Realstone RSF increases the residential share and boosts realized success

The Realstone RSF fund increased the residential portion of its portfolio in the 2022/23 financial year (reporting date: March 31). The share of rental income from residential properties now amounts to 64%. In total, new properties worth CHF 148.50 million were delivered. These are 134 apartments at Neugasse 19-35 in Horgen (ZH), 42 apartments at Route de Chippis 68E, 70A, 70C in Sion (VS) and the property at Route de la Paix 5 in Gland (VD) with 33 apartments, the first stage of the La Combaz project. In addition, 13 additional apartments were handed over at Avenue de Sévelin 15 and 4 at Rue du Bugnon 6-8-10 in Lausanne (VD). In addition, a residential project under construction with 108 apartments at Solarstrasse 21-29 in the Neuhegi district of Winterthur (ZH) was acquired. Finally, a new property with 84 micro-apartments and a gross yield of 5.02% was purchased for CHF 18.50 million at Route du Tir-Fédéral 7 in Givisiez (FR).

Sales of commercial real estate

In the reporting year, the fund sold a total of CHF 120.56 million in properties, the majority of whose income came from commercial use. Specifically, these were three properties with commercial use, four with mixed use and three with residential use, as well as three condominiums. The sales proceeds were used to repay part of the debt and finance ongoing development projects.

As at March 31, 2023, the total assets of the Realstone RSF fund remained stable compared to the previous year, reaching CHF 2.45 billion (+0.04%). The investment return in the financial year amounted to 1.89%.

Rental income increased by CHF 1.20 million to CHF 89.57 million. The vacancy rate was reduced, particularly at the Route du Mont-Carmel 1-3-5 property in Givisiez (FR), where income increased by 22%. The rent loss rate fell by 7.89%.

Realized profit increased by 24%

In addition to the annual net result of CHF 41.65 million, there is a realized capital gain of CHF 13.22 million from the aforementioned sales. Realized income thus amounts to CHF 54.88 million, which corresponds to an increase of 24.02%. Including unrealized capital losses from the revaluation of properties (including liquidation taxes) of CHF 23.50 million, the overall result is CHF 31.37 million, compared to CHF 81.06 million in the previous year.

"The significant realized capital gain enables the dividend to be increased by 5 centimes to CHF 3.55," writes the fund management. With a market price of 125.10 per unit as at March 31, the distribution yield amounts to 2.84%, compared to 2.63% in the previous year.

Rising rental income expected

In its outlook for the new financial year, Realstone mentions its recent acquisitions in the canton of Aargau at Hardackerstrasse 2 in Untersiggenthal and Rotkornstrasse 9-11 in Oberkulm for a total of CHF 23.49 million. "These two acquisitions in Aargau and the various properties that were added to the Realstone RSF fund's real estate portfolio in the reporting year, as well as the newly signed rental agreements for over 8,000 square meters of commercial space, will significantly increase rental income in the coming financial year." (aw)