Credit Suisse funds yield between 4.1 and 6.2 percent

Credit Suisse Funds AG presents the annual financial statements of its real estate funds, which "had a good year in terms of fundamentals," according to Credit Suisse. According to the report, investment returns reached values between 4.1% and 6.2%. The performance of the funds ranged from -14.2% to -20.6%.

CS 1a Immo PK: Investment return rises to 6.2 percent

Credit Suisse 1a Immo PK (CS 1a Immo PK) reports an investment return of 6.2% for the financial year 2021/22 (previous year: 5.1%). The market value of the properties increased from CHF 4.8 billion to CHF 4.9 billion, while the rent default rate decreased from 7.8% to 6.1%. As in the previous year, the distribution amounts to CHF 45.00/unit.

In the secondary market, CS 1a Immo PK ended the 2021/22 financial year with a discount of -12.0% (previous year: premium of 16.4%). Accordingly, the fund posted a performance of -20.1% in secondary market trading (previous year: 19.4%).

The fund sold three properties in Pfungen, Lucerne and Steinhausen - according to Credit Suisse, significantly above market values overall. In addition, three new construction projects in Agno, Locarno and Romanshorn and two refurbishments in Geneva and Neuchâtel were completed and handed over to tenants.

Credit Suisse is sticking to the fund's IPO - which was actually planned for the fourth quarter of 2022. The next earliest possible date is the fourth quarter of 2023 - "provided volatility and trading volumes have returned to normal by that time".

CS REF Interswiss: Investment return increases slightly

Credit Suisse Real Estate Fund Interswiss (CS REF Interswiss) generated an investment return of 4.1% in fiscal year 2021/22, compared to 4.0% in the previous year. The market value of the properties increased from CHF 2.4 billion to CHF 2.7 billion, and the rent default rate decreased from 9.8% to 8.0%. The distribution remains stable at CHF 7.40/unit.

Performance declined fromTP8.4% to -TP14.2% in the completed fiscal year, with the premium falling fromTP4.6% to -TP13.7%.

Credit Suisse further reports that as of September 30, 2022, notices of redemption had been received for 114,029 units, representing 1.3% of the units outstanding. The redemption is expected to take place in December 2023, subject to the ordinary notice period.

Acquisitions were made in Berne (1) and in Geneva and Yverdon (2 each). In Nyon, the fund sold one property.

CS REF Logisticsplus: Investment return falls to 4.4 percent

At Credit Suisse Real Estate Fund Logisticsplus (CS REF Logisticsplus), the investment return decreased from 5.2% to now 4.4%. The distribution is reduced to CHF 3.50/unit (previous year: CHF 3.90).

The fair value of the portfolio increased to CHF 917.5 million (previous year: CHF 813.4 million), which, according to Credit Suisse, is mainly due to the acquisition of existing properties and the completion of a construction project: properties were acquired in Unterkulm, Cousset and Illnau-Effretikon; the Parking Kunstmuseum in Basel was completed. In addition, four smaller properties, some with expiring leases, were sold at slightly above market values, Credit Suisse said. The rent default rate was 3.5%, compared with 3.0% in the previous year.

The performance of CS REF Logisticsplus decreased from 10.0% to -18.9 %, and the premium decreased from 36.2% to 5.0%.

CS REF Siat: Investment return declines to 5.2 percent

Credit Suisse Real Estate Fund Siat (CS REF Siat) reported an investment return of 5.2% for the financial year 2021/22, compared with 6.4% in the previous year. The fair value of the properties was CHF 3.9 billion (PY: 3.7 billion). The rent default rate decreased by one percentage point to 3.1% (PY: 4.1%). As in the previous year, the distribution is CHF 5.20/unit.

The performance of CS REF Siat decreased from 19.8% to -20.6%, and the premium decreased from 54.1% to 17.6%.

The fund has acquired a building project in Brunnen, and there was a sale in Rothrist. CS REF Siat is currently realizing construction projects in Basel, Dübendorf, Neuchâtel, Prangins and Spreitenbach. (ah)