Ecoreal: Value adjustments depress returns of the investment groups
The Suissecore and Suissecore Plus investment groups were unable to escape the negative market trend, as can be seen from the initial figures for the financial year.
The Ecoreal Investment Foundation has presented initial figures for its Suissecore and Suissecore Plus investment groups for the financial year ending September 30. According to the figures, the total assets of Suissecore Plus increased by CHF 4 million to CHF 1.34 billion in the third quarter of this year compared to the previous quarter. The return on investment for the full financial year (01.10.2022-30.9.2023) is estimated at 2.44% - compared to 9.68% in the previous year. A negative return on changes in value (based on unrealized capital gains) of 0.30% reduced the return on investment based on net income from 2.74% to 2.44%. According to Ecoreal, the EBIT margin increased further compared to the previous year. The rental loss ratio amounted to kEUR 7.651 (previous year: kEUR 8.051), while the operating expense ratio (TER ISA GAV) was kEUR 0.381 after kEUR 0.411 in the previous year.
Devaluation at Suisseselect
A market value adjustment on the real estate portfolio in the third quarter caused the total assets of the Suisseselect investment group to fall by CHF 7 million to CHF 566 million. The return on investment for the financial year amounted to CHF 2.451 K, compared with CHF 6.311 K in the previous year. Devaluations also had an impact here: a negative return on changes in value of 1.61% reduced the return on investment based on net income from 4.06% to 2.45%. The rent loss ratio rose from 11.0% to 13.63% over the course of the year. The operating expense ratio (TER ISA GAV) fell from 0.46% to 0.42%.
Progress with the construction projects
Meanwhile, the investment foundation's construction projects are proceeding according to plan, Ecoreal continues to report. The Al Pianton residential development in Bellinzona is being realized for the Suissecore Plus investment group. According to Ecoreal, 72 of 81 apartments have already been reserved and a large proportion of the commercial space on the first floor has been let. Marketing of the 85 residential units in the Freiley project in the Albisrieden district of Zurich will start soon. According to Ecoreal, demand far exceeds supply.
In the meantime, the upgrading of the Stettbacherhof commercial building in Dübendorf (ZH), which belongs to the Suisseselect investment group, has also been approved. Ecoreal has announced that a passageway will be created between Zürcherstrasse and Auenstrasse. The investment foundation has now secured Lidl Switzerland as a tenant. The discounter will rent a 1,700 square meter space from spring 2024. (ah)
