7 Earnings from revaluation of investment real estate
CHF million | 1st half-year | 1st half-year | ||
Higher valuation of yield-producing properties | 39.3 | 13.0 | ||
Higher valuation of investment real estate under construction | 5.9 | 7.2 | ||
Higher valuation of right-of-use asset classified as investment real estate | 0.0 | 0.0 | ||
Lower valuation of yield-producing properties | –15.0 | –7.3 | ||
Lower valuation of investment real estate under construction | 0.0 | 0.0 | ||
Lower valuation of right-of-use asset classified as investment real estate | –0.5 | 0.0 | ||
Earnings from revaluation of investment real estate | 29.7 | 12.9 |
CHF 13.6 million of the higher valuation of yield-producing properties relates to residential real estate and CHF 25.7 million to commercial real estate (1st half-year 2018: CHF 1.1 million and CHF 11.9 million, respectively). CHF 0.7 million of the lower valuation of yield-producing properties relates to residential real estate and CHF 14.3 million to commercial real estate (1st half-year 2018: CHF –7.3 million for commercial real estate).
In connection with the introduction of IFRS 16, a right-of-use asset classified as investment real estate was recognised. The first-time valuation reduced the valuation by CHF 0.5 million.
The average discount rates as at 30 June 2019 for the entire portfolio of yield-producing properties amount to 4.10% (31.12.2018: 4.15%). The average capitalisation rates as at 30 June 2019 amount to 3.61% (31.12.2018: 3.66%).
As in the previous year, Jones Lang LaSalle AG acts as the real estate valuer on a contract basis.