Real estate fund increases rental income
In the first half of the 2017/2018 fiscal year, the Immofonds increased rental income slightly by almost three percent to CHF 35 million.
"Despite the reduction in the reference interest rate, rental income increased by 2.7 percent year-on-year to CHF 35 million. In addition to the new buildings, the improved rental of apartments in the property portfolio also contributed to this," says Gabriela Theus, fund manager of Immofonds.
The rental income default rate remained stable at 5.1 percent. Net income increased by 2.4 percent year-on-year to 21.2 million and total income by 8.5 percent to 22.4 million. The net asset value per unit was CHF 307.45 (as at the end of 2017). The market value of the Immofonds' properties increased to 1.431 billion as of December 31, 2017.
The new buildings on Hinterbergstrasse in Zurich, Lagerstrasse in Chur and Salensteinerstrasse in Ermatingen were completed, bringing the total number of apartments in the portfolio to 80. By the end of 2017, the properties in Zurich and Chur were fully rented and 80 percent in Ermatingen. The renovation of the property in Kriens-Obernau was also completed.
The new building in Aarburg is progressing according to plan and the apartments are expected to be ready for occupation in May 2018, the fund says. The total renovation on Rennweg in Zurich is also proceeding according to plan: A health food store will open its retail space in mid-February, and the apartments will be ready for occupation in May. In Effretikon, the fund rounded off a plot of land in order to lay the foundations for a future site development near the train station.
Immofonds is one of the ten largest listed real estate funds in Switzerland. The fund invests primarily in residential properties in urban centers and agglomerations with above-average returns.
