UBS Direct Residential increases rental income
The UBS Direct Residential real estate fund was able to reduce its rent default rate in fiscal year 2021/22. As a result, rental income increased.
UBS reports that UBS Direct Residential reduced its cumulative rental vacancy rate from 4.6% to 3.4% in fiscal year 2021/22. The reporting-date vacancy rate as of fiscal year-end was reportedly 3.3%.
Rental income increased by 1.7% from 34.5 million to 35.1 million CHF, mainly due to this lower vacancy rate. Net income amounted to CHF 19.4 million (PY: 17.7 million).
The value of the real estate portfolio increased by CHF 111 million to CHF 914 million - due to upgrades in the portfolio, new construction projects, but also acquisitions, according to UBS: In addition to acquisitions in April and May in Neftenbach (ZH) and Birsfelden (BL), the fund has At the end of June, a portfolio of six properties in six different cantons was acquired.
The return on investment was 4.7% compared with 4.9% in the previous year. The distribution return decreased from 2.5% to 2.1%, and the return on equity decreased from 4.7% to 4.2%. Return on invested capital also decreased slightly, from 3.4% to 3.2%. The operating profit margin (Ebit margin) remained stable at 67%.
The market price of UBS Direct Residential fell from CHF 20.25 to CHF 17.10 during the financial year 2021/2022. The premium decreased from 42.3% to 18.2%. (ah)
