2016-2017 Annual Report of the Realstone Swiss Property fund

Value creation strategy pays off: fund assets and revenues increase


Lausanne, 29 June 2017 – Realstone Swiss Property fund ended its ninth year on 31 March 2017 with revenues of CHF 47.55 million, a 16.9% increase versus the previous year. The property portfolio comprises 57 buildings in 14 Swiss cantons and had a total value of CHF 985 million, for a 2.3% year-on-year rise.


The fund created value mainly by delivering 138 residential units between the Sommerrain project in Ostermundigen (BE) and the Bruggerstrasse 7 project in Wildegg (AG). During the financial year, the fund continued its strategy of adding value to the property portfolio, in particular through renovations. This policy, which was implemented in 2014, is now paying off, as rental income has increased by CHF 6.1 million (+15.8%).


The return on investment at the end of the 2016-2017 financial year stood at 4.43%, and a dividend of CHF 3.80 per unit will be distributed out of net income.


Effective value creation

Realstone Swiss Property fund’s value-creation strategy focuses primarily on tenants’ needs and is implemented through dynamic portfolio management. This entails both renovating and increasing the density of existing buildings. During the 2016-2017 financial year, the fund invested CHF 14.6 million in renovations, raising the overall rental value of the property portfolio by 0.92%. In addition, 43% of the portfolio properties offer value-creation potential.


Promising outlook

Given the attractive locations of its investments, Realstone Swiss Property fund has a bright financial outlook. To counter the risk of an increase in the vacancy rate, Realstone SA invests in well-connected urban centers, close to both infrastructure and jobs. The fund’s management plans to continue acquiring, managing and optimizing its portfolio of buildings with the long-term aim of enhancing and preserving them, in the interest of its investors and its tenants.


Property holdings: a safe haven

At a time of negative interest rates, property investments are a safe haven more than ever before. These investments offer very attractive revenue-optimization solutions.

Realstone Swiss Property fund’s main objective since inception has been to provide unitholders with a regular and stable dividend. As the fund owns its buildings directly, it is liable for all taxes on both income and assets. Unitholders are tax-exempt in this regard and not subject to withholding tax when income is distributed.


Media contact
Sébastien Bourqui, bourqui@cpc-pr.ch – Phone : 022 552 46 46


LEGAL DISCLAIMER These documents and their appendices have been prepared for information purposes only and are not legally binding. These documents do not, under any circumstances, constitute a recommendation to buy nor should they be considered as a basis for making any investment. The past performance of investment funds is no indicator of current or future performance. Performance data do not take account of the commissions and fees incurred on the issue and redemption of units. Information provided on websites cannot be deemed to constitute advice on any legal, tax or other matters. We strongly recommend that anyone considering making an investment in these funds should seek professional advice (from a professional financial intermediary) before making any investment decision.


Thursday, 29 June, 2017