Credit Suisse funds hardly affected by the pandemic
The Corona pandemic has had little impact on the Credit Suisse funds CS REF Green Property, CS REF Hospitality and CS REF Livingplus. The funds are keeping their distributions stable.
CS REF Green Property with market value of over 3 billion
Credit Suisse Real Estate Fund Green Property (CS REF Green Property) expanded its portfolio in fiscal year 2021: In May 2021, the fund acquired the Cosmos construction project in Dübendorf from Mobimo. By fall 2023, 168 apartments as well as office and commercial space will be completed there.
In addition, the fund acquired an office property in Bern at the end of 2021. The building, which was constructed in 1967, is to be completely renovated between 2024 and 2027. For strategic reasons, a small residential development in Othmarsingen was sold.
The market value of the properties increased to 3.05 billion (previous year: 2.81 billion) due to new construction projects and portfolio revaluations, Credit Suisse Funds AG reports. The average discount rate fell from 3.0% to 2.9%.
Rent defaults decreased from 5.7% to 4.4%, and rent abatements granted as a result of the Covid 19 pandemic amounted to 3.7 million and 3.2% of target rent revenue, respectively.
Further, CS REF Green Property reports a performance of 6.8% for the fiscal year 2021 (previous year: 12.93%). The premium increased from 43.7% to 48.1%. The distribution per unit remains constant at CHF 3.40. The leverage ratio was 19.0%.
CS REF Hospitality with performance of 12.5%
Credit Suisse Real Estate Fund Hospitality (CS REF Hospitality) achieved a remarkable success last year, when the city hotel industry faced major challenges due to the pandemic: The fund found a new user for the former Swissôtel in Zurich-Oerlikon. The operating company KNSA Hospitality, with which a long-term lease has been signed, is opening Switzerland's first "Mama Shelter" hotel there. The building permit for the renovation and conversion of the hotel tower has been issued. In the course of the renovation work on the 50-year-old listed property, the hotel rooms will be reduced in favor of 132 new 1.5- and 2.5-room apartments and minilofts. The renovation is expected to take two years.
The fund's performance in the past fiscal year reachedTP2T 12.51 (previous year:TP2T -19.431). The discount of -4.9% in the previous year turned into a slight premium of 2.6% during the year. The fair value of the properties decreased due to the Sale of the Swissôtel Le Plaza in Basel to CHF 775.5 million (previous year: CHF 819.3 million). The average discount rate decreased from 3.3 % to 3.2 %.
The rent default rate decreased fromTP2T 3.81 toTP2T 1.31. In connection with the pandemic, rent waivers have been granted in the amount of 0.1 million or 0.3% of the target rental income. The distribution per unit remains constant at CHF 2.50. The debt financing ratio amounted to 14.3 %.
CS REF Livingplus optimizes the portfolio
Credit Suisse Real Estate Fund Livingplus (CS REF Livingplus) completed a number of portfolio transactions in fiscal year 2021. In Bad Zurzach and in Lugano, the fund acquired one building-approved new construction project each. In return, four properties in Bad Zurzach, Cham, Grenchen and Lugano that were no longer in line with the fund's strategy were sold "at attractive conditions," according to Credit Suisse Funds AG.
The performance of the fund in fiscal year 2021 was 8.2% (previous year: 16.95%). The premium increased during the fiscal year from 54.8 % in the previous year to 60.3 %. The fair value of the properties increased from 2.94 billion to 3.05 billion, and the average discount rate decreased from 3.3% to 3.1%.
The rent default rate decreased from 5.1% to 4.4%. Rent abatements related to the Corona pandemic were 1.0 million or 0.7% of target rental income. The distribution per unit remained constant at CHF 3.60. The debt financing ratio was 19.3%. (ah)
