Residentia Fund with solid annual result 2020
The Residentia fund, which focuses on residential real estate in Ticino, was able to increase rental income in the 2020 financial year despite the Corona pandemic. The bottom line is an overall profit of CHF 2.49 million.
The real estate fund Residentia, which was acquired by UBS Fund Management AG in February 2021, felt the impact of the Covid 19 pandemic in fiscal 2020. Fewer people had moved, for example, which led to a significant increase in the vacancy rate from 10% in the previous year to 15%. However, according to the fund's management, this includes a rental loss of CHF370,000, and without these losses, the average rate would be 12%. Losses from vacancies skyrocketed from CHF88,136 at the end of 2019 to CHF369,161 in the year under review, it said. The majority of this - over 250,000 CHF - was due to concessions made to traders affected by forced closures or significant drops in turnover in connection with Corona, he said.
Nevertheless, the Residentia Fund increased its income by 10% in the reporting period. Total income amounted to CHF 11.93 million in 2020 (PY: 10.94 million). Costs also increased, mainly related to the pandemic, and increased by approximately 6%. Total expenses amounted to CHF 7.16 million (previous year: 6.82 million). Net income for the financial year was CHF 4.77 million, up 15% on the previous year's figure of CHF 4.13 million.
Because Wüest & Partner AG, which was hired to value most of the properties in the portfolio in connection with the fund's acquisition by UBS, chose a different valuation approach, there was a slight decline (< 2%) in Residentia's total real estate holdings, the fund management company said. These disposals are reflected in an unrealized loss of CHF3.7 million in the last fiscal year. As a result, total income for 2020 is 2.49 million, down from 4.54 million a year earlier. A dividend of CHF 3.00/share is to be distributed. (ah)
