Real estate fund takes more
The real estate fund increased rental income by 3.4% in the first half of 2021/22 and significantly reduced the rent default rate.
According to the fund management of Immofonds, measures to reduce rent defaults such as repositioning, redevelopment and conversion of properties have had a positive impact: In the first half of 2021/22, the rent default rate decreased from 4.2% to 2.5%. Rental income increased by 3.4% to 40.2 million in the same period, with about half of the increase attributable to the reduction in rent defaults and half to newly acquired properties, the fund management company said. Net income was reportedly on par with the previous year at 24.3 million. As no properties were sold and there were no capital gains, the overall result was below the previous year.
As of December 31, 2021, the Immofonds portfolio comprised 130 properties with a market value of 1.84 billion, an increase of 1.5% compared to the same period of the previous year. Last fall, work began on a replacement building with 32 apartments on Regensdorferstrasse in Zurich; occupation is planned for fall 2023. Another property in Zurich is to be completely renovated and converted into residential space; the building application for this has been submitted. Construction is scheduled to start in 2023 and occupation is planned for 2025. Project planning has begun on the major Wankdorfcity 3 project in Bern; construction work is expected to start in early 2024.
The distribution was CHF 13.50 per unit, which - based on the share price as of June 30, 2021 - corresponds to a distribution yield of 2.2%. The performance in the first half-year amounts to 7.0%. (ah)
