Solvalor 61 significantly increases earnings
In the 2018/19 financial year, the Solvalor 61 real estate investment fund increased its overall result by 27.2% year-on-year to CHF 38.1 million. Rental income increased slightly.
Solvalor 61 attributes the gain mainly to large capital gains not directly realized, combined with property appreciation and the continued decline in transaction market yields. For its 58th fiscal year, which ended June 30 this year, the fund reported an investment return of 4.5%.
The average vacancy rate decreased from 3.3% to 1.6% during the fiscal year. The reason is mainly the completed marketing of a project of Ostermundigen in Bern, the fund says.
Rental income increased by 2.6%, to which reportedly contributed investments in densification and renovation of the real estate portfolio. Among other things, the property at 21-23 Avenue de Cour was increased, the attic of the property at 49 Boulevard de Grancy in Lausanne was expanded and 75 apartments of the total portfolio were renovated.
On October 31, Solvalor 61 intends to distribute a dividend in the previous year's amount of CHF 5.20. The payout ratio is 97.2%.
The fund is currently invested very predominantly - at 96% - in high-quality residential properties in the centers of the major cities in western Switzerland. According to the fund management, the plan is to exploit the densification potential of the existing portfolio. A preliminary study has been commissioned for eleven properties in view of an imminent plan submission. The investments are expected to lead to a "significant increase in rental income in the coming years," it adds. (ah)
