Swiss Life Swiss Properties further reduces rent default rate

The fund, which invests in residential properties in Swiss cities and their agglomerations as well as in centrally located commercial properties, held 88 properties with a market value of around CHF 1.27 billion as of the end of March.

The already low rent default rate fell from 3.7% (March 2019) to 3.0% within a year. Rental income amounted to 25.4 million in the first half of the fiscal year. The total income is 11.4 million.

The net asset value per unit was CHF 107.53 at the end of the half-year, compared with CHF 106.88 a year earlier. Since its launch in November 2015, the fund had realized an annualized performance of around 9.0% based on the stock market price.

In April, residential buildings 1 and 2 of the "Stahlgiesserei" development in Schaffhausen, which are held by Swiss Life REF (CH) Swiss Properties, were completed on schedule. According to the fund, the 82 apartments were 94% rented before occupation.

Only minor impact of the pandemic

The fund management does not see any strong impact of the Covid 19 pandemic on the fund. It is true that the slowdown in the real economy is also leaving its mark on the local real estate market. However, core properties in good locations with stable cash flows are less exposed to the current developments. Swiss Life is convinced that high-quality residential and commercial properties will continue to be in demand in the long term.

In addition, 60% of the rental income of Swiss Life REF (CH) Swiss Properties comes from residential use, and this high proportion of residential properties has a stabilizing effect in the current market situation, the statement continues. The fund properties also have very good location qualities, which ensures sustainable and longer-term leasing, especially for office and retail space. More than 70% of the portfolio's market value is attributable to properties in large cities (36%), their inner conurbations (21%) and medium-sized cities (14%). (ah)