Immofonds increases rental income and aims to grow
The Real Estate Fund increased the market value of its properties by more than 5% in fiscal year 2019/20. Rental income increased by almost 2%. In order to finance further growth, a capital increase is planned.
Since about 90% of the fund's income comes from residential uses, according to fund manager Gabriela Theus, the real estate fund was little affected by the Corona pandemic. Eighty-five commercial tenants were affected by the lockdown, she said, and settlements were reached with the majority. On average, 40% of their rent was forgiven for two months, he said. As a result, the rent default rate increased by 0.5% to 4.7%. Nevertheless, rental income increased byTP2T 1.91 toTP2T 76.1 million.
Net income increased by 0.8% to 45.8 million, and total comprehensive income from 78.3 to 78.4 million. The distribution is expected to be CHF 13.50 per unit, as in previous years.
Acquisitions in Lausanne, Fribourg and Zurich
During the financial year, Immofonds purchased three properties with a total of 64 apartments in Lausanne, Fribourg and Zurich for a total of 33.9 million. 8.9 million was invested in conversions and renovations. The sale of condominium units in Unterentfelden generated proceeds of 4.0 million. It was also decided to sell the property on Via Nova in Domat Ems (GR), the fund management company announced.
At the end of the financial year, the fund held 129 properties with a market value of around 1.69 billion, located mainly in the metropolitan areas of German-speaking Switzerland, primarily in the Zurich region. The increase in market value of 5.3%, or 84.7 million, was due to about half to market-related changes and half to investments in new properties and the development of the portfolio, the statement added.
Capital to be increased by 100 million
Immofonds has several projects in the pipeline: In the coming year, the fund plans to realize a replacement building with 32 apartments on Regensdorferstrasse in Zurich. On Bombachstrasse, also in Zurich, the fund is planning an additional building with eight residential units. Construction is due to start at the beginning of 2021, with occupancy scheduled for fall 2021.
In addition, Immofonds as the building lease holder and the Burgergemeinde Bern as the building lender intend to convert the Wankdorfcity 3 commercial site in Bern into a residential and working quarter. Test planning has been completed, and realization is planned for 2023 at the earliest. In order to push ahead with these projects, the fund is planning a capital increase of around 100 million in the fall of this year. (ah)
