Immo-Flash

UBS «Foncipars», UBS «Sima»¹ and UBS «Swissreal»¹ announce their 2020 financial statements results: All three real estate funds reported very sound annual results despite the challenging environment. Distributions will remain at the previous year's level. The ex-dividend date of the distribution is 13 April 2021 and the value date is 15 April 2021.

UBS «Foncipars» increased the value of its real estate portfolio by 7.7% to CHF 1.61 billion in the 2020 financial year and continued to strengthened its earnings power thanks to rental income growing by 3.1%. Last year's distribution and the 4.7% increase in the net asset value per unit resulted in an attractive investment return of 8.2%. With a stock market performance of 21.9%, UBS «Foncipars» also significantly outperformed the market (SXI Real Estate Funds TR 10.8%). With this pleasing annual result, UBS «Foncipars» reinforces its position as the leading residential real estate fund in western Switzerland.

UBS «Sima» sustained its strong position in the Swiss real estate market in the 2020 financial year. This, among other things, reflects the capital increase of around CHF 200 million which was successfully implemented in June 2020. At CHF 10.3 billion, the real estate portfolio exceeded CHF 10 billion for the first time at the end of the financial year. The net asset value per unit increased by 2.6% as a result of the further increase in the fair values of the existing portfolio and the successfully completed renovation and new construction projects. This results in an attractive investment return of 6.3%. At CHF 3.25, the distribution remains at the previous year's level. Based on the stock market price of CHF 140.10, this results in an attractive distribution yield of 2.3% at the end of the 2020 financial year.

Despite the global COVID-19 pandemic, UBS «Swissreal» successfully demonstrated its robust portfolio structure in the 2020 financial year and continued its positive performance. The market value of all properties broke through the 2 billion mark and rose by 3.2% to around CHF 2050.6 million at the end of the year. At CHF 99.3 million, rental income was 0.4% higher than in the previous year, with a rental default rate of 5.5%, which remains low for a commercial real estate portfolio. This results in a solid investment return of 4.2% and a distribution return of 3.5%.

Despite the challenging environment, Swiss property investments delivered a robust performance in 2020. The second wave of COVID-19 triggered a bounce back of uncertainty in the Swiss real estate market. However, occupier market fundamentals remain resilient and the rollout of the vaccination campaign is raising hope for a gradual normalization of the sanitary and economic conditions in a close future.

In his paper on the Swiss real estate market, Brice Hoffer, Research Specialist at RE-DACH, gives us an outlook for the first half of 2021.

As part of the 16^th IAZI Real Estate Investment Events, which took place virtually on 19 March 2021, UBS «Anfos» was awarded the IAZI Real Estate Investment Award in the category "Best Investment Fund".

Marcin Paszkowski, UBS «Anfos» Fund Manager: "The award is a pleasing recognition of the past year. But even more, it is a motivation for the future."

The two new residential construction projects are "Breitenpark" in Rothrist in the canton of Aargau and "Im Dorfzentrum" in Läufelfingen in the canton of Basel Land. The new construction project in Rothrist (investment volume approx.. CHF 28.5 million) comprises a total of eight apartment buildings, four of which UBS «Anfos» will build. In Läufelfingen, a total of six buildings, including one with 30 apartments, are being constructed by UBS «Anfos» (investment volume approx. CHF 13.5 million). While construction work is already underway in Läufelfingen (planned occupancy October 2022), construction of the 52 apartments in Rothrist will start in the very near future (completion mid-2023).

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