Successful first financial year for the Baloise Swiss Property Fund Dienstag, 10. Dezember 2019 - 07:00

Basel, 10 December 2019: The Baloise Swiss Property Fund successfully closed its very first financial year on 30 September 2019. It generated net income totalling CHF 14.3 million. This results in a dividend payout per unit of CHF 3.03 and a dividend yield of 2.83 per cent (in relation to the OTC trading price) for investors.

Real estate portfolio

On 1 October 2018, Baloise Real Estate Management Ltd launched the Baloise Swiss Property Fund with an initial portfolio comprising 35 properties worth CHF 352.3 million. The successful share capital increase at the beginning of September 2019 allowed the fund to acquire an additional 20 properties worth CHF 193.9 million. The market value of the 55 properties amounted to CHF 565.9 million as of 30 September 2019. The increase in the market value of the portfolio as a whole in the amount of CHF 19.7 million can be attributed to the reduction in discount rates, the increase in the rent level for properties going back on the rental market and the appreciation of a renovated property.

Income from real estate

Rental income of CHF 16.8 million was generated in the fund’s first year, with the rent default rate coming to 5.34 per cent at the end of the financial year. There were a number of successes regarding the rental of commercial use properties. By way of examples, a ten-year rental agreement was concluded for a commercial space in a property in Orbe, and existing tenants of commercial space exercised the extension options set out in their rental agreements. The weighted average unexpired lease term (WAULT) amounted to 3.44 years as of 30 September 2019. The debt financing rate came to 15.02 per cent at the end of the financial year.

Development in net fund assets

In the first financial year, the net fund assets increased by CHF 214.6 million to CHF 489.6 million due to the acquisition of 20 properties, the increase in cash and cash equivalents, and the appreciation in the value of the portfolio as a whole. The net asset value (NAV) per unit stood at CHF 103.86 as of 30 September 2019 (+3.86 per cent since 1 October 2018). In relation to the OTC trading price of CHF 107.00, this results in a premium of 3.02 per cent.

Outlook

The fund management plans to expand the real estate portfolio even further in 2019/2020, the fund’s second financial year. Investments will continue to focus on properties located in cities in fast-growing economic regions and their catchment areas that allow for solid, long-term rental income. Thanks to the low debt financing rate of 15.02 per cent, the acquisition of new properties is likely to be financed by taking on liabilities. There are no plans for any share capital increase in the second financial year. At the same time, the fund management intends to forge ahead with measures to optimise the portfolio, tapping into the local potential for rental income offered by value-enhancing renovation projects and subsequent lets, as well as looking into opportunities to sell individual properties.

Fund information

Additional information

• Media release at www.baloise.com
• www.baloise-asset-management.com
• Current publications

About Baloise Asset Management
Baloise Asset Management Switzerland Ltd has been offering its services as an investment adviser and asset manager since the Corporate Division Asset Management (CD AM) was founded in 2001. Baloise Asset Management (BAM) accommodates the growing needs of the Group and third-party customers for high-value financial products and qualified portfolio management. In 1995, the Baloise Investment Foundation for Pension Funds (BAP) was founded to manage Pillar 2 and 3a funds. The Luxembourg Baloise Fund Invest (Lux) (BFI) SICAV was founded in 2001 so as to allow Baloise to offer its own fund solutions in retail banking, and 2018 saw the operational launch of Baloise Real Estate Management Ltd.

Data protection

We take data protection very seriously at Baloise. Following the implementation of the EU’s new General Data Protection Regulation (GDPR), we would like to inform you that we maintain your contact details (provided by you or publicly accessible) in our database in order to be able to send you our media releases. Should you wish to unsubscribe from the newsletter, please click on the link at the end of this media information. Your data will then be deleted from our database.

Contact

Baloise Group, Aeschengraben 21, 4002 Basel, Switzerland

Website: www.baloise.com

Email: media.relations@baloise.com/investor.relations@baloise.com

Media Relations: Tel. +41 58 285 82 14

Investor Relations: Tel. +41 58 285 81 81

The Baloise Group is more than just a traditional insurance company. The changing security, safety and service needs of society in the digital age lie at the heart of its business activities. The approximately 7,300 employees of Baloise therefore focus on the wishes of their customers. The best possible customer service, combined with innovative products and services, makes Baloise the first choice for people who want to feel simply safe. Located at the heart of Europe, with its head office in Basel, the Baloise Group is a provider of prevention, pension, assistance and insurance solutions. Its core markets are Switzerland, Germany, Belgium and Luxembourg. In Switzerland, with Baloise Bank SoBa, the Group also operates as a specialised financial services provider, offering a combination of insurance and banking services. The Group offers innovative pension products to private customers throughout Europe from its competence centre in Luxembourg. The shares of Bâloise Holding Ltd are listed in the main segment of SIX Swiss Exchange.

Disclaimer:

This notice serves solely for information purposes and does not constitute an offer or a recommendation to subscribe to or redeem fund units or to acquire or sell financial instruments or banking services. It is expressly not intended for persons whose nationality or place of residence prohibits them from accessing such information under the applicable legislation. Neither this document nor copies thereof may be sent or taken to the United States or distributed in the United States or to a US person (within the meaning of Regulation S of the US Securities Act of 1933 as amended). Please note that past performance does not provide any indication of current or future performance and that performance data does not take into account the commission and costs imposed during the issue and redemption of the shares. This document is not a substitute for personal advice. No liability is assumed for the accuracy, completeness or up-to-dateness of the information contained in this document. The fund management does not warrant for its content and completeness, and rejects any liability for any losses which may arise from the use of this information. The recipient is specifically advised in any case to enlist the help of an adviser to review the information in relation to its compatibility with his or her own personal circumstances, and to examine any legal, regulatory, tax or other consequences. The Baloise Swiss Property Fund is a contractual investment fund under Swiss law of the real estate fund variety intended solely for qualified investors within the meaning of Art. 10 para. 3, 3bis and 3ter of the Swiss Collective Investment Schemes Act (KAG). The current fund contract and annex and the relevant current management report form the sole binding basis for acquiring or subscribing to fund units. This notice does not constitute a prospectus within the meaning of Art. 652a or 1156 of the Swiss Code of Obligations (OR) or Art. 27 et seqq. of the listing regulations of SIX Swiss Exchange AG. The fund contract including the annex and the management report can be requested free of charge from the fund management, Baloise Real Estate Management Ltd, Aeschengraben 21, 4051 Basel, Switzerland; from the distribution agent, Baloise Asset Management Switzerland Ltd, Aeschengraben 21, 4002 Basel, Switzerland; or from the custodian bank, UBS Switzerland AG, Bahnhofstrasse 45, 8001 Zurich, Switzerland.