IMMOFONDS in the plus
IMMOFONDS, one of the ten largest listed real estate funds in Switzerland, generated total income of CHF 43.7 million in the 2014/2015 financial year, compared with CHF 40.8 million in the previous year.
"Multifamily housing prices have risen steadily for more than 15 years, and yields on properties on the market have fallen accordingly."
According to the company, the reasons for the increase are the partial liquidation of the renovation fund and unrealized capital gains of CHF 1.1 million.
The fair value of the properties increased by four percent to CHF 1.34 billion as of June 30, 2015. Partly because a larger property in Chur had been sold in the previous period, rental income fell by CHF 1.5 million to CHF 68.3 million in the financial year.
"The prices of multi-family houses have risen steadily for more than 15 years and the yields of properties offered on the market have fallen accordingly. The IMMOFONDS therefore refrained from both a capital increase and acquisitions during the financial year in order to secure returns in the long term," says Dominik Weber, Managing Director of the IMMOFONDS. Instead, CHF 38.9 million was invested in ongoing construction projects. The superstructure in Islikon (TG) was completed on schedule in spring 2015. In Muri (AG), the construction of 50 apartments started, and in Adlikon (ZH), ground was broken for the construction of another 66 apartments.
As IMMOFONDS further reports, fund properties are increasingly reaching the end of their economic life and replacement properties must be envisaged. In the financial year, the fund spent around CHF 6.5 million on renovations.
With net fund assets of CHF 978.5 million (previous year: 880.8 million), the net asset value per unit declined slightly from CHF 304.70 to 304.00. Calculated on the net asset value as of the end of June 2015, this results in a cash return of 3.1 percent. Investors achieved a performance of 16.8 percent in the financial year with units of the IMMOFONDS when reinvesting the distribution. As in the previous year, the distribution amounts to CHF 13.50 per unit.
The IMMOFONDS was founded in 1955 and invests exclusively in Swiss real estate assets, primarily in residential properties in urban centers and agglomerations. The fund currently holds 3,518 residential units in 122 properties. (ah)
