Baloise Swiss Property Fund yields 5.7%
The Baloise Swiss Property Fund reports an investment return of 5.7% for its second financial year - after 3.9% in the previous year
Baloise Asset Management is satisfied with the second financial year real estate fund Baloise Swiss Property Fund (BSPF). According to the fund management company, total income increased significantly from CHF 19.1 million to CHF 27.1 million despite the Corona pandemic. The investment return increased from 3.9% to 5.7% compared to the previous year. The bottom line for the financial year is a net income of 14.1 million compared to 14.3 million in the previous year. The EBIT margin amounts to 64.4% (previous year: 67.6%).
In fiscal 2019/20, BSPF increased its rental income (gross income generated) by 8.2 million year-on-year from 16.8 million to 25.0 million; almost 80% of which came from residential use. Baloise Asset Management cites rental income from the 20 properties the fund acquired by asset transfer as of September 1, 2019, and one property in Onex (GE) that was transferred to the portfolio as of December 1, 2019, as the reason for the increase.
The rent default rate is reported to be 5.5% (PY: 5.3%). According to the fund management, this figure includes one-time rent waivers of 0.1 million granted as a result of the Corona pandemic. Adjusted for this special effect, the rent default rate was 5.1%, Baloise Asset Management said.
As of September 30, 2020, the BSPF portfolio consists of 55 existing properties and one new construction project. The fund acquired the project with apartments and retail space in Kriens and the residential property in Onex during the reporting period, while the property Am Kreuzbach 22-28 in Wangen was sold. The market value of the portfolio increased from 565.9 to 610.2 million.
The plan is to further expand the real estate portfolio, the fund management company says. To this end, a capital increase is being examined for the 2020/21 financial year. (ah)
