UBS funds keep distributions stable
UBS real estate funds Sima, Foncipars and Swissreal increased their rental income in fiscal year 2022, generating investment returns between 4.3% and 6.4%.
The fund management of the real estate funds UBS Sima, Foncipars and Swissreal is satisfied with the course of the financial year 2022. All three funds reported "very solid annual results". Distributions remain at the previous year's level.
UBS Sima increases rental income
For UBS Sima, UBS Real Estate Switzerland reports an increase in rental income of CHF 15 million, up 4% year-on-year. The rental default rate decreased from 5.3% to 4.5%. The real estate portfolio of the fund, almost half of which is invested in the canton of Zurich, is worth a good CHF 11.45 billion (previous year: CHF 11.03 billion).
The fund's investment return plummeted within a year, falling from 8.6% in 2021 to 4.4% now. Return on equity (ROE) also fell significantly, from 8.3% to 4.3%.
The net asset value increased to CHF 104.11 as of December 31, 2022 (previous year: CHF 102.94). The distribution per unit remains at CHF 3.25 as in the previous year.
UBS Foncipars increases portfolio value by over seven percent
UBS Foncipars, a residential real estate fund in western Switzerland, reported rental income of CHF 87.0 million for 2022, up CHF 2.7 million from the previous year. The rent default rate fell from 2.5% to 1.8%, according to the fund's management. The value of the property portfolio increased by 7.4% to CHF 1.83 billion.
The net asset value per unit increased by 3.5% from CHF 95.72 to CHF 99.07. At 6.4%, the return on investment did not quite reach the previous year's level of 6.9%. The return on equity (ROE) of 5.9% was also below the previous year's level (6.7%). As in the previous year, the distribution per unit amounts to CHF 2.60.
UBS Swissreal holds its ground in difficult market environment
The UBS Swiss Commercial Swissreal real estate fund continued its positive performance even in the volatile market environment of the 2022 financial year, writes the fund management company. According to the annual report, the market value of the properties increased by 2.3% to CHF 2.12 billion, and rental income increased slightly by 1.1% to CHF 101.8 million. The rental default rate decreased from 5.7% to 5.2%.
The return on investment reached 4.3% after 5.0% in the previous year, the return on equity (ROE) also decreased slightly from 4.8% to 4.3%. The net asset value per unit of CHF 63.27 was almost at the previous year's level (CHF 63.26). The distribution remains at CHF 2.65 per unit. (ah)
