Swiss Life: ESG Swiss Properties is not planning an issue for the time being
The fund, which grew by a huge portfolio last year, is not planning to issue or sell on a large scale for the time being. However, the fund sold five properties at a profit in the first half of the year.
The Swiss Life REF (CH) ESG Swiss Properties real estate fund generated realized income of CHF 30.3 million and net income of CHF 27.4 million in the first half of its 2024/25 financial year (reporting date: 31 March). Both the return on equity (ROE) and the return on invested capital (ROIC) were reportedly higher than in the previous year.
In the half-year period, the fund sold a total of five properties with a market value of around CHF 60 million, with gross sales prices averaging around 5% above the most recent market values. This was reflected in the income statement with a profit contribution of around CHF 2.9 million. The properties were not revalued in the first half of the year.
The residential portfolio acquired in July 2024, which comprised 47 residential properties with a market value of CHF 700 million (IB reported)The fund management company writes that this contributed positively to the figures. By the end of the first half of the year, net profitability had increased by around 0.4 percentage points, with comparable vacancy rates (2.3% versus 2.2%).
Temporary vacancy in Zurich
However, there were also negative factors: The result was impacted by the loss of a "long-standing, major tenant" on Löwenstrasse in Zurich. The affected space had already been re-let by October 2025. "However, the income statement was burdened by an extraordinary del credere expense, which covers the entire loss until the end of the financial year at the end of September." This expense was largely responsible for the short-term increase in the rent loss rate to 3.8%.
No significant sales planned
According to the fund management company, the main focus in the second half of the year will be on further optimizing current income and expenses. However, there are currently no plans for large-scale sales or a capital increase.
The properties sold are as follows:
- Uster, Winterthurerstrasse 32 (residential building)
- Geneva, Rue du Marché 7 (commercial building)
- Lenzburg, Hardstrasse 1/1a (residential building)
- Nidau, Strandweg 5 (residential building)
- La Chaux-de-Fonds, Rue du Chalet 9/9a/11/11a (residential building) (aw)
