CS REF Global and CS REF International yield 3.7 percent
The two real estate funds CS REF Global and CS REF International each achieved a distribution yield of 3.7% in the 2015 financial year.
The market value of the properties in the Credit Suisse Real Estate Fund Global (CS REF Global) amounted to CHF 308.3 million at the end of the 2015 financial year (previous year: CHF 323.6 million). CS explains the decline with the discontinuation of the minimum euro-franc exchange rate.
The rent default rate fell to 7.7% (previous year: 10.4%).
The issue proceeds from a capital increase of CHF 69.5 million (gross) were used to reduce the debt ratio to 25.2%. At the beginning of 2016, the fund acquired the Waterfront Building commercial property at 101 Elliott Avenue West in the Seattle office market (USA).
The net asset value per unit (including distribution) fell in the past financial year from CHF 100.83 to CHF 98.80 as at December 31, 2015, which corresponds to an investment return of 1.8% (previous year: 5.7%). The performance at the end of the year was 3.7% (previous year: 10%).
CS REF International increases rental income
Credit Suisse Real Estate Fund International (CS REF International) increased its rental income to CHF 144.6 million in the 2015 financial year (previous year: CHF 139.9 million). At the same time, the rent default rate fell from 5.9% to 4.5%.
The proceeds from a capital increase of CHF 189.3 million (gross) were invested in commercial properties in Brisbane, Australia, and Nagoya, Japan, among others. The two newly acquired properties have good macro and micro locations in their respective markets. The market value of all properties in the portfolio amounted to CHF 2.479 billion at the end of the 2015 financial year, an increase of two percent on the previous year.
The net asset value per unit (including distribution) rose from CHF 1,034.42 to CHF 1,042.96 in the past financial year (as at December 31, 2015), which corresponds to a return on investment of 5% (previous year: 5.9%). The distribution remained stable at CHF 41 per unit in the 2015 financial year. Based on the closing price of CHF 1,120 on December 31, 2015, this results in a distribution yield of 3.7%. The performance in the 2015 financial year amounted to 8.1%, outperforming the benchmark SXI Real Estate Funds, which recorded a value of 4.2% in the same period. (ah)
