sitEX Properties Holding AG achieves another record result in 2020
The owner-managed real estate company based in Lachen SZ achieved its best result ever in the challenging pandemic year 2020. Operating income before interest, taxes, depreciation and amortization amounted to CHF 41.633 million. Profit before taxes was CHF 36.285 million, while profit after taxes and minority interests was a satisfactory CHF 26.814 million, representing earnings per share of CHF 11.65 and a return on equity of 18.7%. As in the last three years, around half of the profit will be allocated to shareholders in the form of a share buyback. As in the past, each shareholder is at liberty to make use of this share buyback.
Dr. Christoph Stutz, Chairman of the Board of Directors of the company, commented on the result as follows: "sitEX achieved a record profit before taxes and minority interests in 2020, which could not be taken for granted in the turbulent financial year. I am therefore very pleased with the result. As I am involved in the business on a daily basis, I also know that behind this result there is a lot of work by our entire team, skill and certainly also some luck. Whenever targets are achieved or even exceeded, as in our case last year, the question of the sustainability of the profits immediately arises."
Beat Kähli, CEO of the company, is convinced of the sustainability of the profits and the company's business model: "The Board of Directors of our company recognized several years ago that our strategy for above-average profits lies in developing land, the prime domain in the real estate business. We have therefore successively built up a diversified development pipeline in Northwestern Switzerland and, above all, in Central Florida. It was the latter that was instrumental in achieving our record results this year."
The Central Florida real estate market experienced a strong growth spurt in 2020 due to the pandemic. Attracted by low taxes, high quality of life, affordable housing and job opportunities, nearly 1,000 people per day are currently moving to Florida. Due to the stability of these macro factors, all major financial and statistical institutions expect demand for housing in Central Florida to remain high in the coming years. Florida's gross domestic product is about 50% higher than that of Switzerland and ranks 20th in the world. Experts expect Florida's GDP to rank 10th in the world by 2030; this is equivalent to a doubling of today's figure. In the course of this development, the Florida Chamber of Commerce expects the population to grow by at least 25% in the next 5 years. This means that Florida will soon have more inhabitants than the entire country of Australia.
Beat Kähli adds: "We are therefore confident that with the help of our project pipeline of more than 50 million square meters and our close collaborations with renowned partners, we will be able to take advantage of these positive trends in the market. Consequently, we will be able to deliver pleasing results in the coming years, while always keeping a close eye on any risks."
March 10, 2021