Procimmo Swiss Commercial with 8.3 percent investment return
In the first half of the current 2016/17 financial year, the Procimmo Swiss Commercial Fund generated a total return of over CHF 24 million. The real estate fund's investment return amounts to an annualized 8.33 percent.
The rental income of Procimmo Swiss Commercial amounts to CHF 25.8 million in the reporting period and the net asset value increased to CHF 130.65 per unit as of December 31, 2016 (previous year: CHF 125.60).
Income decreased from around CHF 31.45 million to CHF 26.15 million, with total expenses amounting to 15.75 million (2015: 15.01 million). The rent default rate fell from 15.5 to 13.23 percent.
Procimmo Swiss Commercial's equity stood at just under CHF 631 million and total assets at CHF 882.37 million as of December 31, 2016. While net fund assets increased significantly compared to the previous year (606.4 million), total assets decreased slightly (2015: 888.25 million). The TER REF (GAV) decreased from 0.99 to 0.90 percent.
Funds from sale reinvested
According to Procimmo, the sale of a property in Eysins on July 1, 2016, for CHF 57.8 million had a positive impact on the portfolio. The sale enabled new acquisitions as well as construction projects and renovations, Procimmo writes in a statement. For example, in the last reporting period, the fund acquired a plot of land in Préverenges on which a commercial building is being constructed.
The fund plans to invest around CHF 70 million by the end of 2018. The aim is to consolidate rental income in the long term in order to be able to distribute a dividend of over CHF 5.00 per unit, the fund management informs. These developments are to be financed by sales and realized profits within the fund, without the need for a capital increase.
