Significant profit increase for Realstone Development Fund

RDF Realstone Development Fund said it had a "solid financial year" in 2018: Rental income rose by 27% to CHF 29.4 million and net income increased by 35.5% year-on-year to 10.3 million, the fund company says. The dividend is expected to increase to CHF 1.90 per unit (2017: CHF 1.16).

As of the end of 2018, the value of the real estate portfolio was 974 million, an increase of 20% compared to the previous year, according to the fund. For a total of 110.2 million, "commercial properties with potential" were acquired, the fund also acquired a good 8,000 sqm parcel sqm directly next to the Rheinfelden train station. A residential development is to be built here.

The portfolio's rent default rate of 7.03% is higher than the previous year's 5.97% - the reason being the purchase of the commercial portfolio to be repositioned, Realstone said. The marketing of development projects has been successful in the residential sector, with the rent default rate lowered from 5.11% to 4.17%, it said. Of the 10,600 sqm of vacant commercial space in the portfolio acquired last year, about 2,000 sqm had already been cleared as of the end of March 2019, it said.

Start of construction for several residential projects

As far as development projects are concerned, a building application for construction sites A & C was submitted in Horgen in the second half of 2018. Construction for these sites with 214 apartments and 772 sqm of commercial space is scheduled to start in June of this year. In Fribourg, the first building of the Les Arsenaux project is scheduled to be handed over to tenants in August. The development comprises 234 apartments, including 96 for students, and is located less than 500 meters from the train station.

In Gland, construction of two residential buildings in the city center is to begin this year; the project will be the first in the portfolio to be certified to the Minergie-P standard. On a site next to the Sébeillon buildings in Lausanne, RDF Realstone Development Funds plans to convert existing craft and commercial space into 4,500 sqm with the Sévelin 15 project.

The current residential developments are aimed at increasing the residential share to 80% within five years, Realstone further informs. (ah)