Real estate funds: net assets exceed billion euro mark
At CHF 1,012.3 million, the real estate fund's net assets exceeded the billion mark for the first time in the 2016/2017 financial year. The fund management company once again intends to distribute CHF 13.50 per unit to investors.
The market value of the real estate fund's properties increased by 78.9 million to 1,409.7 million (+5.6%) in the 2016/17 financial year. During the financial year, the newly constructed residential properties in Chur and Zurich were transferred to the portfolio, increasing the number of apartments from 3,552 to 3,607. Overall, the fund, which focuses on the mid-price residential segment, had a portfolio of 123 properties in 59 Swiss locations as at June 30, 2017.
New construction projects in Ermatingen and Aarburg
In the past financial year, the Immofonds acquired a plot of land in Ermatingen (TG) and built four apartment buildings with a total of 40 apartments on it, which will be let for the first time in the second half of 2017. Meanwhile, work on the new construction project in Aarburg (AG) is progressing according to plan. The fund invested a total of 41.4 million in new buildings in the financial year.
As the rental income default rate rose slightly from 4.8% to 5.1%, rental income did not quite reach the previous year's level of 68.5 million. Expenses climbed by a total of 15.7 percent to 28.4 million. This increase was mainly due to the 3.5 million higher tax expense than in the previous year. Net income from operating activities fell from 44.1 million to 41.2 million.
The increase in total income to 62.3 million (+4%) is mainly attributable to unrealized capital gains (21.2 million). 44.9 million is available for profit distribution. Of this, 43.5 million will be distributed on October 13. This corresponds to an unchanged distribution of CHF 13.50 per share. In relation to the closing share price on June 30, 2017, this results in a distribution yield of 3.0%. The return on investment in the 2016/2017 financial year amounted to 6.4% in relation to the net asset value.
Change planned at the top of the Board of Directors
There will be a change at the top of the Board of Directors of AG für Fondsverwaltung. At the Annual General Meeting on November 30, 2017, the Board of Directors will propose the election of Andreas Janett as the new Chairman to succeed the incumbent Othmar Stöckli. Janett was first elected to the Immofonds Board of Directors at the 2016 Annual General Meeting. He has been a member of the Executive Board of Zuger Kantonalbank since 2015 and will take over as Head of the Finance and Risk Department on March 1, 2018.
