Solvalor 61: Fund significantly expands portfolio
Two acquisitions generated significant growth in the fund in the 2023/24 financial year and were one of the reasons for strong rental growth.
The Solvalor 61 fund recorded rental income growth of 6.53% in the 2023/24 financial year, of which 3.76% was attributable to integration and 0.90% to the completion of new properties. A further 1.86% falls into the "organic growth" category, boosted by an environment of rising residential rents.
The portfolio's total assets increased by 14.9% to CHF 1.7 billion. This was primarily due to the acquisition of two new residential properties for a total of CHF 160 million. The fund had been looking for new acquisitions for several months in order to benefit from the price decline on the residential real estate market in French-speaking Switzerland, the fund management writes in a press release. The larger of the two acquisitions was concluded outside of the market (IB had reported exclusive details on this).
Portfolio grows organically by 3.1%
Excluding acquisitions, the market value of the portfolio rose by as much as 3.1% in the financial year. "This increase reflects the ongoing investments in the renovation and densification of the portfolio, but also the quality of the properties and locations."
The rental loss rate fell from 1.39% to 1.13%, the lowest level since 2016. The completion of the properties at Avenue Sainte-Luce 9 and Avenue Victor-Ruffy 75 in Lausanne (VD) also contributed to the growth in rental income.
Net income 11 percent higher - total income significantly lower
As financing costs rose at a similar rate to rental income, the fund's EBIT margin remained stable at CHF 68.601T compared to CHF 69.001T in the 2022/23 financial year. The fund's net income rose byTP3T 10.731 million to CHF 31.0 million. The Solvalor 61 dividend is to be increased from CHF 5.30 to CHF 5.35 per share.
Nevertheless, the fund's total income more than halved, from CHF 98.4 million to CHF 35.8 million. This was due to the fact that the valuation result - although clearly positive at CHF 4.8 million - was significantly higher in the previous year at CHF 70.4 million. (aw)
