Additional information on yield-producing properties
Disposals of yield-producing properties
Location | Address | Type [1] | Year of | Transfer |
Schlieren | Badenerstrasse 58–60 | RP | 1955 | 01.12.2014 |
Zurich | Buckhauserstrasse 32 | CL | 1968 | 01.04.2014 |
Zurich | Thurgauerstrasse 39 | CL | 1970 | 15.12.2014 |
[1]CP = commercial property, RP = residential property
Leasehold properties (ground rents)
Location | Address | Length of agreement |
|
|
|
Zurich | Badenerstrasse 141 | 30 January 2101 |
Zurich | Kreuzstrasse 5 | 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 |
| 2014 |
| 2013 |
|
|
|
|
|
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 |
| −3.8 |
| –3.9 |
Total future ground rents |
| −4.1 |
| –4.2 |
Largest tenants, commercial real estate
Share in total rental income from commercial real estate:
|
| 2014 |
| 2013 |
|
|
|
|
|
Canton Zurich |
| 16% |
| 9% |
Allianz Suisse Insurance Company Ltd |
| 8% |
| 6% |
MAN Diesel & Turbo Switzerland Ltd |
| 7% |
| 7% |
IBM Switzerland Ltd |
| 7% |
| 9% |
Partner Reinsurance Company Ltd. (PartnerRe) |
| 4% |
| 5% |
Total |
| 42% |
| 36% |
The five largest tenants’ share of total rental income from all yield-producing properties (residential and commercial) declined to around 35% in 2014 (canton Zurich 13%, Allianz Suisse Insurance Company Ltd 7%, MAN Diesel & Turbo Switzerland Ltd 6%, IBM Switzerland Ltd 6% and PartnerRe 3%).
The weighted remaining term of fixed-term rental contracts is 8.7 years (31.12.2013: 6.8 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 |
| 2014 |
| 2013 |
| ||||
Residential real estate |
|
|
|
|
Rental income up to one year |
| 1.4 |
| 0.8 |
Rental income from two to five years |
| 5.2 |
| 2.3 |
Rental income after five years |
| 3.9 |
| 2.0 |
Total future rental income from fixed-term contracts |
| 10.5 |
| 5.1 |
| ||||
Commercial real estate |
|
|
|
|
Rental income up to one year |
| 124.5 |
| 103.9 |
Rental income from two to five years |
| 459.1 |
| 268.7 |
Rental income after five years |
| 384.8 |
| 129.9 |
Total future rental income from fixed-term contracts |
| 968.4 |
| 502.5 |
| ||||
Total future rental income from fixed-term contracts Yield-producing properties |
|
|
|
|
84.8% 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) (2013: 79.0%).
96.0% of rental contracts for residential space are for an unlimited term (2013: 95.8%). The weighted remaining term of fixed-term rental contracts for residential property is 6.8 years (31.12.2013: 4.7 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 3 September 2013, when it was reduced to 2.00%.
As at 31 December 2014, 69.3% of all rental contracts contained index clauses corresponding to a target rental income of CHF 125.9 million (2013: 70.2%, CHF 104.7 million).