1291 AST: "Real Estate Switzerland" with higher total income
Higher interest and maintenance costs had a negative impact on net income in the 2023/24 financial year, but a lower valuation loss ensured a better bottom line.
The 1291 Investment Foundation increased its real estate assets under management by 4% to CHF 1.45 billion in the 2023/24 financial year. The majority of the properties are attributable to the "Real Estate Switzerland" investment group, which increased the market value of the portfolio slightly from CHF 1.33 billion to CHF 1.35 billion. Rental income increased by 7% year-on-year to CHF 49.1 million. The 91 existing properties recorded target rental income of CHF 52.5 million. A residential property acquired in Aigle (VD) in the previous financial year and the completed "Ehden Parc" project in Bussigny (VD) contributed to the increase in rental income. The vacancy rate was reduced by 1.6 percentage points to 3.3%.
Net income for the financial year fell from CHF 29.2 million to CHF 24.7 million. The company attributes this to higher interest costs (+3.6 million) and higher property maintenance costs (+1.8 million CHF). The valuation of the real estate portfolio by the independent real estate valuer resulted in an unrealized capital loss of CHF 8.0 million "due to slight increases in the discount rates for individual properties". As the devaluation in the previous year was significantly higher at CHF -19.5 million, the overall result improved from CHF 16.5 million to CHF 20.6 million. Based on the dividend proposed by the Board of Trustees, the distribution yield is 2.46%.
Assets of the "Sustainable Real Estate Projects Switzerland" investment group valued at 96 million
The "Sustainable Real Estate Projects Switzerland" investment group, which was only launched in mid-2022, still holds two new construction projects in Wil (SG) and Effretikon (ZH). Once completed, they are expected to have an investment value of around CHF 185 million. The Bahnhofstrasse project in Wil is currently in the realization phase and is reportedly proceeding according to plan. The project is scheduled for completion at the end of March 2026. In the main building, 32 apartments have already been let to the Thurvita senior citizens' center, while rental agreements for both the restaurant and office space in the head-end building have been concluded early on. Marketing for the remaining apartments will begin in spring 2025. For the project in Effretikon, a rental agreement has been signed with a local grocer for around 4% of the space available in the future. The building permit for this project is expected at the end of 2024. Construction is then expected to start in early 2025 and the project is expected to be completed by mid-2028. The two projects were valued at CHF 96.3 million as at June 30. (aw)
