Erres increases net income by almost one third
Edmund de Rothschild Real Estate SICAV (Erres) generated net income of CHF25.8 million in the first half of the current fiscal year, up 32.3% from the same period last year.
Revenues increased by 18.3% mainly thanks to proceeds related to the September 2020 capital increase and rental income from new acquisitions, Edmond de Rothschild REIM informs. The rental default rate decreased slightly from 2.95% at the end of March to 2.93% at the end of September.
Total income for the first half of the year is reported to be 29.0 million, up 47.8% from September 30, 2019, while investment return for the first six months of the fiscal year is 1.84%.
As part of off-market transactions, the SICAV has signed several purchase agreements for a total volume of 295 million, for which the transfer of ownership is scheduled by the end of the year. These are a mixed-use building (61% residential) in Thônex (GE) and a mixed-use property (64% residential) and a residential building in Geneva. All three properties are fully leased. Furthermore, Erres is acquiring a real estate company with 18 residential and mixed-use properties, 16 of which are in the canton of Geneva and 2 in the canton of Vaud. The vacancy rate of this portfolio is below 0.5%, and the share of rental income from residential properties is 84% of the current total rental income, it adds.
For the current financial year, which ends on March 31, 2021, Edmond de Rothschild REIM expects a result that will allow the distribution of a dividend increased to CHF 3.55 per share. How the Corona pandemic will play out is difficult to assess at this time, he said. However, it expects a total rental loss of between 0.5% and 0.7% of total revenues in the financial year.
