Credit Suisse Funds AG
Credit Suisse Real Estate Fund International Investment fund under Swiss law of the “Real estate funds” category for qualified investors
Audited Annual Report as at December 31, 2014
Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Contents
Information in Brief Management and Statutory Bodies Information on Third Parties Report on Activities Geographical Distribution of the Fund’s Properties / Regional Breakdown by Market Value Development of Net Asset Value and Distribution Structural Breakdown by Actual Net Rental Income / Breakdown of Property/Real Estate Statement of Assets Statement of Income Schedule of Properties in Swiss Francs / General Information about the Properties / Financial Data on the Properties / Breakdown of Residential / Commercial Premises Schedule of Properties (Local Currencies) / Financial Data on the Properties Land Purchases and Sales / Transactions with Related Parties / Tenants Accounting for over 5% of Rental Income / Real Estate Companies in the Fund / Overview of Units of Other Investment Funds Mortgages / Loans Transactions between Funds Capital Gains/Losses on Currencies Further Information on Off-Balance-Sheet Business Notes to the Audited Annual Report Valuation Report Report of the Audit Company
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3 4 5 6 11 12 13 14 15 16 20 22 23 24 25 27 28 29 31
Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Information in Brief Key Data Swiss security no. 1 968 511 Fund units issued Fund units redeemed Number of units in circulation Net asset value per unit (incl. distribution) Issue price per unit Redemption price per unit Closing price (bid price) Highest price (in review period) Lowest price (in review period) Market capitalization Premium / discount Statement of Assets Market value of properties Book value of properties Total assets Third-party borrowings: 1) – in % of investment costs – in % of aggregate market value Debt as a percentage of total assets Net asset value attributable to the unitholders of the Fund Return and Performance Data Distribution Distribution yield Distribution ratio Return on equity (ROE) attributable to the unitholders of the Fund Return on invested capital (ROIC) Return on investment Performance EBIT margin Total expense ratio GAV (TERREF GAV) 2) Total expense ratio NAV (TERREF NAV) 2) Price/earnings ratio (P/E) Price/cash flow ratio Statement of Income Net income total Realized capital gains/losses Rental income Rental losses Maintenance expense
31/12/2014
31/12/2013
31/12/2012
– – 2 112 896 1 034.42 1 105.00 960.00 1 075.00 1 075.00 955.00 2 271.4 mio. 3.92%
– – 2 112 896 1 016.22 1 085.00 945.00 1 005.00 1 070.00 955.00 2 123.5 mio. –1.10%
– – 2 112 896 1 011.21 1 080.00 940.00 975.00 1 005.00 925.00 2 060.1 mio. –3.58%
CHF CHF CHF
31/12/2014 2 431.7 mio. 2 345.4 mio. 2 678.6 mio.
31/12/2013 2 190.4 mio. 2 193.6 mio. 2 366.7 mio.
31/12/2012 2 071.5 mio. 2 098.3 mio. 2 352.3 mio.
CHF
14.25% 13.74% 18.27% 2 185.6 mio.
4.01% 4.02% 9.13% 2 147.2 mio.
5.14% 5.20% 9.03% 2 136.6 mio.
31/12/2014 41.00 3.81% 92.87%
31/12/2013 40.00 3.98% 91.18%
31/12/2012 39.00 4.00% 92.86%
6.77%
4.43%
4.25%
6.27% 5.92% 11.35% 74.03% 0.85% 0.98% 15.36 34.35
4.23% 4.49% 7.04% 72.63% 0.95% 1.04% 22.33 14.31
4.09% 3.69% 0.75% 76.50% 0.91% 0.99% 22.68 863.52
31/12/2014 86.8 mio. –27.2 mio. 139.9 mio. 5.92% 15.9 mio.
31/12/2013 85.2 mio. 55.7 mio. 134.1 mio. 6.04% 17.0 mio.
31/12/2012 81.9 mio. –86.4 mio. 124.0 mio. 6.44% 14.0 mio.
CHF CHF CHF CHF CHF CHF CHF
CHF
CHF CHF CHF CHF
Permitted weighting: 50% of aggregate market value (Regulations § 14, para. 2) The operating expenses relevant to the calculation of the Fund’s total expense ratio GAV are levied on the total fund assets. The Fund’s total expense ratio NAV shows these expenses in relation to net fund assets (total fund assets less borrowing). The net fund assets attributable to the unitholders as at December 31, 2014 were 18.40% lower than the total fund assets.
1) 2)
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Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Management and Statutory Bodies Management and Statutory Bodies
Management Company Credit Suisse Funds AG, Zurich Board of Directors – Dr. Thomas Schmuckli, Chairman – Luca Diener, Vice-Chairman, Managing Director, Credit Suisse AG, Zurich – Markus Graf, Member, CEO, Swiss Prime Site AG, Olten – Lars Kalbreier, Member, Managing Director, Credit Suisse AG, Zurich – Maurizio Pedrini, Member, Managing Director, Credit Suisse AG, Zurich – Jürg Roth, Member, Managing Director, Credit Suisse AG, Zurich – Christian Schärer, Member, Managing Director, Credit Suisse AG, Zurich Executive Board – Thomas Schärer, Chief Executive Officer – Patrick Tschumper (since December 1, 2014), Deputy CEO, previously Member, COO – Michael Bünzli, Member, Legal Counsel – Thomas Federer, Member, Performance & Risk Management – Tim Gutzmer (since December 1, 2014), Member, Fund Services – Hans Christoph Nickl (since December 1, 2014), Member, COO – Thomas Vonaesch, Member, Real Estate Fund Management – Gabriele Wyss, Member, Compliance – Petra Reinhard Keller (until November 30, 2014), Deputy CEO – Dr. Daniel Siepmann (until November 30, 2014), Member, Fund Operations Custodian Bank Credit Suisse AG, Zurich Audit Company KPMG AG, Zurich
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Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Information on Third Parties Information on Third Parties
Accredited Valuation Experts – Andreas Ammann, architect (ETH/SIA), Wüest & Partner AG, Zurich – Marco Feusi, architect (HTL degree), Wüest & Partner AG, Zurich – Christoph Zaborowski (until December 31, 2014), economist (Dr. oec. publ.), Wüest & Partner AG, Zurich Delegation of Further Responsibilities The fund management company has mandated Credit Suisse AG, Zurich, as investment advisor, to assist it in investing the fund’s assets. The fund management company has delegated certain fund administration duties to the following group companies of Credit Suisse Group AG: – Credit Suisse AG, Switzerland: Duties include providing legal and tax advice, managing the fund management company’s finances, fund and real estate accounting, real estate portfolio management and administration, facility management, human resources, the Management Information System (MIS), project and user support for funds accounting, risk management, and monitoring of the investment guidelines. – Credit Suisse Fund Services (Luxembourg) S.A., Luxembourg: Duties in relation to fund accounting. – Credit Suisse (Poland) Sp.z.o.o., Poland: Duties in relation to product master data, price publications, factsheet production, KIID production, report preparation, and other support tasks in relation to risk management. Precise details of how the remit is to be fulfilled are laid down in an agreement between the fund management company and the aforementioned group companies. Further specific tasks may be delegated to the aforementioned group companies. Real estate management and technical maintenance tasks are delegated to the following companies: Australia Chile Germany United Kingdom Ireland Japan Canada New Zealand Netherlands USA
Jones Lang LaSalle (VIC) Pty Ltd., Jones Lang LaSalle (QLD) Pty Ltd., Knight Frank Australia Pty Ltd., Multiplex Property Services Pty Ltd. CBRE Chile SA BNP Paribas Real Estate Property Management GmbH, CBRE GmbH BNP Paribas Real Estate Advisory & Property M anagement UK Ltd. Jones Lang LaSalle Ltd. Savills Asset Advisory Co., Ltd. Canderel Management Inc., Colliers Macaulay Nicolls Inc., Swissreal Real Estate Services Ltd. AMP Capital Investors (New Zealand) Ltd. Jones Lang LaSalle B.V. CBRE Inc., Cushman & Wakefield of Massachusetts Inc., Cushman & Wakefield of California Inc., Tishman Speyer Properties, L.P.
For certain accounting, tax advice and administration tasks undertaken by group companies the following service providers are involved: Alter Domus, Avendaño Merino, Citco, Colliers, Cushman & Wakefield of Pennsylvania Inc., Ernst & Young, G owlings, Morrison & Foerster, PricewaterhouseCoopers, Savills Asset Advisory Co., Ltd., TMF Group und TMI Associates.
Details on the execution of the order are laid down in separate agreements.
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Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Report on Activities from January 1 to December 31, 2014 Investor base, special features
Credit Suisse Real Estate Fund International was launched in February 2005 as the first real estate fund under Swiss law to undertake direct investment in foreign real estate. The Fund grants qualified investors access to an internationally diversified portfolio of high-quality commercial properties. The custodian bank performs off-floor trading for the Fund.
Macroeconomic climate
In 2014, global economic growth came to 3.0% and as such showed similar momentum to the previous years. It was once again the Asian countries (excluding Japan) that turned in the strongest regional performance. Real growth in this region came to 6.0%. Despite the slowdown in momentum, Chinese GDP (up by 7.4%) still exhibited the highest growth rate. By contrast, Japan’s economy expanded by just 0.2% in 2014. However, the Bank of Japan’s extraordinary measures, and in particular the weakness of the Japanese yen, were able to lift the rate of inflation in Japan to more than 2%. Economic growth in Australia and New Zealand remained robust, reaching 2.8% and 3.6% respectively. In 2014, most European countries saw some improvement in their economic situation. In the UK, economic growth accelerated to 2.6%, driven by rising consumer spending and brisk corporate investment activity. In the eurozone, real economic output grew by 0.8%, having decreased by 0.4% in 2013. After some very difficult years, Ireland and Spain made the biggest progress in 2014, with increases in economic output of 4.8% and 1.6% respectively. In the Netherlands, real GDP grew by 0.7%, after contracting by the same percentage the previous year. The German economy continued to post respectable growth figures (+1.3%) and remained the eurozone’s anchor of stability. Italy and France were sources of concern and lagged behind the other European countries owing to structural problems and an unwillingness to implement reforms. Another risk factor was the decline in the eurozone’s inflation rate, which even dipped into the negative range in December 2014. This development prompted the European Central Bank (ECB) to adopt an even more expansionary monetary policy. The big North American economies of Canada and the USA each grew by 2.3% in 2014. The USA saw a further significant fall in unemployment, in response to which the Fed ended its program of government bond purchases and let it be known that monetary policy would be tightened in 2015.
Commercial property and investor market
Solid fundamentals in the office and retail markets coupled with the persistently low level of interest rates in most significant countries resulted in solid demand for real estate investments. The investment volume on the real estate markets rose by around 9% year-on-year, reaching a total transaction value of USD 770 billion (source: Real Capital Analytics). Capital values continued to recover and capitalization rates fell in markets worldwide. In some markets, they are at their lowest levels since the financial crisis; however, risk premiums on real estate investments are still high compared to government bond yields. Net absorption likewise remained robust amid continued muted construction and development activity. Globally, the vacancy rate for office space fell from 13.2% to 12.9% (source: JLL), which also had an impact on most regions in the form of rising rents. Core real estate continued to enjoy high demand. These properties are characterized by good locations, new or renovated buildings, and long-term rental contracts with tenants who have high credit ratings. In the current environment of low interest rates, they nevertheless continue to offer a yield premium over many fixedinterest securities. The economic trend in Europe and the USA has led to a further increase in appetite for less central locations or “value-added” properties. Among the liquid transparent markets, the USA, the UK and Japan experienced the strongest uptrend in commercial property prices. There was also healthy demand for property in Ireland and Spain. In Asia/Oceania, investor demand for real estate increased in Japan and Australia, whereas developments in China are being viewed with caution.
Outlook
Macroeconomic climate The outlook for the global economy remains cautiously optimistic and global GDP is expected to grow by a total of 3.4% in 2015. Growth rates of 3.5% and 2.3% are expected for the US and Canada respectively, and 3.6% for Chile. 2015 is expected to see the Fed make a start on the normalization of key interest rates. However, the trend of inflation suggests that yields on longer-dated bonds are likely to remain low. Economic growth should strengthen slightly to 1.0% in the euro countries, and should accelerate to 3.0% in the UK. With forecast economic growth of 1.5%, Germany should continue to perform solidly, while growth in the European periphery looks set to recover. The ECB’s announcement of plans for monthly purchases of government bonds and other securities totaling EUR 60 billion should keep European interest rates very low.
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Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
The economists at Credit Suisse AG predict 6.0% growth in Asia excluding Japan, 2.6% in Australia and 2.8% in New Zealand. Japan’s economic growth is put at 0.9%. Commercial property and investor market The expected economic recovery in 2015 will likely be accompanied by solid growth in employment and robust demand for space. The supply of new space coming onto the market in 2015 is still sluggish in the majority of cases. We therefore expect vacancy rates to continue declining in most markets. Rents for centrally located space are likely to increase on average in all three regions, although the rise will probably be more pronounced in the USA and Asia/Pacific than in Europe. Real estate investments should remain in high demand because of a lack of other investment opportunities. As real estate investors in a number of regions now have easier access to capital, the use of borrowed capital is likely to increase. This suggests that transaction volumes should remain high. In Europe, we see (geo)political risks as posing the biggest threat to the performance of the real estate markets. In Asia, there is slightly greater uncertainty owing to the state of the Chinese residential property market. In North America, where the commercial real estate markets are already at a more advanced stage in the cycle than in Europe, the interest risks are likely to be slightly higher. However, we expect the rise in interest rates to be manageable for the real estate markets. Real estate portfolio
Organization, structure and diversification The portfolio continued to be expanded and diversified in the 2014 reporting year: a building project in Chile was completed, while in Canada construction work started on The Exchange project. One property in Germany was sold. “Apoquindo 5400” in Santiago, Chile: In May 2014, the pre-emption rights acquired in February 2012 were exercised. The property in question is a new building at Apoquindo 5400 in the city’s Las Condes quarter. This high-end property with seven basement floors, a ground floor and 21 above-ground floors was constructed to the “LEED” Gold Standard. The building has some 20 800 m2 of rentable office space, around 700 m2 of retail floorspace, and 653 parking spaces. The Exchange in Vancouver (CA): On August 1, 2011, the Fund became the principal owner (80% stake) of the Old Stock Exchange office building in Vancouver (Canada). Constructed in 1929 in the art deco style, this building was once home to Canada’s third-largest stock exchange. It served as an office building with some 50 tenants. In cooperation with a local partner, Credit Suisse Real Estate Fund International planned the construction of an extension and renamed the property “The Exchange”. The City of Vancouver granted planning permission for The Exchange at the end of 2013, and construction work began in the first quarter of 2014. The property is expected to be completed in 2017. Leitzstrasse 54–56 in Stuttgart (DE): This German property was sold in the first half of 2014. At the end of 2014, the regional breakdown of the properties was as follows: North/Central and South America: 46.15% (41.40%), Europe: 33.60% (37.15%), and Asia-Pacific: 20.25% (21.45%). Office space accounted for 79.25% (78.05%) of net rental income, while retail property accounted for 10.95% (12.00%). The remaining 9.80% (9.95%) consisted mainly of parking facilities, warehouses, restaurants & cinemas, residential and other commercial properties. In selecting investments, care is taken to ensure that tenants have good credit ratings and that sector diversification is balanced. Valuation of properties 2014 saw the portfolio’s value appreciate. Disregarding currency effects, the value of the portfolio was on average about 3.80% higher compared with 12 months previously. The cash flows from the properties developed very positively. Rental income was increased by 4.37% in 2014 to CHF 139.91 million. The distribution increases by CHF 1.00 to CHF 41.00 (40.00) per fund unit, giving a dividend yield of 3.81% (3.98%).
Notes to the annual financial statements
The financial year of Credit Suisse Real Estate Fund International runs from January 1 to December 31.
Minority interests
A minority interest in a foreign real estate company has featured since the end of 2011. A 20% stake is held by a minority shareholder. Subsidiaries are consolidated if the Fund controls more than 50% of voting rights. Minority interests in the net asset value, the net income, the realized result and the overall result are reported separately. The investor-related key figures are calculated on the basis of the assets and result attributable to unitholders. 7
Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Foreign exchange differences
Weighted to the portfolio allocation, the exchange rates applied to the statement of assets as of December 31, 2013, are approximately 4% higher than on December 31, 2014, while the average exchange rates applied to the income statement as of December 31, 2013 are roughly 3% lower than on December 31, 2014, again weighted to the portfolio allocation. To minimize currency fluctuation risks, the currencies in the statement of assets were mostly hedged by means of foreign exchange forward transactions. The net result is a currency loss of CHF 9.13 million (previous year: loss of 31.89 million). The exchange rate fluctuations in the income statement are not hedged. The Swiss National Bank’s decision to remove the EUR exchange rate floor on January 15, 2015, will affect the CHF value of the unhedged foreign currency exposure (approx. CHF 287 million as of December 31, 2014). This will have a greater or lesser impact, depending on how the CHF performs against the Fund’s investment currencies between now and December 31, 2015. However, thanks to the Fund’s high hedging ratio, the impact on the net asset value will be limited. Another consequence of the SNB’s decision could be persistently lower exchange rates for the income statement, which could in turn affect overall performance in CHF.
Statement of assets
In the 2014 reporting year, Credit Suisse Real Estate Fund International purchased a commercial property in Chile (see page 22) and sold a property in Germany. Furthermore, preemptive rights to purchase the remainder (50%) of a property in Wellington (NZ) already owned by the Fund were exercised. Two projects were under construction at the closing date of the financial statements. On behalf of the fund management company and in compliance with the Collective Investment Schemes Act (CISA), the properties were individually valued by independent, FINMA-accredited valuation experts as at December 31, 2014. This also involved consulting support staff abroad. These estimates were made on the basis of International Valuation Standards. The portfolio properties themselves are valued using the DCF method. The resulting total market value comes to CHF 2 431.72 million (2 190.36 million). The weighted discounted rate is 5.45% (5.48%) of net income after deduction of long-term renovations. Liquid assets amounting to CHF 247.76 million (87.36 million) were invested in bank deposits, as well as short-term fiduciary and other investments. The business assets were invested in the following currencies: euro, sterling, yen, US dollar, Australian dollar, New Zealand dollar, Canadian dollar, and Chilean peso. To minimize currency fluctuation risks, the currencies were mostly hedged by means of foreign exchange forward transactions. At the end of the year, the result is a net liability of CHF 25.00 million from unrealized losses on outstanding forward foreign exchange transactions. Borrowed funds total CHF 334.16 million (87.96 million) or 13.74% (4.02%) of the market value of the properties. The debt financing operations in question were mainly contracted for the property purchases in Japan and Chile for tax reasons and in order to achieve a positive leverage effect. Furthermore, a portfolio in Germany and the property in Brisbane were mortgaged. The estimated liquidation taxes amount to CHF 103.42 million (71.97 million). The net asset value attributable to fund unitholders after deduction of the estimated liquidation taxes stands at CHF 2 185 622 160 (2 147 173 541). The return on investment per unit amounts to 5.92% (4.49%) on a net asset value per unit of CHF 1 034.42 (976.22 ex coupon).
Statement of income
Total income amounts to CHF 141.43 million (137.32 million), an increase of 3.00% compared with the previous year. Rental income rose by 4.37% to CHF 139.91 million (134.06 million). Other income stands at CHF 0.71 million (0.11 million) and income from deposits on postal and bank accounts amounts to CHF 0.61 Mio. (0.34 million). Income from other investments amounts to CHF 0.21 million (0.11 million). The percentage of rental income forfeited due to vacancies and collection losses was reduced once again, and stands at 5.92% (6.04%) of target rental income. Total expenses amount to CHF 54.66 million (52.10 million). This includes ground rent amounting to CHF 1.09 million (0.98 million). Borrowing costs total CHF 7.15 million (2.96 million). The average weighted interest rate comes in at 3.47% (2.81%), with an average remaining term to maturity of 2.28 years (2.07 years). Maintenance and repairs accounted for CHF 15.87 million (16.99 million), which amounts to around 11.35% (12.68%) of rental income. For future extraordinary investments such as tenant fit-outs, CHF 6.50 million (CHF 7.50 million) was allocated to provisions for future repairs. Taxes on earnings and capital amount to CHF 3.15 million (1.70 million). Appraisal and auditing expenses come to CHF 1.50 million (1.65 million). The Fund was charged CHF 14.20 million (14.11 million) for management activities. The management commission of 0.60% is levied on the total fund assets at the beginning of each financial year. The remuneration paid to the property management companies in accordance with the Fund regulations stands at
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Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
CHF 1.34 million (1.09 million). The other expenses amount to CHF 3.20 million (4.43 million) and consist primarily of property-related operating costs and tax, legal, bookkeeping and other consultancy costs. The Fund’s operating expense ratio GAV (TERREF GAV), which is an important indicator of the burden of operating expenses, is 0.85% (0.95%). This key figure enables investors to draw a direct comparison with other real estate funds. The Fund’s net income attributable to fund unitholders amounts to CHF 86.78 million (85.19 million) or CHF 41.07 (40.32) per unit. The operating profit margin (EBIT margin) comes to 74.03% (72.63%). The Fund’s currencies are mostly hedged. Depending on the performance of the currencies and interest rate spreads, hedging resulted in realized and unrealized capital gains or losses on forex forward transactions. The capital losses realized on the currency hedging amount to CHF 29.05 million (gain of 53.81 million). The unrealized capital gains arising from changes in exchange rates amount to CHF 19.92 million (loss of 85.69 million). This also includes unrealized currency conversion differences arising from the consolidation of the financial statements of the individual property-holding companies in foreign currency. The net result is a currency loss of CHF 9.13 million (loss of 31.89 million). One property was sold in 2014 while three holding companies were merged and one sold. As result, the realized capital gain on investments amounted to CHF 1.90 million (gain of CHF 1.88 million). The unrealized capital gains on investments amount to CHF 68.38 million (gain of CHF 39.93 million). Including the cost of currency hedging and the balance of realized and unrealized capital changes on investments, aggregate net income comes to CHF 147.92 million (95.11 million) or CHF 70.01 (45.01) per unit. Distribution, yield
For the 2014 financial year, CHF 86.63 million (84.52 million) or CHF 41.00 (40.00) per unit will be paid out. The no. 10 coupons are payable free of expenses at Credit Suisse AG, Zurich and its branches in Switzerland from March 31, 2015 onward (ex date March 26, 2015). Investors can claim back the withholding tax deducted. In the 2014 financial year, the net asset value per unit rose from CHF 976.22 (ex coupon) to CHF 1 034.42. The investment return therefore comes to 5.92% (4.49%). Financial year Coupon no. Gross Less 35% Swiss federal withholding tax Total distribution
Issuing of units
No issue took place.
Unit price performance in CHF (1/1/–31/12/2014)
1 150 1 125 1 100
2014 10 CHF 41.00 CHF 14.35 CHF 26.65
2013 9 CHF 40.00 CHF 14.00 CHF 26.00
SXI Real Estate Funds (TR) Credit Suisse Real Estate Fund International Swiss Market Index (SMI)
1 075 1 050 1 025 1 000 975 950 925
Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. 2014 2014 2014 2014 2014 2014 2014 2014 2014 2014 2014 2014
The units of Credit Suisse Real Estate Fund International are traded over-the-counter. Trading is provided by Credit Suisse AG. The closing price (bid price) stood at CHF 1 075.00 at the end of the financial year, corresponding to an increase of CHF 70.00 or 6.97%. Performance amounts to 11.35%, which is 3.64 percentage points lower than the benchmark. The benchmark used is the SXI Real Estate Funds (TR), which showed a performance of 14.99% over the same period (January 1 to December 31, 2014). At the end of the reporting period, the premium resulting from the difference between the closing price and the net asset value came to 3.92% (discount of 1.10%).
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Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Redemptions
As of December 31, 2014 no units had been submitted for redemption.
Anteile im Umlauf
Status as at January 1, 2014 Redemptions Issues Status as at December 31, 2014
10
2 112 896 units 0 units 0 units 2 112 896 units
Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Geographical Distribution of the Fund’s Properties / Regional Breakdown by Market Value Montreal
Vancouver Toronto
San Francisco
Chicago Boston Washington D.C.
Tokyo Fukuoka
Houston
Leeds
Dublin
London Cardiff
Amsterdam The Hague
Bristol
Arnheim Hanover Osnabrück Rotterdam
Berlin
Santiago de Chile Melbourne
Mayence
CHF 10 million
Brisbane Sydney Canberra Wellington
Munich
Regional Breakdown by Market Value
20.25% Asia/Pacific region 46.15% North/Central/South American region
33.60% European region
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Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Development of Net Asset Value and Distribution Development of Net Asset Value and Distribution
Year as at 31/12/
2005* 2006 2007 2008 2009 2010 2011 2012 2013 2014
Units in circulation
Asset value per unit ex-coupon
Distribution from ord. income CHF
Capital gains CHF
Total distribution CHF
Net assets at market values in CHF mio.
585 000 1 170 000 1 560 000 1 820 000 1 811 054 1 811 054 2 112 896 2 112 896 2 112 896 2 112 896
1 000.93 1 018.78 1 107.60 1 002.49 956.55 966.74 974.88 972.21 976.22 993.42
22.00 30.00 33.00 35.00 35.00 37.00 37.00 39.00 40.00 41.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
22.00 30.00 33.00 35.00 35.00 37.00 37.00 39.00 40.00 41.00
598.41 1 227.08 1 779.34 1 888.22 1 795.75 1 817.83 2 138.01 2 136.58 2 147.17 2 185.62
* The fund was launched as of February 1, 2005 (issue price CHF 1 000.00). The first financial year thus comprised only 11 months (1/2/2005–31/12/2005)
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Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Structural Breakdown by Actual Net Rental Income 0.60% Other 7.05% Parking
0.25% Dwelling units 1.00% Storage/warehousing 0.90% Cinemas, hotels, restaurants 10.95% Retail
79.25% Office
Breakdown of Property/Real Estate as at December 31, 2014 Breakdown of property
Residential buildings Commercial properties Mixed-use properties Development land (incl. properties for demolition) and schemes under construction Total
Residential buildings Commercial properties Mixed-use properties Development land (incl. properties for demolition) and schemes under construction Total
Structural Breakdown by Market value
Acquisition costs
Market value
Insurance value
CHF – 2 222 649 084 –
CHF – 2 336 091 775 –
CHF – 1 783 181 006 –
122 795 377
95 630 812
119 625 675
2 345 444 461
2 431 722 587
1 902 806 681
Acquisition costs
Market value
0.00% 94.75% 0.00%
0.00% 96.05% 0.00%
5.25%
3.95%
100.00%
100.00%
3.95% Development land (incl. properties for demolition) and schemes under construction 96.05% Commercial properties
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Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Statement of Assets as at December 31, 2014
31/12/2014 31/12/2013
Assets Cash holdings, balances on postal and bank accounts at sight including fiduciary investments with third-party banks Cash at time, including fiduciary investments with third-party banks Other investments
Verkehrswert Verkehrswert CHF CHF 154 759 325 55 000 613 38 000 000
78 262 058 9 102 509 0
Sites – Commercial properties of which under leasehold of which under condominium rights – Development land (incl. properties for demolition) and schemes under construction Total sites
2 336 091 775 199 515 307 75 599 963 95 630 812 2 431 722 587
2 139 130 859 208 726 683 0 51 232 810 2 190 363 669
Derivative financial instruments Other assets Total assets
–24 996 838 24 084 748 2 678 570 435
35 180 399 53 762 714 2 366 671 349
321 427 425 12 730 379 51 887 387 386 045 191
87 962 637 0 56 164 794 144 127 431
2 292 525 244 103 423 412 2 189 101 832 3 479 672 2 185 622 160
2 222 543 918 71 970 208 2 150 573 710 3 400 169 2 147 173 541
2 112 896 1 034.42 41.00 993.42
2 112 896 1 016.22 40.00 976.22
0 43 500 000 0 none
0 37 000 000 0 none
1 902 806 681
1 753 188 224
2 147 173 541 –84 515 840
2 136 582 814 –82 402 944
0 147 917 663 6 500 000 –31 453 204 2 185 622 160
0 95 107 139 7 500 000 –9 613 468 2 147 173 541
Liabilities Mortgages and other mortgage-backed liabilities Receivables and loans Other liabilities Total liabilities Net assets before estimated liquidation taxes Estimated liquidation taxes Net assets – of which attributable to minority interests – of which attributable to the unitholders of the Fund Number of units in circulation Net asset value per unit Less distribution for financial year 2014 (coupon no. 10) Asset value per unit after distribution Information on balance sheet and units due to be redeemed Value of depreciation account for sites Value of reserves account for future repairs Balance on account of earnings retained for reinvestment Number of units due be redeemed at end of next financial year Total insurance value of assets Change in the net asset value of the unitholders of the Fund Net assets at beginning of financial year Distribution Balance from sales and purchases of units, excl. equalization on the issue of units and payouts of current income on the redemption of units Total income Balance of deposit/withdrawal of reserves for repairs Change in liquidation taxes Net assets at end of financial year
Details from previous years Net assets 2014 2 185 622 160 2013 2 147 173 541 2012 2 136 582 814
14
Net asset value per unit 1 034.42 1 016.22 1 011.21
Conversion rate CAD/CHF EUR/CHF GBP/CHF 100 JPY/CHF AUD/CHF USD/CHF NZD/CHF 100 CLP/CHF 100 CLP/USD UF/CHF
as at 31/12/2014 0.857826 1.202379 1.549338 0.828767 0.813092 0.993650 0.776637 0.163722 0.164768 40.319981
as at 31/12/2013 0.836959 1.225478 1.472957 0.846148 0.795504 0.889350 0.731980 0.169197 0.190248 39.439076
Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Statement of Income 2014 (ending December 31, 2014)
1/1/2014 1/1/2014 1/1/2013 1/1/2013 to 31/12/2014 to 31/12/2014 to 31/12/2013 to 31/12/2013
CHF CHF CHF CHF Income Income from postal and bank accounts 608 687 335 967 Rental income 139 909 831 134 057 275 Capitalized building loan rates 0 2 697 318 Income from other investments 210 019 114 189 Other income 706 373 110 370 Current income paid in by new subscribers 0 0 Total income 141 434 910 137 315 119 Expenses Mortgage interest and interest on mortgage-backed liabilities 7 096 886 Other interest due 51 069 Ground rent 1 085 843 Repairs and maintenance 15 874 147 Taxes and charges – Taxes on capital and profits 3 149 116 Valuation and auditing expenses 1 497 938 Remuneration (as per fund regulations) for – the fund management company 14 200 028 – the custodian bank 644 152 – the property management companies 1 338 067 Costs for annual report 21 888 Fees payable to supervisory bodies 750 Other expenses 3 201 995 Reserves for future repairs – Allocation 6 500 000 – Withdrawal 0 Net current income paid out on redemption of units 0 Total expenses 54 661 879 54 661 879
2 750 821 209 967 979 975 16 991 984 1 695 099 1 646 828 14 113 867 640 975 1 094 713 45 241 1 500 4 432 830 7 500 000 0 0 52 103 800
52 103 800
Net income – of which attributable to minority interests – of which attributable to the unitholders of the Fund
86 773 031 –5 096 86 778 127
85 211 319 23 573 85 187 746
Realized capital gains and losses from investments Realized capital gains and losses from currency Realized income – of which attributable to minority interests – of which attributable to the unitholders of the Fund
1 896 452 –29 052 281 59 617 202 –5 096 59 622 298
1 877 067 53 805 357 140 893 743 23 573 140 870 170
Unrealized capital gains and losses from investments Unrealized capital gains and losses from currency Total income – of which attributable to minority interests – of which attributable to the unitholders of the Fund
68 377 557 19 917 808 147 912 567 –5 096 147 917 663
39 929 761 –85 692 792 95 130 712 23 573 95 107 139
Appropriation of the net income of the unitholders of the Fund Net income of financial year Carried forward from preceding year Net income available for distribution Net income earmarked for distribution to investors Carried forward to following year
86 778 127 9 937 650 96 715 777 –86 628 736 10 087 041
85 187 746 9 265 744 94 453 490 –84 515 840 9 937 650
Average conversion rates CAD/CHF EUR/CHF GBP/CHF 100 JPY/CHF AUD/CHF USD/CHF NZD/CHF 100 CLP/CHF 100 CLP/USD UF/CHF
for 1/1/–31/12/2014 0.829761 1.212460 1.511893 0.863389 0.825102 0.919271 0.757962 0.160115 0.174176 38.444259
for 1/1/–31/12/2013 0.894763 1.229554 1.448881 0.944716 0.889268 0.925296 0.755268 0.186154 0.201183 42.809792
15
Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Schedule of Properties in Swiss Francs (CHF) General Information about the Proper ties / Financial Data on the Properties / Breakdown of Residential/Commercial Premises Location, address Residential buildings Total I Commercial properties Amsterdam, “Spectrum”, Gatwickstraat 9–39 Amsterdam, “Teleport Towers”, Kingsfordweg 151–241 Amsterdam, “MediArena”, Mediarena 1–8 Berlin, Invalidenstrasse 91 Berlin, “Kant Center”, Wilmersdorfer Str. 108–111, Kantstr. 112–114, Krumme Str. 48–49 Boston, “Independence Wharf”, 470 Atlantic Avenue Brisbane, 55 Elizabeth Street Bristol, “Temple Quay”, 3 Rivergate Canberra, 62 Northbourne Avenue Cardiff, 5 Callaghan Square Chicago, 250 South Wacker Drive Den Haag, Anna van Saksenlaan 69/71 Dublin, “La Touche House”, IFSC Fukuoka, 1-12-64 Daimyo, Chuo-ku Hanover, “Kontorhaus”, Ernst-August-Platz 3–3A Houston, 919 Milam Street Leeds, “One Leeds City Office Park”, Meadow Lane London, “Earl Place”, 15 Appold Street Mayence, “Römerpassage”, Adolf-Kolping-Strasse Mayence, Isaac-Fulda-Allee 3 Melbourne, “Zurich House”, 505 Little Collins Street Montreal, “Place du Canada”, 1010 Rue de la Gauchetière West Munich, “Laimer Würfel”, Landsberger Strasse 300 Osnabrück, Nikolaiort 5 Rotterdam, “The Corner”, Binnenwegplein 26–68 San Francisco, “Adam Grant Building”, 114 Sansome Street Santiago de Chile, Apoquindo 5400, Las Condes Santiago de Chile, “Edificio Magdalena Norte”, Magdalena 181, Las Condes Stuttgart*, Bürozentrum “Pragsattel”, Leitzstrasse 54–56 Sydney, “Latitude East Building”, 52 Goulburn Street Tokyo, “HN Green Building”, 2-8-3 Higashi-Nihonbashi, Chuo-ku Tokyo, “Toranomon 1-chome”, 1-16-16 Toranomon, Minato-ku Toronto, 121 Bloor Street East Toronto, 160 Bloor Street East Washington, 1099 New York Avenue Wellington, “Justice Centre”, 19 Aitken Street, Mulgrave Street & Kat Sheppard Place, Thorndon Total II
Country
Number of buildings
Total rental premises
Total lettable area (m2)
Site area (m2)
–
–
–
–
1 1 1 1
119 146 487 40
7 685 12 201 19 515 6 438
4 265 5 065 4 571 1 379
Netherlands Netherlands Netherlands Germany
Year of construction
Acquisition date
1991 2001 2010 2011
20/03/2008 20/03/2008 01/09/2010 01/07/2011
Germany
2
309
20 380
6 211 1930/1993/2004
15/07/2011
USA Australia United Kingdom Australia United Kingdom USA Netherlands Ireland Japan Germany USA United Kingdom United Kingdom Germany Germany Australia Canada Germany Germany Netherlands USA Chile Chile Germany Australia Japan Japan Canada Canada USA
1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 1 1 1 1 1 1 2 1
133 68 82 117 41 87 113 169 4 33 479 202 16 321 155 121 473 190 6 12 50 768 283
31 249 19 659 7 021 10 217 4 909 22 721 9 324 9 513 1 494 11 025 50 439 5 234 8 606 16 649 7 748 18 022 36 855 24 676 8 939 13 618 17 178 22 265 8 683
3 361 1927/2001 1 998 2013 2 569 2002 1 943 1986 2 450 2008 1 811 1957/2007 4 510 2003 4 117 1990 592 2005 2 848 1850/2002 5 806 1956/1992/2006 5 388 1996 1 936 1991 4 945 2003 5 940 1994 1 894 1991 2 907 1967 5 353 2007 1 711 1946/1991/1992 3 013 1959/1999 1 756 1908/1926/2000 4 069 2014 2 025 2010
25/09/2009 17/06/2011 06/08/2009 31/10/2008 25/10/2011 15/12/2011 29/09/2006 01/05/2013 22/12/2011 01/08/2005 23/05/2013 16/09/2009 10/02/2010 28/12/2006 01/08/2005 30/04/2008 30/06/2006 10/02/2012 01/04/2006 12/09/2006 31/10/2013 15/05/2014 27/04/2010
1 1 1 1 1 1
222 25 25 219 368 168
23 104 3 309 4 301 22 704 35 140 16 563
1 832 2) 599 582 2 104 4 593 1 610
2007 1988 1964/2005 1982 1982 2008
03/03/2008 28/02/2007 22/09/2006 15/02/2005 15/02/2005 21/09/2009
New Zealand
1
160
35 267
2 683 3) 1966/2009/2011
15/11/2012
38
6 211
572 651
108 436
Mixed-use properties Total III
–
–
–
–
Development land (incl. properties for demolition) and schemes under construction Arnheim, Koningstraat 26–37 Netherlands Vancouver, “The Exchange”, 475 Howe Street, 819-829 West Pender Street Canada Total IV
1 2 3
– – –
– – –
4 718 1 739 6 457
Lots under leasehold Total V
–
–
–
–
41
6 211
572 651
114 893
Total * Property sold during the period under review 1) Non-annualized 2) Co-ownership 50/100 = 1 832 m2 (total site area = 3 663 m2) 3) Co-ownership 50/100 = 2 683 m2 (total site area = 5 365 m2)
16
1969/2015 1929/2017
15/10/2007 01/08/2011
Ownership type
Sole ownership on leased site Sole ownership on leased site Sole ownership on leased site Sole ownership
Rental losses 1) in CHF as percentage
Gross income (net rental Rooms income) 1) 1–1.5 2–2.5 3–3.5 4–4.5 5+
Acquisition costs
Market value
Projected rental income 1)
–
–
–
–
–
–
–
–
–
–
–
33 938 841 50 086 723 80 570 580 25 983 235
12 877 479 23 326 152 68 475 484 28 015 431
1 864 611 2 997 938 6 626 848 1 350 365
– 915 143 – 103 008
– 30.53 – 7.63
1 864 611 2 082 795 6 626 848 1 247 357
– – – –
– – – –
– – – –
– – – –
– – – –
Sole ownership
74 799 781
78 948 205
4 779 316
160 417
3.36
4 618 899
–
–
–
–
–
Sole ownership Sole ownership Sole ownership Sole ownership Sole ownership Sole ownership Sole ownership on leased site Sole ownership Sole ownership Sole ownership Sole ownership Sole ownership Sole ownership Sole ownership Sole ownership Sole ownership Sole ownership Sole ownership Sole ownership Sole ownership Sole ownership Condominium Sole ownership
119 079 996 141 071 467 35 744 105 34 130 516 22 850 554 94 256 932 48 243 324 43 961 136 37 114 730 34 494 089 119 226 320 25 253 994 79 212 998 85 830 148 27 882 620 77 603 326 77 749 783 91 529 949 30 240 421 44 614 813 108 878 707 71 525 153 22 540 102
153 608 355 153 763 828 40 887 030 28 393 173 23 518 951 95 300 971 31 983 281 60 587 878 37 875 315 32 488 281 121 235 236 26 028 879 97 840 694 86 006 170 21 642 821 63 234 164 94 489 533 93 689 372 25 670 792 46 375 759 117 002 288 75 599 963 35 404 978
7 968 429 10 498 699 2 545 372 3 216 296 1 600 897 5 576 469 2 501 266 3 686 652 1 760 200 1 283 397 8 197 381 2 225 726 1 715 565 4 538 187 1 560 158 4 874 848 5 680 060 5 827 528 1 138 376 2 961 727 4 267 617 2 768 164 2 580 726 346 007 6 255 022 998 953 1 948 016 3 587 755 6 720 276 8 419 337
– – – – – – – – – – – – – 7 – – – – – – – – –
– – – – – – – – – – – – – – – – – – – – – – –
– – – – – – – – – – – – – – – – – – – – – – –
85 378 725 19 318 310 39 727 609 62 852 911 121 210 814 168 841 007
11.62 – – – 1.51 3.72 – – – 4.89 14.00 – 0.02 7.04 – 6.71 4.30 7.12 – 5.11 19.25 31.31 0.57 8.90 – 1.54 1.70 16.20 3.78 0.02
– – – – – – – – – – – – – 29 – – – – – – – – –
103 668 595 29 855 817 72 080 669 43 958 539 74 141 204 99 047 657
1 047 846 – – – 24 533 215 664 – – – 66 016 1 334 426 – 324 343 900 – 350 715 255 176 446 759 – 159 446 1 017 664 1 261 535 14 849 33 797 – 15 606 33 621 693 331 263 735 1 953
– – – – – – – – – – – – – – – – – – – – – – –
Co-ownership Sole ownership Sole ownership Sole ownership on leased site Sole ownership Sole ownership
9 016 275 10 498 699 2 545 372 3 216 296 1 625 430 5 792 133 2 501 266 3 686 652 1 760 200 1 349 413 9 531 807 2 225 726 1 715 889 4 882 087 1 560 158 5 225 563 5 935 236 6 274 287 1 138 376 3 121 173 5 285 281 4 029 699 2 595 575 379 804 6 255 022 1 014 559 1 981 637 4 281 086 6 984 011 8 421 290
– – – – – –
– – – – – –
– – – – – –
– – – – – –
– – – – – –
Co-ownership
61 482 260
64 491 936
4 930 435
34 108
0.69
4 896 327
–
–
–
–
–
2 222 649 084
2 336 091 775
147 379 515
8 793 572
5.97
138 585 943
–
29
7
–
–
–
–
–
–
–
–
–
–
–
–
–
45 481 419 77 313 958 122 795 377
18 316 854 77 313 958 95 630 812
1 314 230 14 384 1 328 614
– 4 726 4 726
– 32.86 0.36
1 314 230 9 658 1 323 888
– – –
– – –
– – –
– – –
– – –
–
–
–
–
–
–
–
–
–
–
–
2 345 444 461
2 431 722 587
148 708 129
8 798 298
5.92
139 909 831
–
29
7
–
–
Sole ownership Sole ownership
Dwelling units Total dwelling units No. m2%
Commercial premises Offices, Cinemas/hotels/ Other commerTotal commercial premises Parking Retail outlets practices etc. restaurants Storerooms cial premises excl. parking No. m2 No. m2 No. m2 No. m2 No. m2 No. m2%
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– – – –
– – – –
– – – –
109 127 480 28
– – – –
– – – –
9 18 7 11
7 219 11 771 19 515 6 438
– – – –
– – – –
1 1 – –
466 430 – –
– – – 1
– – – –
10 19 7 12
7 685 12 201 19 515 6 438
100.00 100.00 100.00 100.00
–
–
–
288
9
17 098
6
2 226
–
–
6
1 056
–
–
21
20 380
100.00
– – – – – – – – – – – – – 36 – – – – – – – – –
– – – – – – – – – – – – – 2 685 – – – – – – – – –
– – – – – – – – – – – – – 16.13 – – – – – – – – –
110 50 75 109 31 58 107 150 – – 365 198 7 181 149 100 355 161 – – – 653 226
2 3 – – – 1 – – 4 1 10 – – 44 – 4 10 2 6 9 2 2 1
407 525 – – – 927 – – 1 494 5 217 1 390 – – 6 608 – 668 932 590 8 939 13 135 1 446 709 88
20 14 7 8 10 23 6 16 – 14 56 4 9 17 5 15 68 10 – – 30 25 20
30 566 18 627 7 021 10 217 4 909 21 291 9 324 9 361 – 4 400 45 938 5 234 8 606 4 784 7 535 17 354 34 638 19 018 – – 15 107 20 742 8 328
– – – – – 1 – – – 1 5 – – 5 – – – – – 1 1 – –
– – – – – 503 – – – 79 1 445 – – 553 – – – – – 378 142 – –
– 1 – – – – – 3 – 15 25 – – 32 1 – 36 12 – 2 17 88 36
– 507 – – – – – 152 – 1 329 1 429 – – 1 981 213 – 1 285 1 679 – 105 483 814 267
1 – – – – 4 – – – 2 18 – – 6 – 2 4 5 – – – – –
276 – – – – – – – – – 237 – – 38 – – – 3 389 – – – – –
23 18 7 8 10 29 6 19 4 33 114 4 9 104 6 21 118 29 6 12 50 115 57
31 249 19 659 7 021 10 217 4 909 22 721 9 324 9 513 1 494 11 025 50 439 5 234 8 606 13 964 7 748 18 022 36 855 24 676 8 939 13 618 17 178 22 265 8 683
100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 83.87 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
– – – – – –
– – – – – –
– – – – – –
210 12 5 158 304 137
1 – – 1 7 1
104 – – 37 1 480 211
10 10 10 30 32 21
22 931 3 309 3 663 21 792 32 997 15 511
– – – – 2 1
– – – – 290 517
1 – 6 21 17 7
69 – 638 875 373 324
– 3 4 9 6 1
– – – – – –
12 13 20 61 64 31
23 104 3 309 4 301 22 704 35 140 16 563
100.00 100.00 100.00 100.00 100.00 100.00
–
–
–
134
3
277
17
34 097
–
–
3
819
3
74
26
35 267
100.00
36
2 685
0.47
5 077
123
62 282
558
484 469
17
3 907
331
15 294
69
4 014
1 098
569 966
99.53
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
– – –
– – –
– – –
– – –
– – –
– – –
– – –
– – –
– – –
– – –
– – –
– – –
– – –
– – –
– – –
– – –
– – –
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
36
2 685
0.47
5 077
123
62 282
558
484 469
17
3 907
331
15 294
69
4 014
1 098
569 966
99.53
18
Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Schedule of Properties (Local Currencies) Financial Data on the Properties
Acquisition costs in national currency
Market value in national currency
Projected rental income 1) in national currency
4 478 306 958 3 602 437 932 8 697 338 240 16 778 083 130
4 570 080 000 2 330 970 000 4 793 580 000 11 694 630 000
203 871 000 117 508 934 229 518 435 550 898 369
Netherlands Netherlands Netherlands Netherlands Germany
28 226 409 41 656 352 67 009 304 37 826 192 21 609 854
10 710 000 19 400 000 56 950 000 15 233 844 23 300 000
1 537 874 2 472 608 5 465 622 1 083 937 1 113 740
Germany
62 209 820
65 660 000
3 941 834
Netherlands Ireland Germany Germany Germany Germany Germany Netherlands Germany
40 123 226 36 561 796 28 688 200 71 383 605 23 189 543 76 124 042 25 150 490 37 105 449
26 600 000 50 390 000 27 020 000 71 530 000 18 000 000 77 920 000 21 350 000 38 570 000
596 864 282
522 633 844
2 062 968 3 040 638 1 112 955 4 026 596 1 286 771 5 174 840 938 898 2 574 248 313 251 36 146 780
Location, address
Country
Yen (JPY) Fukuoka, 1-12-64 Daimyo, Chuo-ku Tokyo, “HN Green Building”, 2-8-3 Higashi-Nihonbashi, Chuo-ku Tokyo, “Toranomon 1-chome”, 1-16-16 Toranomon, Minato-ku Total JPY
Japan Japan Japan
Euro (EUR) Amsterdam, “Spectrum”, Gatwickstraat 9–39 Amsterdam, “Teleport Towers”, Kingsfordweg 151–241 Amsterdam, “MediArena”, Mediarena 1–8 Arnheim, Koningstraat 26–37 Berlin, Invalidenstrasse 91 Berlin, “Kant Center”, Wilmersdorfer Str. 108–111, Kantstr. 112–114, Krumme Str. 48–49 Den Haag, Anna van Saksenlaan 69/71 Dublin, “La Touche House”, IFSC Hanover, “Kontorhaus”, Ernst-August-Platz 3–3A Mayence, “Römerpassage”, Adolf-Kolping-Strasse Mayence, Isaac-Fulda-Allee 3 Munich, “Laimer Würfel”, Landsberger Strasse 300 Osnabrück, Nikolaiort 5 Rotterdam, “The Corner”, Binnenwegplein 26–68 Stuttgart*, Bürozentrum “Pragsattel”, Leitzstrasse 54–56 Total EUR Canadian dollar (CAD) Montreal, “Place du Canada”, 1010 Rue de la Gauchetière West Toronto, 121 Bloor Street East Toronto, 160 Bloor Street East Vancouver, “The Exchange”, 475 Howe Street, 819-829 West Pender Street Total CAD
Canada Canada Canada Canada
90 635 843 51 244 121 86 429 187 90 127 786 318 436 937
110 150 000 73 270 000 141 300 000 90 127 786 414 847 786
7 152 946 5 159 421 8 416 895 17 335 20 746 597
Pound sterling (GBP) Bristol, “Temple Quay”, 3 Rivergate Cardiff, 5 Callaghan Square Leeds, “One Leeds City Office Park”, Meadow Lane London, “Earl Place”, 15 Appold Street Total GBP
United Kingdom United Kingdom United Kingdom United Kingdom
23 070 566 14 748 592 16 299 861 51 126 996 105 246 015
26 390 000 15 180 000 16 800 000 63 150 000 121 520 000
1 683 566 1 075 096 1 472 145 1 134 927 5 365 734
Australian dollar (AUD) Brisbane, 55 Elizabeth Street Canberra, 62 Northbourne Avenue Melbourne, “Zurich House”, 505 Little Collins Street Sydney, “Latitude East Building”, 52 Goulburn Street Total AUD
Australia Australia Australia Australia
173 500 006 41 976 204 95 442 245 127 499 219 438 417 674
189 110 000 34 920 000 77 770 000 105 005 000 406 805 000
12 724 122 3 898 059 6 333 232 7 580 907 30 536 320
US dollar (USD) Boston, “Independence Wharf”, 470 Atlantic Avenue Chicago, 250 South Wacker Drive Houston, 919 Milam Street San Francisco, “Adam Grant Building”, 114 Sansome Street Washington, 1099 New York Avenue Total USD
USA USA USA USA USA
119 840 986 94 859 288 119 988 245 109 574 505 99 680 629 543 943 653
154 590 000 95 910 000 122 010 000 117 750 000 169 920 000 660 180 000
9 808 072 6 300 789 10 368 876 5 749 427 9 160 835 41 387 999
Chilean pesos (CLP) Santiago de Chile, Apoquindo 5400, Las Condes Santiago de Chile, “Edificio Magdalena Norte”, Magdalena 181, Las Condes Total CLP
Chile Chile
43 686 953 000 13 767 302 000 57 454 255 000
46 175 813 000 21 625 057 000 67 800 870 000
2 516 753 000 1 621 069 000 4 137 822 000
New Zealand dollar (NZD) Wellington, “Justice Centre”, 19 Aitken Street, Mulgrave Street & Kat Sheppard Place, Thorndon Total NZD
New Zealand
79 164 732
83 040 000
6 504 858
79 164 732
83 040 000
6 504 858
* Property sold during the period under review 1) Non-annualized
20
Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Rental losses 1) in national currency as percentage
Gross income (net rental income) in national currency 1)
– 1 807 520 3 894 109 5 701 629
– 1.54 1.70 1.03
203 871 000 115 701 414 225 624 326 545 196 740
– 754 782 – – 84 958
– 30.53 – – 7.63
1 537 874 1 717 826 5 465 622 1 083 937 1 028 782
132 307
3.36
3 809 527
– – 54 448 283 638 – 368 473 – 131 506 27 875 1 837 987
– – 4.89 7.04 – 7.12 – 5.11 8.90 5.08
2 062 968 3 040 638 1 058 507 3 742 958 1 286 771 4 806 367 938 898 2 442 742 285 376 34 308 793
307 529 835 579 317 845 5 696 1 466 649
4.30 16.20 3.78 32.86 7.07
6 845 417 4 323 842 8 099 050 11 639 19 279 948
– 16 227 – 214 16 441
– 1.51 – 0.02 0.31
1 683 566 1 058 869 1 472 145 1 134 713 5 349 293
– – 425 056 – 425 056
– – 6.71 – 1.39
12 724 122 3 898 059 5 908 176 7 580 907 30 111 264
1 139 868 234 603 1 451 613 1 107 034 2 125 3 935 243
11.62 3.72 14.00 19.25 0.02 9.51
8 668 204 6 066 186 8 917 263 4 642 393 9 158 710 37 452 756
787 893 000 9 274 000 797 167 000
31.31 0.57 19.27
1 728 860 000 1 611 795 000 3 340 655 000
45 000
0.69
6 459 858
45 000
0.69
6 459 858
21
Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Land Purchases Statement of Land Purchases and Sales in Financial Year 2014 Purchases Santiago de Chile, Apoquindo 5400, Las Condes
Country Chile
Building class Commercial property
Site area m2 4 069
Sales Stuttgart, Bürozentrum “Pragsattel”, Leitzstrasse 54–56
Country Germany
Building class Commercial property
Site area m2 3 258
Transactions with Related Parties The management company confirms that there has not been any transfer of real estate assets to related parties and that other transactions with related parties were concluded at the usual market conditions (section 18 of the Guidelines for Real Estate Funds of the Swiss Funds & Asset Management Association SFAMA dated April 2, 2008).
Tenants Accounting for over 5% of Rental Income Tenant Australian Tax Office
Property location Sydney and Brisbane
Percentage of rental income 10.80%
Real Estate Companies in the Fund n Credit Suisse Real Estate Fund International Holding AG, Zug n CS REFI Chile Fund Holding AG, Zug The two holding companies in Zug and their national companies are wholly owned by Credit Suisse Real Estate Fund International. The only exception is a foreign real estate company in which a minority shareholder holds 20% of the shares.
Overview of Units of Other Investments Funds In Accordance with Fund Contract § 8 Section 2 c) in Conjunction with § 15 Section 4 d) No purchases or sales of units in other real estate funds or real estate investment companies were effected during the 2014 financial year.
22
Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Mortgages Mortgages current Type of loan Fixed-rate mortgage 1) Fixed-rate mortgage 1) Rollover mortgage Fixed-rate mortgage 2) Fixed-rate mortgage 2) Rollover mortgage Rollover mortgage 3) Rollover mortgage 3) Fixed-rate mortgage 4) Fixed-rate mortgage 5) Fixed-rate mortgage 6) Fixed-rate mortgage 7) Total current mortgages
from 07/07/2011 07/07/2011 07/07/2011 28/11/2011 28/11/2011 28/11/2011 22/12/2011 22/12/2011 27/04/2010 15/05/2014 31/01/2014 17/10/2014
Term to 07/07/2015 07/07/2015 07/07/2015 07/07/2015 07/07/2015 07/07/2015 21/12/2016 21/12/2016 27/04/2020 15/05/2021 29/06/2018 17/10/2019
Currency JPY JPY JPY JPY JPY JPY JPY JPY CLP CLP EUR AUD
Amount in foreign currency 1 837 500 000 1 212 500 000 187 500 000 830 700 000 502 500 000 81 500 000 1 132 750 000 985 000 000 8 952 877 553 32 008 088 141 84 450 000 118 950 000
Exchange rate as at 31/12/2014 0.828767 0.828767 0.828767 0.828767 0.828767 0.828767 0.828767 0.828767 0.163722 0.163722 1.202379 0.813092
from 01/02/2012
Term to 31/03/2014
Currency CAD
Amount in foreign currency 17 776 032
Interest rate 4.350%
Amount in CHF 15 228 594 10 048 800 1 553 938 6 884 567 4 164 554 675 445 9 387 858 8 163 355 14 657 830 52 404 282 101 540 907 96 717 295 321 427 425
Interest rate 2.340% 2.340% 1.920% 2.270% 2.270% 1.920% 1.811% 1.811% 5.610% 3.760% 2.461% 4.985%
Mortgages matured Type of loan Fixed-rate mortgage 8)
The mortgages totaling JPY 3 212 500 000 were concluded on July 7, 2011 for a four-year term until July 7, 2015. By the balance sheet date, JPY 162 500 000 had been repaid, of which JPY 50 000 000 during the current financial year 2) The mortgages totaling JPY 1 378 500 000 were concluded on November 28, 2011 for a three-year term until July 7, 2015. By the balance sheet date, JPY 45 300 000 had been repaid, of which JPY 16 000 000 during the current financial year. 3) The mortgages were concluded on December 22, 2011 with the purchase of the property in Fukuoka for a total of JPY 2 150 000 000. By the balance sheet date, JPY 32 250 000 had been repaid, of which JPY 10 750 000 during the current financial year. 4) The fixed-rate mortgage was concluded in the accounting currency Unidad de Fomento (UF) and originally amounted to UF 425 000. By the balance sheet date, UF 61 462 had been repaid, of which UF 20 639 during the current financial year. The net debt was converted into CLP at the exchange rate applicable on the reference date. 5) The mortgage was concluded in the accounting currency Unidad de Fomento (UF) and amounts to UF 1 299 710. The net debt was converted into CLP at the exchange rate applicable on the reference date. 6) The mortgage totaling EUR 84 450 000 was concluded on January 31, 2014 7) The mortgage totaling AUD 118 950 000 was concluded on October 17, 2014 for a term lasting until October 17, 2019. 8) The mortgage totaling CAD 18 750 000 was concluded on February 1, 2012 for a term lasting until March 31, 2014. 1)
Interest rates for fixed-rate mortgages are always set for the entire term. Interest rates for rollover mortgages are adapted based on the 3-month LIBOR (London Interbank Offered Rate).
Loans Current loans Type of loan Credit
from 11/11/2014
Term to 09/02/2015
Currency CLP
Amount in foreign currency 7 775 606 902
Exchange rate as at 31/12/2014 0.163722
from 15/05/2014
Term to 11/11/2014
Currency CLP
Amount in foreign currency 7 775 606 902
Interest rate 4.940%
Amount in CHF 12 730 379
Interest rate 4.440%
Matured loans Type of loan Credit
23
Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Transactions between Funds During the 2014 fiscal year, Credit Suisse Real Estate Fund International made the following investments (pursuant to Art. 86 prov. 3a CISO) in the real estate fund Credit Suisse Real Estate Fund Hospitality: Current Other Investments Type of loan Credit
from 10/12/2014
Term to 10/01/2015
Amount in CHF 38 000 000
Interest rate 0.375%
Amount in CHF 38 000 000 38 000 000 38 000 000 38 000 000 60 000 000 60 000 000 49 000 000 49 000 000 61 000 000 51 000 000 51 000 000 75 000 000 78 000 000
Interest rate 0.375% 0.375% 0.375% 0.375% 0.375% 0.375% 0.375% 0.375% 0.375% 0.375% 0.375% 0.375% 0.310%
Matured Other Investments Type of loan Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit
from 20/11/2014 20/10/2014 10/10/2014 22/09/2014 10/09/2014 20/08/2014 08/08/2014 18/07/2014 10/07/2014 30/06/2014 19/06/2014 10/06/2014 30/05/2014
Term to 10/12/2014 20/11/2014 20/10/2014 10/10/2014 22/09/2014 10/09/2014 20/08/2014 08/08/2014 18/07/2014 10/07/2014 30/06/2014 19/06/2014 10/06/2014
Type of loan Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit
from 16/05/2014 30/04/2014 17/04/2014 10/04/2014 26/03/2014 21/03/2014 19/03/2014 10/03/2014 26/02/2014 17/02/2014 10/02/2014 03/02/2014
Term to 30/05/2014 16/05/2014 30/04/2014 17/04/2014 10/04/2014 10/04/2014 26/03/2014 19/03/2014 10/03/2014 26/02/2014 17/02/2014 10/02/2014
Amount in CHF 82 000 000 100 000 000 100 000 000 90 000 000 80 000 000 10 000 000 144 000 000 144 000 000 140 000 000 130 000 000 120 000 000 120 000 000
Interest rate 0.310% 0.310% 0.310% 0.310% 0.310% 0.310% 0.310% 0.310% 0.310% 0.310% 0.310% 0.310%
The applied interest rates were average, current market rates between the prevailing rates for fixed advances and fixed-term deposits or similar investments respectively. The interest rates are always set for the entire term. Credit Suisse Real Estate Fund International did not receive any loans from other real estate funds of Credit Suisse AG during the 2014 fiscal year.
24
Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Capital gains/losses on currencies Realized capital gains/losses on currencies Realized capital gains/losses on concluded forward foreign exchange contracts (1/1/–31/12/2014) Currency
Date value 20/02/2014 20/02/2014 20/02/2014 20/02/2014 20/02/2014 20/02/2014
Number of contracts 1 1 1 1 1 Total
Amount in foreign currency CAD 305 452 000 CAD 765 000 CAD 2 250 000 CAD 90 000 CAD 1 390 000 CAD 309 947 000
Purchase price
CAD CAD CAD CAD CAD CAD
Date trade 17/12/2013 17/12/2013 15/01/2014 20/01/2014 27/01/2014 13/02/2014
Number of contracts
Liquidation proceeds
Currency profit/loss
CHF CHF CHF CHF CHF CHF
255 568 634 638 240 1 869 728 74 768 1 127 772 259 279 142
CAD CAD CAD CAD
13/02/2014 21/02/2014 06/03/2014 14/04/2014
17/04/2014 17/04/2014 17/04/2014 17/04/2014
1 1 1 Total
CAD CAD CAD CAD
309 947 000 2 115 000 6 886 000 318 948 000
5
CHF 252 234 869
CHF
7 044 273
CHF CHF CHF CHF
251 769 948 1 684 308 5 531 916 258 986 172
3
CHF 254 998 926
CHF
3 987 246
CAD CAD CAD CAD
14/04/2014 23/04/2014 06/06/2014 17/06/2014
20/06/2014 20/06/2014 20/06/2014 20/06/2014
1 1 1 Total
CAD CAD CAD CAD
318 948 000 1 413 000 1 363 500 321 724 500
CHF CHF CHF CHF
254 472 662 1 125 439 1 115 389 256 713 490
CAD CAD CAD CAD CAD
17/06/2014 25/06/2014 23/07/2014 31/07/2014 18/08/2014
20/08/2014 20/08/2014 20/08/2014 20/08/2014 20/08/2014
1 1 1 1 Total
3
CHF 266 066 162
CHF
–9 352 672
CAD CAD CAD CAD CAD
321 724 500 17 559 000 900 000 4 984 000 345 167 500
CHF CHF CHF CHF CHF
265 527 273 14 585 910 756 537 4 149 778 285 019 498
CAD CAD CAD CAD
18/08/2014 25/08/2014 24/09/2014 15/10/2014
20/10/2014 20/10/2014 20/10/2014 20/10/2014
4
CHF 286 730 642
CHF
–1 711 144
1 1 1 Total
CAD CAD CAD CAD
345 167 500 1 782 000 2 178 000 349 127 500
CHF CHF CHF CHF
286 185 278 1 483 134 1 853 326 289 521 738
3
CHF 292 743 409
CHF
–3 221 671
CAD CAD CAD
15/10/2014 27/10/2014 15/12/2014
19/12/2014 19/12/2014 19/12/2014
1 1 Total
CAD CAD CAD
349 127 500 2 403 000 351 530 500
CHF CHF CHF
292 155 129 2 028 762 294 183 891
EUR EUR EUR
2
CHF 293 070 978
CHF
1 112 913
17/12/2013 31/01/2014 13/02/2014
20/02/2014 20/02/2014 20/02/2014
1 1 Total
EUR EUR EUR
434 663 000 –67 290 000 367 373 000
CHF CHF CHF
530 287 556 –82 201 464 448 086 092
2
CHF 448 819 594
CHF
–733 502
EUR EUR EUR
13/02/2014 06/03/2014 14/04/2014
17/04/2014 17/04/2014 17/04/2014
1 1 Total
EUR EUR EUR
367 373 000 –8 540 000 358 833 000
CHF CHF CHF
448 613 865 –10 421 388 438 192 477
2
CHF 435 802 679
CHF
2 389 798
EUR EUR EUR EUR
14/04/2014 07/05/2014 04/06/2014 17/06/2014
20/06/2014 20/06/2014 20/06/2014 20/06/2014
1 1 1 Total
EUR EUR EUR EUR
358 833 000 –9 560 000 –1 040 000 348 233 000
CHF CHF CHF CHF
435 515 612 –11 646 680 –1 269 287 422 599 645
3
CHF 424 426 380
CHF
–1 826 735
EUR EUR EUR
17/06/2014 31/07/2014 18/08/2014
20/08/2014 20/08/2014 20/08/2014
1 1 Total
EUR EUR EUR
348 233 000 –835 000 347 398 000
CHF CHF CHF
424 318 428 –1 016 147 423 302 281
2
CHF 420 594 759
CHF
2 707 522
EUR EUR
18/08/2014 15/10/2014
20/10/2014 20/10/2014
1 Total
EUR EUR
347 398 000 347 398 000
CHF CHF
420 520 068 420 520 068
1
CHF 419 344 126
CHF
1 175 942
EUR EUR
15/10/2014 15/12/2014
19/12/2014 19/12/2014
1 Total
EUR EUR
347 398 000 347 398 000
CHF CHF
419 330 230 419 330 230
1
CHF 417 363 957
CHF
1 966 273
JPY JPY
14/11/2013 15/01/2014
21/01/2014 21/01/2014
1 Total
JPY 4 562 252 000 JPY 4 562 252 000
CHF CHF
41 842 694 41 842 694
1
CHF
39 718 966
CHF
2 123 728
JPY JPY JPY
15/01/2014 06/03/2014 17/03/2014
20/03/2014 20/03/2014 20/03/2014
1 1 Total
JPY 4 562 252 000 JPY 138 443 000 JPY 4 700 695 000
CHF CHF CHF
39 710 982 1 185 155 40 896 137
2
CHF
40 317 861
CHF
578 276
JPY JPY JPY
17/03/2014 09/04/2014 14/05/2014
20/05/2014 20/05/2014 20/05/2014
1 1 Total
JPY 4 700 695 000 JPY 522 301 000 JPY 5 222 996 000
CHF CHF CHF
40 311 280 4 516 859 44 828 139
2
CHF
45 622 870
CHF
–794 731
JPY JPY
14/05/2014 17/07/2014
22/07/2014 22/07/2014
1 1
JPY 5 222 996 000 JPY 5 222 996 000
CHF CHF
45 615 036 45 615 036
1
CHF
46 207 846
CHF
–592 810
JPY JPY JPY
17/07/2014 31/07/2014 15/09/2014
22/09/2014 22/09/2014 22/09/2014
1 1 Total
JPY 5 222 996 000 JPY 27 721 000 JPY 5 250 717 000
CHF CHF CHF
46 202 100 244 763 46 446 863
2
CHF
45 880 765
CHF
566 098
JPY JPY
15/09/2014 17/11/2014
20/11/2014 20/11/2014
1 1
JPY 5 250 717 000 JPY 5 250 717 000
CHF CHF
45 874 464 45 874 464
1
CHF
43 481 187
CHF
2 393 277
AUD AUD
14/11/2013 15/01/2014
21/01/2014 21/01/2014
1 Total
AUD AUD
CHF CHF
313 046 558 313 046 558
1
CHF 299 548 956
CHF
13 497 602
369 039 000 369 039 000
25
Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Currency
Date value 20/03/2014 20/03/2014 20/03/2014
Number of contracts 1 1 Total
Amount in foreign currency AUD 369 039 000 AUD 11 870 000 AUD 380 909 000
Purchase price
AUD AUD AUD
Date trade 15/01/2014 06/03/2014 17/03/2014
Number of contracts
Liquidation proceeds
Currency profit/loss
CHF CHF CHF
298 249 939 9 492 617 307 742 556
2
CHF 301 870 383
CHF
AUD AUD
17/03/2014 14/05/2014
20/05/2014 20/05/2014
1 Total
AUD AUD
380 909 000 380 909 000
CHF CHF
300 476 256 300 476 256
1
CHF 318 706 560
CHF –18 230 304
AUD AUD
14/05/2014 17/07/2014
22/07/2014 22/07/2014
1 Total
AUD AUD
360 861 000 360 861 000
CHF CHF
300 443 847 300 443 847
1
CHF 303 520 187
CHF
–3 076 340
AUD AUD AUD AUD
17/07/2014 31/07/2014 21/08/2014 15/09/2014
22/09/2014 22/09/2014 22/09/2014 22/09/2014
1 1 1 Total
AUD AUD AUD AUD
360 861 000 3 225 000 –25 000 000 339 086 000
CHF CHF CHF CHF
302 037 048 2 714 144 –21 160 250 283 590 942
AUD AUD AUD
15/09/2014 21/10/2014 17/11/2014
20/11/2014 20/11/2014 20/11/2014
3
CHF 286 697 213
CHF
–3 106 271
1 1 Total
AUD 339 086 000 AUD –110 000 000 AUD 229 086 000
CHF CHF CHF
285 306 960 –91 740 000 193 566 960
2
CHF 192 226 063
CHF
1 340 897
USD USD
14/11/2013 15/01/2014
21/01/2014 21/01/2014
1 Total
USD USD
555 600 000 555 600 000
CHF CHF
509 257 404 509 257 404
USD USD USD
1
CHF 505 095 960
CHF
4 161 444
15/01/2014 06/03/2014 17/03/2014
20/03/2014 20/03/2014 20/03/2014
1 1 Total
USD USD USD
555 395 000 12 900 000 568 295 000
CHF CHF CHF
504 673 552 11 374 330 516 047 882
2
CHF 495 837 388
CHF
20 210 494
USD USD USD
17/03/2014 19/03/2014 14/05/2014
20/05/2014 20/05/2014 20/05/2014
1 1 Total
USD USD USD
568 000 000 –2 900 000 565 100 000
CHF CHF CHF
495 338 600 –2 533 162 492 805 438
2
CHF 502 825 980
CHF –10 020 542
USD USD
14/05/2014 17/07/2014
22/07/2014 22/07/2014
1 Total
USD USD
566 800 000 566 800 000
CHF CHF
504 055 240 504 055 240
1
CHF 508 873 040
CHF
USD USD USD
17/07/2014 31/07/2014 15/09/2014
22/09/2014 22/09/2014 22/09/2014
1 1 Total
USD USD USD
566 400 000 5 300 000 571 700 000
CHF CHF CHF
508 261 872 4 817 594 513 079 466
2
CHF 535 797 240
CHF –22 717 774
USD USD
15/09/2014 17/11/2014
20/11/2014 20/11/2014
1 Total
USD USD
571 700 000 571 700 000
CHF CHF
535 477 088 535 477 088
1
CHF 551 404 650
CHF –15 927 562
CLP CLP
14/11/2013 15/01/2014
21/01/2014 21/01/2014
1 Total
CLP 23 453 552 000 CLP 23 453 552 000
USD USD
44 529 242 44 529 242
1
USD
44 302 138
CHF
204 712
CLP CLP CLP
15/01/2014 06/03/2014 17/03/2014
20/03/2014 20/03/2014 20/03/2014
1 1 Total
CLP 23 453 552 000 CLP 547 604 000 CLP 24 001 156 000
USD USD USD
43 961 672 978 214 44 939 886
2
USD
42 070 387
CHF
2 536 063
CLP CLP
17/03/2014 14/05/2014
20/05/2014 20/05/2014
1 Total
CLP 24 001 156 000 CLP 24 001 156 000
USD USD
41 741 141 41 741 141
1
USD
43 686 123
CHF
–1 734 340
CLP CLP
14/05/2014 17/07/2014
22/07/2014 22/07/2014
1 Total
CLP 24 001 156 000 CLP 24 001 156 000
USD USD
43 331 208 43 331 208
1
USD
42 737 101
CHF
526 854
CLP CLP CLP
17/07/2014 31/07/2014 15/09/2014
22/09/2014 22/09/2014 22/09/2014
1 1 Total
CLP 24 001 156 000 CLP 92 953 000 CLP 24 094 109 000
USD USD USD
42 412 363 161 648 42 574 011
2
USD
40 596 645
CHF
1 846 720
CLP CLP
15/09/2014 17/11/2014
20/11/2014 20/11/2014
1 Total
CLP 24 094 109 000 CLP 24 094 109 000
USD USD
40 308 003 40 308 003
1
USD
40 507 917
CHF
–192 175
GBP GBP
17/12/2013 13/02/2014
20/02/2014 20/02/2014
1 Total
GBP GBP
92 649 000 92 649 000
CHF CHF
133 647 943 133 647 943
1
CHF 137 815 388
CHF
–4 167 445
GBP GBP GBP
13/02/2014 06/03/2014 14/04/2014
17/04/2014 17/04/2014 17/04/2014
1 1 Total
GBP GBP GBP
92 649 000 5 238 000 97 887 000
CHF CHF CHF
137 692 164 7 722 132 145 414 296
2
CHF 143 629 595
CHF
1 784 701
GBP GBP
14/04/2014 17/06/2014
20/06/2014 20/06/2014
1 Total
GBP GBP
97 887 000 97 887 000
CHF CHF
143 483 743 143 483 743
1
CHF 149 297 252
CHF
–5 813 509
GBP GBP GBP
17/06/2014 31/07/2014 18/08/2014
20/08/2014 20/08/2014 20/08/2014
1 1 Total
GBP GBP GBP
97 887 000 2 376 000 100 263 000
CHF CHF CHF
149 144 549 3 642 244 152 786 793
2
CHF 151 697 919
CHF
1 088 874
GBP GBP
18/08/2014 15/10/2014
20/10/2014 20/10/2014
1 Total
GBP GBP
100 263 000 100 263 000
CHF CHF
151 550 031 151 550 031
1
CHF 152 098 971
CHF
–548 940
GBP GBP
15/10/2014 15/12/2014
19/12/2014 19/12/2014
1 Total
GBP GBP
100 263 000 100 263 000
CHF CHF
151 951 584 151 951 584
1
CHF 151 818 235
CHF
133 349
NZD NZD
14/11/2013 15/01/2014
21/01/2014 21/01/2014
1 Total
NZD NZD
72 114 000 72 114 000
CHF CHF
54 301 121 54 301 121
1
CHF
54 763 372
CHF
–462 251
NZD NZD NZD
15/01/2014 06/03/2014 17/03/2014
20/03/2014 20/03/2014 20/03/2014
1 1 Total
NZD NZD NZD
72 114 000 342 000 72 456 000
CHF CHF CHF
54 510 251 255 437 54 765 688
2
CHF
54 139 123
CHF
626 565
26
5 872 173
–4 817 800
Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Currency
Date value 20/05/2014 20/05/2014 20/05/2014
Number of contracts 1 1 Total
Amount in foreign currency NZD 72 456 000 NZD –1 530 000 NZD 70 926 000
Purchase price
NZD NZD NZD
Date trade 17/03/2014 01/04/2014 14/05/2014
Number of contracts
Liquidation proceeds
Currency profit/loss
CHF CHF CHF
53 853 647 –1 166 778 52 686 869
2
CHF
54 698 131
CHF
–2 011 262
NZD NZD
14/05/2014 17/07/2014
22/07/2014 22/07/2014
1 Total
NZD NZD
70 926 000 70 926 000
CHF CHF
54 368 325 54 368 325
1
CHF
55 336 465
CHF
–968 140
NZD NZD NZD
17/07/2014 31/07/2014 15/09/2014
22/09/2014 22/09/2014 22/09/2014
1 1 Total
NZD NZD NZD
70 926 000 944 000 71 870 000
CHF CHF CHF
54 974 743 723 894 55 698 637
2
CHF
54 987 737
CHF
710 900
NZD NZD
15/09/2014 17/11/2014
20/11/2014 20/11/2014
1 Total
NZD NZD
71 870 000 71 870 000
CHF CHF
54 635 574 54 635 574
1
CHF
54 800 875
CHF
–165 301
Realized capital loss on concluded forward foreign exchange contracts
CHF –31 606 527
Realized capital gain on other foreign exchange transactions
CHF
TOTAL REALIZED CAPITAL GAINS/LOSSES ON CURRENCIES
CHF –29 052 281
2 554 246
Unrealized Capital Gains/Losses on Currencies Unrealized capital gains/losses on open forward foreign exchange contracts as at 31/12/2014 Currency
Purchase date
Value date
Number of Amount in contracts foreign currency
Purchase price
Number of contracts
Equivalent underlying value
Currency profit/loss
CAD
15/12/2014
20/02/2015
1
CAD
351 530 500
CHF 292 396 039
1
CHF 301 010 646
CHF
–8 614 607
EUR
15/12/2014
20/02/2015
1
EUR
347 398 000
CHF 417 224 998
1
CHF 417 550 857
CHF
–325 859
JPY
17/11/2014
20/01/2015
1
JPY
5 250 717 000
CHF
43 482 920
1
CHF
43 512 692
CHF
–29 772
AUD
17/11/2014
20/01/2015
1
AUD
229 086 000
CHF 191 195 176
1
CHF 186 038 679
CHF
5 156 497
USD
17/11/2014
20/01/2015
1
USD
569 500 000
CHF 548 844 235
1
CHF 565 778 887
CHF –16 934 652
CLP
17/11/2014
20/01/2015
1
CLP 24 094 109 000
USD
40 237 323
1
USD
39 638 423
CHF
594 987
GBP
15/12/2014
20/02/2015
1
GBP
100 263 000
CHF 151 629 740
1
CHF 155 162 407
CHF
–3 532 667
NZD
17/11/2014
20/01/2015
1
NZD
71 870 000
CHF
1
CHF
CHF
–1 310 765
54 423 558
55 734 323
Unrealized capital loss on open forward foreign exchange contracts
CHF –24 996 838
Unrealized capital gain on the conversion of the asset and income statement positions
CHF
44 914 646
TOTAL UNREALIZED CAPITAL GAINS/LOSSES ON CURRENCIES
CHF
19 917 808
Further Information on Off-Balance-Sheet Business Exposure-increasing derivative positions: – Currency risk Total exposure-increasing positions Exposure-reducing derivative positions: – Currency risk Total exposure-reducing positions
Equivalent underlying value in CHF
31/12/2014 % of net fund assets
31/12/2013 Equivalent underlying value % of in CHF net fund assets
39 981 816 39 981 816
1.83 1.83
39 602 081 39 602 081
1.84 1.84
1 764 175 210 1 764 175 210
80.59 80.59
1 843 011 834 1 843 011 834
85.70 85.70
27
Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Notes to the audited Annual Report as at December 31, 2014 Note 1: Sales Restrictions USA/Investor Base
Units of this Real Estate Fund may not be offered, sold or delivered within the United States or any of its territories. Units of this Real Estate Fund may not be offered, sold or delivered to US citizens or persons resident or incorporated in the US and/or other natural or legal persons whose income and/or returns, regardless of origin, are subject to US income tax, as well as persons who are considered to be US persons pursuant to Regulation S of the U.S. Securities Act of 1933 and/or the U.S. Commodity Exchange Act, in each case as amended from time to time.
Note 2: Commissions
a) Payments to management company – A management commission of 0.6% was levied on the total fund assets at the beginning of the financial year for managing the Fund and the real estate companies. – In respect of its activities in the construction of properties, as well as major renovation and conversion projects, the management company charged the fund a fee equivalent to 2.0% of the cost of construction. – In respect of its activities in connection with the purchase and sale of land and property, the management company charged the Fund a fee equivalent on average to 2.0% of the purchase/sales price. – As compensation for managing the individual properties, the fund management company charged the Fund 1.0% of rental income during the reporting period for costs that could not be passed on to tenants. b) Payments to the custodian bank – The custodian bank did not charge the investment fund any fee for the safekeeping of securities or the handling of payment transactions. – For supervision of the management company the custodian bank charged the fund a fee equivalent to 0.03% of the net assets at the start of the financial year. – The custodian bank did not charge the investment fund any commission for the distribution of annual income to the investors.
Note 3: Valuation Method
Note 4: Tax Treatment in Germany
28
In compliance with the Federal Act on Collective Investment Schemes (CISA), the management company had the market values of the properties re-estimated as at December 31, 2014 using the discounted cash flow method (DCF method) as applied by Wüest & Partner AG. Under Art. 88 para. 2 CISA, Arts. 92 and 93 CISO and the SFAMA guidelines for real estate funds, the Fund’s properties are regularly valued by independent appraisers accredited by the supervisory authority using a dynamic capitalized income value method. The property values stated are the prices that would probably be obtained upon a diligent sale at the time of appraisal. On the purchase or sale of properties contained in the Fund’s assets and at the close of each accounting year, the appraisers must review the market value of the real estate contained in the Fund’s assets. The market value of the individual properties represents the price that would probably be achieved in customary business transactions and on the assumption of diligent conduct by the purchaser and vendor. In individual cases, and especially on the purchase or sale of Fund properties, possible opportunities arising will be used in the best interests of the Fund. This may result in deviations from the valuations stated. Regarding tax treatment of the real estate fund in Germany, it should be noted that the details specified in § 5 para. 1 clauses 1 and 2 of the German Investment Tax Act (InvStG) are not published in the German Electronic Federal Gazette and that no certificate pursuant to § 5 para. 1 clause 3 of the Investment Tax Act is issued by a German auditing company. Hence, as the information for the review period was not determined in accordance with the procedures specified by German tax legislation, the investment fund is not deemed “transparent” in Germany from a taxation point of view. Investors are therefore recommended to contact their tax consultant for an assessment of personal tax implications.
Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Valuation Report Commission
The Collective Investment Schemes Act (CISA) requires the value of the properties held by Swiss real estate funds to be estimated by independent valuation experts at the end of each financial year. The valuation experts were tasked by the fund management company of Credit Suisse Real Estate Fund International with conducting the valuation in consultation with support staff abroad. The brief included coordination of the overall valuation process, including data preparation, provision of valuation software plus compilation and monitoring of the results supplied by the individual agents abroad. The valuation experts mandated by the fund management company and accredited by the Swiss Financial Market Supervisory Authority (FINMA) are responsible for the actual valuation of the properties. Credit Suisse Funds AG is responsible for procuring the necessary documentation. All properties held by Credit Suisse Real Estate Fund International were valued for accounting purposes as at December 31 of the 2014 financial year. As at the closing date, the portfolio comprised 35 properties (including new additions and properties valued for the first time). Two of the properties were under construction. The portfolio therefore comprises a total of 37 properties. The documentation relevant to the valuations was prepared by the fund management company and management companies responsible. The valuations are based firstly on an evaluation and analysis of these documents, a cycle of site visits, as well as an assessment of the general and specific market situation for each property. The FINMA-accredited valuation experts performed the entire mandate in consultation with the fund management company – from definition of the valuation parameters and entering the data in the valuation software, through the actual appraisal work, to monitoring and submission of the results – on a neutral basis and solely in accordance with the independent valuation brief.
Valuation Standards
The valuation experts confirm that the valuations were performed in accordance with the statutory requirements of the Collective Investment Schemes Act (CISA) and Collective Schemes Ordinance (CISO), as well as with the Guidelines of the Swiss Funds & Asset Management Association (SFAMA), and furthermore accord with customary industry valuation standards. The market value of each property is reported on a “fair value” basis, i.e. the likely achievable sale price under normal circumstances and current market conditions excluding any transaction costs. Properties under construction are valued at cost, provided the effective market value is not exceeded (impairment). In evaluating real estate, the valuation experts adhere to the internationally recognized International Valuation Standards (IVSC).
Valuation Method
The valuations were carried out uniformly using the discounted cash flow (DCF) method. This excludes any undeveloped land, which would be valued using the comparison and residual value method. A DCF valuation at completion was performed for the buildings under construction. With the DCF method, the market value of a property is determined as the total of all projected future net earnings discounted to valuation-date equivalents. Income is discounted separately for each property with adjustment for market conditions and risks, i.e. with allowance for specific opportunities and risks. The valuation includes a detailed analysis and assessment of the individual income and cost items. The valuation experts based their assessment on recent year’s individual accounts for each property, the current rental situation, as well as extensive market intelligence. This is used as the basis for the estimation and modeling of future cash flows and for definition of the discount rate. Valuations are prepared on the basis of a continuation of current use, i.e. any far-reaching changes of use, additions of new floors, or increases in density are not incorporated into the valuation.
Independence and Confidentiality
The accredited valuation experts confirm their independence and guarantee the confidential treatment of information connected with the valuation mandate.
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Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Result
As at December 31, 2014, the market value of the portfolio properties is estimated by the experts at CHF 2 336.09 million (conversion from local currency into Swiss francs as at closing rate on December 31, 2014). The acquisition cost of the buildings under construction as at the valuation date, which if applicable has been corrected by v alue adjustments on the basis of valuations for completions less residual construction costs, is reported by the fund management company at CHF 95.63 million. The total value of the portfolio is therefore CHF 2 431.72 million. Compared to December 31, 2013, the value of the total portfolio has increased by CHF 241.36 million or 11.02% (including exchange rate movements). Planned refurbishment work for the next 10 years was reviewed. The scheduling and scale of investment for the individual properties were consequently reassessed and adjusted where necessary. The discount rates used in the valuations are based on constant observation of real estate markets, particularly the yields paid in arm’s-length transactions. The average discount rate as at December 31, 2014, was 5.45%. Zurich, December 31, 2014 Wüest & Partner AG Dr. Christoph Zaborowski
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Andreas Ammann
Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014
Report of the Audit Company Brief Report of the collective investment scheme regulatory auditor to the Board of Directors of the Fund Management Company concerning the annual f inancial statements
As audit company for collective investment schemes, we have audited the accompanying financial statements of the investment fund Credit Suisse Real Estate Fund International which comprise the statement of net assets and the income statement, the statement of the appropriation of available earnings and the disclosure of the total costs as well as the supplemental disclosures in accordance with article 89 paragraph 1 lit. b–h and article 90 of the Swiss Collective Investment Schemes Act (CISA) for the year ended 31 December 2014. Responsibility of the Fund Management Company’s Board of Directors The Board of Directors of the Fund Management Company is responsible for the preparation of the financial statements in accordance with the requirements of the Swiss Collective Investment Schemes Act, the related ordinances as well as the sales prospectus with integrated fund contract. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The Board of Directors of the Fund Management Company is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. Responsibility of the audit company for collective investment schemes Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control system relevant to the entity’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the existence and effectiveness of the entity’s internal control system. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements for the year ended 31 December 2014 comply with the Swiss Collective Investment Schemes Act, the related ordinances as well as the sales prospectus with integrated fund contract. Report on other legal requirements We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and article 127 CISA as well as on independence (article 11 AOA) and that there are no circumstances incompatible with our independence. KPMG AG
Dominik Rüttimann Licensed Audit Expert Lead Auditor
Markus Schunk Licensed Audit Expert
Zurich, 31 March 2015 As KPMG audited the German version of the annual financial statements, this audit report exclusively refers to the German version of the financial statements. * Information on the special features, the macroeconomic environment, the commercial property and investor market, the real estate portfolio, the outlook, the price performance, the geographical and regional distribution of the investments, the structural breakdown according to actual net rental income and the valuation report do not form part of the additional information and are subject to audit procedures within the meaning of PS 720.
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Phone 044 332 58 08 Fax 044 337 20 82 www.credit-suisse.com/realestatefunds
04.15 Published in German, French and English
Credit Suisse Funds AG Uetlibergstrasse 231 / SDRS 6 CH-8045 Zurich
