UBS funds increase profit

UBS Direct Residential has used the funds from last fall's capital increase to expand its portfolio and finance development projects. The replacement Ankenpark development near Wetzikon train station (ZH) is already fully leased and will be ready for occupancy at the beginning of April 2022, UBS announced when presenting its half-year results.

The cumulative rent default rate fell from 4.9% to 3.7% within one year, and the vacancy rate as of the reporting date is 2.9%. Rental income amounted to CHF 17.3 million in the first half of the year, compared to CHF 17.0 million in the same period last year. Due to the Covid pandemic, rental income of CHF 25,375 or 0.1% of rental income was waived in the reporting period. Net income increased by 16% compared to the same period of the previous year and amounted to 10.4 million for the first half of the year (previous year: 9.0 million). Total income was 9.97 million compared to 8.16 million in the previous year.

UBS Direct Urban expands portfolio

UBS Direct Urban acquired a portfolio of German-speaking Swiss properties for CHF 45 million in the first half of the 2021/2022 financial year and now holds 23 properties with a fair value of CHF 577 million. The newly acquired properties are three predominantly commercial properties in central and inner-city locations in Aarau, Thun and Winterthur. According to UBS, most of the commercial space (retail and office) is under long-term leases, with the residential portion amounting to 10%.

For the reporting period, the Fund reports rental income of 9.9 million, which is 19% more than in the previous year (8.3 million). Rent abatements granted in connection with the Corona pandemic are reported to amount to CHF 8,154 or 0.1% of rental income. At year-end, the Fund reported a rent default rate of 6.7%, down 2.1 percentage points from the previous year. Total income in the first half of the year was 7.0 million, a good 20% more than in the previous year (5.8 million). (ah)