One of the residential properties of the investment foundation 1291 in Rorschach. (Image pd)
The Swiss Investment Foundation 1291 further expanded its portfolio in the past financial year. The investment group’s rental income continued to rise in the 2023/24 financial year (as of the end of June). However, net income fell due to higher costs.
The target rental income from existing properties increased by 6 percent to 52.5 million francs compared to the previous year thanks to acquisitions and rent adjustments due to index and reference interest rate increases, the investment foundation announced. The vacancy rate was reduced by 1.6 percentage points to 3.3 percent.
Net rental income rose by 7 percent to 49.1 million francs in the reporting year. Net income, however, fell to 24.7 million francs (previous year: 29.2 million francs), which was due, among other things, to higher mortgage interest expenses and higher maintenance costs for the properties. The real estate assets under management increased by 4 percent to 1.45 billion francs, according to further information.
Slight devaluation
The valuation of the real estate portfolio resulted in an unrealized capital loss of CHF 8.0 million (previous year: CHF -19.5 million). In relation to the entire portfolio, this corresponds to a devaluation of 0.6 percent.
Investors in the Swiss Real Estate investment group will now receive an unchanged distribution of CHF 2.90 per share. They can choose between a cash distribution or reinvestment through the allocation of new shares.
