Shrinking returns for Credit Suisse real estate funds

The four real estate funds of Credit Suisse Funds AG, which closed their financial year on September 30, achieved investment returns of between -0.4% and +2.2%. The distributions for the 2022/23 financial year remain stable.

CS 1a Immo PK: Almost 10 percent of shares canceled

For Credit Suisse 1a Immo PK (CS 1a Immo PK), Credit Suisse Funds AG reports that 277,680 units were redeemed at the end of the 2022/23 financial year (September 30), which corresponds to 9.8% of the units in circulation.

The fund achieved a return on investment of 0.3% after 6.2% in the previous year. The return on equity fell from 5.82% to 0.11% in the same period. The market value of the properties fell from CHF 4.92 billion to CHF 4.91 billion. The rental loss rate fell to 5.2% (previous year: 6.1%), while rental income increased from CHF 198.4 million to CHF 203.5 million.

CS 1a Immo PK ended the financial year with a discount of -17.4% (previous year: discount of -12.0TP3T). The performance amounted to -5.4% (previous year: -20.1%). The planned IPO has been suspended in view of the market environment and the acquisition by UBS. Credit Suisse Funds intends to provide information on the next steps in the first quarter of next year.

As in the previous year, the distribution amounts to CHF 45.00/unit with a payout ratio of 93.5%.

CS REF Interswiss: Investment return turns negative

Credit Suisse Real Estate Fund Interswiss (CS REF Interswiss) reported a return on investment of EUR -0.41 K for the past financial year, compared with EUR +4.11 K in the previous year. The return on equity was also negative at -0.56%. In the previous year, the fund still generated a return of 3.71%. The performance amounted to -1.8% (previous year: -14.2%), and the discount rose from -13.7% to -15.4 % within a year.

The market value of the properties fell from CHF 2.67bn to CHF 2.57bn. The rental loss rate fell from 8.0% to 6.3%, and rental income increased from CHF 112.5 million to CHF 113.3 million in the reporting period.

The fund management company also announces that 51,772 units of CS REF Interswiss were redeemed at the end of the financial year, which corresponds to 0.6% of the units in circulation. Last year, 114,029 units had already been redeemed and will be redeemed on December 20. This reduces the number of units in circulation from 8.98 million to 8.87 million as at this date.

During the reporting period, the fund sold a property in Crissier. There were further sales after the balance sheet date: CS REF Interswiss sold two properties in Meyrin and one property in Eysins and Lausanne.

The distribution remains constant at CHF 7.40 (payout ratio: 95.3%).

CS REF Logisticsplus: Strong rise in rental income

The Credit Suisse Real Estate Fund Logisticsplus (CS REF Logisticsplus) generated rental income of CHF 42.1 million in the past financial year, which is CHF 11.3% more than in the previous year (CHF 37.8 million). The rent loss rate fell from 3.5% to 2.6%. The market value of the properties fell from CHF 917.5 million to CHF 901.2 million in the same period.

The return on investments was negative at kEUR -0.31, compared to a positive figure of kEUR 4.41 in the previous year. The return on equity amounted to -0.31% (previous year: 4.34%). The fund's performance amounted to -15.9% after -18.9% in the previous year. The discount amounted to -11.2% (previous year: premium of +5.0 %).

CS REF Logisticsplus also saw terminations: 42,000 units were terminated, corresponding to 0.5% of the units in circulation, according to Credit Suisse Funds.

As in the previous year, the distribution amounts to CHF 3.50/unit with a payout ratio of 95.8%.

After the balance sheet date, the fund acquired a property in Oberentfelden. A new construction project is also being realized in Bülach, which is scheduled to be handed over to the tenant in the second half of 2024.

CS REF Siat: Portfolio value increases

Credit Suisse Real Estate Fund Siat (CS REF Siat) reports a market value of its properties of CHF 3.93 billion for the past financial year, compared with CHF 3.86 billion CMF in the previous year. Rental income increased from CHF 155.1 million to CHF 157.0 million, and the rental loss rate fell to 2.5% (previous year: 3.1%).

The return on investment amounted toT 2.21TP3k afterT 5.21TP3k in the previous year. The performance amounted to 1TP3k 6.3 (previous year: -20.61TP3k), the premium rose from 17.61TP3k to 23.11TP3k.

As in the previous year, the distribution is CHF 5.20/unit with a payout ratio of 100%.

In the past financial year, CS REF Siat sold properties in Chiasso and Delémont. The fund expects to generate additional rental income over the next two financial years from ongoing new construction and renovation projects in Basel, Dübendorf, Liestal, Spreitenbach, Neuchâtel and Brunnen. (ah)