Baloise Swiss Property Fund lowers rent default rate
The Baloise Swiss Property Fund reports a slightly lower overall result for the first half of the year, slightly higher rental income and a significantly lower rent default rate. The fund management speaks of a good result.
The rental income of the listed Baloise Swiss Property Fund (BSPF) increased by at 1,75% to rd. 17,CHF 1 million. The target rental income from the commercial space be 158,000 due to the adjustment of net rents to the national consumer price index (CPI). CHF increased per year the fund management announces. The rent loss rate amounted to Half-year 3.3 % the target rents and has compared to the Previous year (4,8%) to reduced by 1.5 percentage points. EIncreased external financing and maintenance expenses resulted in a slightly lower Total income of 8.93 million CHF (previous year: CHF 10.34 million).
As at March 31, the portfolio comprised 72 existing properties and one development property. Even after the sale of a small property in Ticino, the focus remains clearly on residential properties with a share of 77.3% of target income, followed by office space with 9.8%. No market value estimates were carried out for the half-year report
At St. Jakobs-Strasse 30 in Basel, the fund re-let an office space with around 300 square meters of rental space as of 1 May; the contract has a fixed term until the end of September 2031. "This will significantly reduce the vacancy rate of the property and extend the average remaining term of the commercial leases across the entire portfolio," the fund management writes in the annual report.
Performance of 1.1%
The fund's price fell from CHF 119.50 to CHF 118.00 in the first half of the year. Including the distribution of CHF 3.00, the fund achieved a performance of +1.1% in the first half of the year. This is slightly below the SXI Real Estate Funds Broad Total Return Index (SWIIT) with a performance of 1.5%. The return on investment amounted to 1.14% after 3.07% at the end of September. The premium remained largely unchanged in the period mentioned (+0.1 percentage points to 9.5%).
Capital increase in September
A CHF 200 million capital increase is planned for the second half of the year (IB reported). This will strengthen the fund's earning power and further diversify it, writes Baloise Asset Management. (aw)
