Immo-Flash

The rent default rate as of 30 September 2021 (reporting date) was 4.7% and the distribution will remain on a par with the previous year’s level. The positive results are indicative of UBS AST-IS’ solid earnings base and its position as a leading balanced investment vehicle for Swiss pension funds.

UBS AST-KIS has closed its financial year ending 30 September 2021 with a solid investment return of 3.1%. The portfolio’s value increased to CHF 726.8 million, amongst other thanks to the acquisition of an office property in Baar. With the installation of eight photovoltaic units, more than 20% of the properties now generate their own local power supply. This year, UBS AST-KIS’ sustainability strategy was awarded four out of five stars by GRESB² in the ’Existing properties’ category.

The five-year average investment return is 4.2%, the distribution will remain on a par with the previous year’s level. The good results achieved over a longer period of time accompanied by notable sustainability awards mark UBS AST-KIS out as a solid commercial real estate investment vehicle that is best positioned for the future.

Transaction yields in the Swiss property market are persisting on a downward trend. This is widening the income-return spread when compared to already invested assets. In addition, growing urbanization pressures and sustainability requirements are supportive of transformation projects of existing real estate.

Interested? Click on the button to access the white paper by Brice Hoffer, our Head of Real Estate Research & Strategy – DACH.

Real Estate Switzerland’s understanding of sustainability is broad and considers ecological, economic and social factors. Tenant satisfaction is a major component of the social factors. Real Estate Switzerland also conducted a broad-based tenant survey in spring 2021, comparable to 2020. Of the around 8,600 residential tenants selected at random (about one-third of the total portfolio), 3,778 of our tenants took part: resulting in a high response rate of 44%. On a scale from 1 to 5, the total of our residential tenants surveyed rated their satisfaction with property management at 3.8. Caretaking services were rated slightly higher at 4.1. The respondents’ own circumstances with floorplans, furnishings, the surroundings and the perception of safety being assessed, were rated at about 3.7. The findings from the survey will help us to guide our appointed property managers and to make the right decisions on maintenance, investment, and renovations.

For last year’s tenant survey, Real Estate Switzerland and Swiss Life, together with Livit and the Link market research institute, developed an online tenant survey tool delivered via a dedicated platform. The dashboard can be used to show tenant satisfaction at individual properties within a portfolio, but it can also be used to compare the performance of the entire portfolio with the industry benchmark. The benchmark continually grows through the onboarding of additional property owners such as AXA with more institutional owners to be added next year. The tenant survey also forms part of the GRESB Real Estate Assessment².

² GRESB (Global Real Estate Sustainability Benchmark) is the environmental, social and governance (ESG) benchmark for real assets and provides standardized and validated ESG data to capital markets. As a global benchmark in the field of sustainability, GRESB is an important indicator of real estate management. The ratings provide us on one hand with an independent assessment of our portfolios, on the other hand GRESB highlights the successes of our sustainability strategy to our investors.

1 UBS «Anfos» = UBS (CH) Property Fund - Swiss Residential «Anfos», UBS «Foncipars» = UBS (CH) Property Fund - Léman Residential «Foncipars», UBS «Sima» = UBS (CH) Property Fund - Swiss Mixed «Sima», UBS «Swissreal» = UBS (CH) Property Fund - Swiss Commercial «Swissreal», UBS Direct Residential = UBS (CH) Property Fund – Direct Residential, UBS Direct Urban = UBS (CH) Property Fund – Direct Urban, UBS AST-IS = UBS AST Real Estate Switzerland, UBS AST-KIS = UBS AST Commercial Real Estate Switzerland, UBS (CH) Property Fund – Europe = UBS PF Europe