Credit Suisse Real Estate Fund Interswiss Capital increase Real Estate Asset Management August 2012

Transcription

1 Capital increase 2012 Real Estate Asset Management August 2012

2 Success factors Largest commercial real estate fund in Switzerland, with a market value of CHF billion as of 31/03/2012 The fund comprises 76 properties with a total of 4,279 rental agreements Distribution yield of 3.74% as of 30/09/2011 the average of all listed real estate funds is 2.90% (2012) Low total expense ratio (TER REF ) of 0.70% below the average for listed real estate funds of 0.82% Zurich, Sihlcity Joint ownership CHF 99.2 mn (5.8% of portfolio) Source: SIX Swiss Exchange, CS REF Interswiss unaudited semi-annual report as of 31 March 2012 Real Estate Asset Management August

3 Investment policy and strategy Investment policy Investments in real estate generating high returns with commercial and mixed use properties Regionally broadly diversified portfolio in Switzerland, with focus on Swiss cities and agglomerations Köniz, subsidiary Berne Sanitas Troesch AG CHF 18.9 mn (1.1% of portfolio) Strategy Achievement of a stable, high distribution yield Focus on qualitative portfolio growth as well as constant renewal of the existing properties Source: Credit Suisse AG Real Estate Asset Management August

4 Key data Semi-annual / annual reports 31/03/ /09/ /09/2010 Net fund assets in CHF m 1, , ,251.6 Market value of properties in CHF m 1, , ,574.8 Premium 23.27% 20.51% 21.49% Distribution per unit in CHF n/a Distribution yield n/a 3.74% 3.75% Distribution ratio n/a 90.22% 84.96% Return on investment 2.43% % 6.06% Third-party financing (% of market value) 21.60% 18.10% 19.21% Total expense ratio (TER REF ) 0.70% 0.71% 0.70% Rent default rate 3.47% 2.61% 2.60% 1 calculated for six months (01/10/ /03/2012) Historical performance data are no guarantee for current or future performance and returns. The performance data do not take into account any commissions and costs incurred through issuance and redemptions of units. The data are calculated according to the new special information factsheet of the Swiss Funds Association (SFA) Key Data for Real Estate Funds, which has been in effect since 17/11/2010. Source: CS REF Interswiss audited annual report and unaudited semi-annual report Real Estate Asset Management August

5 Net performance as of 31/7/2012 1) The performance data do not take into account any commissions and costs incurred through issuance and redemptions of units. Historical performance data are no guarantee for current or future performance and returns. Last data point: 31/7/2012 Source: Credit Suisse AG Real Estate Asset Management August

6 Agios and Disagio of the Swiss Real Estate Funds Average of listed funds 1 : 29.0% 1 if the other funds CS 1a Immo PK, CS REF International, CS REF Green Property, CS REF Hospitality and CS REF Global are included, the weighted agio is 24.8% Last data point: 31/7/2012 Source: Credit Suisse AG, Datastream, last annual or semi-annual report of the funds Real Estate Asset Management, APRS July

7 Distribution yield for Swiss real estate funds Distribution per unit measured by unit price The performance data do not take into account any commissions and costs incurred through issuance and redemptions of units. Historical performance data are no guarantee for current or future performance and returns. Schroder ImmoPlus reinvests roughly 70% of net returns. Last data point: 31/7/2012 Source: Credit Suisse AG, Datastream, fund s last annual report Real Estate Asset Management August

8 Focus on economic centers Zurich 40.60% Northwest Switzerland 28.70% Lake Geneva 14.15% Berne 12.35% Southern Switzerland 2.30% Central Switzerland 1.90% This is the allocation as of 31/3/2012 it is subject to change over time. Source: CS REF Interswiss unaudited semi-annual report as of 31 March 2012 Real Estate Asset Management August

9 Diversification by type of use Breakdown of utilized floor space by net rental income 5.20% 6.45% 4.75% 7.15% Office 27.65% Retail Apartments Parking 23.95% 24.85% Others Warehouses Hotels, restaurants, cinemas Source: CS REF Interswiss unaudited semi-annual report as of 31 March 2012 Real Estate Asset Management August

10 Properties held in fund assets (extract) Zurich, Löwenstrasse 29 CHF 71.5 million (4.2% of portfolio) Geneva, Rue de Lausanne 72 CHF 17.5 million (1.0% of portfolio) Source: Credit Suisse AG Real Estate Asset Management August

11 Properties held in fund assets (extract) Worblaufen, Swisscom AG headquarters CHF 79.7 million (4.6% of portfolio) Schwerzenbach, Walter Meier AG headquarters CHF 71.8 million (4.2% of portfolio) Source: Credit Suisse AG Real Estate Asset Management August

12 Key data for proposed capital increase Type of issue: Best-effort issue with trading subscription rights Subscription period: 27/08 07/09/2012 (12:00) Trading of subscription rights at SIX Swiss Exchange: 27/08 06/09/2012 Issue price per share: Subscription ratio: Issue volume: Issue commission: CHF net 9:1 (9 existing shares : 1 new share) CHF million in maximum 2.5% of NAV (included in the issue price) Identification of fund share: Valor number: ISIN: CH Identification of Valor number: subscription right: ISIN: CH Real Estate Asset Management August

13 Acquisition 2012 Milavy Center, Avenches Shopping center Investment volume (including VAT) Rental income CHF 23.3 m CHF 1.3 m Gross return p.a. 5.6% Date of construction 2004 Long-term rental agreements, primary tenant: Coop (term of rental agreement until 2024) Total rental floor space 7,200 m2 Parking places 350 The target return is not a projection, forecast or guarantee of future performance nor indication of achievement thereof. Source: Credit Suisse AG Real Estate Asset Management August

14 Conditional acquisition 2012 Business Park Terre Bonne, Eysins Commercial property Investment volume (including VAT) Rental income CHF 59.8 m CHF 3.3 m Gross return p.a. 5.5% Date of construction 2012 Long-term rental agreements, primary tenant: Lloyds TSB Bank PLC (term of rental agreement until 2022) Total rental floor space 7,700 m2 Parking places 119 The target return is not a projection, forecast or guarantee of future performance nor indication of achievement thereof. Source: Credit Suisse AG Real Estate Asset Management August

15 Current new building projects Nautilus building project, Berne Commercial property Investment volume CHF 46.3 m Rental income CHF 2.5 m Gross return p.a. 5.4% Completion by end-2012 Minergie / greenproperty standards Total rental floor space 8,500 m2 Tenant: IV Berne (term of rental agreement until 2022) The target return is not a projection, forecast or guarantee of future performance nor indication of achievement thereof. Source: Credit Suisse AG Real Estate Asset Management August

16 Current new building projects Triangle building project, Grand-Saconnex Residential and commercial property Investment volume CHF 37.1 m Rental income CHF 2.2 m Gross return p.a. 5.9% Completion by end-2012 Minergie / greenproperty standards Total rental floor space Currently in marketing phase / interested potential tenants 4,900 m2 The target return is not a projection, forecast or guarantee of future performance nor indication of achievement thereof. Source: Credit Suisse AG Real Estate Asset Management August

17 Current new building projects Versoix building project Commercial property Investment volume CHF 35.0 m Rental income CHF 2.0 m Gross return p.a. 5.7% Completion by autumn 2013 Minergie / greenproperty standards Total rental floor space Currently in marketing phase / interested potential tenants 5,035 m2 The target return is not a projection, forecast or guarantee of future performance nor indication of achievement thereof. Source: Credit Suisse AG Real Estate Asset Management August

18 Repositioning Spreitenbach Shopping Center Shopping center Repositioning investment volume Market value Rental income CHF 25 m CHF m CHF 8.0 m Completion by spring 2014 Total rental floor space 38,200 m2 Parking places 4,000 Source: Credit Suisse AG Real Estate Asset Management August

19 Acquisitions in 2011/2012 and deal pipeline in 2012 / 2013 Location Date Investment in CHF Acquisitions - concluded - conditional Avenches Eysins Spring autumn 2012 Total 83 mn Current new building projects Berne, Grand- Saconnex, Versoix End-2012 / autumn 2013 Total 118 mn (of which 32 mn outstanding ) Renovations / repositioning Various 2012 / mn TOTAL 160 mn Source: Credit Suisse AG Real Estate Asset Management August

20 Allocation of issue proceeds Active portfolio management paves the way for ongoing renewal and rejuvenation of the real estate holdings. Capital requirement for already purchased and proposed property acquisitions With targeted renovations of existing properties, CS REF Interwiss sustainably enhances the attractiveness and boosts the earnings power of the portfolio. Capital requirement for ongoing renovations Constant improvement of portfolio quality as well as sustainable strengthening of basic structure and earnings power Source: Credit Suisse AG Real Estate Asset Management August

21 Advantages for investors participating in the capital increase Real estate portfolio with high returns High distribution yield Inflation protection Sustainable, secure earnings Risk diversification Qualitative growth Professional portfolio management Investment in a broadly diversified real estate fund across sectors and regions, featuring commercial properties with high returns CS REF Interswiss boasts the highest distribution yield (3.7% 1 ) of any Swiss stock exchange-listed real estate fund ( 2.9%) Rental agreements for commercial-use properties are set at long terms and tied to inflation through indexing Constant earnings from real estate investments thanks to tenants with high credit ratings as well as sustainable maintenance of the properties Low correlation of real estate to other asset classes such as money market, equities or bonds High qualitative requirements regarding location, building structure and utilization concept for commercial properties Active property and vacancy management with proven and experienced local real estate specialists 1 as of 30/09/ the target return is not a projection, forecast or guarantee of future performance nor indication of achievement thereof. Source: Credit Suisse AG Real Estate Asset Management August

22 Your contacts Portfolio Manager Real Estate Strategies & Advisory Radhia Volger Vice President Product Management APRS 81 Sihlcity Kalandergasse Zurich Tel. 044 / radhia.volger@credit-suisse.com Ulrich Braun Director Real Estate Strategies & Advisory APRS 74 Sihlcity Kalandergasse Zurich Tel. 044 / ulrich.braun@credit-suisse.com Fabian Linke Vice President Real Estate Strategies & Advisory APRS 74 Sihlcity Kalandergasse Zurich Tel. 044 / fabian.linke@credit-suisse.com Real Estate Asset Management August

23 Addendum Real Estate Asset Management August 2012

24 What distinguishes commercial-use properties? Advantages Highly secure earnings Constant returns potentially higher returns than for residential property Long-term rental agreements (generally terms of ten years, with optional extension) Partially or fully indexed rents in line with the Swiss consumer price index (CPI) Reduced management costs due to lower tenant turnover rates and installations requiring less maintenance Disadvantages Dependency on the economy Competitive Swiss real estate market Dependency on tenant credit ratings Potential for substantial vacant floor space given tenant turnover (challenging releasing process) Real Estate Asset Management August

25 Ten largest tenants account for 30% of rental income Zurich Insurance Company Ltd. Swisscom AG Walter Meier AG MP Hotelbetriebs AG (Mövenpick Hotels & Ressorts) Coop Maus Frères SA Schöni Transport AG Renaissance Hotel Migros Dosenbach-Ochsner AG 7.7% 5.0% 3.7% 3.7% 2.9% 2.4% 2.3% 2.0% 1.9% 1.6% Source: CS REF Interswiss unaudited semi-annual report as of 31 March 2012 Real Estate Asset Management August

26 Terms of rental agreements Residential and parking: 30% Source: CS REF Interswiss unaudited semi-annual report as of 31 March 2012 Real Estate Asset Management August

27 Rent default rates Source: CS REF Interswiss semi-annual and annual reports Real Estate Asset Management August

28 Terms of borrowed capital Fixed-term mortgages Loans CHF m CHF 91.1 m Source: CS REF Interswiss unaudited semi-annual report as of 31 March 2012 Real Estate Asset Management August

29 Weighted average cost of capital Ø: 2.11% Source: CS REF Interswiss unaudited semi-annual report as of 31 March 2012 Real Estate Asset Management August

30 Disclaimer This document was produced by Credit Suisse AG and/or its affiliates (hereafter "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 which 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. If nothing is indicated to the contrary, 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. The recipient is in particular recommended to 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. Neither this document nor any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person (within the meaning of Regulation S under the US Securities Act of 1933, as amended). 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 performance indications and financial market scenarios are no guarantee for current or future performance. Performance indications do not consider commissions levied at subscription and/or redemption. Furthermore, no guarantee can be given that the performance of the benchmark will be reached or outperformed. Credit Suisse Real Estate Fund Interswiss 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 Funds AG, Zurich. The custodian bank is Credit Suisse AG, Zurich. UBS (CH) Property Fund - Swiss Mixed "Sima", UBS (CH) Property Fund - Swiss Residential "Anfos", UBS (CH) Property Fund - Léman Residential "Foncipars", UBS (CH) Property Fund - Direct Residential, UBS (CH) Property Fund - Swiss Commercial "Swissreal": The fund management company is UBS Fund Management (Switzerland) AG; The custodian bank: UBS AG SWISSCANTO (CH) REAL ESTATE FUND IFCA: The fund management company is Swisscanto Asset Management AG; The custodian bank: Zürcher Kantonalbank IMMOFONDS Schweizerischer Immobilien-Anlagefonds: The fund management company is AG für Fondsverwaltung; The custodian bank: Zuger Kantonalbank Schroder ImmoPLUS: The fund management company is Schroder Investment Management (Switzerland) AG; The custodian bank: Zürcher Kantonalbank LA FONCIERE: The fund management company is Investissements Fonciers SA; The custodian bank: Banque Cantonale de Genève FIR Fonds Immobilier Romand: The fund management company is Société pour la gestion de placements collectifs GEP SA; The custodian bank: Banque Cantonale Vaudoise SOLVALOR 61 Fonds de placement immobilier: The fund management company is Solvalor fund management S.A.; The custodian bank: UBS AG BONHÔTE IMMOBILIER: The fund management company is FidFund Management SA; The custodian bank: Banque Bonhôte & Cie SA Swissinvest Real Estate Investment Fund: The fund management company is Pensimo Fondsleitung AG; The custodian bank: Credit Suisse AG Immo Helvetic; Fondsleitung: The fund management company is Berninvest AG; The custodian bank: Bank Sarasin & Cie AG Procimmo Swiss Commercial Fund: The fund management company is FidFund Management SA; The custodian bank: Banque Cantonale Vaudoise Edmond de Rothschild Real Estate SICAV Swiss; The custodian bank: Banque Cantonale Vaudoise Realstone Swiss Property: The fund management company is Realstone SA; The custodian bank: Banque Cantonale Vaudoise Patrimonium Real Estate Funds - Patrimonium Swiss Real Estate Fund: The fund management company is Swiss & Global Asset Management AG; The custodian bank: Bank Julius Bär & Co. AG Edmond de Rothschild Real Estate SICAV Helvetia; The custodian bank: Banque Cantonale Vaudoise Residentia: The fund management company is FidFund Management SA, The custodian bank: Cornèr Banca SA Subscriptions are only valid on the basis of the current sales prospectus with the integrated fund contract, the simplified prospectus, and the most recent annual report (or semi-annual report, if more recent). The prospectus with integrated fund contract, the simplified prospectus, and the annual and semi-annual reports are available free of charge from Credit Suisse Funds AG, Zurich, and from all Credit Suisse AG banks in Switzerland. Copyright 2012 Credit Suisse Group AG and/or its affiliates. All rights reserved.. Real Estate Asset Management August