Swissinvest increases rental income

The Swissinvest Real Estate Fund reported a performance of 4.7% for the first half of the current financial year. Rental income increased by 1.5% to CHF 21.6 million.

The Swissinvest Real Estate Fund presents its half-year results (Image: Pixabay)

According to the fund management company Pensimo, the Swissinvest Real Estate Fund achieved a net income of CHF 11.4 million in the third and fourth quarters of 2021. This is an increase of 1.8% compared to the same period last year. Rental income increased by 1.5% to 21.6 million in the same period, while total income reached only 11.2 million, down from 41.4 million in the same period last year. The reason for the minus was that, in contrast to the previous year, there was no revaluation of the portfolio due to an issue in the reporting period and no properties were sold, Pensimo said.

The rental loss rate including pandemic-related rent waivers (CHF 38,950) increased slightly from 4.12% to 4.20%. As Pensimo further states, the further development of the pandemic and its impact on rental income is difficult to estimate. While no further rent reduction requests are foreseeable, it is expected that commercial space will take longer to re-let, which will have a negative impact on vacancies. However, based on the fund's income structure with a focus on residential use, this should not have a significant impact on the annual result and the distribution, according to current knowledge.

During the reporting period, the Swissinvest Fund acquired an approved new construction project in the city of Lausanne. It consists of two apartment buildings with 51 apartments and a parking garage with 38 parking spaces. Construction is scheduled to start in the spring of 2022 and occupation is planned for early 2024. (ah)

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