Dominicé Swiss Property lowers rent default rate
The fund significantly improved its rental income and net income in the 2023/24 financial year.
In the 2023/24 financial year, the Dominicé Swiss Property Fund reduced the rent loss ratio from 2.4 to 1.82%. This was one of the main reasons for the increase in rental income and other income of EUR 7.681T. Additional income from apartment renovations, the indexation of rental agreements and contributions from the newly acquired property Avenue de Montchoisi 26/28 in Lausanne (purchase price: around CHF 11 million) also contributed to this. Total costs increased by 15.39% due to higher financing costs.
Debt falls sharply
The real estate fund closed its tenth financial year on June 30 with total assets of CHF 556 million, which corresponds to an increase of 3.80%. This growth is mainly due to the aforementioned acquisition. The overall valuation of the properties remained stable, with a slight increase of 1.49%. Thanks to the two capital increases in the first half of the year, the debt ratio was significantly reduced from 28.7TP3T to around 18%.
Dividend yield falls due to financing costs
The fund increased its net income by almost 18% to CHF 11.25 million, while total income improved from CHF 8.7 million to CHF 10.8 million. At 13.62%, the performance on the stock exchange exceeded the 10.65% of the SWIIT Index in the same period. However, the distributable net profit fell from CHF 3.28 per share to CHF 3.13, mainly due to higher financing costs. "To support our distribution policy, the fund manager has decided to take 2 centimes from distributable reserves, increasing the dividend to CHF 3.15 per unit, with a payout ratio of 100.8%." (aw)
