Procimmo Swiss Commercial Fund II yields 6.76 percent
Procimmo Swiss Commercial Fund II reports a successful 2018 financial year, with an investment return of 6.76 percent and a return on equity of 6.54 percent.
The fund's investment return was 6.76 percent (as of Sept. 30, 2018), up slightly from 6.62 percent a year earlier, according to a Procimmo statement. The distribution yield increased from 3.85 to 3.98 percent, and the return on equity ("ROE") also increased slightly from 6.28 to 6.54 percent.
Net asset value (NAV) was CHF 118.20 as of September 30, 2018, compared to CHF 115.71 in the previous year. Meanwhile, the operating profit margin (EBIT margin) fell from 72.10 to 70.78 percent. Total income for the financial year increased from around CHF 11.8 million to CHF 16.4 million.
As of September 30, 2018, rental income also increased from around 16.1 million to 19.1 million, up 18.7 percent year-on-year, according to the data. Meanwhile, the rent default rate also increased significantly from 18.60 to 21.35 percent. The fund management cites "deliberate property purchases with vacancies" and rent losses at some properties as the reasons. The fund currently comprises 25 properties.
Net fund assets grew to 258.2 million in fiscal 2018 (previous year: 189.5 million), while total fund assets reached 371.4 million (previous year: 307.2 million). The leverage ratio decreased from 36.03 to 28.17 percent in the reporting period. The TER REF (GAV) also decreased from 0.94 to 0.88 percent. The fund management company intends to distribute a tax-exempt dividend of CHF 5.25 per unit for the 2018 financial year.
Procimmo announces that it will continue to drive the growth of the fund. To this end, investments are to be made in commercial real estate outside city centers, but in economically active regions. The fund also plans to convert into a mutual fund and list on the SIX Swiss Exchange in the 2019/2020 financial year at the earliest. (ah)
