Real estate fund increases earnings by more than 10%
The real estate fund generated net income of CHF 24.7 million in the first half of 2020/2021 - an increase of 10.7%. The performance is put at 11.8%.
According to the fund management, the Immofonds' rental income increased by 2.2% to CHF 38.9 million in the reporting period. The increase was mainly due to the new properties acquired in 2020 and the commissioning of the renovated property in Cham.
Expenses for interest, taxes, maintenance, administration and remuneration were slightly below the previous year; net income amounted to 24.7 million. The sale of a property on Via Nova in Domat/Ems resulted in a profit of 3.3 million, which had a positive impact on the overall result: It increased by 20.8% to 28.5 million. The market value of the portfolio, which consists of 129 properties, increased byTP2T 3.01 to aroundTP1.74 billion.
The fund management is satisfied with the performance in the first half of the year: The fund's focus on residential properties (share of over 80%) has proved successful and ensured stable income. However, the leasing of vacant commercial and office space has been challenging. The rental loss rate reportedly increased from 3.9% to 4.2% in the reporting period, with accruals for corona-related losses taken into account, compared to the same period last year. (ah)
