Zurich, 24 November 2022
Ad hoc announcement pursuant to Art. 53 LR
Swiss Life REF (CH) ESG Swiss Properties: closing of the 2021/2022 financial year with significant growth and low vacancy level
The real estate fund's successful growth trajectory continued in the 2021/2022 financial year. The newly acquired 17 properties were integrated and the already low vacancy rate of the entire portfolio was again significantly reduced to a low level of 2.3% (previous year 2020/2021: 3.2%). Combined with the portfolio growth this resulted in a significant 22% rise in rental income to CHF 83.9 million (previous year 2020/2021: CHF 68.7 million).
The Swiss Life REF (CH) ESG Swiss Properties real estate fund holds a real estate portfolio diversified throughout Switzerland totalling 151 properties with a market value of around CHF 2345 million (as at 30 September 2022). The properties in the portfolio throughout the entire reporting period developed positively overall by CHF 51.6 million, or 1.4% (net, after deduction of investments). This once again demonstrates the quality of the good core portfolio and the high demand for residential use. The net asset value per unit (incl. distribution) thus also increased by 2.0% to CHF 115.60 (previous year 2020/2021: CHF 113.36).
Portfolio development and performance
A capital increase of CHF 300 million was carried out in the past financial year. The new capital was used to acquire a portfolio of 17 properties from Swiss Life Ltd., thus continuing the qualitative growth and further increasing diversification. In addition, two properties were sold at the end of the financial year in Sins (AG) and Sursee (LU) with high net capital gains. The share of debt capital was thus reduced to 22% (as at 30 September 2022).
Overall, the profit realised in the 2021/2022 financial year came to CHF 52.2 million. Investors will receive a total distribution of CHF 42.1 million (80.7%) respectively CHF 2.60 per unit. This corresponds to a yield on distribution based on the exchange price of 2.11% (as at 30 September 2022), or 2.25% based on the NAV. In a difficult market and interest rate environment, the quotation fell by -9.59% during the reporting period, even though it was well below the market for listed real estate funds (SXI Real Estate® Funds Broad TR: -16.08%).
As a result of portfolio growth, the management fee of LIVIT Ltd. was reduced as of 1 October 2021 from 4.0% to 3.8% of actual rental income. In addition, the management fee will be reduced from 0.62% to 0.60% of the total fund assets as of 1 January 2023.
With the introduction of the dedicated sustainability strategy as of 1 June 2022, environmental, social and governance (ESG) factors are systematically integrated into the investment and risk management processes at Swiss Life REF (CH) ESG Swiss Properties. The extension of the fund name to include the addition of “ESG” ensures the consistent and concrete continuation of the sustainability strategy pursued since 2018. The Swiss Life REF (CH) ESG Swiss Properties real estate fund has been participating in the annual GRESB (Global Real Estate Sustainability Benchmark) ratings ever since. In 2022, the fund again received the “Green Star” rating of three out of five possible stars – an acknowledgement of good ESG integration in real estate investments. Improving energy and CO2 efficiency will be the focus of environmental measures in the coming years. The aim is for the Swiss Life REF (CH) ESG Swiss Properties real estate portfolio to comply with a CO2 reduction path corresponding to the 1.5 degree target in the Paris Agreement. The real estate fund does this primarily by gradually replacing fossil heat generation systems in its existing buildings. A significant part of this can be realised as part of total refurbishments. The future heating replacements were already modelled in non-fossil variants in the property valuations in the 30 September 2021 financial closing and are thus largely reflected in net assets.
Further information on the fund is available at the following link.
Phone +41 43 284 77 77
Phone +41 43 284 52 76
Swiss Life Asset Managers
Swiss Life Asset Managers has more than 165 years of experience in managing the assets of the Swiss Life Group. This insurance background has exerted a key influence on the investment philosophy of Swiss Life Asset Managers, which is governed by such principles as value preservation, the generation of consistent and sustainable performance and a responsible approach to risks. Swiss Life Asset Managers offers this proven approach to third-party clients in Switzerland, France, Germany, Luxembourg, the UK and the Nordic countries.
As at 30 June 2022 assets under management for third-party clients amount to CHF 99.7 billion. Together with insurance mandates for the Swiss Life Group, total assets under management at Swiss Life Asset Managers stood at CHF 249.9 billion. Swiss Life Asset Managers is a leading real estate manager in Europe1. Of the assets totalling CHF 249.9 billion, CHF 88.0 billion is invested in real estate. In addition, Swiss Life Asset Managers, in cooperation with LIVIT Ltd., manages real estate totalling CHF 28.5 billion in value. Total real estate under management and administration at the end of June 2022 thus came to CHF 116.5 billion.
Swiss Life Asset Managers employs more than 2500 people in Europe.
Swiss Life enables people to lead a self-determined life and look to the future with confidence. Swiss Life Asset Managers pursues the same goal: We think long-term and act responsibly. We use our knowledge and experience to develop future-oriented investment solutions. This is how we support our customers in achieving their long-term investment objectives, which in turn also take account of their client’s needs so they can plan their financial future in a self-determined manner.
1 INREV Fund Manager Survey 2022 (AuM as of 31.12.2021)
This announcement has been produced with the greatest of care and to the best of our knowledge and belief. However, we do not accept any liability for losses which might arise from making use of this information. This publication is not intended as a solicitation or recommendation to buy or sell investment instruments but only serves to provide information. Prior to subscribing or acquiring fund units on the stock exchange, investors should obtain and carefully read the detailed information on the fund contained in the regulatory documentation (prospectus with integrated fund contract, simplified prospectus and the latest annual and semi-annual reports) that serve as the sole legal basis for the purchase of fund units. They may be ordered free of charge in electronic or printed form from the fund management company, Swiss Life Asset Management Ltd., General-Guisan-Quai 40, 8002 Zurich. Past performance is not an indicator of current or future performance. The performance data do not include commissions and costs incurred when issuing and redeeming fund units. Both Swiss Life Ltd. and the other members of the Swiss Life Group are entitled to positions in this fund and to their purchase and/or sale. Swiss Life Asset Managers funds may not be offered for sale or sold in the US or on behalf of US citizens or US person residing in the US. “Swiss Life Asset Managers” is the brand name for the asset management activities of the Swiss Life Group. More information is available at www.swisslife-am.com. Source: Swiss Life Asset Managers (unless stated otherwise). All rights reserved. Contact: firstname.lastname@example.org.