Financial statements of Credit Suisse Real Estate Fund International as of December 31, 2022

Πέμπτη, 23 Μαρτίου 2023 13:14
Financial statements of Credit Suisse Real Estate Fund International as of December 31, 2022

As already indicated on February 24, 2023, the net asset value (NAV) per unit of the Credit Suisse Real Estate Fund International real estate portfolio decreased from CHF 1,070.72 to CHF 961.39 during the fiscal year ending December 31, 2022. The distribution per unit was reduced to CHF 35.00. In the current 2023 financial year, the goal is to convert the fund into a NAV-based product.

In line with developments in its underlying global real estate markets, Credit Suisse Real Estate Fund International (CS REF International, securities no. 1968511) reported an investment return of −6.8% (previous year: 3.5%) for the 2022 financial year. In particular, devaluations of existing properties in the US, the UK, the Netherlands, and Poland, in addition to the sale of three properties in Chile, which were no longer in line with the strategy, led to the decrease of the properties' market value to CHF 3,675.0 mn (previous year: CHF 4,205.5 mn). The average real discount rate rose from 4.37% to 4.51%. The rate of loss of rental income amounted to 8.5% (previous year: 8.0%). The distribution per unit fell to CHF 35.00 (previous year: CHF 40.00), with the direct yield totaling 4.5% (previous year: 3.8%). The debt ratio was 26.7% (previous year: 25.7%). The currencies in the statement of net assets were 95% hedged through foreign-exchange forwards in order to mitigate currency fluctuation risk. Last year's discount of −1.5% grew to −18.9%, as Swiss real estate funds' valuations corrected in the face of rising interest rates. Accordingly, this resulted in a performance of −23.1% which fell short of the Swiss benchmark (SXI Real Estate Funds Broad: −15.2%). As of December 31, 2022, redemptions were received for 407,787 units, representing 13.3% of the units outstanding. The redeemed units are expected to be converted in April 2024, subject to the standard notice period.

With the successful sale of three properties in Chile, CS REF International reduced its real estate portfolio to 54 properties in financial year 2022. In Brisbane, the new construction project "Jubilee Place" was finished in March 2022, and in Dublin the complete overhaul of the commercial "Dockline" property was successfully concluded and was honored with the NetZero award. Both properties are nearly fully leased out at good conditions. In both Seattle and Frankfurt, the vacancy rate was dramatically reduced; corresponding rental agreements begin in financial year 2023. CS REF International participated in the global sustainability benchmarking GRESB and earned four out of a possible five stars, placing it ahead of the benchmark. Preparations are advanced to convert the fund into a NAV-based product. The conversion of the fund is expected to take place in the second half of 2023, subject to the approval of all internal bodies and the Swiss Financial Market Supervisory Authority FINMA.

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