Procimmo Swiss Commercial II: Equity yield of 6.3 percent
Procimmo reports a successful financial year for the Procimmo Swiss Commercial Fund II. As at September 30, 2017, the return on investment was 6.62% and the distribution yield was 3.85%; the return on equity was 6.28%.
The net asset value of the fund was CHF 115.71 as at the reporting date, which was higher than the previous year (CHF 113.52 as at 30.9.2016). The operating profit margin amounted to 72.10% and the total income for the financial year was CHF 11.77 million
Rental income rose significantly from CHF 12.79 million to CHF 16.10 million in the reporting period. However, the rent default rate also rose from 10.81 to 18.60 percent. According to Procimmo, this was mainly due to the departure of the main tenant in the property in Pratteln (BL) and the acquisition of properties with vacancies. The property in Pratteln has since been let again and the new tenant will move in in summer 2018. According to the fund management, development projects are pending for the properties in Dietlikon (ZH) and Oberentfelden (AG), which will have a positive impact on future rental income and the fund yield.
The TER REF (GAV) fell further from 1.10% in the previous year to 0.94%. Net fund assets amounted to 189.5 million (previous year: 185.9 million), while total fund assets rose from 255.3 million to 307.2 million.
The fund now holds 22 properties and the portfolio is set to grow further. Procimmo has announced that the fund intends to invest in particular in commercial properties outside city centers, but in economically active regions.
