Berninvest expects low loss of rent due to Covid-19
Berninvest has calculated a range of potential rent losses that could affect the funds due to the Covid 19 pandemic for the Immo Helvetic and Good Buildings real estate funds.
For both fund portfolios, a best-case and a worst-case scenario of possible rent defaults per month had been calculated. This was based on the assumption that tenants in sectors such as gastronomy, retail or leisure operations would no longer have to or would no longer be able to pay the rent in part or in full. The duration of the "lockdown" was assumed to last until mid-2020, Berninvest said.
As a Swiss real estate fund, Immo Helvetic should be only marginally affected by the Corona crisis, according to the fund management. 70% of the annual rental income came from residential use and only around 7% from sectors or tenants affected by the lockdown. Work is continuing on current construction projects, which can be completed with the recommended precautionary measures, he said. For the 2020 fiscal year, Berninvest currently expects a potential rent loss of approximately 2 to 3% as a direct result of Covid-19 for Immo Helvetic.
It is still uncertain whether the capital increase planned for the end of April will take place. The fund management wants to assess the situation in mid-April and reserves the right to postpone the issue. The capital increase was to run from April 27 to May 8, 2020, planned to increase fund assets by around CHF 72 million.
At Good Buildings Swiss Real Estate Fund, more than 80% of the rental income comes from pure residential use, only around 3% of the rental income is affected by the operating ban due to the Corona pandemic, according to the fund management. As a direct result of the Corona crisis, a potential loss of rental income of around 0.5% to 1.25% is expected in the current fiscal year, it said.
Berninvest is in constant contact with the property managers and has instructed them, contrary to the usual process in the event of non-payment of rent, to refrain from threats of termination, notices of termination and collection measures until further notice. Instead, individual solutions such as rent deferrals are being sought, according to Berninvest. In doing so, the company is following the recommendations and guidelines of the federal government. (ah)
