Solvalor 61 real estate fund increases earnings
The Solvalor 61 open-end real estate investment fund reports a 3.6 percent growth in total revenues for the 2017/2018 fiscal year.
The reason for the increase was the successful marketing of several properties, the fund company says. Costs rose less strongly than income, which is why net income increased by 3.9 percent. As of October 31, 2018, a dividend of CHF 5.20 per unit is to be distributed.
Solvalor 61's gross assets reportedly increased 2.6 percent during the period. The investment return amounted to 3.54 percent. It is composed of net income (2.80%) and unrealized capital gains on the increases in the real estate portfolio (0.74%).
In view of the residential real estate market, which is in great demand by investors, and because of the negative interest rates, the fund's investment strategy will continue to focus on actively managing the real estate portfolio and exploiting its potential, the fund company said. The fund will continue to acquire purely residential properties only in an extremely restrictive manner, it added. The portfolio currently consists of 96 percent high-quality, well-maintained residential properties in the centers of major cities in western Switzerland, according to the statement. Options for densification are currently being examined.
Solvalor 61 was founded in 1961 and is listed on the SIX Swiss Exchange in Zurich. Total assets amount to CHF 945 million; all properties are directly owned. The fund's gearing ratio is currently 4.6 percent. This makes Solvalor 61 one of the funds with the lowest debt levels in the market, according to the fund company. (ah)
