Solvalor 61 increases earnings

The Solvalor 61 fund increased its net income by 1.4% in the 2022-2023 financial year. Rental income increased by 2.7% and the dividend remains stable at CHF 5.30 per unit. "The fund's low leverage ratio (15.67%) and the purity of the portfolio are important stability factors in the current market," writes fund management Realstone. As at June 30, the fund's total assets amounted to CHF 1.45 billion. The financial year was characterized by the integration of three new properties at a total purchase price of CHF 35.81 million. These three acquisitions in Clarens (VD), Carouge (GE) and Geneva are reported to have a high rental reserve estimated at more than 50%.

Construction work continued in particular on the properties in Lausanne, at Avenue Sainte-Luce 9, Avenue Victor-Ruffy 75 and Avenue Floréal 12-14/Rue Voltaire 7, as well as on the property at Rue des Asters 18-20 in Geneva.

Largest renovation project to date

Solvalor 61's sustainability targets are to be achieved through almost 50 renovation projects by 2031. Work will begin on almost ten properties in the 2023-2024 financial year. "This will be the largest renovation ever carried out on Solvalor 61's real estate portfolio in recent decades," it says.

Overall success increases significantly

The realized profit of CHF 28.01 million is CHF 1.4% higher than in the previous year. Total income amounted to CHF 62.72 million, which corresponds to an increase of CHF 4.4% compared to the 2022 financial year. "Among this income, rental income rose by CHF 2.7% to CHF 61.20 million, which is attributable to both an increase in the tenant level and a decrease in vacancies," writes the fund management company.
Finally, the growth in Solvalor 61's net income confirms the portfolio's ability to generate a solid return and be resilient despite rising interest rates. Unrealized income (including liquidation taxes) increased from CHF 42.7 million to CHF 70.44 million, while total income rose from CHF 70.4 million to CHF 99.4 million.

"Open for contributions in kind"

The fund management company intends to continue its strategy of acquiring new residential properties. Solvalor 61 is now open to contributions in kind, it adds. (aw)