The PATRIMONIUM SWISS REAL ESTATE FUND (PSREF) recorded a positive performance of 8.05% in the 2019/2020 financial year. Rental income increased from CHF 41.7 million to CHF 43.5 million and the net asset value (NAV) rose from CHF 131.19 to CHF 135.27 per share after distribution, equating to a performance of 5.89%. A dividend of CHF 3.65 is to be distributed.
The rental income generated by the PSREF in the financial year amounted to over CHF 43.5 million. The increase in rental income compared to the previous year is partly attributable to the letting of apartments in the extended property at Chemin du Couchant 25 in Lausanne/VD, the full rental income of the properties at Chemin du Chêne 3-5 in Renens/VD and Général-Guisan 60-62 in Vevey/VD, as well as the rental income from the acquisition of the property at Place du Vallon 10 in Lausanne/VD. According to Wüest Partner, the average potential for rent increases of the residential properties is around CHF 54/m2 per year.
As at 31 March 2020, the PSREF portfolio comprises 51 residential properties, 8 mixed-use properties, 5 commercial properties and 4 new construction projects. The portfolio has a total value of CHF 980 million (previous year: CHF 903 million).
With the proceeds from the issuance of new shares carried out in September 2019, the fund was able to acquire a property in Lausanne/VD for CHF 5 million from 1 September 2019, reduce the debt ratio as well as finance extension projects. Following the repayment of a mortgage of CHF 68 million combined with a capital increase, the debt ratio amounted to 20.40% as at 31 March 2020 (31 March 2019: 23.59%), with an average interest rate of 1.40%.
Purchasing additional, existing real estate while maintaining the investment criteria of the fund is difficult. Accordingly, growth is also ensured with projects to add floors in properties in Meyrin/GE, Geneva, Bulle/FR as well as with construction projects in Montreux/VD, Crissier/VD and Basel-Stadt. The additional rental income to be generated by these new floors and construction projects will come to around CHF 5.7 million over the next two years.
Covid-19: The PSREF has been relatively unaffected by the Covid-19 crisis due to its high residential share. Requests to reduce rental payments were analysed in detail and appropriate solutions found.
The dividend (free of withholding tax) of CHF 3.65 per share is to be distributed as at the value date 10 July 2020 (ex-date: 8 July 2020).
Jürg Hürzeler, Director of Business Development
Christophe Morize, Managing Director Investor Relations
PATRIMONIUM SWISS REAL ESTATE FUND
The PATRIMONIUM SWISS REAL ESTATE FUND invests in residential and mixed-use properties with a focus on residential properties in the low and mid rent segment, primarily in the Lake Geneva region as well as in Fribourg, Bern, Basel and Zug. The fund gives private and institutional investors access to a diversified real estate portfolio with attractive development potential.
Patrimonium Asset Management AG
Patrimonium Asset Management AG, a company of the Patrimonium Group, is an asset manager of collective investment schemes approved by the Swiss Financial Market Supervisory Authority (FINMA).
GAM Investment Management (Switzerland) AG
GAM Investment Management (Switzerland) AG acts as the fund manager for the PATRIMONIUM REAL ESTATE FUND. The fund manager has delegated portfolio management to Patrimonium Asset Management AG. The custodian bank and paying agent is Banque Cantonale Vaudoise, Place St-François 14, 1001 Lausanne.