Suisse Romande Property Fund - ISIN CH0258245064 SIX Symbol SRPF - Unaudited Semester Report 30.06.2021 - JSS Real Estate Management SA
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Unaudited Semester Report 30.06.2021 Suisse Romande Property Fund ISIN CH0258245064 SIX Symbol SRPF
Chemin de Mouille-Galand 3–5, Vernier, GE JSS Real Estate Management Ltd Rue de la Corraterie 4 1204 Geneva T: +41 (0)58 317 57 80 F: +41 (0)58 317 57 99 E: jssrem@jsafrasarasin.com www.jssrem.ch
Contents
Introduction 4
Organisation 7
Message from the Fund Management Company 8
Management report 10
Statement of net assets 12
Statement of income 13
Mortgages and mortgage-backed liabilities 14
Compensation rates 15
List of purchases and sales during the period 17
Inventory of properties 18
Indices calculated according to AMAS guidelines 21
Valuation principles and basis for the
calculation of the net asset value 22
Information on specific economic or legal matters 24
Further information 25
Geographical location of buildings 26
SRPF, Semester Report 2021 | 3
Introduction
have acquired, autonomously and in their own name.
Suisse Romande Property Fund (“SRPF”
The Custodian bank is a party to the fund contract, in
or the “Fund”) has been established, under accordance with the tasks entrusted to it by law and by
Swiss law, as a contractual investment fund the fund contract.
in the “real estate investment fund” cate-
gory in accordance with the Swiss Federal Investor eligibility is not restricted. The real estate invest-
ment fund is not divided into unit classes.
Act on Collective Investment Schemes of
23 June 2006 (CISA). SRPF aims to preserve the capital in the long term and
to ensure the distribution of an appropriate income.
The Fund Management Company invests the assets of
The fund contract has been established by JSS Real the investment fund in real estate assets in Switzerland
Estate Management Ltd (“JSSREM” or “the Fund Man- and ensures that at least 80 % of the Fund’s assets are
agement Company”), Geneva, as the fund management invested in French-speaking Switzerland.
company, with the approval of Bank J. Safra Sarasin Ltd
in Basel, as the custodian bank. SRPF invests primarily in residential buildings and pro-
perties used for commercial purposes, as well as in
The Fund was approved by the Swiss Financial Market other assets permitted pursuant to the fund contract.
Supervisory Authority (FINMA) on 15 October 2014.
Since 11 December 2017, the Fund is listed on the SIX Fund Management Company
Swiss Exchange and is part of the SXI Real Estate® JSS Real Estate Management Ltd
Funds Broad Index. Rue de la Corraterie 4
1204 Genève
The real estate investment fund is based on a collective
investment scheme (the fund contract) under which the Custodian bank
fund management company undertakes to ensure that Bank J. Safra Sarasin Ltd
the investors participate in the real estate investment Elisabethenstrasse 62
fund on a pro rata basis in relation to the units they 4002 Basel
Sales restrictions
There is no distribution authorisation abroad.
The units of this real estate fund cannot be offered,
transferred or delivered in the United States.
4 | SRPF, Semester Report 2021
Redoute 14–22, Nyon, VD
SRPF, Semester Report 2021 | 5
Organisation
Fund Management JSS Real Estate Management Ltd
Company Rue de la Corraterie 4, 1204 Geneva
Board of Directors Oliver Cartade Chairman
Oren-Olivier Puder Vice-Chairman
Jean-Pierre Jacquemoud Director
Michael Montebaur Director (from 24 June 2021)
Executive Dan Bihi-Zenou CEO
Committee Clément Marchenoir CFO
Antoine Chauvière Head of Fund Management
Custodian bank Bank J. Safra Sarasin Ltd, Basel
Audit company Deloitte Ltd, Geneva
Permanent Experts Ellen Hoerée Wüest Partner AG, in Zurich and Geneva
Hervé Froidevaux Wüest Partner AG, in Zurich and Geneva
Property Managers m3 Real Estate SA, Geneva
Régie de la Couronne SA, Pully
The precise execution arrangements of the mandates are laid down in contracts concluded
between JSS Real Estate Management Ltd and said agents.
Risk Management ASMA Asset Management Audit & Compliance SA, Geneva
Legal & Compliance J. Safra Sarasin Investmentfonds Ltd, Basel
6 | SRPF, Semester Report 2021
SRPF, Semester Report 2021 | 7 Arcenter, Vernier, GE, where m3 Nomade rented more than 2,000 m²
Message from the
Fund Management Company
JSSREM is pleased to report strong results Capital Expenditures (“CAPEX”) investments:
for SRPF for the first half of 2021 implementation already yielding strong results
In line with delivering long-term sustainable value to As described in previous reports, making sound CAPEX
our investors, the following results demonstrate the re- investments in the existing portfolio is at the core of
silience of the portfolio in a challenging environment as the value creation process for SRPF.
well as the manager’s ability to create value:
• Net Asset Value (“NAV”) growth exceeding 5% over The implementation of this strategy is ongoing and the
the past 12 months following key events occurred during the first semester:
• Creation of CHF 12.4 million of new market value • Residential and commercial refurbishments have
across the portfolio in the first 6 months of the year generated additional income : an overall investment
• The sale of a building delivering an immediate 10% of CHF 1.5 million has contributed to securing over
net profit for SRPF CHF 800,000 of annual revenues through new leases
• The signing of two large corporate tenants at Arcent- and increases in existing rents (at Westpark (GE),
er, each with a 10-year lease Arcenter (GE), Rothschild 21 (GE), and Redoute 14–
22 (VD), in particular)
Environment, Social, Governance (“ESG”): • The replacement of the windows at Philosophe 7
a key element in the Fund’s future (GE), which has already delivered a positive impact
On the topic of ESG, the Fund continues its efforts to through the reduction of noise and energy consump-
enhance and integrate ESG considerations into the in- tion (this will be further improved by the replacement
vestment portfolio with the adoption of a new strategy of the heating system which has just begun)
and directive. Sustainable investing makes smart busi- • Architects and engineers are being mandated to pur-
ness sense as managing properties sustainably can sue the very attractive and much needed develop-
have a positive impact not just on the environment but ments which are led in St Pierre 6 (FR) and Arsenaux-
also on their future value. The strategy aims to ensure Simplon (FR): the goals are to improve the infrastruc-
that sustainability goals are managed over the entire ture used by our tenants, and to reduce negative en-
life cycle of a property: from acquisition or construc- vironmental externalities, whilst creating value in ex-
tion, to everyday management and renovations, to dis- cess of 10%
posal (where applicable).
In the medium to long run, this CAPEX driven strategy
As part of the strategy roll-out, the following appoint- will allow improved energy efficiency, the reduction of
ments were made: maintenance costs and the unlocking of value creation.
• An independent appraiser who will annually provide In turn, this should lead to an increase in rental income
an ESG rating of the properties, and will help monitor and dividend distribution potential.
progress in order to identify and make long-term im-
provements to assets JSSREM’s organisation is further strengthened
• An engineering firm to establish the potential for pho- The firm has added dedicated resources in the area of
tovoltaic installations across the portfolio asset management and data systems. In addition, the
organisation of the Fund’s management has been
streamlined with the reduction from nine to two
property managers. This will allow a more efficient
8 | SRPF, Semester Report 2021
Entrance Appart’City, Vernier, GE
management of the properties and the potential for in- SRPF has already delivered strong results in the recent
creased synergies. past – dividends increased from CHF 0.88 per unit to
CHF 2.40 per unit between 2019 and 2020, NAV grew by
SRPF well positioned to make the most more than 6% over the past 18 months – and in light of
of the Swiss Real Estate Market recent developments, JSSREM maintains its ambition
Although the Swiss macro environment remains uncer- to further increasing those key indicators and to im-
tain due to the evolution of the Covid-19 pandemic, it proving the Fund’s ESG profile.
has been very supportive of real estate investments
thanks to renewed economic growth and attractive JSSREM wishes to thank its investors and its partners
rental yields compared to record-low interest rates in for their support and trust.
Switzerland.
It is now widely accepted that the effects of the pan- Oliver Cartade
demic and the necessary importance given to environ- Chairman of the Board of Directors,
mental issues have and will continue to foster many JSS Real Estate Management Ltd
alterations to construction, living, working and shop-
ping habits. JSSREM sees opportunities in such a Dan Bihi-Zenou
changing environment: adapting to a new demand is CEO, JSS Real Estate Management Ltd
exactly what SRPF has decided to achieve through its
CAPEX driven strategy.
SRPF, Semester Report 2021 | 9
Management Report
as of 30 June 2021
Results period), whereas the Fund proceeded with the sale of
As of 30 June 2021, the Fund ended the first half of the two properties in the second half of 2020 and one in the
year with a realised income of CHF 3,448,587, +12% first quarter of 2021. This demonstrates the manager’s
compared to CHF 3,086,805 as of June 2020, and a ability to create value in the portfolio by improving the
total income of CHF 13,900,139, showing an important quality and yields despite the challenging context of the
increase compared to the CHF 6,150,901 of the first health crisis. Besides, the leverage ratio was reduced to
half of last year thanks to the gain in value of the prop- 30.19% as of the end of June 2021 whereas it was
erties in the portfolio. 32.01% as of 30 June 2020.
The rental income is of CHF 9,024,007 and thus very The net assets of the Fund amount to CHF 316,314,440
close to last year’s level of CHF 9,109,349 despite the (CHF 300,826,318 as of 30.06.2020, hence +5.1%).
Covid-19 pandemic and the disposal of three buildings Thus, the net asset value (NAV) per unit reached CHF
during that period. The total revenue for the first half of 117.86 as of 30 June 2021, a continuous and very positive
the year 2021 was CHF 9,273,818 (compared to increase since the end of 2019 (CHF 110.68 per unit).
CHF 9,689,889 as of 30 June 2020). Expenses were
reduced to CHF 6,195,173 (compared to CHF 6,647,679 Retrospective on the first half of 2021
the previous year). JSSREM has started to implement a CAPEX strategy,
launching added-value and, whenever possible, ESG-
The portfolio’s market value continues to grow: oriented renovations. The team has also carried on se-
from CHF 467,225,000 as of 30 June 2020 to curing the arrival of new tenants to reduce vacancy and
CHF 473,960,400 as of 30 June 2021 (+1.4% over the has sold a property at a very profitable price.
Théodore-Vernes 12–14, Versoix, GE
10 | SRPF, Semester Report 2021In this respect, the following can be mentioned: average running costs in the long run and which can
• Westpark B (GE) where Lidl has leased additional allow to target higher rents in exchange for refurbished
spaces which the Fund fitted-out and modern rentable areas.
• Philosophe 7 (GE) and its new insulating windows
• Arcenter (GE) where SRPF has financed part of the The health crisis is still present with new variants of
fit-out for its new partners Etat de Genève and m3 the virus emerging. In this context, the Fund Manage-
Nomade ment Company continues to pay particular attention to
• Rothschild 21 (GE) and Redoute 14–22 (VD) where its evolution and expects the financial impact in 2021
renovated apartments allow tenants to enjoy im- to be limited to less than 1% of SRPF’s annual rental
proved living conditions income. The continuing positive results achieved
strengthen the Fund Management Company’s confi-
Moreover, mortgage rates continue to be closely moni- dence in delivering future NAV and dividend growth.
tored in order to seek more favourable borrowing condi-
tions. With this objective, the Fund’s average annual
interest rate, which was 0.85% a year ago, was reduced
to 0.76% at the end of June 2021.
Acquisitions and Sales
During the first half of 2021, the Fund sold the property
at Rue des Lattes 41 in Meyrin (GE) for CHF 4,070,000
generating a 10% profit for SRPF of CHF 369,941 (see
page 17).
This enabled SRPF to fund CAPEX without increasing
the leverage while reducing financial charges.
Outlook
The Swiss macro environment continues to improve as
the vaccination efforts appear to have had strong posi-
tive impacts on slowing the spread of Covid-19 virus so
far. As much as one can tell, the economic growth has
rebounded, inflation is forecasted below 1% for the
year, and the spread between risk-free rates and real
estate returns is very attractive.
Although rents have stopped growing and in some seg-
ments they are decreasing, more specifically for office
and retail spaces, SRPF is well placed to capture the
opportunities of a changing market, in particular thanks
to its CAPEX driven strategy which will deliver below
SRPF, Semester Report 2021 | 11Statement of Net Assets
30.06.2021 30.06.2020
Assets CHF CHF
Cash holdings, balances on postal and bank accounts at sight 4,583,724 2,594,214
Properties
Development land, properties under construction 0 0
Residential properties 136,711,000 137,217,000
Commercial properties 261,667,400 244,802,000
Mixed-use properties 75,582,000 85,206,000
Total properties 473,960,400 467,225,000
Other assets 5,679,961 5,055,791
Total assets 484,224,085 474,875,005
Liabilities
Short-term liabilities
Short-term interest-bearing mortgages and other mortgage-backed liabilities 98,840,000 99,231,807
Other short-term liabilities 13,859,819 14,008,700
Long-term liabilities
Long-term interest-bearing mortgages and other mortgage-backed liabilities 44,232,000 50,333,000
Other long-term liabilities 0 0
Total liabilities 156,931,819 163,573,507
Fund’s net assets before estimated liquidation taxes 327,292,265 311,301,498
Estimated liquidation taxes –10,977,825 –10,475,180
Net assets of the Fund 316,314,440 300,826,318
Change in the net assets
Fund’s net assets at beginning of the financial year 308,855,402 297,037,154
Distribution –6,441,101 –2,361,737
Interim distribution 0 0
Balance from sales and purchases of units 0 0
Total income of the financial year 13,900,139 6,150,901
Fund’s net assets at end of the financial year 316,314,440 300,826,318
Change in the number of units (redeemed and issued)
Statement at beginning of the financial year 2,683,792 2,683,792
Units issued 0 0
Units redeemed 0 0
Number of units in circulation 2,683,792 2,683,792
Net asset value per unit 117.86 112.09
Additional information (annex 3 Art. 95 CISO-FINMA)
Value of properties depreciation account 0 0
Value of reserves account for future repairs 0 0
Balance on account of earnings retained for reinvestment 0 0
Number of units due to be redeemed at end of next financial year 0 0
12 | SRPF, Semester Report 2021Statement of Income
30.06.2021 30.06.2020
CHF CHF
Revenue
Revenue from postal and bank accounts 179,015 219,620
Rental income (gross income generated) 9,024,007 9,109,349
Interim interest capitalised 0 319,293
Other revenue 70,796 41,627
Total revenue 9,273,818 9,689,889
Expenses
Mortgage interest and interest on mortgage-backed liabilities 558,356 691,158
Other interest due 175,128 203,914
Maintenance and repairs 580,281 678,597
Management of properties
Property-related costs 1,855,102 2,241,982
Management expenses 599,310 570,911
Valuation and auditing expenses 90,882 97,000
Direct taxes 1,124,548 983,942
Banking fees 13,608 12,267
Cost of publishing, printing, other 7,192 17,053
Remuneration as per fund contract for the Fund Management Company 1,027,735 974,535
Remuneration as per fund contract for the Custodian bank 91,895 88,867
Other expenses 71,136 87,454
Total expenses 6,195,173 6,647,679
Income
Net income 3,078,646 3,042,210
Realised capital gains and losses 369,941 44,596
Realised income 3,448,587 3,086,805
Unrealised capital gains and losses 11,236,308 4,023,026
Liquidation taxes –784,756 –958,930
Total income 13,900,139 6,150,901
Appropriation of the net income
Realised income 3,448,587 3,086,805
Capital gain carried forward from the previous financial year 0 0
Ordinary income carried forward from the previous financial year 2,389,766 3,259,477
Net income available for distribution 5,838,353 6,346,282
Capital distribution 0 0
Income distribution 0 0
Earnings paid to investors 5,838,353 6,346,282
SRPF, Semester Report 2021 | 13Mortgages and Mortgage-Backed Liabilities Detail of the mortgages and mortgage-backed liabilities Type CHF Rate From Maturity Short-term debt FRA 14,000,000 0.40% 30.06.2021 30.09.2021 FRA 9,000,000 0.45% 03.06.2021 05.07.2021 FRA 5,500,000 0.50% 29.06.2021 29.09.2021 Libor 3 month 57,075,000 0.70% 30.06.2021 30.09.2021 Fixed 1,425,000 1.00% 02.10.2016 02.10.2021 Fixed 7,550,000 0.40% 16.12.2020 16.12.2021 Fixed 4,290,000 0.94% 30.11.2016 31.12.2021 Total short-term debt 98,840,000 0.62% Weighted average rate < 1 year Long-term debt Fixed 4,550,000 1.15% 21.07.2017 31.12.2022 Fixed 5,750,000 2.13% 15.07.2014 15.07.2023 Fixed 5,446,000 0.88% 14.09.2018 14.09.2023 Fixed 1,945,000 0.88% 14.09.2018 14.09.2023 Fixed 2,556,000 2.39% 25.02.2014 25.02.2024 Fixed 1,000,000 1.90% 07.10.2014 07.10.2024 Fixed 1,430,000 2.27% 30.11.2015 30.11.2024 Fixed 1,080,000 2.27% 30.11.2015 30.11.2024 Fixed 475,000 1.80% 13.03.2015 13.03.2025 Total long-term debt from 1 to 5 years 24,232,000 1.59% Weighted average rate from 1 to 5 years Fixed 20,000,000 0.45% 08.01.2020 08.01.2030 Total long-term debt 5 years and longer 20,000,000 0.45% Weighted average rate > 5 years Total long-term debt 44,232,000 1.07% Total 143,072,000 0.76% Weighted average rate 14 | SRPF, Semester Report 2021
Compensation Rates
Information on rates applied in accordance with the fund contract
Maximum rate per year
as per sales prospectus Applied rate
Payments to the Fund Management Company
Management fee (art. 20 para. 1 and para. 8 of the fund contract) 1.00% 0.65%
Issuing commission (art. 19 para. 1 of the fund contract) 5.00% na
Compensation for activities involving the purchase or the sale of properties
(art. 20 para. 4 of the fund contract) 3.00% 3.00%
Fee for activities when carrying out feasibility studies and acting on behalf of the
Project owner (art. 20 para. 4 of the fund contract) 3.00% 3.00%
Fee for activities when carrying out the project development and monitoring
(art. 20 para. 4 of the fund contract) standard SIA commission max. 5.00%
Compensation for the management of properties
(art. 20 para. 4 of the fund contract) 6.00% 6.00%
Commission for the distribution of income (on the amount paid)
(art. 20 para. 3 of the fund contract) 0.50% 0.50%
Payments to the Custodian bank
Fee for the administration, the handling of payment transactions, the supervision of
the fund management company (art. 20 para.3 of the fund contract) 0.06 % 0.06%
Transparency of the management fees
The Fund Management Company may pay to distributors, from the management fee, commissions as reimburse-
ments in respect of distribution activities, for the sale and the intermediation of Fund’s units (fund contract art.
20 para. 7). The Fund Management Company does not grant any rebates or retrocessions within the meaning of
AMAS’s transparency guidelines dated 22 May 2014.
SRPF, Semester Report 2021 | 15Tenant Lidl, Mouille-Galand, Vernier, GE
List of Purchases and Sales
during the Period
Purchases
No purchase during the period from 1 January to 30 June 2021
Sales
Canton Commune Address Type Date of Sales price
sale CHF
GE Meyrin Rue des Lattes 41 Residential 31.03.2021 4,070,000
Total sales 4,070,000
Grand Saint-Jean 2, Lausanne, VD
SRPF, Semester Report 2021 | 17Inventory of Properties
Canton Commune Address Type Cost Market value Rental
income as of
30.06.2021
GE Aïre Route Aïre 162, 164, 166 1
Residential 3,574,072 4,140,000 92,802
GE Chêne-Bougeries Rue de Chêne-Bougeries 17 Mixte 2,547,769 3,105,000 58,302
Rue de Chêne-Bougeries 19/
GE Chêne-Bougeries Chemin de la Fontaine 3–5 Mixte 5,084,619 6,847,000 112,888
GE Chêne-Bougeries Chemin du Pont-de-Ville 18 Commercial 381,548 601,400 0
GE Genève Place du Bourg-de-Four 33 Mixte 2,750,966 3,670,000 66,038
GE Genève Boulevard des Philosophes 7 1
Mixte 9,972,051 15,810,000 274,758
GE Genève Rue Rothschild 21 1
Residential 6,056,816 7,520,000 129,514
GE Genève Avenue Théodore-Weber 9 1
Residential 9,818,213 14,600,000 248,040
GE Genève Rue de Lyon 71 1
Residential 12,421,808 16,850,000 327,660
GE La Plaine/Dardagny Route de Challex 4–6 Residential 11,520,105 12,800,000 287,950
GE Meyrin Route du Mandement 17 Residential 8,141,102 9,118,000 201,762
GE Satigny Route d’Aire la Ville 225–229 Mixte 35,509,067 32,920,000 606,497
GE Versoix Avenue Théodore Vernes 12–14 1
Residential 9,277,962 11,960,000 229,164
GE Genève Avenue Pictet-de-Rochemont 29 1
Residential 9,480,857 13,540,000 212,044
GE Vernier Ch. Mouille-Galand 5/Route de Peney 20 Commercial 22,804,204 24,400,000 102,047
GE Vernier Ch. Mouille-Galand 3/Route de Peney 20 Commercial 31,202,085 40,530,000 724,532
GE Vernier Route de Montfleury 1–3 1
Commercial 94,646,009 87,360,000 1,682,100
VD Clarens Rue du Lac 54 Mixte 4,839,012 4,488,000 70,966
VD Lausanne Place Grand-Saint-Jean 2 Commercial 11,530,053 17,660,000 297,388
VD Lausanne Place du Tunnel 13–14 1
Mixte 5,966,404 8,477,000 167,780
VD Lausanne Chemin de Renens 55–57/Av. Morges 92 1 Mixte 3,754,928 5,118,000 98,586
VD Lonay Chemin des Mouettes 1
Commercial PPE 2,128,566 2,011,000 58,263
VD Lonay Chemin des Mouettes 1 (lot 8) Commercial PPE 1,958,381 1,869,000 62,998
VD Montreux Chemin du Réchon 7 1
Residential 2,068,351 2,085,000 39,620
VD Nyon Chemin de la Redoute 14–22 Residential 30,378,817 31,090,000 628,793
VD Prangins Route de l'Aérodrome 73–75 Commercial 3,330,301 2,559,000 75,823
VD Renens Avenue de Préfaully 28–30 Commercial 7,517,257 8,010,000 205,746
VD Vevey Rue des Bosquets 14–15 Mixte 3,616,418 3,372,000 65,580
FR Bulle Rue de Gruyères 56 Mixte 2,745,984 2,170,000 64,000
FR Bulle Rue des Agges / Rte des Granges 1
Mixte 2,643,654 2,570,000 64,649
FR Fribourg Rue de Romont 3 Commercial 3,822,028 3,710,000 66,750
FR Fribourg Route des Arsenaux 9/ Rue du Simplon 13 Commercial 24,887,957 19,510,000 445,717
FR Fribourg Rue du Varis 20 Residential 2,557,807 2,950,000 51,435
FR Fribourg Rue Saint-Pierre 6 Commercial 27,582,547 26,510,000 570,739
NE Neuchâtel Rue de Maillefer 11b /11c Commercial PPE 5,308,146 5,160,000 95,078
JU Delémont Rue des Moulins 28 Commercial 14,882,165 13,300,000 312,454
JU Porrentruy Rue des Tilleuls 31–33 Residential 6,048,543 5,570,000 110,287
Total 442,756,571 473,960,400 8,908,752
1
Indirect holding
18 | SRPF, Semester Report 2021Recap
Type Cost Market value Rental
income as of
30.06.2021
Development land and constructions 0 0 0
Residential properties 116,183,464 136,711,000 2,630,037
Commercial properties 248,552,558 252,627,400 4,651,078
Commercial properties in condominium ownership (PPE) 9,395,093 9,040,000 216,339
Mixed-use properties 68,625,456 75,582,000 1,411,298
Total 442,756,571 473,960,400 8,908,752
Type of properties
Commercial property: the part of the property used for commercial purposes is deemed to be predominant when
its yield corresponds to at least 60% of that of the building (Art. 86 al.2b CISO).
Mixed-use properties (both residential and commercial): when the yield of the commercial part exceeds 20%, but
is less than 60% of the building’s yield (Art. 86 al.2c CISO).
List of contractual payment commitments for purchases of buildings and mandates for construction
and investments in buildings at 30 June 2021
There are no contractual payment commitments related to either property acquisitions or work contract mandates
at the balance sheet date.
Arcenter, Vernier, GE – tenants reception
SRPF, Semester Report 2021 | 1920 | SRPF, Semester Report 2021 Appart’City, Vernier, GE – outside view
Indices Calculated According
to AMAS Guidelines
30.06.2021 30.06.2020 30.06.2019
Rent default rate1 14.51% 14.08% 8.10%
Borrowing ratio 30.19% 32.01% 31.28%
Operating profit margin (EBIT margin) 54.86% 54.16% 67.46%
Operating expense ratio (TER REF GAV) 0.79% 0.78% 0.80%
Operating expense ratio (TER REF MV) 1.22% 1.34% 1.16%
Return on Equity (ROE) 9.20% 4.18% 4.71%
Return on Invested Capital (ROIC) 6.22% 3.02% 3.44%
Distribution yield 2.09% 0.96% 2.12%
Payout ratio na na 109.29%
Premium/Discount –2.43% –18.28% –2.87%
Return on investment 4.60% 2.09% 4.82%
1
This rate excludes conditions granted to tenants during the marketing and post-construction periods.
Fund’s performance 30.06.2021 30.06.2020 30.06.2019
Suisse Romande Property Fund 1.69% –17.85% –2.19%
SXI Real Estate® Funds Broad Index 6.73% –1.68% 12.96%
Reference to past performance and results is not necessarily a reliable indicator of current or future performance
and results.
Performance and return data do not take account of the commissions and fees incurred on the issue and re-
demption of units and are calculated considering that gross dividend has been reinvested immediately in the
Fund.
SRPF, Semester Report 2021 | 21Valuation Principles
and Basis for the Calculation
of the Net Asset Value
Valuation principles and basis for the buying and selling properties, unique opportunities may
calculation of the net asset value nevertheless arise and be exploited as well as possible
In accordance with applicable provisions of the legislation in the interests of the Fund. This may therefore result in
and with the guidelines of the Swiss Funds & Asset Man- discrepancies in relation to the evaluations.
agement Association (AMAS) on real estate investment
funds dated 2 April 2008 (as at 13 September 2016), The net asset value of the Fund is calculated annually
the fund properties (including development land and prop- and at each unit issue. The net asset value of a unit is
erties under construction) were valued by independent determined by the market value of the Fund’s assets,
valuation experts using the Discounted Cash Flow (DCF) minus all the Fund’s liabilities, divided by the number of
method. This valuation is based on the potential of return units in circulation. The statement of net assets and the
for each property and involves projecting future income statement of income are established in accordance with
and expenses over a given period. The net cash flows Article 95 CISO-FINMA as well as with applicable self-
calculated this way are discounted and the sum of these regulation rules.
amounts with the residual value of the property make it
possible to obtain the market value. This is the fair market As the appraisal of the portfolio as a whole as at
value of the property at the time of valuation. 30 June 2021 was conducted by Wüest Partner, we pre-
sent the method adopted below.
Each expert assesses the evolution of the properties
independently, models the DCF calculation according to Wüest Partner AG method
the specific parameters and determines the discount Wüest Partner uses the two-period DCF model, where
rate. The properties are valued at their market value. cash flows are estimated explicitly over a time horizon
This value is the amount that could be obtained when a of ten years and as perpetual annuities for the second
property is sold under normal market conditions. When phase (infinite time horizon) in the form of an output
value. The perpetual annuities in year 11 are calculated
on the basis of a cash flow annuity modelled from year
11 ad infinitum. This output value, or theoretical sale
value, is obtained based on a capitalisation of the per-
petual annuity (also referred to as terminal value or
residual value). The market value is calculated by dis-
counting the net cash flows at the date of valuation for
the periods 1 to 10 and the output value. Furthermore,
cash flow projections are presented in real terms,
which has the advantage of making the forecasts more
understandable. As far as revenue is concerned, the
rental status of each building is analysed in detail at
the level of individual objects, taking account of the cur-
rent situation and potential rents on the market (leases
and rents). The lease review also permits the type and
terms of the leases to be taken into account while
making it possible to specify the existence, or not, of
Building part of Tilleuls 31–33, Porrentruy, JU
22 | SRPF, Semester Report 2021Agges 1, Bulle, FR
incidental or development costs to be borne by the tenant The weighted average (real) discount rate for the year under
and/or the lessor, free rents, etc. In addition, a struc- review (as at 30.06.2021) is 3.15 % and the discount rates
tural vacancy rate according to different assignments used to value the properties vary from 2.5 % to 4.0 %.
is acknowledged. Costs are based on the exploitation
rate for previous years. This is complemented by Wüest
Partner benchmarks and an assessment of the state of
each building. In particular, renovation needs or restora-
tion costs are estimated based on a split of the building’s As a result of the third wave of the Covid-19 pande-
replacement value according to the different elements of mic, countermeasures have been put into force in many
construction and their life expectancy. The determination countries. The consequences of these measures for the real
of the applicable discount rate reflects an estimate of the estate market cannot yet be fully anticipated and remain
risk inherent to the building concerned. To establish this difficult to quantify at the moment due to the still limited
value, Wüest Partner takes account of both the specific amount of available comparative transactions carried out in
characteristics of the building and factors related to the the context of the third wave. As a result, valuation results
location and the market. The market-adapted discount rate include currently a higher level of uncertainty.
is adjusted according to risk, thanks to regular monitoring
of the returns required by investors during transactions.
It is defined on the basis of the free-risk rate (long-term
Confederation bond) as well as on premiums for general
real estate risk (liquidity risk premium, market risk) and for
specific risks related to the building itself (micro-situation,
form of ownership, quality of the object, etc.).
SRPF, Semester Report 2021 | 23Information on Specific Economic or Legal Matters The financial impact of Covid-19 for the first half of In May 2021, Switzerland walked out of its negotia- 2021 for the Fund is limited and represents less than tions regarding a commercial framework agreement 1% of SRPF’s annual gross income generated from with the EU. Even though the impact on the economy is rents. It is linked to rent losses following exemptions currently hard to tell, this could lead to some uncer- granted to tenants in difficulty. tainty in the future. Although one witnessed that with the broad vaccination Furthermore, the Fund Management Company confirms campaign in the first half of 2021, a significant im- that it has neither acquired nor sold on behalf of the provement of the Covid-19 situation was achieved, the Fund real estate assets from closely related persons current situation remains uncertain with still about and that any other eventual business with closely re- 43.5% of the Swiss population unvaccinated. In par- lated persons was carried out under market conditions ticular, it can be noted that at the time of publication of (Ch. 18 of the directives concerning the real estate this report, infection figures are increasing and in case funds of AMAS, Asset Management Association Swit- of a fourth wave, new restrictions or lockdown meas- zerland). ures could impact the economy and the real estate market. The so-called “CO2 law” was narrowly rejected by the Swiss people in the first half of 2021. This decision is however not directly relevant for the Fund nor for the Fund Management Company as environmental criteria is a high priority regardless of a government decree. 24 | SRPF, Semester Report 2021
Further Information
List of tenants representing more List of properties owned by Capital Real Estate SA:
than 5% of the rental income: Boulevard des Philosophes 7, Geneva
No tenant has a rental income equal to or greater than Chemin du Réchon 7, Montreux
5% of the total rental income. Rue Rothschild 21, Geneva
Avenue Théodore-Weber 9, Geneva
Information on derivatives: Rue de Lyon 71, Geneva
The Fund does not include derivative financial instru- Avenue de Morges 92 /
ments. Chemin de Renens 55/57, Lausanne
Place du Tunnel 13/14, Lausanne
Consolidation of the real estate companies: Chemin des Mouettes 1, Lonay
The Fund owns two real estate companies: Capital Real Route des Granges / Rue des Agges, Bulle
Estate SA, owned by the Fund since 2016, and Arcenter Route d’Aïre 162/164/166, Aïre
SA, owned by the Fund since March 2019. These com- Avenue Théodore-Vernes 12/14, Versoix
panies are fully consolidated in the Fund’s accounts and Avenue Pictet-de-Rochemont 29, Geneva
close their accounts on 31 December.
List of properties owned by Arcenter SA:
Route de Montfleury 1/3, Vernier
Réchon 7, Montreux, VD
SRPF, Semester Report 2021 | 25Geographical Location
of Buildings
Regional breakdown Distribution by type
(number of properties) (number of properties)
(2)
(1)
(9)
(6) (17) (13)
(11)
(15)
Geneva 65% Residential 30%
Vaud 18% Commercial 54%
Fribourg 12% Mixed 16%
Jura 4%
Neuchâtel 1%You can also read
