LONDON (Alliance News) - Summit Germany Ltd said on Wednesday that a sharp gain in the fair value of investment properties led to a significant rise in pretax profit in the first half of 2018.
For the six months to the end of June, the Germany-focused real estate company reported a pretax profit of EUR102.1 million, up almost tenfold from EUR14.1 million the year before, resulting from a sharp swing in the fair value of its investment properties to EUR91.8 million from a loss of EUR3.8 million.
Summit Germany's EPRA net asset value at the end of the period was EUR655.0 million, up from EUR474.4 million on the same date the prior year.
Rental income rose by 11% to EUR31.5 million from EUR28.4 million due to a contribution from the Wolfsburg portfolio acquired for EUR100 million at the end of June the prior year.
Summit Germany declared an interim dividend of 2.00 cents per share, up from 1.02 cents the year before.
"The performance of the group portfolio in combination with the financing activity during the first half of the year have fixed the portfolio in a strong position. We achieved significant portfolio growth, both an uplift in the value of our existing assets as well as a major acquisition just after the period end. The latter will contribute net rent and provide high-quality assets to respond to hands on asset management. We expect this to support us in outperforming our underlying markets over the next periods," said Chairman Harry Hyman.
Shares in Summit Germany were untraded on Wednesday, last traded at EUR1.21.