Credit Suisse: Covid-19 hardly impacts funds in the first half of the year

Credit Suisse Funds AG reports that the impact of Covid-19 on the real estate fund business is becoming increasingly clear. However, it is still too early to draw final conclusions on the impact on rental income and market values for properties.

Compared to the financial statements as of September 30, 2019, none of the four real estate funds - CS 1a Immo PK, CS REF Logisticsplus, CS REF Interswiss and CS REF Siat - had seen a major change in value as of the end of the first half of the year (March 30, 2020). Individual negative developments were offset by positive changes and potential. The market values of the properties had been confirmed. The company also intends to have the market values of the properties reviewed for the next half-yearly financial statements as of June 30, 2020.

CS 1a Immo PK with acquisitions

Credit Suisse 1a Immo PK (CS 1a Immo PK) acquired one commercial property each in Geneva and Lausanne in the first six months of the 2019/20 financial year. The investment return excluding revaluation effects had increased from 1.67% to 1.69% in the reporting period. The declaration of the extraordinary situation in Switzerland and the related closure of restaurants and numerous stores had affected only two weeks of the reporting period. As of May 1, 2020, rent defaults and rent deferrals in the Fund amounted to 2.12% of annual net target rent.

CS REF Logisticsplus: Listing planned

Credit Suisse Real Estate Fund LogisticsPlus (CS REF Logisticsplus) increased its capital by CHF 107.1 million in March 2020. A new construction project in Zell (LU), a production property in Kirchberg (BE) and a logistics property in Rothenburg (LU) were acquired. Other properties and projects are at an "advanced stage of negotiation," Credit Suisse Funds said. The fund's net income increased by over 21% year-on-year to 8.6 million, it said. There were no rent defaults or rent deferrals, it said. The fund is scheduled for listing on the Swiss stock exchange in June.

CS REF Interswiss with important leasing success

Credit Suisse Real Estate Fund Interswiss (CS REF Interswiss) achieved a significant leasing success in the first half of the current financial year. Construction group Implenia is moving its headquarters to Ambassador House in Opfikon in 2021 and has leased 12,000 sqm for this purpose. In addition, one property was sold in Geneva. The investment return excluding revaluation effects increased from 1.87% to 1.91% for the first six months of fiscal year 2019/20. As of May 1, 2020, rent defaults and rent deferrals in the Fund amount to 2.85 % of the annual net target rent.

CS REF Siat makes a purchase in Liestal

Credit Suisse Real Estate Fund Siat (CS REF Siat) sold two residential properties in Olten and acquired the Lüdin site in the middle of Liestal (BL) during the reporting period - "a property with development potential," Credit Suisse Funds said. The investment return excluding revaluation effects reportedly increased from 1.84% to 1.85%. Rent defaults and rent deferrals due to the Covid 19 pandemic amount to 1.37% of annual net target rent as of May 1, 2020. (ah)