CHF 6.0 million in 2022.
Borrowing costs amounted to CHF 2.5 million, up from CHF 1.4 million in 2022, owing to the higher interest rates and increased debt exposure. This increase, coupled with the CHF 3.4 million net revaluation loss, resulted in a CHF 0.95 million net loss for the year, compared to a CHF 5.6 million net profit in 2022.
The firm’s net result for the year was therefore a moderate loss of CHF 0.95 million. The portfolio’s net asset value (NAV) per share likewise decreased slightly, from CHF 2.87 to CHF 2.85.
Active management approach shows positive results
In the first half of 2023, Patrimonium Urban Opportunity Ltd. acquired a key property in Reinach (Kägenstrasse 12/14). The building was purchased vacant from a distressed seller. By year-end, more than 50% of the surface had been leased – including a fixed 17-year contract to a new anchor tenant starting in July 2023. The portfolio’s weighted average unexpired lease term (WAULT) now stands at 5.98 years.
Forward-looking strategy
The firm’s asset base expanded significantly in 2023 and major development projects are under way, setting the stage for future growth. The construction project in Bussigny (Chemin de Mochettaz 7), in Vaud Canton, is still ahead of schedule. The renovation works carried out, mainly at Voie Creuse in Geneva, over the past year have increased the portfolio’s rental income, lowered its costs, and improved its environmental footprint. As in the past, the investment team is working hard to explore new growth opportunities and develop the potential of other portfolio properties.
“We’re fortunate to be able to invest with a long-term horizon, and will search for additional value in our acquired properties through development and value-enhancement projects. We’re confident that by sticking to our investment principles and the strategy that’s proven effective over the past 13 years, we’ll continue to deliver superior returns for our shareholders – even in these uncertain times.” says Hanspeter Berchtold, CIO Real Estate, Patrimonium Asset Management Ltd.
Patrimonium Urban Opportunity Ltd. listed on the BX Swiss exchange on 18 July 2022 (Ticker: PATRI).
For more information and to download the full 2023 annual report, please visit: www.patrimoniumurbanopportunity.ch