Credit Suisse Real Estate Fund Siat 2016 Capital Increase. Real Estate Investment Management August 2016

Transcription

1 2016 Capital Increase Real Estate Investment Management August 2016

2 Key Facts Implementation of a capital increase in the third quarter of The proceeds from the issue will be used for further portfolio expansion, for ongoing renovations, and for short-term reduction of debt capital. Ongoing construction projects currently worth CHF 420 million, with an attractive gross yield of 4.5% on average. Issue is taking place using the "best effort method. Volketswil, Ackerstrasse 43 55, CHF 27.2 million Real Estate Investment Management August

3 Use of the Proceeds of the Issue and Advantages for Investors Capital requirements for ongoing construction projects and renovations Repayment of debt capital The thriving pipeline of construction projects that are ongoing or that have been acquired, as well as property expansions, will result in future capital obligations. Targeted renovations help to improve the quality, attractiveness, and sustainability of the real estate portfolio. The proportion of debt capital after the issue will be just over 10%, which will still ensure a certain "leverage effect" while providing a solid equity base. Flexibility in fund management Access to a broadly diversified portfolio Low rate of loss of rental income The increase in equity capital will provide the fund with room for maneuver for the next two to four years and will allow it to keep making consistent use of market opportunities. The fund is very broadly diversified with over 168 properties and 4 construction projects. Of these properties and projects, two-thirds are "normal" residential properties and one-third are commercial real estate properties in good locations with long-term rental agreements. Low rate of loss of rental income of 3.54% compared with the average of all listed real estate funds at 3.94%, as of March 31, Source: Credit Suisse AG Real Estate Investment Management August

4 Key Figures for the Capital Increase Type of issue: Best-effort basis with subscription rights trading Subscription period: (12:00 p.m.) Subscription rights trading on SIX: Payment under subscription: Issue price: CHF net per share certificate Subscription ratio: 12:1 (12 existing certificates to 1 new one) Target volume: CHF million Issuing commission: 2.5% of NAV (included in the issue price) Fund unit identifier: Swiss security number: 1,291,370 ISIN: CH Subscription rights identifier: Swiss security number: 33,202,665 ISIN: CH Real Estate Investment Management August

5 Current Projects Ongoing projects in construction: approx. CHF 420 million Place Utilization Volume in CHF Gross yield Purchase/co nstruction "Skylights," Basel Schorenweg Residence with LIVING SERVICES CHF 40 million 4.80% Basel, Erlenmatt BF A Residence with commercial uses CHF 74 million 4.15% Cadenazzo, "Sasso Corbaro" Residential CHF 17 million 4.70% Neuchâtel, "Jardin du Lac" Residential CHF 19 million 5.20% Dübendorf, "Im Giessen" (Acquired 2014) Phases Utilization Volume in CHF Gross yield Construction Phase 1: Giessenhof Residential CHF 93 million 4.50% Phase 2: Giessenturm Residence with commercial uses CHF 124 million 4.50% Phase 3: Former laboratory, former office, former CasAroma Residence with commercial uses CHF 53 million 4.50% Total CHF 270 mn. 4.50% Source: Credit Suisse AG Real Estate Investment Management August

6 Current Projects for the Fund's Net Assets "Skylights," Schorenweg, Basel Cadenazzo, "Sasso Corbaro" Dübendorf, "Im Giessen" Neuchâtel, "Jardin du Lac" Basel, "Erlenmatt" Source: Credit Suisse AG Real Estate Investment Management August

7 Current Projects for the Fund's Net Assets Dübendorf, "Im Giessen" Total investment volume of CHF 270 million (gross yield approx. 4.5%) Approximate utilization Phase 1 (Giessenhof) Phase 2 (Giessenturm) Phase 3 * 6,000 m 2 of commercial leases with rental agreements lasting 20 years Approx. 32,000 m 2 residential = approx. 380 apartments 7,000m 2 commercial ~370 parking spaces 166 units 200 m 2 commercial/141 parking spaces Implementation from mid-2016 Occupied from mid-2018 Apt. bldg. with approx. 130 units 6,000 m 2 commercial*/100 parking spaces Implementation from mid-2017 Approx. 80 units Approx. 1,000 m 2 comm./approx. 100 parking spaces Implementation from 2019 Source: Credit Suisse AG Real Estate Investment Management August

8 Current Portfolio Real Estate Investment Management August 2016

9 Fund Profile A predecessor fund was founded in 1938 the CS REF Siat is the oldest Swiss real estate fund. It holds real estate in indirect property ownership. Cham, Alpenblick 7/9 As of March 31, 2016, the fund has a portfolio of CHF 2,659 million or currently 171 properties, including projects under construction. Broad investor base, with thousands of private and institutional investors. Traded on the SIX Swiss Exchange with an average turnover of CHF 1.4 million per day. Supervised by the Swiss Financial Market Supervisory Authority (FINMA) pursuant to the Federal Act on Collective Investment Schemes (CISA) and the Federal Ordinance on Collective Investment Schemes (CISO). Source: Audited annual report for Credit Suisse REF Siat as of September 30, 2015 Real Estate Investment Management August

10 Key Figures Annual reports Net fund assets in CHF million 1, , , ,010.8 Market value of properties in CHF million 2, , , ,659.9 Premium/discount 21.06% 24.99% 29.43% 39.26% Distribution in CHF n/a Direct yield 3.27% 3.14% 2.90% n/a Payout ratio 91.38% 87.61% 93.67% n/a Investment return 5.88% 5.04% 8.80% 1.99%2 Debt financing ratio (% of market value) 17.40% 20.29% 14.20% 16.65% Total fund expense ratio (TER REF GAV) 0.75% 0.73% 0.73% 0.72% Total fund expense ratio (TER REF NAV) 1.02% 1.03% 1.04% 0.99% Rate of loss of rental income 2.97% 3.34% 3.53% 3.54% The performance figures do not take into account the issue and redemption commissions or expenses. Historical returns and financial market scenarios are no guarantee of current and future results. These figures have been calculated according to the "Key Figures for Real Estate Funds" specialist instruction from the Swiss Funds & Asset Management Association (SFAMA). 1 Key figures have not been adjusted to the new CISO-FINMA calculation. 2 Calculation for six months (October 1, 2015 March 31, 2016) Source: Audited annual reports of Credit Suisse REF Siat Real Estate Investment Management August

11 Performance as of June 30, 2016 Historical returns and financial market scenarios are no guarantee of current and future results. The performance data does not take into account the commissions and fees charged for the issuance and redemption of units. Last data point: Source: Credit Suisse AG Real Estate Investment Management August

12 Broad Geographical Diversification Market value in CHF over 50 million million 5 20 million up to 5 million Source: Audited annual report for Credit Suisse REF Siat as of September 30, 2015 Real Estate Investment Management August

13 Sample Properties within the Fund's Net Assets Horgen, Hintere Etzelstrasse 23/25, Einsiedlerstrasse 208, CHF 14.2 million (0.5% of the portfolio) Basel, Schorenweg 20, 22, 30, 32 CHF 48.2 million (1.8% of the portfolio) Morges, Avenue Paderewski 26a 26c CHF 34.8 million (1.3% of the portfolio) Sargans, Malerva-Süd (phase 3) CHF 19.3 million (0.7% of the portfolio) Pregny-Chambèsy, Chemin des Cornillons CHF 65.7 Mio. (2.5% of the portfolio) Langenthal, Hopferenfeld (phase 3) CHF 19.4 million (0.7% of the portfolio) Real Estate Investment Management August

14 Real Estate Investment Management Your Contacts Samuel Egger Fund Manager Vice President Tel Christian Braun, CIIA Real Estate Strategies & Advisory Vice President Tel Do you have questions about the capital increase? We can give you the answers. Real Estate Investment Management August

15 Disclaimer This document was produced by Credit Suisse AG and/or its affiliates (hereafter referred to as "CS") with the greatest of care and to the best of its knowledge and belief. However, CS provides no guarantee with regard to its content and completeness and does not accept any liability for losses that might arise from making use of this information. The opinions expressed in this document are those of CS at the time of writing and are subject to change at any time without notice. Unless otherwise indicated, all figures are unaudited. This document is provided for information purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a recommendation to buy or sell financial instruments or banking services and does not release the recipient from exercising his/her own judgment. In particular, it is recommended that the recipient check that the information provided is in line with his/her own circumstances with regard to any legal, regulatory, tax or other consequences, if necessary with the help of a professional advisor. This document may not be reproduced either in part or in full without the written permission of CS. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law. Every investment involves risk, especially with regard to fluctuations in value and return. Investments in foreign currencies involve the additional risk that the foreign currency might lose value against the investor's reference currency. Historical returns and financial market scenarios are no guarantee of present and future performance. Performance data do not take into account any commissions and costs charged for issue and redemption. Furthermore, there is no guarantee that the performance realized will reach or surpass that of the relevant benchmark index. Credit Suisse Real Estate Fund LivingPlus is an investment fund established under Swiss law in the category of real estate funds, in accordance with the Swiss Federal Act on Collective Investment Schemes. The fund management company is Credit Suisse Asset Management Funds AG, Zurich. The custodian bank is Credit Suisse SA, Zurich. Subscriptions are only valid on the basis of the current sales prospectus, with integrated fund agreement, and the most recent semi-annual or annual report. The sales prospectus with integrated fund agreement as well as the semi-annual and annual reports may be obtained free of charge from Credit Suisse Asset Management Funds AG, Zurich and from any bank of Credit Suisse AG in Switzerland. Copyright 2016 CREDIT SUISSE GROUP AG and/or its affiliates. All rights reserved. Real Estate Investment Management August