UBS funds present half-year results
The two real estate funds UBS Direct Residential and UBS Direct Urban have significantly reduced rent default rates in the first half of fiscal year 2019/20.
UBS Direct Residential reported net income of 8.8 million in the first half of fiscal 2019/20 - up from 9.0 million a year earlier. Total income increased from 6.5 to 8.5 million. The rent default rate decreased from 7.9% to 5.5% within the year.
The six-month return on investment remained stable at 1.6%; ROE (return on equity) increased slightly from 1.4% to 1.5%. The distribution yield decreased from 2.8% to 2.4%.
Direct Urban increases net income
UBS Direct Urban generated net income of CHF 4.4 million, compared with CHF 4.0 million in the previous year. Meanwhile, total income decreased from 3.9 to 3.6 million. The rent default rate decreased from 7.7% to 6.4% as of December 31, 2019, compared to the previous year.
The investment return after six months is 1.1%, and the equity return is also 1.1% in the period. The distribution yield is put at 2.5%. (ah)
