La Foncière increases return on investment
La Foncière real estate fund has a return on equity of 9.12% at the end of fiscal 2022. However, the stock market price has plummeted.
La Foncière has presented the results of the financial year 2022. According to the results, the value of the real estate portfolio has increased: At the end of the fiscal year (September 30, 2022), the total assets of the fund amount to CHF 1.81 billion, which is 9.7% more than the previous year. This is reported by the real estate company. The net value of the fund is reported at CHF 1.38 billion (+6.72%). The debt financing ratio is 15.64% of the market value of all properties (previous year: 13.42%), La Foncière further informs.
The real estate fund was unable to decouple itself from the difficult stock market environment: the share price fluctuated between CHF 114.40 and CHF 162.00 over the course of the year, closing at CHF 126.50 (PY: CHF 156.10). The premium is 25.12%.
According to La Foncière, the rental income recorded is CHF 85.05 million (+1.27%), the vacancy rate is 0.71% (PY: 0.57%) and the rent default rate is 0.84% (PY: 1.07%).
Yield increases over the course of the year
Furthermore, the real estate company shows a 1-year performance of -17.78%, calculated over five years the performance is 26.60%. The return on equity (ROE) climbed from 7.57% to 9.12%. Return on invested capital (ROIC) increased from 5.90% to 6.97%. The fund operating expense ratio TER(REF GAV) was 0.69% (previous year: 0.71%).
The dividend is increased to CHF 2.47 (PY: CHF 2.27). The dividend yield amounts to 1.79% (PY: 1.41%).
According to La Foncière, the two projects in Geneva - the new building in Rue de La Servette and the Côté Parc development - are well advanced. The handovers are planned for the end of 2023 and the beginning of 2024 respectively.. (ah)
