Swiss Life REF (CH) ESG Swiss Properties

closing of the 2022/2023 financial year with higher net income and lower vacancy rate

Swiss Life Asset Management AG / Key word(s): Funds/Annual Results Swiss Life REF (CH) ESG Swiss Properties: closing of the 2022/2023 financial year with higher net income and lower vacancy rate 28-Nov-2023 / 07:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement.

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Zurich, 28 November 2023
Ad hoc announcement pursuant to Art. 53 LR

Swiss Life REF (CH) ESG Swiss Properties: closing of the 2022/2023 financial year with higher net income and lower vacancy rate

The listed real estate fund Swiss Life REF (CH) ESG Swiss Properties integrated 15 newly acquired properties in the 2022/2023 financial year and reduced the already low vacancy rate to 1.6% (previous year 2021/2022: 2.3%). Combined with portfolio growth, both rental income (+10.5% year-on-year) and net income (+15.9% year-on-year) increased. The net asset value per unit fell by 1.6% to CHF 113.73.

The real estate fund has a real estate portfolio diversified across Switzerland with a total of 161 existing properties and a market value of CHF 2533 million (as at 30 September 2023). The properties held in the portfolio throughout the entire reporting period posted a slightly negative performance of 1.4% (net, after deduction of investments), which mirrored the general market trend resulting from the changed interest rate environment. This saw the net asset value per unit (prior to distribution) fall by 1.6% to CHF 113.73 (2021/2022: CHF 115.60).

Fund continues to grow, net income increases
Over the year under review, a high-quality portfolio of 15 properties was acquired from Swiss Life Ltd, which further increased diversification. In addition, five smaller properties were sold at the end of November 2022 resulting in a capital gain of CHF 3.8 million. The borrowing ratio as at 30 September 2023 was 26.05% (2021/2022: 20.37%).

The fund’s net income increased to CHF 44.0 million. Together with the profit from the sales, there was a realised gain of CHF 47.9 million. Investors will receive a distribution of CHF 42.1 million or CHF 2.60 per unit, which corresponds to a ratio of 95.6%. The yield on distribution based on the exchange price is thus 2.21% (as at 30 September 2023), or 2.29% based on the NAV.