Additional information on yield-producing properties
Disposals of yield-producing properties
Location | Address | Type [1] | Year of | Transfer |
Baar | Oberdorfstrasse 9–13 | CP | 1989 | 01.10.2015 |
Effretikon | Im Lindenhof 7/9/11 | RP | 1997 | 01.03.2015 |
Zurich | Eggbühlstrasse 21–25 | CP | 1993 | 01.04.2015 |
[1]CP = commercial property, RP = residential property
Leasehold properties
Location | Address | Length of agreement |
|
|
|
Zurich | 30 January 2101 | |
Zurich | 20 October 2086 |
In the case of two yield-producing properties, Allreal is the ground lessee, but ground rent is only due for one commercial property. Under a contractual agreement, the ground rent is reset annually for a further 12-month period on the basis of capital market interest rates.
Future ground rents will be due as follows:
CHF million |
| 2015 |
| 2014 |
|
|
|
|
|
Ground rents up to one year |
| –0.1 |
| –0.1 |
Ground rents from two to five years |
| –0.2 |
| –0.2 |
Ground rents after five years |
| –3.5 |
| –3.8 |
Total future ground rents |
| –3.8 |
| –4.1 |
Largest tenants, commercial real estate
Share in total rental income from commercial real estate:
|
| 2015 |
| 2014 |
|
|
|
|
|
Canton Zurich |
| 19% |
| 16% |
Allianz Suisse Insurance Company Ltd |
| 8% |
| 8% |
MAN Diesel & Turbo Switzerland Ltd |
| 7% |
| 7% |
IBM Switzerland Ltd |
| 6% |
| 7% |
UPC Cablecom GmbH |
| 5% |
|
|
Partner Reinsurance Company Ltd. (PartnerRe) |
| – |
| 4% |
Total |
| 45% |
| 42% |
The five largest tenants’ share of total rental income from all yield-producing properties (residential and commercial) in 2015 increased to around 37% (canton Zurich 16%, Allianz Suisse Insurance Company Ltd 6%, MAN Diesel & Turbo Switzerland Ltd 5%, IBM Switzerland Ltd 5% and UPC Cablecom 5%).
The weighted remaining term of fixed-term rental contracts is 7.8 years (31.12.2014: 8.7 years).
Future income from fixed-term contracts
As a result of fixed-term rental contracts on yield-producing properties, the following nominal rental income will accrue in future:
CHF million |
| 2015 |
| 2014 |
| ||||
Residential real estate |
|
|
|
|
Rental income up to one year |
| 1.3 |
| 1.4 |
Rental income from two to five years |
| 4.7 |
| 5.2 |
Rental income after five years |
| 2.4 |
| 3.9 |
Total future rental income from fixed-term contracts |
| 8.4 |
| 10.5 |
| ||||
Commercial real estate |
|
|
|
|
Rental income up to one year |
| 127.3 |
| 124.5 |
Rental income from two to five years |
| 458.7 |
| 459.1 |
Rental income after five years |
| 290.0 |
| 384.8 |
Total future rental income from fixed-term contracts |
| 876.0 |
| 968.4 |
| ||||
Total future rental income from fixed-term contracts Yield-producing properties |
|
|
|
|
87.2% of all rental income for commercial space is indexed, i.e. rents are adjusted for inflation in accordance with the Swiss Consumer Price Index (CPI) (2014: 84.8%).
96.0% of rental contracts for residential space are for an unlimited term (2014: 96.0%). The weighted remaining term of fixed-term rental contracts for residential property is 5.5 years (31.12.2014: 6.8 years). Rental prices are based, among other factors, on the development of the mortgage reference rate calculated quarterly by the Swiss National Bank and last published on 2 June 2015, when it was reduced to 1.75%.
As at 31 December 2015, 72.1% of all rental contracts contained index clauses corresponding to a target rental income of CHF 129.0 million (2014: 69.3%, CHF 125.9 million).