Successful Fiscal Year of IMMOFONDS
Zurich, September 7, 2021 – «Despite the ongoing pandemic, we succeeded in reducing the vacancy rate of IMMOFONDS from 4.7% to 4.0% during the fiscal year through targeted conversions, increased marketing efforts, renovations and modifications», says Gabriela Theus, Managing Director of Immofonds Asset Management AG. Thanks to newly acquired and renovated properties as well as the higher occupancy rate, rental income increased by 3.1% to CHF 78.4 million.
Net income increases by 4.7%
Ordinary maintenance and repairs rose disproportionately by 14.7% to CHF 5.7 million. This was partly due to the replacement of fossil fuel heating systems with ecological heating systems in various properties. However, financing costs decreased slightly with the reduction in external financing, resulting in a 4.7% higher net income of CHF 47.9 million. The increase in total income by 33.3% to CHF 104.5 million was mainly due to unrealized capital gains, which increased from CHF 32.0 million to CHF 53.2 million.
Stable distribution
CHF 52.7 million is available for profit distribution. The fund will distribute CHF 13.50 per share again to investors on October 1, 2021, free of withholding tax, for the 2020/2021 fiscal year. The distribution yield based on the stock price as of June 30, 2021, is 2.3%. Compared to the yield on federal bonds at the same time, this represents a yield advantage of 2.5%.
Changes in the portfolio
In the past fiscal year, the Via Nova property in Domat/Ems was sold and a commercial property on Tössfeldstrasse in Winterthur with 8,000 m2 of usable space was acquired. The property in an excellent location was built 30 years ago and no major investments are expected in the next 10 to 15 years. After that, conversion to residential use is planned. As of June 30, 2021, the number of properties in the portfolio remained constant at 129, while the number of apartments decreased from 3,762 to 3,728. Commercial space, however, increased from 39,935 m2 to 47,327 m2. Measured by market value, almost half of the properties are located in the Canton of Zurich.
Market value of properties increases by 7.3%
The market value of the portfolio increased by 7.3% to CHF 1,810.0 million, which was approximately half due to investments in the portfolio and acquisitions and half due to market-related changes. The funds received from the capital increase in autumn 2020 amounting to CHF 103 million will be used to realize planned projects and for acquisitions. In addition, part of the short-term loans was repaid, whereby the external financing ratio decreased from 25.0% to 20.5%.
Performance at 20.4%
The net fund assets of IMMOFONDS increased by 14.2% to CHF 1,290.0 million as of June 30, 2021. The number of shares in circulation increased by 9.1% to 3,511,544 and the net asset value per share increased from CHF 351.00 to CHF 367.35. Demand for shares on the stock exchange is high. The price increased during the fiscal year, adjusted for the capital increase carried out in October 2020, by 17.7% to CHF 590.00. Market capitalization increased to CHF 2,071.8 million. Investors achieved a performance of 20.4% with IMMOFONDS shares.
Exit from fossil thermal energy planned by 2045
The energy analysis of the properties conducted for the first time revealed average Scope 1 emissions of the portfolio of 16.9 kg CO2e per m2 of energy reference area. These emissions are to be halved by 2030 and reduced to net zero by 2045. «To achieve the set goals, a complete exit from fossil fuels is planned, which still accounted for 80% of the thermal energy consumed in the past fiscal year», says Gabriela Theus. Already today, renewable energies are used in new buildings and renovations. In the coming years, significant additional investments in the replacement of fossil heating systems, energy renovations and solar power will be necessary.
Projects for further upgrading and densification
Numerous projects are planned in the coming months that will further densify and upgrade the portfolio. Major renovations, conversions and new buildings concern three properties in Zurich on Bombach-, Regensdorfer- and Konradstrasse, the properties on Blumenweg in Aarau and on Verger L'Ecuyer in Hauterive, as well as the large Wankdorfcity 3 project in Bern.