A successful year for the Baloise Swiss Property Fund Dienstag, 22. Dezember 2020 - 07:00

Media information

Basel, 22 December 2020. On 30 September 2020, the Baloise Swiss Property Fund concluded its second financial year on a successful note. The fund's net asset value per unit grew by 2.6 per cent year on year to CHF 106.58. The distribution per unit remained stable at CHF 3.00. The distribution yield as measured on the basis of the OTC price stood at 2.5 per cent.

Once again, the Baloise Swiss Property Fund (BSPF) generated nearly 80 per cent of its rental income from residential use in its second financial year. With an overall increase in value of CHF 27.1 million in the 2019/20 financial year (2018/19: CHF 19.1 million), the fund proved its resilience even during the coronavirus pandemic. The investment yield rose from 3.9 per cent in the 2018/19 financial year to 5.7 per cent in 2019/20.

In the reporting year, the BSPF acquired a residential property in Onex and a new construction project in Kriens that includes apartments and retail space. The property located at Am Kreuzbach 22–28 in Wangen was sold.

As at the end of the fund's financial year on 30 September 2020, the BSPF portfolio comprised 55 established properties and one residential construction project. The market value of the portfolio increased from CH 565.9 million as at 30 September 2019 to CHF 610.2 million as at 30 September 2020.

The gross rental income generated by the BSPF increased from CHF 16.8 million in the 2018/19 financial year to CHF 25.0 million in 2019/20 (up by CHF 8.2 million). This increase was attributable to rental income from 20 properties that had been acquired by asset transfer with effect from 1 September 2019 and the acquisition of the property at Chemin de la Traille 7–15 in Onex with effect from 1 December 2019. The rent default rate stood at 5.5 per cent as at 30 September 2020 (30 September 2019: 5.3 per cent), including one-off rent payment waivers due to COVID-19. In mid-May 2020, the fund managers decided to support tenants of commercial property units by offering one-off rent waivers totalling CHF 0.1 million in order to protect income over the long term and avoid vacancies during the COVID-19 crisis. Adjusted for this one-off item, the rate of rent defaults fell to 5.1 per cent.

In the 2019/20 financial year, the fund incurred operating expenses of CHF 4.5 million. The fund operating expense ratio (TERREF GAV) was 0.79 per cent (2018/19: 0.82 per cent). Net income after deduction of other fund-related expenses came to CHF 14.1 million for the 2019/20 financial year (2018/19: CHF 14.3 million) and the EBIT margin stood at 64.4 per cent (2018/19: 67.6 per cent).

Outlook

The fund managers intend to further expand the property portfolio and are reviewing the option of conducting a capital increase in the third financial year (2020/21) to finance this expansion. At the same time, the fund managers continue to optimise the portfolio by leveraging potential for additional rental income at local level through value-enhancing refurbishment and subsequent re-letting.

The BSPF fund managers intend to participate in the Global Real Estate Sustainability Benchmark (GRESB) for the first time in the spring of 2021. In addition, the entire existing portfolio will be analysed in accordance with the criteria for the Swiss cantonal energy certificate for buildings (GEAK Plus4) in the fund's third financial year. The purpose of this step is to further refine the modernisation strategy (including profitability calculation) for each property and to track savings potential regarding carbon emissions and energy consumption transparently in the annual sustainability report.

Information on the Baloise Swiss Property Fund (BSPF)

Name Baloise Swiss Property Fund

Swiss securities no. / ISIN 41455103 / CH0414551033

Fund currency Swiss francs

Appropriation of income Distribution

Legal form Contractual investment fund

Group of investors Restricted to qualified investors within the meaning of article 10 (3) and (3ter) of the Swiss Collective Investment Schemes Act (CISA)

Fund management company Baloise Asset Management AG, Basel

Custodian bank UBS Switzerland AG, Zurich

OTC trading Bank J. Safra Sarasin AG, Zurich

Financial year 1 October to 30 September

Further information

• Media information at www.baloise.com
• Baloise Asset Management
• Annual report of BSPF for the 2019/20 financial year (PDF, German)

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 (0)58 285 8214

Investor Relations: Tel: +41 (0)58 285 8181

About Baloise Asset Management
Baloise Asset Management AG has been in existence as an investment adviser and asset manager ever since the Corporate Division Asset Management (KB AM) was founded in 2001. Baloise Asset Management meets the growing needs of the Group and of third parties for high-quality financial products and expert portfolio management. The Baloise pension investment foundation (BAP) was founded in 1995 for the management of funds in connection with Pillars 2 and 3a of the Swiss social security system. Luxembourg-based SICAV Baloise Fund Invest (LUX) (BFI) was founded in 2001 in order to offer proprietary fund solutions in Baloise’s retail business. In 2018, Baloise Asset Management launched its first real-estate fund for qualified investors, the Baloise Swiss Property Fund.

Disclaimer:

This notification is intended for information purposes only and constitutes neither an offer or recommendation to subscribe to or redeem fund units nor an offer or recommendation to purchase or sell financial instruments or banking services. It is explicitly not directed at persons who are prohibited from accessing such information under applicable legislation based on their nationality or place of residence. Sending or taking this document or any copy thereof to the United States as well as passing on the document or any copy thereof within the United States or to a US person (as defined by Regulation S of the US Securities Act of 1933 as amended) is prohibited. Please note that past performance is not an indication of current or future performance and that performance data does not reflect fees and costs charged for the issuance and redemption of fund units. This document is not a substitute for personal advice. No liability is accepted for the information in this document being accurate, complete or up to date. The fund management does not offer any guarantee in relation to the content of this document and its completeness and does not accept any liability for losses resulting from use of the information contained herein. In particular, recipients are advised to carefully consider the compatibility of the information with their individual personal circumstances and assess any legal, regulatory, tax-related and other implications, consulting an adviser as necessary. The Baloise Swiss Property Fund is a contractual investment fund under Swiss law that falls into the ‘real estate fund’ category and is designed exclusively for qualified investors within the meaning of article 10 (3) and (3ter) of the Swiss Collective Investment Schemes Act (CISA). Purchases of or subscriptions to fund units are based exclusively, and with binding effect, on the current fund contract and the most recent annual report. This notification does not constitute a prospectus as defined by article 35 of the Swiss Financial Services Act (FinSA) and articles 27 et seq. of the listing rules of SIX Swiss Exchange AG. The fund contract including attachments and the annual report can be requested free of charge from the fund managers and the sales office, from Baloise Asset Management AG, Aeschengraben 21, 4002 Basel, Switzerland, and from the custodian bank, UBS Switzerland AG, Bahnhofstrasse 45, 8001 Zurich, Switzerland.