Residentia yields 2.8 percent
The real estate fund Residentia presents its first annual financial statements after the acquisition by UBS Fund Management. The investment return reaches 2.8%.
On February 1, 2021, the fund management of Residentia changed to UBS Fund Management (Switzerland) AG, and now the first annual financial statements under new management have been published. According to UBS, selective growth in urban locations in Ticino and strategic portfolio adjustments succeeded in stabilizing the market value of the real estate portfolio at CHF 246.7 million at year-end (previous year: CHF 251.7 million).
Rental income decreased from 11.8M to 10.4M, and the rent default rate, including pandemic-related rent abatements, is 16.5%. Excluding rent abatements granted due to the Covid 19 pandemic, the rent default rate is reported to be 16%.
UBS reports the distribution yield at 2.1%, up from 2.3% a year earlier, and the investment return reached 2.8%, up from 1.4% a year earlier. This was also due to the doubling of total return (5M) compared to 2020, the fund management company said. Return on equity (ROE) climbed to 2.7% from 1.3%, and return on invested capital (ROIC) increased to 2.3% from 1.2%. The operating profit margin reached 60% compared to 54.4% in the previous year.
Strengthening the fund's earning power, or operating cash flow, remains a top priority, UBS said, adding that the fund operating expense ratio (TERREF) - GAV fell from 0.87% to 0.72%, which helped improve the result. (ah)
