Real estate fund increases profit
In the first half of the 2018/19 fiscal year, the Real Estate Fund generated total income after capital gains of CHF 24.4 million - 9% more than in the same period last year.
According to a statement from the fund, revenue increased by 4.4% to CHF 36.6 million. Rental income increased by 4.5% in the first half of 2018/19, it added. As of December 31, 2018, the real estate fund reported net rental income of 36.6 million. Reasons for the increase were properties completed or refurbished in the past fiscal year and the reduction of vacancies, said fund manager Gabriela Theus. The rent default rate decreased from 5.1% to 4.6% compared to the same period last year.
After deducting all expenses for property management, maintenance and renovations as well as compensation and interest on borrowings, net income was up byTP2T 1.81 toTP21.5 million; total income after capital gains increased byTP2T 9.01 toTP24.4 million.
Acquisitions in the Zurich area
The market value of fund properties reportedly increased by 1.7% to 1.553 billion in the reporting period, while total fund assets reached 1.561 billion at the end of 2018. During the reporting period, two properties were acquired in the Zurich area: The historic building ensemble "Zum Pfauen" in the city of Zurich, which formerly housed the Jecklin piano house, and in Regensdorf, the former Revox company building in the Bahnhof Nord development area.
In addition, the purchase agreement for the acquisition of an apartment building in the Enge district of Zurich was signed at the end of 2018. The purchase was completed in January 2019. In the reporting period, the fund management disposed of the residential property in St. Erhard. The sale price was around one fifth above the market value at the end of June 2018. At the end of 2018, the Immofonds held 125 properties with 3,698 apartments in its portfolio.
Change in the BoD and new CFO
In AG für Fondsverwaltung, the fund management company of Immofonds, Stephan Ehrsam took over the position of CFO in the fall of 2018. There were also two changes on the Board of Directors: René Chopard, Deputy Chairman of the Executive Board at Aargauische Kantonalbank, and Peter Bucher, Head of Real Estate Investors at Zuger Kantonalbank, were elected to the Board to replace Dieter Widmer and Theodor Keiser.
Immofonds is one of the ten largest listed real estate funds in Switzerland. It invests in Swiss real estate assets, primarily residential properties in urban centers and agglomerations with economic growth potential. (ah)
