Schroder ImmoPLUS: effects of Covid-19

Due to the extraordinary situation, in connection with the coronavirus, which has led to significant share price losses over the past few days, the fund management company would like to provide an update about the Schroder ImmoPLUS fund.

Read full reportSchroder_ImmoPlus_Release_E_18.03.20
0 pages120 KB

The Schroder ImmoPLUS remains in a strong market position. The approximately CHF 2.1 billion property portfolio is spread across the major business locations in German and French-speaking Switzerland. The locations and the quality of the properties are high standing and the rental contracts secured with long-term durations, with an average contract length of eight years. Office properties in central locations make up the most important usage category of the portfolio with around 40 percent, followed by retail properties with around 25 percent. The remaining third of the portfolio is spread across various segments and is broadly diversified.

The Schroder ImmoPLUS is managed with a great deal of foresight. The fund management company pursues a sustainable dividend policy with a payout ratio of around 80 percent. As a result, we act more conservatively than the peer group of Swiss listed real estate funds, which is an important advantage in today's demanding environment.

In order to test the possible effects of the current pandemic on the Schroder ImmoPLUS fund, several stress test scenarios have been undertaken. Depending on tenant's credit rating and sector, a wide range of assumptions was used in the different scenarios. The fund currently has gross rental income of over CHF 100 million per year. Before the pandemic occurred, a net income of CHF 56 million was forecast for the current 2019/20 financial year. Our stress tests show that the fund's positive annual result remains solid in each of the scenarios tested. We consider a reduction in net income of more than 10 to 15% to be unlikely.

This assessment includes the assumption that individual tenants may run into financial difficulties. This applies mostly to tenants from the retail trade where, apart from the basic services (food, chemists, etc.), the shops remain temporarily closed. Above all, we see the possibility for rental losses amongst the smaller retailers. Schroder ImmoPLUS, in contrast, generates a large part of its retail rental income from large national and international retailers such as Aldi, Coop, Hornbach, Manor, Migros and Spar. In part, these tenants provide the aforementioned basic services and are therefore not affected by the current shop closures as a result of the coronavirus, or can maintain operations with online trading for corporate customers (“Click & Collect”). Importantly, these retail assets are located at first-class locations for their respective use. The large retail tenants mentioned make up around 17 percent of rental income.

Schroders manages the ImmoPLUS fund very actively and we are in regular contact with all of the fund's stakeholders. To date, we have no evidence that any important tenant would no longer be able to meet their obligations. Furthermore, no rental reductions or deferrals have been requested in the current environment, despite our active approach. The portfolio’s renowned major tenants remain committed to maintaining the excellent locations they occupy and are showing an exemplary payment behaviour despite the current market situation.

Please be assured that we will continue to keep you updated with the latest developments of the fund.

Important Information

The Schroder ImmoPLUS («Fund») is a contractual investment fund under Swiss law of the type «real estate fund». Schroder Investment Management (Switzerland) AG, Zurich, is the fund management company («Fund Management Company») and Zürcher Kantonalbank, Zurich, is the depositary bank of the Fund. The fund contract, the prospectus and the simplified prospectus as well as the annual and semi-annual reports («Fund Documents») may be obtained free of charge from the Fund Management Company. This document is issued by Schroder Investment Management (Switzerland) AG, Central 2, CH-8001 Zurich, a fund management company authorized and supervised by the Swiss Financial Market Supervisory Authority FINMA, Laupenstrasse 27, CH-3003 Bern.


Further Information:


Roger Hennig, Head Real Estate Switzerland,

Tel. +41 (0) 44 250 12 91


Read full reportSchroder_ImmoPlus_Release_E_18.03.20
0 pages120 KB

Important Information: This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results. The value of an investment can go down as well as up and is not guaranteed. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Some information quoted was obtained from external sources we consider to be reliable. No responsibility can be accepted for errors of fact obtained from third parties, and this data may change with market conditions. This does not exclude any duty or liability that Schroders has to its customers under any regulatory system. Regions/ sectors shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The opinions in this material include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change. The content is issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registered No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.

Follow us
Follow us
Follow us

To facilitate legibility, the language forms male, female and diverse (m/f/d) are not used simultaneously in this text. All references to persons apply equally to all genders.

Schroder Investment Management (Switzerland) AG (herein after called "SIMSAG") webpages are aimed exclusively at qualified investors with their registered office or residence in Switzerland. The SIMSAG webpage also contains information about collective investment schemes which are not approved for distribution to non-qualified investors in Switzerland.

For illustrative purposes only and does not constitute a recommendation to invest in the above-mentioned security / sector / country.