CS Funds Global and International publish annual results
Credit Suisse reports "good operating results" for its internationally investing real estate funds in the past fiscal year.
Credit Suisse Real Estate Fund International (CS REF International) expanded its portfolio during the reporting period and invested in the Polish and South Korean real estate markets. Two acquisitions were made in Warsaw and two in Seoul, while further transactions took place in Manchester and Birmingham, in Austin, Texas, and in Brisbane, Australia. The fund disposed of properties in Osaka (Japan), Adelaide (Australia), Montreal (Canada) and Hanover.
The fair value of all properties as of December 31, 2019 is estimated at CHF 4.34 billion compared to 3.76 in the previous year. The rental default rate decreased from 10.7% to 8.0% and rental income increased to 224.1 million (PY: 185.0 million).
The distribution is CHF 42.00 per unit, as in the previous year, and the distribution yield is 3.5% (PY: 3.7%). In June 2019, the fund conducted an issue and received new money in the amount of 196.9 million. The capital was promptly invested in properties with appealing yields, Credit Suisse said.
CS REF Global without transactions
Credit Suisse Real Estate Fund Global (CS REF Global) did not buy or sell any real estate in the year under review, according to a Credit Suisse statement. The focus was on the management of the existing real estate portfolio. The rent default rate increased from 6.6% to 8.8% due to the insolvency of a tenant. According to Credit Suisse, the vacant space has already been re-let "thanks to the successful recruitment of an established new tenant".
The fund will again distribute CHF 3.40 per unit for fiscal year 2019. The distribution yield is 3.7% after 3.9% in the previous year. The investment return decreased from 5.1% to 4.4%. Performance increased from 2.8% in the previous year to now 8.9%.
In order to better measure and compare the sustainability criteria of individual properties in the future, all commercial fund properties are to be BREEAM In-Use certified. The aim is to reduce operating costs in the long term and optimize the overall performance of the buildings, Credit Suisse said. Seven buildings were certified in 2019, it said. (ah)
