Baloise Swiss Property Fund grows operationally
The fund increased its net income in the past financial year. Devaluations had a negative impact on the overall result.
The total fund assets of the Baloise Swiss Property Fund (BSPF), which is listed on the Swiss Exchange, grew from CHF 871.2 million to CHF 993.3 million in its fifth financial year as a result of a capital increase. The BSPF generated rental income of CHF 34.8 million (previous year: CHF 33.9 million).
Target rental income for the period amounted to CHF 35.99 million, an increase of 1.9% compared to the same period of the previous year. This increase is primarily due to the five properties acquired on September 1 as part of the CHF 135 million capital increase.
This increase in income does not include the rent increases resulting from the increase in the reference interest rate from 1.25% to 1.5%. The target rental income on the portfolio, excluding acquisitions and sales as well as reduced target rental income due to refurbishment, increased by 0.7%. The reduction in the rent default rate by almost a fifth to 3.4% also contributed to the increase in income. Meanwhile, the average remaining term (Wault) of commercial rental agreements increased from 7.57 to 7.72 years. The debt ratio fell to 19.3%.
The fund's net income improved from CHF 18.9 million to CHF 21.8 million. By contrast, unrealized capital losses increased from CHF 0.5 million in the previous year to CHF 17.9 million. As a result, total income decreased from CHF 19.4 million to CHF 4.2 million. The distribution remains stable at CHF 3.00 per share. The payout ratio is 99.2%. (aw)
