Swiss Prime Investment Foundation with 3.51% investment return
Swiss Prime Investment Foundation generated an investment return of 3.51% in fiscal 2019, the fourth year since its launch, up from 3.32% the year before.
According to Swiss Prime Investment Foundation (SPA), the real estate portfolio increased due to acquisitions and construction progress on development projects in the amount of CHF 614 million; the investment value increased by 39%. As of December 2019, the real estate portfolio consisted of 78 (2018: 52) portfolio properties and development projects with a total market value of 2.27 billion (previous year 1.63 billion).
Rental income reportedly increased byTP2T 281 toTP2T 62.7 million in the year under review (previous year:TP49.0 million). Realized income increased by 16% from 33.5 million to 38.9 million. According to the SPA, unrealized profit increased byTP2T 811 toTP2T 15.4 million, partly due to a one-off tax effect in the canton of Vaud ofTP2T 2.6 million.
The rent default rate increased from 4.69% to 5.09%. This was due to the transfer of two completed development projects to the real estate portfolio, according to the investment foundation. As in the previous year, the remaining lease term is about 6.8 years. The portfolio has a residential ratio of 51% (previous year 50%).
The operating profit margin decreased from 75.7% to 70.8% due to the ongoing renovation work at Leuenhof in Zurich. The operating expense ratio calculated on total assets (TERISA GAV) decreased from 0.55% to 0.52% in the reporting period, partly due to lower management and asset management fees.
Swiss Prime Investment Foundation expects rental income to increase in the 2020 financial year. As of July 2020, Leuenhof will generate additional rental income. As a result, the EBIT margin should rise again, according to the investment foundation. (ah)
