CS real estate funds with solid annual results
The three real estate funds CS REF Green Property, CS REF Hospitality and CS REF Living Plus achieved "solid results despite the challenging market environment" in the 2017 financial year, according to Credit Suisse.
CS REF Green Property: performance of 6.9 percent
On December 31, 2017, the Credit Suisse Real Estate Fund Green Property (CS REF Green Property) closed its first full financial year after its launch. Association with the CS REF PropertyPlus completed. The performance was 6.9%, slightly above the benchmark of the SXI Real Estate Funds Broad. This index comprises all real estate funds with a primary listing on the SIX Swiss Exchange that have invested at least 75% of their fund assets in Switzerland and recorded a performance of 6.6% in the 2017 financial year.
The distribution amounts to CHF 3.60 per unit. The rental loss rate has been reduced by over a third to 5.2 percent thanks to numerous lettings, according to Credit Suisse.
As a result of the issue in the last quarter of 2017, the fund received new money in the amount of 130.2 million, which will be used for the further expansion and diversification of the real estate portfolio.
In September 2017, construction officially began on 242 apartments in the "Im Guss" development in Bülach. On November 1, 2017, a residential development with 73 apartments was completed in Wil. From August 1, 2018, the "Gleis 0" residential and commercial building, the second stage of the expansion of Aarau railroad station, should also be ready for occupancy.
CS REF Hospitality increases distribution
According to CS, the Credit Suisse Real Estate Fund Hospitality (CS REF Hospitality) benefited from the general upturn in the Swiss tourism market in the 2017 financial year. The operating results of the various hotels improved in the majority of cases. The InterContinental Hotel in Davos increased its operating result (EBITDA) by over 60 percent, which is reflected in higher rental income of around 655,000, among other things. Overall, the fund was able to increase its net income by 2.1 million in the 2017 financial year despite divestments. The distribution amounts to CHF 3.10 per unit, resulting in a distribution yield of 3.3 percent as at December 31, 2017, according to CS.
The fund management company also announces that the 2,415 units that were terminated at the end of the 2016 financial year will be redeemed on March 27, 2018. At the end of the 2017 financial year, notices of termination had been received for 6,692 units, which corresponds to 0.1 percent of the fund units. These units will be redeemed at the end of March 2019 in compliance with the ordinary notice period.
CS REF LivingPlus: 4.3 percent investment return
The Credit Suisse Real Estate Fund LivingPlus (CS REF LivingPlus) improved its operating cash flow in the financial year ended December 31, 2017, CS announced. The distribution remains stable at CHF 3.30 per unit.
The market value of the properties increased slightly due to the completion of new construction projects and a streamlining of the portfolio. Rental income rose by 3.1 percent to 125.4 million. The return on investment rose from 3.6 percent to 4.3 percent.
In the 2017 financial year, the senior citizens' residence in Tenero was completed on schedule and leased to the Tertianum operator on a long-term basis. The Ceres Tower in Pratteln was also taken over on schedule. The apartments have already been let and an anchor tenant has been found for the office space. The fund also acquired the Seewis Dorf rehabilitation clinic, which is let to Vamed Schweiz AG on a long-term lease.
