SPA with successful first quarter
Swiss Prime Investment Foundation (SPA) is satisfied with the results of the first quarter of 2020. The vacancy rate was reduced faster than planned and the quarter ended better than budgeted.
According to the Swiss Prime Investment Foundation (SPA), the "extraordinary situation" declared by the Federal Council on March 16, 2020 and the measures introduced by means of emergency legislation have not yet had any material effect on the operating income or cash flow of SPA Immobilien Schweiz in the first quarter of 2020. Vacancy had decreased from 4.95% to 4.36%, which is why the first quarter of 2020 ended better than budgeted.
Two-thirds of the tenants are not affected by the measures of the Federal Council in the short to medium term, SPA added. The 33% affected tenants had their rent for the months of April and May 2020 deferred, with the timing and amount of the deferral payment agreed individually with each tenant.
Furthermore, the investment foundation states that the Federal Council measures to prevent the spread of the coronavirus will probably have a negative impact on operating income. However, these would be partially offset by the decline in vacancy rates in the first quarter and the reduction in costs. In its quarterly reports - the first of which will be published at the end of June - SPA will
current and substantiated implications on the income and the portfolio. At present, the investment foundation expects rental income to increase in the current year due to the acquisitions in 2019 and the completed projects. The investment group also intends to continue to grow over the next few years - through the development pipeline as well as through acquisitions. (ah)
