Credit Suisse funds unable to escape the pandemic
The results of Credit Suisse's real estate funds have been affected to varying degrees by the Covid-19 pandemic. However, all three recorded lower rental income.
The Credit Suisse Real Estate Fund Green Property (CS REF Green Property) had to waive rental income amounting to CHF 5.9 million or 4.9% of rental income in the 2020 financial year as a result of the Covid-19 pandemic. In view of the reduced income, the distribution per unit fell from CHF 3.70 to CHF 3.40.
Despite the impact of the pandemic, the fund outperformed the benchmark SXI Real Estate Funds Broad (10.8%) with a performance of 12.9%. The premium rose from 32.2% to 43.7%. The market value of the properties increased from CHF 2.71 billion to CHF 2.81 billion due to new construction projects and portfolio revaluations. The average discount rate fell from 3.3% to 3.0%.
CS REF Hospitality: 17.6% of rent waived
The Credit Suisse Real Estate Fund Hospitality (CS REF Hospitality) recorded significantly lower rental income due to sales and the impact of the pandemic. Rent waivers in the past financial year amounted to CHF 6.2 million or 17.6% of rental income. The distribution per unit amounts to CHF 2.50. In July 2020, a partial repayment of CHF 10.00 per unit was paid out from the sale of the Alpine real estate package.
Adjusted for the properties sold in the 2020 financial year, the value of the portfolio properties as at December 31, 2020 decreased by 3.4% compared to the previous year, the report continues. The average discount rate remained unchanged at 3.3%. The discount amounted to 4.9% as at the end of 2020. The shares redeemed at the end of 2018 were repaid on March 27, 2020; no shares were redeemed at the end of 2020.
CS REF Livingplus waives 3.2% of rental income
The real estate fund Credit Suisse Real Estate Fund Livingplus (CS REF Livingplus) reported an increase in the market value of its properties from CHF 2.90 billion to CHF 2.94 billion, mainly due to the reduction in the average discount rate from 3.5% to 3.3%. According to the information provided, the rent loss rate fell to 5.1%, while net income increased to 74.2 million. Rent waivers due to the coronavirus pandemic amounted to 4.4 million or 3.2% of rental income in the past financial year. The distribution per unit remained unchanged at CHF 3.60. (ah)
