1291 expands portfolio by more than a third in financial year 2022/23

1291 The Swiss Investment Foundation believes it is on course despite the difficult market environment. Real estate assets under management in the Real Estate Switzerland and Sustainable Real Estate Projects Switzerland investment groups increased by a total of 37% to CHF 1.4 billion. This was announced by the Investment Foundation when it presented its results for the 2022/23 financial year.

14 new properties for the Swiss Real Estate investment group

The acquisition of a total of 14 properties increased the Real Estate Switzerland investment group's portfolio to CHF 1.3 billion as at June 30 (previous year: CHF 1.0 billion). One commercial property from the portfolio was sold at a profit, meaning that the real estate portfolio comprised 91 properties at the end of the reporting year, spread across the regions of Northwestern Switzerland (30%), Zurich (25%), Berne (15%), Lake Geneva (14%), Eastern Switzerland (10%), Central Switzerland (4%) and Southern Switzerland (2%).

Target rental income from existing properties (excl. projects) increased by 48% year-on-year to CHF 49.5 million (previous year: CHF 33.4 million).

At the beginning of the reporting year, 1291 purchased a CHF 244 million portfolio of predominantly commercial properties. As a result, the proportion of target rental income from residential use has temporarily decreased and amounts to 57% as at June 30, 2023 (previous year: 77%). The residential ratio will rise again thanks to a residential property with 48 apartments in Aigle (VD), which became the property of 1291 in July, and a new residential construction project in Bussigny (VD), which will be completed by the end of the year. Both residential properties have target rental income of CHF 1.6 million.

Revaluation leads to decline in profit

The investment group's net rental income increased by CHF 671,000 to CHF 45.8 million in the reporting year (previous year: CHF 27.3 million), while net income rose by CHF 191,000 from CHF 24.5 million to CHF 29.2 million. The sale of the commercial property also resulted in a capital gain of CHF 0.4 million.

The valuation of the real estate portfolio led to an unrealized capital loss of CHF -19.5 million on the properties, following a capital gain of CHF 41.3 million in the previous year. In relation to the total value of the portfolio, this corresponds to a devaluation of 1.5%. Total income for the financial year amounted to CHF 16.5 million - compared to CHF 52.7 million in the previous year.

Two projects for the Sustainable Real Estate Projects Switzerland investment group

Capital of CHF 55.7 million was raised in an initial subscription for the new Sustainable Real Estate Projects Switzerland investment group launched in July 2022. With two new construction projects in Wil (SG) and Effretikon (ZH), two projects with an expected investment value of CHF 185 million have been tied up. The Realization of the project in Wil is according to the 1291 until spring 2026, the one for Effretikon between the beginning of 2025 and the end of 2027.

As at June 30, the two new construction projects were valued at CHF 68.9 million. Net income for the financial year amounted to CHF 0.6 million. The total income of CHF 2.8 million includes an unrealized capital gain of the same amount due to the revaluation gain on the property in Wil. The net assets of the investment group amounted to CHF 58.6 million. (ah)