Article published in Immoday.ch, October 1st. In German, here.
As part of the presentation of the Dominicé Swiss Property Fund’s results to clients and investors at the Four Seasons Quai des Bergues in Geneva, Diego Reyes, Senior Fund Manager, spoke with Immoday.
Dominicé Swiss Property Fund has particularly benefited from a year that has been favorable to the entire listed real estate fund sector. The fund’s total assets grew by 53% over the past financial year, driven by 17 acquisitions across the Lake Geneva region, adding nearly 500 new apartments. Investors have responded positively: since the beginning of the year, the fund’s units have gained 15% in value, supported by improved liquidity following an increase in the number of shares outstanding.
It’s earnings season for Swiss listed real estate funds, and as expected, results are strong. In a context where the average premium has risen sharply over the past 12 months and capital increases have multiplied, Dominicé Swiss Property Fund stands out with a record-breaking year, as explained by Diego Reyes, Senior Fund Manager at Dominicé.
Diego Reyes, Dominicé Swiss Property Fund has just published its results. What are the main highlights of the past financial year
The 2024/2025 financial year was a record year for Dominicé Swiss Property Fund. The fund’s total assets increased by 53% to CHF 849 million as of 30 June 2025. This growth was driven by 17 strategic acquisitions across the Lake Geneva region, representing 488 additional apartments and nearly CHF 10 million in additional rental income.
Discover the full report here : DSPF: Annual report and Capital increase | Dominicé
The investment return reached 6.38%, compared with 2.50% the previous year, and the dividend per unit was raised to CHF 3.20. The ROE increased to 5.93%, while the operating margin remained stable at 65%. These results demonstrate our ability to combine growth with operational performance.
Since the beginning of the year, your fund’s performance has exceeded 15%, well above the sector average (6.5%). How do you explain this outperformance?
This outperformance reflects the fund’s strong positioning in residential real estate in Western Switzerland, a tight market with sustained rental demand. It also highlights our ability to deploy newly raised capital quickly and effectively into high-quality acquisitions, generating immediate rental income and medium-term value creation potential.
Finally, our active and disciplined management approach allows us to make the most of a competitive market, maintaining a balance between yield, growth, and financial discipline.
This outperformance reflects the fund’s strong positioning in residential real estate in Western Switzerland, a tight market with sustained rental demand. It also highlights our ability to deploy newly raised capital quickly and effectively into high-quality acquisitions, generating immediate rental income and medium-term value creation potential.
Your year-to-date performance is above average, but your premium (30% at the end of September) remains below the market average (35%). Does this mean the fund still has upside potential?
We view this premium as an opportunity. At 30%, it already reflects strong investor confidence while leaving room for further revaluation. The fund is young and growing fast, with significant rental reserves (around 38%) on recent acquisitions.
The gap with the market average mainly reflects investor caution regarding our rapid expansion — something that will narrow over time as we continue to demonstrate consistent results and sustainable value creation.
Liquidity remains limited for most listed real estate funds. Is this a concern for you?
Liquidity is a structural issue for all Swiss listed real estate funds. In our case, it is already improving, thanks to the increase in the number of shares outstanding – 4.6 million at the end of June 2025, compared with 3.6 million a year earlier.
With the ongoing capital increase and the gradual broadening of our investor base, liquidity will continue to strengthen. It is something we monitor closely, but not a major concern given the fund’s solidity and growth trajectory.
You recently announced a CHF 100 million capital increase. How is it progressing so far?
This capital increase, with a maximum amount of CHF 98.9 million, has been very well received. It is designed to finance acquisitions already secured: a prime residential portfolio in the canton of Vaud (around CHF 45 million) and four strategic urban properties in Lausanne, Pully, and Geneva (around CHF 42 million).
We have also identified an additional pipeline of around CHF 67 million, ensuring that the raised capital will be deployed quickly and efficiently. Our approach is clear: invest in quality assets that reinforce our residential strategy while preserving yields.
Some market observers claim it’s no longer possible to find attractive yields without diluting the portfolio. What’s your view?
We disagree – and our 2024/2025 results prove it. We acquired 17 properties with an average gross yield of 4.1% and rental reserves of 38%. These acquisitions did not dilute performance; they strengthened it.
We remain highly selective, focusing on residential assets in attractive urban areas where demand structurally exceeds supply. This investment discipline is key to continuing to generate strong returns in a competitive market.
We remain highly selective, focusing on residential assets in attractive urban areas where demand structurally exceeds supply. This investment discipline is key to continuing to generate strong returns in a competitive market.
After this capital increase, what will be the portfolio size? And what’s your medium-term target?
Once the capital increase is completed and the acquisitions are integrated, the portfolio value will approach CHF 1 billion by the end of the year.
Over the next three years, we aim for a portfolio between CHF 1.3 and 1.5 billion. However, our goal is not only to grow in size – it is also to deepen the portfolio’s rental base, expand our investor community, diversify geographically within Western Switzerland, and maintain strict acquisition discipline.
Dominicé SA recently acquired TrustStone Real Estate SICAV, which will be managed by the same team as Dominicé Swiss Property Fund. Isn’t there a risk of spreading your resources too thin?
Not at all. We have strengthened our management team to integrate TrustStone without dispersion. The two funds have distinct and complementary strategies: Dominicé Swiss Property Fund remains focused on residential assets, while TrustStone targets commercial and mixed-use properties.
By pooling our expertise while respecting each vehicle’s specificities, we can deliver greater value to investors through expanded capabilities and synergies.
The acquisition of TrustStone is part of a broader consolidation trend in the listed real estate sector. Do you expect this to continue?
We do. The Swiss listed real estate market is highly competitive, and investors are increasingly favoring established managers with critical mass. Consolidation helps pool expertise and ensure long-term stability.
Our acquisition of TrustStone fits perfectly into this logic – creating long-term value for investors while maintaining a selective approach to external growth.
Finally, what’s next for Dominicé Swiss Property Fund?
We have several major projects in preparation, particularly focused on urban densification and energy-efficient renovations in key cities such as Vevey and Lausanne. The ongoing capital increase will also allow us to launch new developments in the cantons of Vaud and Geneva.
Finally, in October 2025, we will publish the fund’s first GRESB benchmark results, reflecting Dominicé’s commitment to long-term portfolio sustainability and full transparency.
Our dual objective is clear: continue to grow in scale while enhancing the quality and sustainability of our portfolio, ensuring stable and resilient income for our investors.
