La Foncière achieves investment return of 12.65 percent
The La Foncière real estate fund reports an investment return of 12.65 percent for the 2017/18 financial year. The market value and net assets increased significantly.
The market value of La Foncière's real estate assets is reported to be around CHF 1.42 billion - an increase of more than seven percent compared to the previous year (95 million). The mortgage burden corresponds to 18.41 percent of the market value of all properties and is thus far below the legal limit of 33 percent.
The net assets of the fund amount to 1.025 million compared to 936 million in the previous year, La Foncière further announces. The net asset value increased by 9.55 percent from CHF 75.67 to CHF 82.90. Residential properties accounted for the largest share of the fund's portfolio, at around 62 percent. At the same time, the vacancy rate was extremely low: on September 30, 2018, only 16 of a total of 4,213 apartments were vacant, according to the information, and all have since been re-rented. The rent default rate was 1.37 percent.
Return on equity (ROE) is 12.38 percent, while return on invested capital (ROIC) is reported at 8.58 percent.
In the 2018 financial year, La Foncière paid a dividend of CHF 2.15, up from CHF 2.13 in 2017 and CHF 2.08 in 2016. The dividend yield on the share price at the end of the financial year was 2.02 percent, while the performance for the financial year (the performance of the share price plus the dividend) was -1.40 percent. (ah)
