Download Credit Suisse Real Estate Fund LivingPlus

Credit Suisse Real Estate Fund LivingPlus
Issue presentation
Real Estate Asset Management
May 2013
Executive Summary
CS REF LivingPlus was launched on December 5, 2007
The investment focus was on the subject “Aging of the Population”
Complete investment of liquid assets in real estate as per mid-2010
Diversified portfolio of 121 properties with a market value as of December
31, 2012 of CHF 2.222 billion
External financing ratio as per April 2013 is 19.6% of the market value
Ongoing construction and refurbishment projects as well as associated
construction projects require a further investment volume of around CHF 200
million in 2013 and in the following years 2014 / 2015 of approx. CHF 155
million. Including the construction projects and the 2013 distribution, the
external financing ratio increases in 2013 to over 30%
Completion of subscription rights issue with volume of CHF 185 million
Use of the issue proceeds to cover the financing requirements for the
ongoing construction and refurbishment activities
Real Estate Asset Management
May 2013
2
Credit Suisse Real Estate Fund LivingPlus
Success Factors
 The first Swiss real estate fund with a
focus on the aging of the population.
The fund invests, for example, in
accommodations with services, real estate
for seniors or special clinics.
 As of December 31, 2012, the fund had
built up a CHF 2.222 billion portfolio –
reflecting the acquisition of 121 properties
(incl. 6 projects). The fund has continued
to grow since then.
Burgdorf, Burdlef residence for seniors
 Income and capital gains from direct
property ownership are taxed at the fund
level and thus tax-free for an investor
(whether private individual or legal
entity) domiciled in Switzerland.
CHF 51.4 million (2.3% of the portfolio)
Source: Audited annual report as at December 31, 2012 of Credit Suisse REF LivingPlus
Real Estate Asset Management
May 2013
3
Credit Suisse Real Estate Fund LivingPlus
Investment Policy and Strategy
Investment Policy
 Investment in high-earning real estate
with a focus on accommodations with
services, retirement and nursing
homes, senior residences, health and
wellness
 Broadly diversified portfolio across
Switzerland
Strategy
 Establishment of a broadly diversified
real estate portfolio with the theme
"aging population“
Source: Credit Suisse AG
Real Estate Asset Management
May 2013
4
Credit Suisse Real Estate Fund LivingPlus
Key Data and Product Features
 Broad investor base with several
thousand private and institutional investors
Publicly traded on the SIX Swiss
Exchange with an average daily turnover of
CHF 1,887,0001
 Supervised by the Swiss Financial Market
Supervisory Authority (FINMA) on the basis
of the Swiss Collective Investment
Schemes Act (CISA), e.g.:
 max. 50% borrowed capital (new CISO
33⅓% from March 1, 2013)
 max. 30% building land and buildings started
Lonay, Domaine de La Gracieuse
CHF 55.1 million (2.5% of the portfolio)
1:
On average since its launch on December 5, 2007
Real Estate Asset Management
 Fund currency is the Swiss franc (CHF)
 The fund was launched in 2007. The fund
holds real estate in direct ownership
Source: Credit Suisse AG
May 2013
5
Credit Suisse Real Estate Fund LivingPlus
Key Figures
Annual Reports
December December December December
31, 2012
31, 2011
31, 2010
31, 2009
Net fund assets in CHF million
1,798.7
1,792.3
1,762.0
1,741.0
Market value of properties in CHF million
2,222.4
2,114.0
1,904.9
1,634.4
Premium
18.70%
15.70%
17.69%
20.62%
3.10
3.10
2.60
2.10
Direct yield
2.54%
2.62%
2.19%
1.75%
Payout ratio
93.90%
98.92%
89.13%
94.51%
3.46%
4.40%
3.38%
2.40%
Gearing (% of market value)
15.98%
12.06%
7.90%
0.00%
Total expense ratio (TERREF)
0.67%
0.67%
0.67%
0.66%
Lost-rent ratio
7.20%
6.38%
6.06%
6.68%
Distribution per unit in CHF
Investment return
The performance figures do not take into account the issue and redemption commissions or expenses. Historical returns and financial market scenarios are no
guarantee for current and future results.
The performance figures have been calculated according to the SFA’s specialist instruction “Key Performance Figures of Real Estate Funds" (Kennzahlen von
Immobilienfonds), which entered into effect on November 17, 2010.
Source: Annual reports of Credit Suisse REF LivingPlus
Real Estate Asset Management
May 2013
6
Credit Suisse Real Estate Fund LivingPlus
Net Performance as of April 30, 2013
The performance figures do not take into account issue and redemption commissions or expenses. Historical returns and financial market scenarios are no guarantee for
current and future results.
Last data point: April 30, 2013
Source: Credit Suisse AG
Real Estate Asset Management
May 2013
7
Credit Suisse Real Estate Fund LivingPlus
Price Development in Comparison with Net Asset Value
Premium 21.39%
(as at April 30, 2013)
Issue price
CHF 106.00
net
The performance figures do not take into account issue and redemption commissions or expenses. Historical returns and financial market scenarios are no guarantee for
current and future results.
Last data point: April 30, 2013
Source: Credit Suisse AG
Real Estate Asset Management
May 2013
8
Premiums and discounts of Swiss real estate funds
Average of Listed Swiss Funds1: 20.6%
1
if the OTC traded funds CS 1a Immo PK, CS REF International and CS REF Green Property as well as CS REF Global are also taken into account, the weighted
premium is 18.5%
Last data point: April 30, 2013
Real Estate Asset Management
Source: Credit Suisse AG, Datastream, annual and semi-annual fund reports
May 2013
9
Credit Suisse Real Estate Fund LivingPlus
Geographical Diversification
Market values:
over CHF 50 m illion
CHF 20-50 m illion
CHF 5-20 m illion
up to CHF 5 m illion
Northwestern Switzerland
Zurich
Berne
Lake Geneva
Central Switzerland
Western Switzerland
Eastern Switzerland
Southern Switzerland
29.40%
18.85%
16.85%
7.75%
9.05%
7.15%
7.00%
3.95%
Source: Audited annual report as at December 31, 2012 of Credit Suisse REF LivingPlus
Real Estate Asset Management
May 2013
10
Credit Suisse Real Estate Fund LivingPlus
Diversification by Utilization Type (% of Net Rental Income)
7.0%
12.2%
LivingServices
Health and Wellness
9.7%
Senior Residences
Retirement and Nursing
Homes
71.1%
Source: Audited annual report as at December 31, 2012 of Credit Suisse REF LivingPlus
Real Estate Asset Management
May 2013
11
Credit Suisse Real Estate Fund LivingPlus
10 Largest Tenants Account for 30% of Rental Income
SENIOcare AG
5.7%
Swiss Post
5.5%
GIHE Sàrl
3.5%
Migros
2.8%
Senevita AG
2.6%
Le Parc SA
2.5%
Hotel Letzi Grund AG
2.2%
Parkhotel Bad Zurzach AG
2.1%
Hôtel-Résidence Bristol SA
2.0%
Bains de Saillon SA
1.4%
Source: Credit Suisse AG
Real Estate Asset Management
May 2013
12
Credit Suisse Real Estate Fund LivingPlus
Residual Terms of Rental Agreements
< 1 year
1 - 2 years
70% of the portfolio consists of
residential properties
2 - 3 years
3 - 4 years
4 - 5 years
5 - 6 years
6 - 7 years
7 - 8 years
Rental agreements with retirement homes
and residences run for 20 years and more
8 - 9 years
9 - 10 years
> 10 years
0%
10%
20%
30%
40%
50%
60%
Source: Audited annual report as at December 31, 2012 of Credit Suisse REF LivingPlus
Real Estate Asset Management
May 2013
13
Credit Suisse Real Estate Fund LivingPlus
Lost-rent Ratios
April 2013
Source: Semi-annual and annual reports of Credit Suisse REF LivingPlus
Real Estate Asset Management
May 2013
14
Credit Suisse Real Estate Fund LivingPlus
Taxation
The fund owns the real estate directly
Income and capital gains from direct property ownership are tax directly at the fund level and thus
tax-free for an investor (whether private individual or legal entity) domiciled in Switzerland
Income from direct property ownership are not subject to withholding tax
e.g. Credit Suisse Real Estate Fund LivingPlus
Closing price December 31, 2012: CHF 122.00
Distribution at March 15, 2013: CHF 3.10
Distribution at March 15, 2012: CHF 3.10
Source: Price list 2012 of the Swiss Federal Tax Administration (FTA)
Real Estate Asset Management
May 2013
15
Credit Suisse Real Estate Fund LivingPlus
LIVING SERVICES / www.livingservices.ch
Comprehensive Services at Attractive Conditions
The services of LIVING SERVICES are offered to
tenants at market-oriented conditions. The offering is
diverse and tailored to the current needs of tenants.
The services offered by LIVING SERVICES are provided by
professionals and meet the needs of tenants with regard to all types
of housing and household tasks – and do so at attractive conditions.
Tenants can make use of the services around the clock, 365 days a
year. The benefit is obvious: Instead of the tenants having to
coordinate the search for a provider for each individual task that also
meets both their price and quality requirements, this is taken care of
by LIVING SERVICES. Tenants thus have only one contact for all of
their concerns.
Source: www.livingservices.ch
Real Estate Asset Management
Mai 2013
16
Credit Suisse Real Estate Fund LivingPlus
LIVING SERVICES / www.livingservices.ch
The LIVING SERVICES team continues to enhance the service range – the comprehensive
service is added to accordingly on an ongoing basis and adjusted in line with the needs of
tenants.
Home Cleaning
While you enjoy your free time, LIVING SERVICES tidies up your home. You decide whether it's spring
cleaning, window washing or a thorough weekly cleaning.
Window Cleaning
Do your windows cloud your view on a cozy afternoon? Then deciding whether to do something about it
or not is the all-important question.
Laundry
Shirts, curtains, bed linen: We launder, clean and iron — quickly and professionally. Pickup and delivery
included!!
Troubleshooter
Socket not working? Internet connection down? No time to shop? We take care of it, so you can enjoy
your free time.
Source: www.livingservices.ch
Real Estate Asset Management
Mai 2013
17
Credit Suisse Real Estate Fund LivingPlus
Properties in the Fund Assets (Excerpt from the Portfolio)
Boarding house
Boarding house
Basel, J.-J. Balmer-Strasse
Basel, Gempenstrasse
CHF 64.3 million (2.9% of the portfolio)
CHF 18.5 million (0.8% of the portfolio)
Retirem ent and nursing hom e
Hom e for dem entia patients
Degersheim, Kirchweg
Degersheim, Feldeggstrasse
CHF 8.7 million (0.4% of the portfolio)
CHF 8.0 million (0.4% of the portfolio)
Source: Credit Suisse AG
Real Estate Asset Management
May 2013
18
Credit Suisse Real Estate Fund LivingPlus
Properties in the Fund Assets (Excerpt from the Portfolio)
Health and Wellness
Health and Wellness
Saillon, Les Bains de Saillon
Rothrist, Klinik Villa im Park
CHF 23.9 million (1.1% of the portfolio)
CHF 15.1 million (0.7% of the portfolio)
LivingServices
LivingServices
Adliswil, Poststrasse 11, 13
Rheinfelden, Augarten
CHF 22.4 million (1.0% of the portfolio)
CHF 160.4 million (7.2% of the portfolio)
Source: Credit Suisse AG
Real Estate Asset Management
May 2013
19
Credit Suisse Real Estate Fund LivingPlus
Capital Increase
Subscription rights issue with a maximum volume of CHF 185.5 million
New funding will be used to finance future building and refurbishment
work
− in 2013 around CHF 200 million
− in the following years 2014/2015 around CHF 155 million
Selective expansion of the portfolio
− Investments in new building projects
− Refurbishment of existing buildings to rejuvenate the portfolio
The issue will be conducted in terms of commissions on a “best effort
basis” as part of a subscription offer in Switzerland
Compulsory disclosures are provided in the issue prospectus, which is available with the issue. After the subscription period has expired, the final
allocation will take place. This may result in a change to the subscription ratio.
Real Estate Asset Management
May 2013
20
Credit Suisse Real Estate Fund LivingPlus
Capital Increase - Key Facts
Target investors
Issue type
Private and institutional investors
The issue will be conducted in terms of commissions on a
“best effort basis” as part of a public subscription offer in
Switzerland
Subscription period
June 3 through June 14, 2013 (12:00 CET)
Subscription ratio
Ten (10) existing units entitle the holder to acquire one (1)
new unit
Subscription rights trading
Official trading in subscription rights will take place from
June 3 through June 13, 2013 on the SIX Swiss
Exchange AG*
Issue price per unit
CHF 106.00 net
Payment under subscription
June 21, 2013
Swiss Security Number / ISIN 3 106 932 / CH0031069328 (unit)
21 202 753 / CH0212027533 (subscription right)
Subscription
At all Credit Suisse AG branches in Switzerland
* The price of subscription rights traded on SIX Swiss Exchange AG may fluctuate due to changes in supply and demand. There is no guarantee that there will be an
active market for the subscription rights during this time. The market value of the subscription rights cannot be guaranteed.
Real Estate Asset Management
May 2013
21
Credit Suisse Real Estate Fund LivingPlus
Capital Increase – Use of Issue Proceeds
Lausanne, EPFL campus (50% joint ownership )

Utilization
student housing with 252 residential units
- 170 studios
- 82 apartments

Modular convention center to accommodate 3,000 guests and 290 car parking
spaces

Tenant: Swiss Federal Institute of Technology Lausanne

Occupance
Fall 2013
 Investment volume CS REF LivingPlus
approx. CHF 118.5 million
 Total investment volume
approx. CHF 237.0 million
Source: Credit Suisse AG
Real Estate Asset Management
May 2013
22
Credit Suisse Real Estate Fund LivingPlus
Capital Increase – Use of Issue Proceeds
Derendingen, Hauptstrasse 48
 Utilization
 Occupance
 Investment volume
43 apartments
Fall 2014
CHF 15.4 million
Staufen, Esterliweg
 Utilization
 Occupance
 Investment volume
60 apartments
Fall 2014
CHF 27 million
Source: Credit Suisse AG
Real Estate Asset Management
May 2013
23
Credit Suisse Real Estate Fund LivingPlus
Capital Increase – Use of Issue Proceeds
Basel, Erlenmatte (field F)
 Utilization
 Occupance in phases beginning
 Investment volume
180 apartments
Spring 2016
CHF 76.8 million
Basel, Schorenweg (C1)
 Utilization
 Occupance
 Investment volume
70 apartments
Spring 2016
CHF 36.5 million
Source: Credit Suisse AG
Real Estate Asset Management
May 2013
24
Credit Suisse Real Estate Fund LivingPlus
Capital Increase – Use of Issue Proceeds
Saillon, Les Bains de Saillon
 New construction of a Med-Hotel
 Occupance
 Investment volume
end of 2015
CHF 25 million
Gampelen, Neuenburgstrasse 6
 New construction and renovation EMS (Etablissement Médico-Social)
 Completion
 Investment volume
mid 2015
CHF 25 million
Source: Credit Suisse AG
Real Estate Asset Management
May 2013
25
Credit Suisse Real Estate Fund LivingPlus
Capital Increase – Use of Issue Proceeds
Neuenhof, Webermühle
 Total renovation
 Prefabricated residential estate built between the years 1973 and 1981
 368 apartments / 530 parking spaces
 Extensive interior and exterior renovation with thermal insulation as per today's
standards and then a new positioning
 Investment volume
 Completion
CHF 48.0 million
1st phase by the end of 2012
2nd phase in 2013/2014
Source: Credit Suisse AG
Real Estate Asset Management
May 2013
26
Credit Suisse Real Estate Fund LivingPlus
Capital Increase – Use of Issue Proceeds
Berne, Niesenweg 1 «Résidence»
 Total renovation
 Utilization
 Investment volume renovation
 Time period
retirement and nursing home
CHF 20.5 million
March 2013 until April 2014
Berne, Bühlstrasse 5
 Total renovation
 Utilization
 Investment volume
 Time period
retirement and nursing home
CHF 9.6 million
March 2013 until May 2014
Source: Credit Suisse AG
Real Estate Asset Management
May 2013
27
Credit Suisse Real Estate Fund LivingPlus
Our Priorities
Expansion of the portfolio with attractive properties and
Qualitative growth projects using the issue proceeds
Build up of debt
capital
A medium-term debt level of up to 30% is targeted
Reduction in
vacancies
In 2013, the focus is on reducing the lost-rent ratio to
below 6%
LIVING
SERVICES
Implementation of the LIVING SERVICES concept with our
partners
Distribution
Implementing the measures should enable us to increase the
distribution yield
Source: Credit Suisse AG
Real Estate Asset Management
May 2013
28
Credit Suisse Real Estate Fund LivingPlus
Brief Portrait
Portfolio Manager
Adrian Lehmann
SJRS 81, Product Management
Sihlcity – Kalandergasse 4
8070 Zurich
Tel. 044 / 334 66 48
Fax. 044 / 332 10 82
Email: [email protected]
www.credit-suisse.com/realestatefunds
Fund Data*
Fund domicile
Fund currency
End of the financial year
Issue date
Management fee
TERREF
Net assets (in millions)
Total assets (in millions)
Number of properties
Switzerland
CHF
December 31
December 5, 2007
0.49% p.a.
0.67%
1,798.7
2,245.6
115 properties
6 projects
Last distribution
Distribution in CHF
Direct yield
March 15, 2013
3.10
2.54%
Rate of loss of rental income
Debt financing ratio
7.20%
15.98%
Swiss Security Number symbol
Swiss Security Number
ISIN
CSLP
3106932
CH0031069328
*Key figures as per financial statements as at December 31, 2012
Source: Credit Suisse AG
Real Estate Asset Management
May 2013
29
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. 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 (as defined in 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 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 © 2013. CREDIT SUISSE GROUP AG and/or its affiliates. All rights reserved.
Real Estate Asset Management
May 2013
30