Immofonds: Market value of properties cracks 1.5 billion mark
In the 2017/2018 financial year, the real estate fund recorded an increase in the market value of its properties of 8.3% to around 1.53 billion.
According to the fund management of the real estate fund, the net asset value per unit increased by 4.7 percent to CHF 329.35. During the financial year, the newly constructed properties in Aarburg and Ermatingen were added to the portfolio, increasing the number of apartments by 135 to 3,736. In total, the real estate fund held 125 properties in 61 Swiss towns and cities as at the reporting date of June 30, 2018.
The loss of rental income rate is five percent (previous year: 5.1%), while the loss of rental income rate for existing properties is 3.8 percent. This speaks for the high marketability of the apartments, says fund manager Gabriela Theus. CHF 9.4 million was invested in renovations during the financial year. "Over the next few years, we will increasingly realize the existing utilization potential in the portfolio", Theus continues.
In the past financial year, the real estate fund acquired an office and commercial property in a central location in Basel and also exchanged properties with a view to a medium-term site development in Effretikon. In total, the fund invested 24.3 million in new buildings in the financial year.
Net income of 42.7 million
Rental income increased from 68.5 million to 70.8 million and expenses amounted to 28.1 million. Net income amounted to 42.7 million, 3.8 percent more than in the previous year. The 46.9 percent increase in total income to 91.5 million is due to the gain on the sale of the property in Effretikon on the one hand and unrealized capital gains, which increased to 45.8 million, on the other, according to a press release.
The real estate fund will again distribute CHF 13.50 per unit this year; the distribution yield in relation to the closing price on June 30, 2018 is therefore 3.1%.
Two changes to the Board of Directors
There are two changes to the Board of Directors of the fund management company of Immofonds: Dieter Widmer has been appointed Chairman of the Board of Directors at Aargauische Kantonalbank. René Chopard will be proposed for election in his place at the Annual General Meeting on November 29, 2018. Chopard is Deputy Chairman of the Executive Board and Head of Private Clients & Private Banking at Aargauische Kantonalbank and a member of the Executive Board. In addition, Theodor Keiser, former CFO of Zuger Kantonalbank, is retiring and will not be standing for re-election. Peter Bucher, Head of Real Estate Investors at Zuger Kantonalbank, will be proposed for election to the Board of Directors in his place.
The real estate fund is one of the ten largest listed real estate funds in Switzerland. It invests exclusively in Swiss real estate assets, primarily in residential properties in urban centers and agglomerations. (ah)
