The real estate funds of Credit Suisse Funds AG performed well overall in the 2019/20 financial year, which was shaped by the corona pandemic and ended on September 30.
The Covid-19 pandemic has so far only had a minor impact on rental income.
While the return on investment has fallen at the CS 1a Immo PK and the CS Real Estate Fund Siat, the CS Real Estate Fund Interswiss and the CS Real Estate Fund LogisticsPlus have dropped more than in the previous year. The distributions remain the same (1a Immo and Logistics) or are reduced (Interswiss and Siat).
According to a statement by CS on Tuesday, Credit Suisse 1a Immo PK achieved an investment return of 5.2 percent (previous year: 5.3%) and the market value of the properties rose to 4.48 billion Swiss francs (4.16 billion). The rent default rate rose to 8.4 percent (5.9%), primarily due to renovations and reclassifications as well as a temporary vacancy in a logistics property in Geneva. The fund’s rental income amounts to 1.7 percent of rental income. The distribution of 50 francs per unit remains unchanged.
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The CS Real Estate Fund Interswiss increased the return on investment to 8.6 percent (previous year 5.9%). The market value of the properties remained stable at 2.42 billion francs despite four sales. According to the notification, the fund’s rental income amounts to 2.0 percent of the rental income for the past financial year. The distribution will be reduced to 7.60 francs (8.40 francs). This also means that a sustainable level of distribution will be achieved.
Fund management company is considering issuing a logistics fund
The CS Real Estate Fund LogisticsPlus further diversified the portfolio in the 2019/20 financial year. The market value of the properties rose to 643.9 million francs (previous year: 444.6 million), primarily due to the acquisition of existing properties and the realization of two new construction projects. The return on investment rose to 4.22 from 3.31 percent. The fund’s rental income was very low at 0.02 percent of rental income. The distribution remains unchanged at 3.90 francs per unit.
Due to the still attractive market environment for logistics real estate, the fund management company is examining the implementation of an issue in the range between 130 and 180 million francs for the first quarter of 2021, as it continues.
The CS Real Estate Fund Siat was able to increase the market value of the properties to CHF 3,48 billion (CHF 3.30 billion) in the year under review. The return on investment was 6.0 percent (previous year: 7.6%). With 0.5 percent of the rental income, the rental income was also low. The distribution is to fall to 5.20 francs per unit (previous year 5.40 francs).
In Swiss trading, the Credit Suisse share is currently falling 0.51 percent to CHF 11.685.