Solvalor 61: Performance of 15.6 percent
The Solvalor 61 real estate investment fund reports a net performance of 15.6 percent for the 2016/2017 financial year; total income was CHF 36.9 million.
Rental income recorded an increase of around two percent and rose to a total of CHF 49.3 million. Total expenses increased slightly by 0.4 percent year on year to 27.2 million. The overall ratio of expenses to rental income was 55.09 percent, compared with 56.01 percent in the previous year.
At the end of the financial year, the fund's net assets amounted to 921.3 million (previous year: 857.9 million, +3.7%). This increase is mainly due to the investments in two projects in Ostermundigen (BE) and Petit-Lancy (GE) as well as the positive market price development for investment properties, the fund management states. The investments were fully financed by mortgage commitments, which is why the gearing ratio rose to 3.17 percent as of June 30, 2017 (previous year: 1.36%), it said. The investment yield amounts to 4.42 percent.
At the close of the financial year, the net asset value was CHF 193.38/share with a stock market listing of CHF 281.50 (as of June 30, 2017).
The effective average rent in the real estate portfolio offers an "interesting room for maneuver" compared to the market, which allows to compensate for a possible oversupply of rental apartments in the French-speaking part of Switzerland, the fund company further states.
Solvalor 61 was founded in 1961 and is focused on long-term investment planning. The properties are located mainly in the city centers of Lausanne and Geneva.
