Swiss Life Asset Management AG: Swiss Life REF (CH) Swiss Properties: closing of 2019/2020 financial year and pending capital increase

25 November 2020

Swiss Life REF (CH) Swiss Properties: closing of 2019/2020 financial year and pending capital increase

"Swiss Life REF (CH) Swiss Properties" can look back on a successful year. Net income increased by 4.2% year-on-year to CHF 24.3 million. The distribution per unit has remained stable at CHF 2.60. The distribution yield based on the exchange price is thus 2.02%. The previously announced capital increase will take place in November and December 2020. The issue price has been set at CHF 111.20.

The Swiss Life REF (CH) Swiss Properties real estate fund holds a real estate portfolio diversified throughout Switzerland. The total of 91 properties have a market value of around CHF 1376 million (as at 30 September 2020). In the past fiscal year, the portfolio was expanded by three properties in Zurich, Schaffhausen and Bussigny. Appreciating property values were again recorded. The market value of the properties held in the portfolio over the entire reporting period increased by CHF 18.6 million or 1.5% (net, after deduction of investments). The chief value driver was the uninterrupted investor demand for high-quality (and primarily residential) properties in good locations. Residential properties remain highly sought-after despite COVID-19 as they generate a reliable flow of rental income and consistently exhibit a positive earnings differential relative to fixed-income investments.

Despite a challenging market environment, the vacancy rate was reduced to a low 2.76% due to the emphasis on good locations, a favourable diversity of uses and the focus on active lettings management. Net income as at 30 September 2020 increased by 4.2% from CHF 23.3 million to CHF 24.3 million. Investors will receive a total distribution of CHF 23.4 million, or CHF 2.60 per unit. The distribution per unit thus remains stable. The yield on distribution (based on the exchange price as at 30 September 2020) is 2.02%.

Capital increase announced
The Swiss Life REF (CH) Swiss Properties real estate fund is planning a capital increase at the beginning of December with a volume of around CHF 500 million. The capital will be used for continuing the successful strategy of qualitative growth and for acquiring a new high-quality portfolio totalling around CHF 500 million. The issue will take place on a commission ("best-effort") basis as part of a public subscription offer in Switzerland. Two (2) subscription rights entitle the holder to purchase one (1) new unit. Official subscription rights trading will take place from 30 November to 9 December 2020 at SIX Swiss Exchange Ltd. In total, a maximum of 4 500 000 new units will be issued. Any non-subscribed units will not be issued, thus reducing the amount of the issue. The issue price of CHF 111.20 is based on the net asset value as at 30 September 2020 less the distribution for the 2019/20 financial year. It includes the purchase of current income and an issuing commission of 2.0%. The subscription period is planned for 30 November to 11 December 2020, with 17 December 2020 as the payment date.

Responsible investing
Swiss Life Asset Managers has been a signatory to UN PRI since 2018. Environmental, social and governance factors (ESG) are systematically integrated into the investment and risk management processes at Swiss Life Asset Managers. In the real estate investment business, appropriate criteria are taken into account when properties are purchased as well as in construction projects and property management. The Swiss Life REF (CH) Swiss Properties real estate fund has been participating in the annual GRESB (Global Real Estate Sustainability Benchmark) since 2018. In 2019 and 2020, the fund received a "Green Star" rating - an acknowledgement of good ESG integration in real estate investments.

Further information on the fund is available at the following link.

Issue conditions

Information

Media Relations

Phone +41 43 284 77 77

media.relations@swisslife.ch

Investor Relations
Phone +41 43 284 52 76
investor.relations@swisslife.ch

www.swisslife-am.com

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Swiss Life Asset Managers
Swiss Life Asset Managers has more than 160 years of experience in managing the assets of the Swiss Life Group. This insurance background has exerted a key influence on the investment philosophy of Swiss Life Asset Managers, which is governed by such principles as value preservation, the generation of consistent and sustainable performance and a responsible approach to risks. That's how we lay the groundwork for our clients to make solid, long-term plans - in self-determination and with financial confidence. Swiss Life Asset Managers offers this proven approach to third-party clients in Switzerland, France, Germany, Luxembourg
and the UK.

As at 30 June 2020 assets under management for third-party clients amount to CHF 82.9 billion. Together with insurance mandates for the Swiss Life Group, total assets under management at Swiss Life Asset Managers stood at CHF 260.0 billion. Swiss Life Asset Managers is a leading real estate manager in Europe¹. Of the assets totaling CHF 256.0 billion, CHF 71.4 billion is invested in real estate. In addition, Swiss Life Asset Managers has real estate under administration of CHF 28.3 billion through its subsidiaries Livit and Corpus Sireo. Total real estate under management and administration at the end of June 2020 thus came to CHF 99.7 billion.

Swiss Life Asset Managers employs more than 2200 people in Europe.

¹ INREV Fund Manager Survey 2020 (AuM as of 31.12.2019)


Disclaimer
This document has been produced with the greatest possible care and to the best of our knowledge and belief. However, we do not accept any liability for losses resulting from the use of this information. This publication is not intended as a solicitation or recommendation to buy or sell investment instruments, but only serves to provide information. The source of all data and diagrams (unless stated otherwise) is Swiss Life Asset Management Ltd.
Comprehensive information on the fund can be found in the documents forming the legal basis for any investment. These may be ordered free of charge in electronic or printed form from the fund management company, Swiss Life Asset Management Ltd, General-Guisan-Quai 40, 8002 Zurich