The Patrimonium Swiss Real Estate Fund posted solid results in the 2018/19 financial year. A withholding-tax-exempt dividend of CHF 3.85 per share will be paid, representing a 10% increase on the previous year’s dividend of CHF 3.50. Rental income increased from CHF 39.6 million to CHF 41.7 million. The post-dividend net asset value rose from CHF 129.62 to CHF 131.19 per share, for a return on investment of 4.2%. A capital increase of CHF 60–80 million is planned for September.
The Patrimonium Swiss Real Estate Fund’s rental income increased by 5.33%, or CHF 21.1 million, to over CHF 41.7 million in the year under review. The year-on-year rise was a result of additional income from the rooftop extension to the property at Rue Virginio-Malnati 59–63 in Meyrin, Geneva, and from the acquisition of three properties in the cantons of Vaud and Geneva, as well as increases in rent following renovation work. According to Wüest Partner, the average potential rent increase of the Fund’s properties is around CHF 56/m2 per year.
At 31 March 2019, the Fund’s portfolio consisted of 50 residential properties, eight mixed properties, five commercial properties and four new construction projects, for a total value of CHF 903 million, up from CHF 790 million in the previous year. The financing ratio was 23.6% at 31 March 2019 (27.6% a year earlier), with an average interest rate of 1.25%.
The net asset value (after the dividend payment) rose from CHF 129.62 to CHF 131.19 per share following the successful capital increase in July 2018, which resulted in a rise of around 18% in equity.
Acquisitions during the period included a residential property in Meyrin, Geneva, on 1 December 2018, for CHF 8.1 million; a commercial property in Renens, Vaud, on 31 October 2018, for CHF 27.7 million; and a mixed property in Vevey, Vaud, on 1 January 2019, for CHF 12.35 million. On 31 July 2018, another portion of the “Oassis” construction project in Crissier (Lausanne) was acquired, and on 1 October 2018, the construction project “City-Gate” was acquired in the centre of Basel.
The Fund expects to see further profitable growth in the years to come, thanks to the new construction projects in Montreux, Crissier and Basel, the rooftop extension projects in Lausanne, Geneva, Meyrin and Bulle, and the development potential in Renens and the “LorzeAreal” area of Baar.
Withholding-tax-exempt dividend per share of CHF 3.85 on 21 June 2019 (ex-date: 19 June / value date: 21 June)
The Fund is able to maintain its dividend strategy, thanks to its buy-and-hold investment strategy and its proactive approach to portfolio management, which involves conducting renovations, adding floors to existing properties and embarking on new construction projects. As a result, the dividend will increase by 10% from CHF 3.50 to CHF 3.85 per share (payout ratio: 90.97%).
The Fund is planning a capital increase at the end of September, with a subscription period in early to mid-September. More detailed information about the issue price, subscription ratio and subscription period will be provided prior to the transaction.