Real estate funds: profit falls due to lower appreciation
The real estate fund increased the value of its properties by CHF 37.4 million in the past financial year. As this figure was significantly higher in the previous year, the overall result is now lower.
The real estate fund increased rental income by CHF 3.11TP3k to CHF 83.2 million in the 2022/2023 financial year. The market value of the properties increased by CHF 9.31TP3k to CHF 2.2 billion. Net income, on the other hand, fell by CHF 2.7% to CHF 47.5 million. "The good operating performance enables an unchanged distribution of 13.50 per unit," the fund management company announced. "We achieved a great deal in an eventful year and achieved a good operating result," says Gabriela Theus, Managing Director of Immofonds Asset Management AG. However, the challenges have also grown, says Theus. The interest rate hikes are putting pressure on margins.
In addition to the expansion of the portfolio, investments in projects were also responsible for the increase in rental income. The rent loss rate fell from 2.5 to 2%. Property expenses were almost on a par with the previous year. Net income fell due to the increase in financing costs and higher asset management fees. There were also unrealized capital gains in the past financial year, but these fell from CHF 99.1 million in the previous year to CHF 37.4 million. Due to the lower appreciation, total income almost halved from CHF 151.6 million to CHF 87.1 million.
"Development pipeline well filled"
In Geneva, a central property with retail and office space and apartments was purchased, as well as a residential property in the Champel district. In Opfikon, the Immofonds rounded off a small residential property with retail space, which is located within the perimeter of the "Glatthof" private development plan. The latest new addition is a commercial property acquired in Zurich with around 8,600 sqm of office and commercial space and "considerable expansion potential". "Our internal development pipeline is well filled," says Theus. The largest project, Wankdorfcity 3 in Bern, has entered the realization phase with the start of construction for a service building (IB reported).
Positive performance
The market price of the real estate fund rose by 3.8% to CHF 540 in the financial year, while the SWIIP benchmark index fell by 3.4%. Investors achieved a performance of 6.5% with their units. The real estate fund expects "moderate growth in rental income" for the current financial year. Overall, the fund is "solidly on track". (aw)
