Baloise Swiss Property presents first annual report
The Baloise Swiss Property Fund closes its first financial year with net income of CHF 14.3 million.
Baloise Immobilien Management launched the Baloise Swiss Property Fund in October 2018, starting with a portfolio of 35 properties worth CHF 352.3 million.
Following a capital increase at the beginning of September 2019, 20 properties with a value of 193.9 million were purchased. The fair value of the now 55 properties amounts to 565.9 million as of September 30, 2019. Within a year, the fair value of the portfolio has increased by 19.7 million. The reasons for this are the reduction in discount rates, the increase in rent levels upon re-letting and the appreciation of a refurbished property, Baloise says.
In its first year, the fund generated rental income of 16.8 million; the lease default rate was 5.34 % at the end of the fiscal year. The remaining term of fixed leases (Weighted Average Unexpired Lease Term, WAULT) is 3.44 years as of September 30, 2019, according to Baloise.
In the first financial year, the net fund assets of Baloise Swiss Property increased by CHF 214.6 million to CHF 489.6 million. According to Baloise, this is due to the acquisition of the 20 properties, the increase in cash and cash equivalents and the appreciation of the overall portfolio.
Net asset value (NAV) per unit is CHF 103.86 as of September 30, 2019, up 3.86% since October 1, 2018, and net income generated is 14.3 million. CHF 3.03 per unit will be distributed to investors.
According to the fund management, the intention is to further expand the real estate portfolio in the second fiscal year 2019/20. The investment focus will continue to be on properties in the cities of the high-growth economic regions and their catchment areas, which offer solid, long-term rental income. Due to the low debt financing ratio of around 15%, the acquisition of new properties is likely to be carried out using debt capital. (ah)
