LONDON (Alliance News) - German property investor Summit Germany Ltd said on Thursday that profit for 2017 practically doubled, with a substantial lift in the value of its portfolio.
Net asset value as at the end of December was EUR572.9 million, up 23% from EUR466.3 million on the same date in 2016.
Rental income reached EUR60.5 million, a 5.8% increase from EUR57.2 million the prior year, and pretax profit practically doubled to EUR128.7 million from EUR63.9 million due to considerable rise in the fair value adjustments of investment properties to EUR88.0 million from EUR28.0 million.
Summit Germany proposed a dividend of 3.02 euro cents per share, up from the 2.97 cents paid for 2016.
Despite having a smaller portfolio of 84 properties from 100 in 2016, net market value was higher at EUR939.0 million from EUR798.0 million.
"The German real estate market remains very attractive, underpinned by strong tenant demand and a limited pipeline of new development. This plays well to our portfolio and skills. Our portfolio is under rented and almost every lease renewal is signed at substantially higher rent, increasing our cash flow and potential valuation," said Managing Director Zohar Levy.
"In addition, we are actively engaged in several developments using surplus building rights in our properties which we believe will have a significant upside. We expect that the combination of the under rented portfolio with the upside potential in our properties would have a massive contribution to our NAV in the near future," Levy added.
Shares in Summit Germany were untraded on Thursday, last quoted at EUR1.15.
