Ecoreal: Return on investment of Suissecore Plus at 2.3%
Ecoreal's Suissecore Plus and Suisseselect investment groups generated investment returns of over 2% in the first three quarters of the financial year. The potential for rent increases is to be exploited.
Ecoreal reports an increase in total assets of CHF 32 million to CHF 1.34 billion for the Suissecore Plus investment group in the second quarter. The return on investment for the first nine months of the financial year amounted to 2.27%. This figure is made up of the investment return based on net income of 2.05% and the unrealized portion of 0.22%. "The EBIT margin improved further, while the rental loss rate remained consistently within the target range," Ecoreal writes in a press release.
Four properties in the canton of Lucerne and building land at Baumstrasse 39 in Schönenwerd (SO) were acquired in the second quarter. In addition, the gatehouse in Basel was handed over to the tenants and some of the commercial space in the Al Pianton development under construction in Bellinzona was let.
Investment return of Suisseselect at 2.88%
Within the Suisseselect investment group, total assets increased by CHF 1 million to CHF 573 million in the second quarter. Interest-bearing liabilities were amortized by CHF 5 million. The remaining fixed advances of CHF 22 million correspond to a debt financing ratio of 3.88%. The return on investment for the first nine months of the financial year amounted to CHF 2.881m. Here, the share of net income was CHF 3.031m and the unrealized portion was CHF -0.151m. The EBIT margin has also improved for this fund, writes Ecoreal. The loss of rent rate was reduced slightly from a high level.
Adjustment planned for commercial rents of 4%
In view of rising interest rates and higher discount rates, value adjustments to the investment foundation's real estate portfolio are to be expected, according to Ecoreal with a view to the imminent end of the financial year. Special attention will now be paid to the rental business and potential for increasing rents. The aim is to increase rents by an average of 3% in the medium term following the increase in the reference interest rate of the Federal Office for Housing. Adjustments could also be made to the commercial portfolio due to the linking of rental agreements to the national consumer price index. The rent increases in the medium and long term therefore amount to an average of around 4%. (aw)
