Truststone Real Estate SICAV (“the SICAV”) continues its growth in the first half-year period 2023/24 (01.04-30.09.2023). Rents collected increased by more than 20% compared to the same period last year – while property expenses and vacancy rates were further reduced. The net asset value (NAV) per unit amounted to CHF 74.93 at the end of the reporting period. Due to the increase in the discount rates applied to two revalued properties, this was CHF 0.18 lower than the NAV as of 31.03.2023 adjusted for the dividend (CHF 1.14).
Rental income rose by 20.3% year-on-year from CHF 1,772,000 to CHF 2,133,000. This increase was achieved thanks to the additional rental income from the acquired property in Yverdon-les-Bains/VD (+3.9%), the contribution in kind of Rue Voltaire 22 in Geneva/GE (+9.0%), the reduction in vacancies, the indexation of rents and rent adjustments in the event of tenant changes (+7.4%). This upward trend is likely to continue, partly due to the letting of vacant space in the Etoy commercial property and by utilizing the rental reserves of the apartments currently under renovation.
Expenditure on property maintenance and servicing remained stable. This trend is likely to continue in the next period. General building costs (insurance, janitor costs, water and electricity costs) are declining. These results are the outcome of active portfolio management and successful cost control coupled with rising income.
The SICAV’s strategy remains unchanged. Targeted investments in renovations, acquisitions and the development of new projects ensure value stability and an optimized portfolio. The SICAV is striving to increase the residential share of the portfolio.
Reducing the vacancy rate in the commercial building in Etoy (VD) could increase the income received by around CHF 900,000.
The SICAV has interesting growth potential with the neighborhood development project in Muttenz (BL) and the expansion of the existing property in Renens (VD). The SICAV’s portfolio is well positioned to further improve profitability and performance.
The semi-annual report 2023/24 is available here (“Documents” section).