CS real estate funds with higher distributions

Credit Suisse Real Estate Fund Green Property (CS REF Green Property) generated an investment return of 4.1% in fiscal 2018, up from 4.0% a year earlier, according to Credit Suisse. The performance was -3.2 %, two percentage points above the benchmark SXI Real Estate Funds Broad (TR), which posted a performance of -5.3% over the same period, it said. The distribution per unit increased from CHF 3.60 to CHF 3.70 compared to the previous year. The fair value of the properties reportedly increased to around 2.55 billion at the end of fiscal 2018. The rent default rate fell by around 10% to 4.7% in the reporting year, it said.

CS REF Hospitality increases rental income

Credit Suisse Real Estate Fund Hospitality (CS REF Hospitality) increased its distribution from CHF 3.10 to CHF 3.30 per unit (+6.5 %), resulting in a distribution yield of 3.8% as of December 31, 2018. Rental income increased slightly from 51.9 to 52.4 million. With the sale of the Fairmont Le Montreux Palace in Montreux in October 2018 the leverage ratio had been reduced to 25.1% of market values as of the end of the 2018 financial year. The rent default rate reportedly decreased by more than half to 0.7%.

The 6,692 units cancelled at the end of fiscal 2017 are scheduled to be redeemed on March 27, 2019, the statement added. As of the end of fiscal 2018, the company said it had received notices for 238,660 units, representing 2.7% of the units outstanding. These units are to be redeemed at the end of March 2020, subject to the ordinary notice period, CS further informs.

CS REF LivingPlus with significantly higher earnings

Credit Suisse Real Estate Fund LivingPlus (CS REF LivingPlus) increased net income by about 17% to 81.1 million in 2018. This was due to higher rental income of 5.4 million and a stable rental default rate, among other factors, CS said. The distribution increased by CHF0.20 to CHF3.50 per unit. In addition, the market value of the properties increased to a total of 2.85 billion in the 2018 financial year, it said.

In the 2018 financial year, a property with 53 apartments was completed in Bulle and newer residential properties were acquired in Pfäffikon and St. Gallen. The Ceres Tower in Pratteln, which was completed in 2017, generated rental income for a full year for the first time in 2018, the statement added. (ah)