SPS fund exceeds targeted cash flow return
The commercial real estate fund Swiss Prime Site Solutions Investment Fund Commercial has a cash flow yield of 5.43% and is thus clearly above the target corridor of 3.5% to 4.0%.
The Swiss Prime Site Solutions Investment Fund Commercial (SPSS IFC) generated a cash flow yield of 5.43% in its first full financial year 2022/2023, which is significantly above the target corridor of 3.5 to 4.0%. The net yields of the properties averaged 4.36%, as reported by Swiss Prime Site Solutions.
During the course of the year, the fund purchased two office and research properties in Stabio (TI) worth CHF 91 millionwhich increased the real estate assets by 26%. According to Swiss Prime Site Solutions, the properties are let under long-term triple-net green leases and generate an annual target rent of CHF 3.8 million.
At the end of the financial year, the fund's portfolio comprised 18 properties with real estate assets of CHF 435 million. Rental income increased by 105% to CHF 20.7 million in the reporting period and the rental loss rate fell to 3.3%. The WAULT increased from 3.8 years to 5.4 years.
The over-the-counter price of the fund units rose from CHF 97.00 to CHF 102.50, which corresponds to a performance of 9.37%. The SPSS IFC thus outperformed the index of listed Swiss real estate funds (SWIIT), which rose by 1.95% in the same period. (ah)
