Audited Annual Report Credit Suisse Real Estate Fund Global · 4 Credit Suisse Real Estate Fund Global Audited Annual Report as at December 31, 2018 Management and Statutory Bodies

Credit Suisse Real Estate Fund Global

Audited Annual Report

Investment fund under Swiss law of the “Real estate funds” categorywith real estate investments located exclusively outside Switzerland

December 31, 2018

Credit Suisse Real Estate Fund Global Audited Annual Report as at December 31, 20182

Contents

3 Information in Brief

4 Management and Statutory Bodies

5 Information on Third Parties

6 Report on Activities

11 Development of Net Asset Value and Distribution

12 Statement of Assets

13 Statement of Income

14 Appendix

16 Additional Investments

17 Mortgages and Other Mortgage-Backed Liabilities

18 Interest-bearing Loans and Other Credits

19 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

20 Capital Gains/Losses on Currencies

21 Further Information on Off-Balance-Sheet Business

22 Breakdown of Property/Real EstateStructural Breakdown by Actual Net Rental Income

23 Geographical Distribution of the Fund’s Properties Regional Breakdown by Market Value

24 Schedule of Properties in Swiss Francs General Information about the Properties

Financial Data on the PropertiesBreakdown of ResidentialBreakdown of Commercial PremisesSchedule of Properties (Local Currencies)

Financial Data on the Properties

28 Notes to the Audited Annual Report

29 Valuation Report

31 Report of the Audit Company

This report is an English translation of the original German version.In case of discrepancies the original version takes precedence.

Credit Suisse Real Estate Fund Global Audited Annual Report as at December 31, 2018 3

Information in Brief

Key Data 31/12/2018 31/12/2017 31/12/2016

Swiss security no. 13 985 167

Fund units issued – – –

Fund units redeemed – – –

Number of units in circulation 2 985 000 2 985 000 2 985 000

Net asset value per unit (incl. distribution) CHF 101.30 99.79 96.57

Issue price per unit CHF 103.00 101.00 98.00

Redemption price per unit CHF 96.00 94.00 91.00

Closing price CHF 86.80 87.75 93.50

Highest price (in review period) CHF 90.75 98.50 105.70

Lowest price (in review period) CHF 86.00 86.50 92.00

Market capitalization (MV) CHF 259.1 mio. 261.9 mio. 279.1 mio.

Premium/Discount –14.31% –12.07% –3.18%

Statement of Assets 31/12/2018 31/12/2017 31/12/2016

Market value of properties CHF 375.4 mio. 380.9 mio. 358.9 mio.

Acquisition costs of properties CHF 333.0 mio. 358.8 mio. 349.5 mio.

Total assets CHF 417.4 mio. 401.7 mio. 393.5 mio.

Third-party borrowings: 1

– in % of investment costs 27.88% 23.38% 24.58%

– in % of aggregate market value 24.73% 22.03% 23.94%

Debt as a percentage of total assets 27.56% 25.85% 26.74%

Interest on borrowed funds 2.32% 3.03% 2.96%

Remaining term to maturity of borrowed funds Years 3.21 2.66 3.16

Net asset value CHF 302.4 mio. 297.9 mio. 288.3 mio.

Return and Performance Data 31/12/2018 31/12/2017 31/12/2016

Distribution CHF 3.40 3.40 3.40

Distribution yield 3.92% 3.87% 3.64%

Distribution ratio 88.40% 105.33% 97.04%

Return on equity (ROE) 4.59% 6.85% 1.39%

Return on invested capital (ROIC) 3.97% 5.78% 1.77%

Return on investment 5.06% 7.07% 1.41%

Performance 2.75% –2.75% 0.12%

EBIT margin 71.60% 63.86% 67.16%

Total expense ratio Gross Asset Value (TERREF GAV) 1.17% 1.25% 1.13%

Total expense ratio Market Value (TERREF MV) 1.79% 1.75% 1.47%

Price/earnings ratio (P/E) 18.96 13.26 68.11

Price/cash flow ratio 22.10 3 449.40 32.16

Statement of Income 31/12/2018 31/12/2017 31/12/2016

Net income total CHF 10.5 mio. 9.6 mio. 10.5 mio.

Realized capital gains/losses CHF –0.2 mio. –10.3 mio. –2.4 mio.

Rental income CHF 20.2 mio. 20.4 mio. 20.7 mio.

Rental losses 6.59% 9.54% 7.97%

Weighted average unexpired lease term (WAULT) Years 5.28 6.28 6.46

Maintenance expense CHF 1.4 mio. 2.2 mio. 1.8 mio.

1 Permitted weighting: one third of aggregate market value (Art. 65 para. 2 CISA / Art. 96 para. 1 CISO)


Management and Statutory BodiesManagement Company

Credit Suisse Funds AG, Zurich

Board of Directors ȩ Dr. Thomas Schmuckli, Chairman Relevant activities outside the fund management company: Member of the Board of Directors of MultiConcept Fund Management S.A., Luxembourg; Chairman of the Board of Directors of Bossard Holding AG, Zug; Member of the Board of Directors of Patria Genossenschaft, Basel; Member of the Board of Directors of Hans Oetiker Hold-ing AG, Horgen, Vice-Chairman of the Board of Directors of Helvetia Holding AG, St. Gallen

ȩ Luca Diener, Vice-Chairman No relevant activities outside the fund management company

ȩ Ruth Bültmann, Member Relevant activities outside the fund management company: Member of the Board of Directors of MultiConcept Fund Management S.A., Luxembourg; Member of the Board of Directors of BLI – Banque de Luxembourg Invest-ments S.A., Luxembourg; Chairman of the Board of Directors of the Eric Sturdza, Management Company S.A., Luxembourg; Chairman of the Board of Directors of Conventum Asset Management S.A., Luxembourg; Mem-ber of the Board of Directors of Cigogne Management S.A., Luxembourg; Member of the Board of Directors of Mitsubishi UFJ Investor Services & Banking (Luxembourg) S.A., Luxembourg; Member of the Board of Directors of the Institute of Directors – ILA Luxembourg, Luxembourg; Member of the Board of Directors of Lithos Capital S.A.-SPF, Luxemburg

ȩ Patrik Marti (from September 12, 2018), Member Relevant activities outside the fund management company: Managing Director of Credit Suisse (Switzerland) Ltd., Zurich

ȩ Jürg Roth, Member Relevant activities outside the fund management com-pany: Managing Director of Credit Suisse (Switzerland) Ltd., Zurich; Member of the Board of Trustees of the Credit Suisse Investment Foundation, Zurich; Member of the Board of Directors of AXA Pension Solutions AG, Winterthur

ȩ Christian Schärer, Member Relevant activities outside the fund management company: Managing Director of Credit Suisse (Switzerland) Ltd., Zurich; Member of the Board of Directors of Credit Suisse Fund Services (Luxembourg) S.A., Luxembourg

ȩ Dr. Christoph Zaborowski, Member Relevant activities outside the fund management company: Chairman of the Board of Directors of REFL Invest AG, Zurich; Chairman of the Board of Directors of Deal Estate AG, Lucerne; Chairman of the Board of Directors of BS2 AG, Schlieren; Vice-Chairman of the Investment Committee of the Steiner Investment Foundation, Zurich; Member of the Investment Committee of FG Wohninvest Germany S.C.S. SICAV SIF Luxembourg; Member of the Real Estate Committee of the Lonza Pension Fund, Basel; Member of the Board of Directors of Fundamenta Group Holding AG, Zug; Member of the board of Fundamenta Group Deutschland AG, Munich

ȩ Petra Reinhard Keller (until April 4, 2018), Member Managing Director, Credit Suisse (Switzerland) Ltd, Zurich

ȩ Gebhard Giselbrecht (until December 31, 2018), Member Relevant activities outside the fund management company: Managing Director of Credit Suisse Asset Management (Switzerland) Ltd., Zurich; Member of the Executive Board of Credit Suisse Asset Management (Switzerland) Ltd., Zurich; Chairman of the Board of Directors of Credit Suisse Asset Management International Holding Ltd, Zurich; Chairman of the Board of Directors of Credit Suisse Fund Management S.A., Luxembourg; Member of the Board of Trustees of the Credit Suisse Investment Foundation, Zurich; Member of the Board of Trustees of the Credit Suisse Investment Foundation Pillar 2, Zurich; Member of the Board of Directors of Aventicum Capital Management Holding Ltd, Zurich

Executive Board ȩ Thomas Schärer, CEO No relevant activities outside the fund management company

ȩ Patrick Tschumper, Deputy CEO and Head of Fund Solutions Relevant activities outside the fund management company: Member of the Board of Directors of Credit Suisse Asset Management (Switzerland) Ltd., Zurich; Member of the Board of Directors of MultiConcept Fund Management S.A., Luxembourg

ȩ Gilbert Eyb, Member, Legal No relevant activities outside the fund management company

ȩ Thomas Federer, Member, Performance & Risk Management No relevant activities outside the fund management company

ȩ Tim Gutzmer, Member, Fund Services No relevant activities outside the fund management company

ȩ Hans Christoph Nickl, Member, COO No relevant activities outside the fund management company

ȩ Thomas Vonaesch, Member, Real Estate Fund Management Relevant activities outside the fund management company: Fund Manager of the real estate fund Credit Suisse 1a Immo PK, Credit Suisse Asset Management (Switzerland) Ltd., Zurich

ȩ Gabriele Wyss, Member, Compliance No relevant activities outside the fund management company

Custodian Bank Credit Suisse (Switzerland) Ltd., Zurich

Audit Company KPMG AG, Zurich


Information on Third Parties

Accredited valuation experts

ȩ Gino Fiorentin, architect (HTL degree), Wüest Partner AG, Zurich

ȩ Pascal Marazzi-de Lima, architect (degree ETH), Wüest Partner AG, Zurich

ȩ Marius Malek, MSc Geography, Wüest Partner AG, Zurich

Delegation of further responsibilities

The fund management company has delegated the investment decisions to Credit Suisse Asset Management (Switzerland) Ltd., Zurich, as asset manager.

The fund management company has delegated certain fund administration duties to the following groupcompanies of Credit Suisse Group AG:

ȩ Credit Suisse AG, Switzerland: specific tasks such as providing legal and compliance advice, facility management and the Management Information System (MIS).

ȩ Credit Suisse (Switzerland) Ltd., Switzerland: specific duties in relation to the provision of compliance advice, human resources, collateral management, IT services and first line of defense support (FLDS).

ȩ Credit Suisse Asset Management (Switzerland) Ltd., Switzerland: real estate administration (including fund and real estate accounting and estate management).

ȩ Credit Suisse Services Ltd., Switzerland: specific tasks in relation to the provision of compliance advice, managing the fund management company’s finances and tax advice.

ȩ Credit Suisse Fund Services (Luxembourg) S.A., Luxembourg: specific tasks in relation to fund accounting.

ȩ Credit Suisse (Poland) Sp.z.o.o., Poland: specific tasks in relation to fund accounting, information management (including product master data, price publications, fact sheet production, KIID production and report preparation), legal reporting and other support tasks.

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 compa-nies.

Real estate management and technical maintenance tasks are delegated to the following companies:

ȩ Australia: CBRE (C) Pty Ltd

ȩ Chile: CBRE Chile S.A.

ȩ Germany: STRABAG Property and Facility Services GmbH

ȩ Great Britain: BNP Paribas Real Estate Advisory & Property Management UK Ltd.

ȩ Japan CBRE K.K. EGW Asset Management Inc. Savills Asset Advisory Co., Ltd.

ȩ Netherlands Jones Lang LaSalle B.V.

ȩ USA CBRE Inc. Cushman & Wakefield of Colorado Inc. Steelwave Inc.

For certain accounting, tax advice and administration tasks undertaken by group companies the following service providers are involved:

Alter Domus, CBRE Inc., CBRE Chile S.A., Citco Nederland B.V., Cushman & Wakefield of Pennsylvania Inc., Ernst & Young, J&A Garrigues S.L.P., Morrison & Foerster, PricewaterhouseCoopers und Savills Asset Advisory Co. Ltd.

Details on the execution of the order are laid down in separate agreements.


Report on Activities

from January 1 to December 31, 2018

Credit Suisse Real Estate Fund Global is the first listed real estate fund under Swiss law to invest exclusively in international real estate. The Fund grants private and institutional investors access to an internationally diversified real estate portfolio of high-quality commercial properties. The investment objective of the Fund is to achieve continuous capital growth, as well as to provide a regular, appropri-ate distribution of income, by investing in a geographically diversified, international real estate portfo-lio. The Fund has been listed on SIX Swiss Exchange since it was launched on November 29, 2011.

The global economy performed well again in 2018, with real economic growth amounting to an estimated 3.2%. As a result of the trade dispute with the US, economic growth nevertheless slowed significantly in Europe and China alike during the second half of the year. The Asian countries excluding Japan remained the most dynamic region in 2018 with a growth rate of 6.0%, despite a slowdown in China’s economic growth to 6.6% compared with 6.9% in the previous year. Japan’s economy expanded by 0.9%. Australia and New Zealand, on the other hand, showed increasing momentum with a growth rate of 3.0% and 2.8% respectively. Economic momentum in Europe has slowed slightly, with growth in the eurozone decelerating from 2.5% in 2017 to 1.9% in 2018. Germany and France grew by 1.6% and 1.4% respectively. The automotive sector and the export segment were particularly weak, while consumer activity remained at a high level. Ireland showed the strongest growth within the single-currency area, with estimated real-term growth in GDP of 6.8%. However, the Netherlands likewise grew at a dynamic rate with growth of 2.5%. Italy continues to pose a risk to the eurozone. Initial official estimates for Italy showed that the country’s economy fell back into recession in the second half of 2018.The UK economy grew by 1.3% in real terms in 2018. This represents a significant slowdown in momentum versus the previous year, as the ongoing uncertainty regarding the implementation of Brexit takes its toll. A key factor was the rise in inflation, which led private households to rein in their spending. The Bank of England raised key interest rates to 0.75% in mid-2018. The European Central Bank (ECB) has maintained its expansionary monetary policy. As expected, December 2018 nevertheless saw the bank announce its exit from the quantitative easing program. However, the core rate of inflation is still persisting in the region of 1.0%. In light of the slowdown in economic growth, the ECB adopted a cautious approach to rate rises. The big American economies of Canada and the US likewise enjoyed a robust year. Economic growth accelerated to 3.0% in the US, while in Canada it slipped to 2.2%. The US labor market again showed strong growth, with the result that the Fed continued to normalize interest rates. Key interest rates stood at 2.5% at the end of the year. Canada’s central bank raised its key interest rates by a total of 75 bps in 2018 to 1.75%. The Chilean economy gained fresh momentum, growing by 3.9% in 2018.

2018 was a good year for the real estate rental and transaction markets. Based on data for direct investments of institutional real estate portfolios, global real estate investments produced an overall return in the high single digits for 2018. In terms of 2018 returns, international real estate invest-ments are therefore likely to have outpaced the other common asset classes of equities, bonds and commodities. In 2018, the investment volume of the real estate markets came to around USD 963 billion worldwide and was 3% higher than in the already dynamic previous year. Volumes rose in North America and Asia Pacific, but fell in Europe. Real estate capital values continued their positive trend. Net returns on commercial real estate continued to fall in many markets in Europe and Asia Pacific due to persis-tent, very strong investor appetite; in the US and Canada, they were largely stable.

Investor base,special features

Macro-economic Climate

Commercial Property and Investor Market


The risk premiums for real estate investments remain above their historic averages in many markets. Due to the very sharp decline in government bond yields in the fourth quarter, risk premiums for real estate investments in Europe and Asia Pacific at the end of 2018 actually exceeded their values at the end of 2017. These yield differentials in favor of real estate are continuing to generate robust investor demand. Core real estate continued to enjoy high demand. These properties are characterized by good loca-tions, new or renovated buildings, and long-term rental contracts with tenants who have high credit ratings. The appetite for valued-added properties has also increased as various investor groups hunt for higher returns. Value added properties frequently show high vacancy rates, or require greater levels of investment, in order to be successfully repositioned on the market. The positive trend on the rental market is one of the key factors supporting global real estate invest-ments. With construction activity remaining at very low levels in many markets coupled with robust demand for rental space, vacancy rates in most investment markets continue to fall. Office vacancy rates in Tokyo, Munich and Stuttgart are below 2.5%. Besides positive employment growth, structural developments such as the trend to coworking are resulting in increased demand for space. At the global level, office rents rose by around 3–4% year-on-year (source: JLL).

Macroeconomic ClimateOverall economic conditions for real estate investments remain benign. Although Credit Suisse expects global economic growth to slow to 2.9% in 2019, this merely represents a slowdown rather than a sudden fall-off in economic activity. Added to that, employment in most of the fund’s investment mar-kets is likely to go on increasing; at the same time, inflation remains low. In the eurozone, real economic growth should slow slightly to 1.5% in 2019. However, such a figure remains above the region’s long-term potential. Irish and Dutch GDP is expected to grow by 4.1% and 2.3% respectively. France and Germany are likely to expand at a similar pace to 2018 (i.e. GDP growth of 1.4% for both countries), while Italy is likely to turn in another poor performance (0.7% GDP growth). The UK is scheduled to leave the EU in 2019, although the impact on economic output will depend on the chosen solution. Credit Suisse anticipates a soft Brexit, expecting slightly higher economic growth in 2019 than in 2018, i.e. a growth rate of 1.5%. We also expect the ECB, SNB and Bank of England to refrain from hiking interest rates in the first half of 2019. Credit Suisse thinks all three central banks will move on rates towards the end of the year. This is contingent on the assumption that economic momentum accelerates again in the second half of the year. The US is also likely to experience a slowdown in economic activity. A growth rate of 2.5% continues to be expected for 2019. On the other hand, Canada’s economic output is likely to rise by just 1.5%.For now, the Fed and the Bank of Canada are likely to wait and see how the situation develops; we do not think they will proceed to raise interest rates until the second half of the year. In Chile, we expect significantly higher real economic growth of 3.0% as the upswing in the commodity sector looks set to continue. This should make 2019 the best year since 2013.The economists at Credit Suisse predict 5.7% growth for Asia excluding Japan in 2019, as the Chinese economy is likely to lose momentum. Growth in Australia and New Zealand is likely to remain solid, with a figure of 2.8% forecast for both countries. Japan’s economy is also likely to be stable, growing by a further 1.0% in 2019. We do not expect the Bank of Japan to move on rates, with the result that the level of interest rates will remain supportive to real estate investments.

Commercial Property and Investor MarketThe expected economic slowdown points to slightly lower but nonetheless persistently solid demand for property in 2019. In view of the very low vacancy rates and limited new supply of rental space, we expect average rents in the Fund’s investment markets to grow by another 2–3% in 2019. However, we also expect major regional disparities. Tokyo, Japanese regional cities, the German top seven cit-ies, Dublin, Boston, various leading cities on the US West Coast as well as the Dutch office markets are likely to remain among the world’s most dynamic markets. Retail properties at secondary locations in the UK, US and Germany, on the other hand, face additional challenges, since the demand for bricks-and-mortar retail space is falling owing to the trend to greater online consumption. The persistently low level of global bond yields continues to sustain investor interest in real estate. In global terms, core real estate is one of the few investment opportunities that currently offer solid income returns coupled with low volatility. We expect investments in the eurozone and Japan to show the strongest performance in global terms; here, rents are rising significantly and net yields remain low or are under downward pressure. In North America, overall returns are likely to weaken. Here, we expect rising capitalization rates due to the higher level of interest rates and greater supply of property.

Outlook


The biggest risks to real estate valuations are the already advanced price cycle in certain markets, to-gether with lower capitalization and discount rates. A stronger rise in interest rates would probably lead to rising capitalization rates in real estate markets too. A greater-than-anticipated weakening of global economic activity represents a further risk that needs to be monitored.

Organization, Structure and DiversificationThe Fund purchased one property and sold another in 2018. In December 2017, a contract was already signed for the sale of the office property at 45 St. Georges Terrace in Perth (Australia). The Fund purchased the office building, which is located in the center of Perth’s financial district, in 2012. After an anchor tenant moved out, the premises were extensively renovated and, following successful repositioning, it proved possible to let most of the property. The repositioning was followed by an attractive purchase offer in fall 2017. Ownership was transferred at the end of January 2018. In Yokohama (Japan), the Fund acquired an attractive office property with retail outlets on the ground floor. This property is in Kannai, the traditional business district of Japan’s second city. The transfer of property rights and obligations took effect at the end of May 2018. Both transactions had a positive impact on the percentage of rental income lost to the portfolio.As at December 31, 2018, the portfolio comprised 12 properties in Denver (US), Houston (US), Seattle (US), Leeds (UK), Munich (Germany), Stuttgart (Germany), Rotterdam (Netherlands), Tokyo (Japan), Yokohama (Japan) and Santiago (Chile). The properties are primarily used as office and retail space. In terms of net rental income, office space accounted for 78.00% (77.55%), while retail prop-erty accounted for 13.15% (12.15%). The remaining 8.85% (10.30%) of space consisted mainly of parking facilities and warehousing.At the end of 2018, the regional breakdown of the property investments was as follows: North/Cen-tral and South America: 32.20% (31.40%), Europe: 41.25% (40.90%) and Asia/Pacific: 26.55% (27.70%).

Valuation of Properties2018 saw the portfolio’s value appreciate. Factoring out currency effects, it was 1.8% higher on average than in the previous year. As at December 31, 2018, the market value of the entire portfolio is estimated by accredited experts at CHF 375.45 million (380.87 million). Rental income decreased slightly to CHF 20.19 million (20.38 million). The distribution remains stable at CHF 3.40 (3.40) per unit, resulting in a dividend yield of 3.92% (3.87%).

The financial year of Credit Suisse Real Estate Fund Global runs from January 1 to December 31.

Weighted to the portfolio allocation, the exchange rates applied to the statement of assets as of December 31, 2018, are approximately 1.31% lower than on December 31, 2017, while the average exchange rates applied to the income statement as of December 31, 2018 are roughly 1.68% higher than on December 31, 2017, 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 4.80 million (loss of 2.82 million). The exchange rate fluctuations in the income statement are not hedged.

Credit Suisse Real Estate Fund Global acquired one property in the 2018 financial year and sold an-other. No 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 valu-ation experts as at December 31, 2018. This also involved recourse to external consultants abroad. These estimates were made on the basis of the International Valuation Standards. The portfolio proper-ties are all valued using the DCF method. The resulting total market value comes to CHF 375.45 million (380.87 million). The weighted discounted rate is 4.54% (4.92%) of net income after deduction of long-term renovations. The liquid assets of CHF 33.57 million (16.89 million) were invested in bank balances and mortgage-backed loans to other real estate funds of Credit Suisse Funds AG. The business assets were invested in the following currencies: euro, sterling, yen, Chilean peso, US dollar and Australian dollar. To mini-mize currency fluctuation risks, the currencies were mostly hedged by means of foreign exchange for-ward transactions. At the end of the year, the result is a net credit balance of CHF 0.14 million (liability of 0.91 million) from unrealized gains on outstanding forward foreign exchange transactions.

Real Estate Portfolio

Notes to the Annual Finan-cial Statements

Foreign Exchange Influences

Statement of Assets


Borrowed funds total CHF 92.85 million (83.90 million) or 24.73% (22.03%) of the market value of the properties. The estimated liquidation taxes amount to CHF 13.47 million (10.82 million). The Fund’s net assets after deduction of the estimated liquidation taxes come to CHF 302 386 448 (297 870 773). The return on investment per unit amounts to 5.06% (7.07%) on a net asset value per unit of CHF 101.30 (96.39 ex coupon).

Total income amounts to CHF 20.82 million (20.45 million), which represents a slight increase of 1.79% compared with the previous year. This includes rental income of CHF 20.19 million (20.38 million), representing 96.98% (99.65%) of total income. Income from mortgages and other mortgage-backed loans stands at CHF 0.06 million (0.02 million), while income from deposits on postal and bank accounts less negative interest amounts to CHF 0.07 million (0.05 million). Income from other investments amounts to CHF 0.50 million (0.00 million). This item includes compensation payments from a buildings insurance policy. The percentage of rental income lost due to vacancies and collection losses stands at 6.59% (9.54%) of target rental income. The reduction in the percentage of rental income lost is mainly due to the sale of the property in Perth (Australia).Total expenses amount to CHF 10.34 million (10.82 million). Borrowing costs amount to CHF 2.29 million (2.47 million). The average weighted interest rate comes in at 2.32% (3.03%), with an average remaining term to maturity of 3.21 years (2.66 years). Maintenance and repairs accounted for CHF 1.41 million (2.17 million), which equates to 7.00% (10.66%) of rental income. Writedowns on properties (tenant fit-outs) amount to CHF 0.25 million (0.46 million). For future ex-traordinary investments such as conversions of vacant floorspace, CHF 1.00 million was allocated to provisions for future repairs. Taxes on earnings and capital generated expenses of CHF 0.69 million (0.91 million). Appraisal and auditing expenses amount to CHF 0.49 million (0.52 million). The Fund was charged CHF 2.41 million (2.75 million) for management activities. The commission of 0.60% is levied on the total fund assets at the beginning of the financial year. The remuneration paid to the property management companies in accordance with the Fund regu-lations stands at CHF 0.56 million (0.55 million). Other expenses amount to CHF 1.11 million (0.86 million) and consist primarily of property-related operating costs and tax, legal, bookkeeping and other consultancy costs. The increase versus the previous year is attributable to early refinancing of the property in Tokyo. Due to the lower interest charge, this one-time higher expense is already repaid after one year. The Fund’s total expense ratio in relation to gross asset value (TERREF GAV), which is an important indicator of the burden of operating expenses, stands at 1.17% (1.25%). This key ratio enables investors to draw a direct comparison with other real estate funds.The Fund’s net income amounts to CHF 10.48 million (9.64 million) or CHF 3.51 (3.23) per unit. The operating profit margin (EBIT margin) comes to 71.60% (63.86%). The Fund’s currencies are mostly hedged. Depending on the performance of the currencies and interest rate spreads, hedg-ing results in realized and unrealized capital gains or losses on forex forward transactions. The capital losses realized on the currency hedging amount to CHF 1.91 million (loss of 10.28 million). The unrealized capital losses arising from changes in exchange rates amount to CHF 2.89 million (gain of 7.46 million). This also includes unrealized currency conversion differences arising from the consoli-dation of the financial statements of the individual property-holding companies in foreign currency. The net result is a currency loss of CHF 4.80 million (loss of 2.82 million). One property was sold in 2018. Realized capital gains on investments amount to CHF 1.70 million (0.00 million). Unrealized capital gains on investments amount to CHF 8.95 million (gain of 13.45 million). Including the cost of currency hedging, unrealized capital changes on investments, and the expense of the increase in the provision for liquidation taxes of CHF 2.66 million (expense of 0.51 million), aggregate net income comes to CHF 13.66 million (19.75 million) or CHF 4.58 (6.62) per unit.

For the 2018 financial year, CHF 10.15 million (10.15 million) or CHF 3.40 (3.40) per unit will be paid out. The no. 7 coupons are payable free of expenses at Credit Suisse (Switzerland) Ltd., Zurich and its branches in Switzerland from March 29, 2019 onward (ex date March 27, 2019). Investors can claim back the withholding tax deducted. In the 2018 financial year, the net asset value per unit rose from CHF 96.39 (ex coupon) to CHF 101.30. The investment return therefore comes to 5.06% (7.07%).

Financial year 2018 2017

Coupon no 7 6Gross CHF 3.40 CHF 3.40Less 35% Swiss federal withholding tax CHF 1.19 CHF 1.19

Total distribution CHF 2.21 CHF 2.21

Statement of Income

Distribution, Yield


No issue took place.

The units of Credit Suisse Real Estate Fund Global have been traded on SIX Swiss Exchange since launch on November 29, 2011. The closing price stood at CHF 86.80 at the end of the financial year, corresponding to a loss of CHF 0.95 or 1.08%. Performance amounts to 2.75% (–2.75%), which is 8.07 percentage points higher than the bench-mark. The benchmark used is the SXI Real Estate Funds Broad (TR), which showed a performance of –5.32% over the same period (January 1 to December 31, 2018). At the end of the reporting period, the discount resulting from the difference between the closing price and the net asset value came to 14.31% (discount 12.07%).

As of December 31, 2018 no units had been submitted for redemption.

Status as at January 1, 2018 2 985 000 unitsRedemptions 0 unitsIssues 0 units

Status as at December 31, 2018 2 985 000 units

Issuing of Units

Unit Price Performance in CHF (1/1/–31/12/2018)

Redemptions

Units in Circulation

95

90

85

80

75 Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018

Swiss Market Index (SMI)Credit Suisse Real Estate Fund GlobalSXI Real Estate Funds Broad (TR)


Year as at31/12/

Units incirculation

Asset value perunit ex-coupon

CHF

Distribution fromord. income

CHF

Capitalgains CHF

Totaldistribution

CHF

Net assetsat market values

in CHF mio.

2012* 2 310 000 96.81 1.80 0.00 1.80 227.79

2013 2 310 000 95.35 3.60 0.00 3.60 228.58

2014 2 310 000 97.03 3.80 0.00 3.80 232.91

2015 2 985 000 95.20 3.60 0.00 3.60 294.92

2016 2 985 000 93.17 3.40 0.00 3.40 288.27

2017 2 985 000 96.39 3.40 0.00 3.40 297.87

2018 2 985 000 97.90 3.40 0.00 3.40 302.39

* The fund was launched as of November 29, 2011 (issue price CHF 100.00). The first financial year lasts from 29/11/2011 until 31/12/2012 (extended financial year).

Development of Net Asset Value and Distribution


Statement of Assetsas at December 31, 2018

Assets

31/12/2018Market value

CHF

31/12/2017Market value

CHF

Cash holdings, balances on postal and bank accounts at sight including fiduciary investments with third-party banks 22 066 064 16 891 836

Sites

– Residential buildings 1 405 381 1 673 455

– Commercial properties 374 042 563 379 199 310

Total sites 375 447 944 380 872 765

Mortgages and other mortgage-backed loans 11 500 000 0

Derivative financial instruments 137 599 –906 965

Other assets 8 294 717 4 832 223

Total assets 417 446 324 401 689 859

Liabilities Short-term liabilities

– Short-term interest-bearing mortgages and other mortgage-backed liabilities 1 072 333 5 500 000

– Other short-term liabilities 8 739 009 9 104 777

Total short-term liabilities 9 811 342 14 604 777

Long-term liabilities

– Long-term interest-bearing mortgages and other mortgage-backed liabilities 91 774 258 78 398 325

Total long-term liabilities 91 774 258 78 398 325

Total liabilities 101 585 600 93 003 102

Net assets before estimated liquidation taxes 315 860 724 308 686 757

Estimated liquidation taxes 13 474 276 10 815 984

Net assets 302 386 448 297 870 773

Number of units in circulation 2 985 000 2 985 000

Net asset value per unit 101.30 99.79

Less distribution for financial year 2018 (coupon no. 7) 3.40 3.40

Net asset value per unit after distribution 97.90 96.39

Change in the net asset value Net assets at beginning of financial year 297 870 773 288 271 692

Distribution –10 149 000 –10 149 000

Balance from sales and purchases of units, excl. equalization on the issue of units and payouts of current income on the redemption of units 0 0

Total income 13 664 675 19 748 081

Balance of deposit/withdrawal of reserves for repairs 1 000 000 0

Net assets at end of financial year 302 386 448 297 870 773

Details from previous yearsNet assets Net asset value per unit

31/12/2018 302 386 448 101.3031/12/2017 297 870 773 99.7931/12/2016 288 271 692 96.57

Conversion rate as at 31/12/2018 as at 31/12/2017EUR/CHF 1.127010 1.170248GBP/CHF 1.255576 1.318294100 JPY/CHF 0.898259 0.865010AUD/CHF 0.694018 0.762213USD/CHF 0.985800 0.974500100 CLP/CHF 0.142051 0.158460100 CLP/USD 0.144097 0.162606UF/CHF 39.157480 42.464333


Statement of Income 2018(ending December 31, 2018)

Income

1/1/2018to 31/12/2018

CHF

1/1/2018to 31/12/2018

CHF

1/1/2017to 31/12/2017

CHF

1/1/2017to 31/12/2017

CHF

Income from postal and bank accounts 79 404 50 434Negative interest –5 694 –824Rental income (gross income generated) 20 190 609 20 381 039

Income from mortgages and other mortgage-backed loans 56 032 22 781

Other income 499 694 0Current income paid in by new subscribers 0 0

Total income 20 820 045 20 453 430

Expenses

Mortgage interest and interest on mortgage-backed liabilities 2 287 229 2 473 923

Repairs and maintenance 1 413 150 2 172 411Taxes and charges– Taxes on capital and profits 689 925 905 268Valuation and auditing expenses 492 029 521 887Writedowns on properties (tenant fit-outs) 250 833 459 332Provision for future repairs– Allocation 1 000 000 0– Withdrawal 0 0Remuneration (as per fund regulations) for– the fund management company 2 410 139 2 754 276– the custodian bank 89 362 86 482– the property management companies 564 617 548 756Costs for annual report 25 000 33 363Fees payable to supervisory bodies 5 375 4 500Other expenses 1 112 191 857 965Net current income paid out on redemption of units 0 0Total expenses 10 339 850 10 339 850 10 818 163 10 818 163

Net income 10 480 195 9 635 267Realized capital gains and losses from investments 1 699 627 0Realized capital gains and losses from currency –1 909 836 –10 278 573Realized income 10 269 986 –643 306Unrealized capital gains and losses from investments 8 945 922 13 448 305Unrealized capital gains and losses from currency –2 892 941 7 457 426Change in liquidation taxes –2 658 292 –514 344Total income 13 664 675 19 748 081

Application of resultsNet income of financial year 10 480 195 9 635 267Carried forward from preceding year 2 545 013 3 058 746Net income available for distribution 13 025 208 12 694 013Net income earmarked for distribution to investors –10 149 000 –10 149 000Carried forward to following year 2 876 208 2 545 013

Average conversion rates for 1/1/–31/12/2018 for 1/1/–31/12/2017EUR/CHF 1.150645 1.115960GBP/CHF 1.299617 1.274974100 JPY/CHF 0.885835 0.876305AUD/CHF 0.727270 0.753786USD/CHF 0.976929 0.979696100 CLP/CHF 0.151878 0.151232100 CLP/USD 0.155465 0.154366UF/CHF 41.301166 40.210223


31/12/2018 31/12/2017

Value of depreciation account CHF 0.0 mio. 0.0 mio.

Value of reserves account for future repairs CHF 1.6 mio. 0.6 mio.

Balance on account of earnings retained for reinvestment CHF 0.0 mio. 0.0 mio.

Total insurance value of assets CHF 298.9 mio. 324.4 mio.

Number of units due be redeemed at end of next financial year none none

Key Financial Figures 31/12/2018 31/12/2017

Rental losses 6.59% 9.54%

Third-party borrowings in % of aggregate market value 24.73% 22.03%

Distribution yield 3.92% 3.87%

Distribution ratio 88.40% 105.33%

EBIT margin 71.60% 63.86%

Total expense ratio Gross Asset Value (TERREF GAV) 1.17% 1.25%

Total expense ratio Market Value (TERREF MV) 1.79% 1.75%

Return on equity (ROE) 4.59% 6.85%

Return on invested capital (ROIC) 3.97% 5.78%

Premium / Discount –14.31% –12.07%

Performance 2.75% –2.75%

Return on investment 5.06% 7.07%

Information on derivativesFor detailed information on forward foreign exchange transactions, please see pages 20–21.

Valuation principles / basis for calculation of the net asset valueThe asset value of a unit represents the market value of the Fund’s assets, less any liabilities of the Fund and the likely taxes and duties incurred on liquidation of the Fund’s assets, divided by the number of units in circulation.

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 inde-pendent 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. Properties under construction and construction projects are likewise valued at market value. Upon 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 devia-tions from the valuations given.

Further comments on the market values may be found in the valuation report of the real estate appraiser as per the corresponding year-end.

Appendixas per December 31, 2018


Information on actual compensation rates where maximum rates are indicated in the Fund Regulations

2018 2017

Actual Maximum Actual Maximum

a) Payments to the Management Company

– Annual fee for the management of the Real Estate Fund, asset management, and the distribution of the Real Estate Fund, on the basis of total fund assets at the beginning of the accounting year 0.60% 1.50% 0.70% 1.50%

– Fee for activities in the construction of properties, as well as renovation and conversion projects, on the basis of construction costs incurred 2.00% 3.00% 2.00% 3.00%

– Compensation for work involved in the purchase and sale of properties, on the basis of the purchase or sale price (unless a third party was entrusted with this task) 1.11% 3.00% 0.00% 3.00%

– Compensation for the management of properties during the reporting period, on the basis of gross rental income (incl. ground rent income) 2.80% 5.00% 2.69% 5.00%

– Issuing commission to cover costs in connection with the placement of new units, on the basis of the net asset value of the newly issued units 0.00% 5.00% 0.00% 5.00%

– Redemption commission to cover costs in connection with the redemption of new units, on the basis of the net asset value of the newly issued units 0.00% 5.00% 0.00% 5.00%

b) Payments to the Custodian Bank

– Fee for the safekeeping of fund assets, handling of payment transactions for the Real Estate Fund, and performance of the other tasks listed in § 4 of the fund contract, on the basis of net fund assets at the beginning of the accounting year 0.03% 0.20% 0.03% 0.20%

– Fee in respect of distribution of annual income to investors 0.00% 0.50% 0.00% 0.50%

Overall amount of contractual payment obligations after the balance sheet date for purchases of plots of land as well as construction orders and investments in properties 31/12/2018 31/12/2017

Purchases of plots of land CHF 0.0 mio. 0.0 mio.

Construction orders and investments properties CHF 0.0 mio. 0.0 mio.

Long-term liabilities, broken down by maturity (1 to 5 years, and more than five years) 31/12/2018 31/12/2017

1 to 5 years CHF 91.8 mio. 70.7 mio.

> 5 years CHF 0.0 mio. 7.7 mio.

Investments 31/12/2018 31/12/2017

Investments quoted on a stock exchange or on another regulated market open to the public:valued at the prices paid on the main market; in accordance with Art. 84 para. 2 lit. a CISOFINMA CHF n/a n/a

Investments for which no prices pursuant to lit. a are available: valued on the basis of parametersobservable on the market; in accordance with Art. 84 para. 2 lit. b CISO-FINMA

For details, see unrealized capital gains and losses on currencies, page 21 CHF 0.1 mio. –0.9 mio.

Investments valued on the basis of parameters which are not observable on the market usingappropriate valuation models taking account of current market conditions; in accordance withArt. 84 para. 2 lit. c CISO-FINMA

For details, see inventory of properties from page 24 CHF 375.4 mio. 380.9 mio.

For details, see Transactions between Funds, page 16 CHF 11.5 mio. 0.0 mio.

Total investments CHF 387.0 mio. 380.0 mio.

General observation:You can obtain further information in the “Information in Brief” section.


Current transactions between collective investment schemes

Type of loan

Term Amount in CHF

Interest ratefrom to

Credit 24/12/2018 03/01/2019 11 500 000 0.300%

Total current transactions between collective investment schemes 11 500 000

Concluded transactions between collective investment schemes

Type of loan

Term Amount in CHF

Interest ratefrom to

Credit 23/11/2018 24/12/2018 11 500 000 0.300%Credit 19/10/2018 23/11/2018 17 000 000 0.300%Credit 25/09/2018 19/10/2018 17 000 000 0.300%Credit 20/09/2018 25/09/2018 8 000 000 0.300%Credit 12/09/2018 20/09/2018 8 000 000 0.300%Credit 15/08/2018 05/09/2018 8 000 000 0.525%Credit 25/07/2018 15/08/2018 8 000 000 0.525%Credit 13/07/2018 25/07/2018 3 000 000 0.525%Credit 25/06/2018 13/07/2018 3 000 000 0.525%Credit 05/06/2018 25/06/2018 3 000 000 0.525%Credit 27/04/2018 15/05/2018 25 500 000 0.525%Credit 17/04/2018 27/04/2018 26 500 000 0.525%Credit 09/04/2018 17/04/2018 26 500 000 0.525%Credit 20/03/2018 09/04/2018 26 500 000 0.525%Credit 20/03/2018 29/03/2018 8 000 000 0.525%Credit 20/02/2018 20/03/2018 32 500 000 0.525%

Additional InvestmentsCredit Suisse Real Estate Fund Global made the following additional investments (pursuant to Art. 86 para. 3a CISO) for the real estate funds Credit Suisse Real Estate Fund Hospitality and Credit Suisse Real Estate Fund Interswiss during the 2018 financial year:

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 Global did not receive any loans from other real estate funds of Credit Suisse Funds AG during the 2018 fiscal year.


Mortgages and Other Mortgage-Backed LiabilitiesCurrent Mortgages and Fixed Advances

Type of loan

Term

CurrencyAmount

in foreign currencyExchange rate

as at 31/12/2018 Amount in CHF Interest ratefrom to

Rollover mortgage 1 31/05/2018 30/06/2019 JPY 119 379 000 0.898259 1 072 333 0.529%Fixed-rate mortgage 2 01/12/2017 01/12/2020 USD 15 400 000 0.985800 15 181 320 4.238%Fixed-rate mortgage 3 18/03/2016 01/04/2021 USD 20 765 633 0.985800 20 470 761 3.110%Fixed-rate mortgage 4 29/04/2016 01/05/2021 USD 9 469 191 0.985800 9 334 728 3.250%Fixed-rate mortgage 5 01/02/2013 01/02/2023 CLP 4 842 415 956 0.142051 6 878 700 5.030%Fixed-rate mortgage 6 30/03/2018 31/03/2023 JPY 300 000 000 0.898259 2 694 777 0.528%Fixed-rate mortgage 6 30/03/2018 31/03/2023 JPY 2 558 900 000 0.898259 22 985 550 0.550%Fixed-rate mortgage 1 31/05/2018 31/05/2023 JPY 1 584 000 000 0.898259 14 228 422 0.568%

Total current mortgages and fixed advances 92 846 591

1 The two mortgages totaling JPY 1 719 379 000 were concluded on May 31, 2018 with the purchase of the property in Yokohama. By the balance sheet date, JPY 16 000 000 had been repaid, of which JPY 16 000 000 during the current financial year.

2 The mortgage on the property in Houston was taken out on December 1, 2017 for a total of USD 16 000 000. By the balance sheet date, USD 600 000 had been repaid, of which USD 600 000 during the current financial year.

3 The mortgage totaling USD 22 000 000 was concluded on March 18, 2016, with encumbrance of the property in Seattle. By the balance sheet date, USD 1 234 367 had been repaid, of which USD 474 908 during the current financial year.

4 The mortgage totaling USD 10 000 000 was concluded on April 29, 2016, with encumbrance of the property in Denver. By the balance sheet date, USD 530 809 had been repaid, of which USD 210 770 during the current financial year

5 The mortgage was concluded with encumbrance of the property in Santiago de Chile. The mortgage was concluded in the accounting currency Unidad de Fomento (UF) and amounts to UF 200 200. By the balance sheet date, UF 24 532 had been repaid, of which UF 5 491 during the current financial year. The net debt was converted into CLP at the exchange rate applicable on the reference date.

6 The two mortgages totaling JPY 2 588 000 000 were completed on March 30, 2018. This was a refinancing operation for the property in Tokyo (see footnote 7). By the balance sheet date, JPY 29 100 000 had been repaid, of which JPY 29 100 000 during the current financial year.

Expired Mortgages and Fixed Advances

Type of loan

Term

CurrencyAmount

in foreign currency Interest ratefrom to

Fixed-rate mortgage 7 03/08/2012 30/03/2018 JPY 1 938 000 000 1.793%Fixed-rate mortgage 7 03/08/2012 30/03/2018 JPY 950 000 000 1.793%Fixed advance 09/02/2018 14/02/2018 CHF 7 000 000 1.700%Fixed advance 02/02/2018 09/02/2018 CHF 7 000 000 1.700%Fixed advance 19/01/2018 02/02/2018 CHF 7 000 000 1.700%Fixed advance 20/11/2017 19/01/2018 CHF 5 500 000 1.700%

7 The two mortgages totaling JPY 3 040 000 000 were concluded on August 3, 2012 with the purchase of the property in Tokyo. By the balance sheet date, JPY 152 000 000 had been repaid, of which JPY 0 during the current financial year. Both mortgages were repaid early as of March 30, 2018.

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 TIBOR (Tokyo Interbank Offered Rate).


Interest-Bearing Loans and Other CreditsCurrent Loans

Type of loan

Term

CurrencyAmount

in foreign currencyExchange rate

as at 31/12/2018Amount in CHF Interest ratefrom to

None

Expired Loans

Type of loan

Term

CurrencyAmount

in foreign currency Interest ratefrom to

None


Land Purchases and Sales Statement of Land Purchases and Sales in Financial Year 2018Purchases Country Building class Site area m2

Yokohama City, 89-6 Yamashitacho, Naka-ku Japan Commercial property 1 243

Sales Country Building class Site area m2

Perth, 45 St Georges Terrace Australia Commercial property 1 826

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, status as at September 13, 2016).

Tenants Accounting for over 5% of Rental IncomeTenant Property location Percentage of rental income

K.K. ESCRIT Tokyo 11.00%

Karcher Inc. Denver 9.80%

Argos Groep B.V. Rotterdam 6.90%

Allianz Stuttgart 5.50%

Bayern-Invest Kapitalanlagegesellschaft Munich 5.20%

Vantage Energy Services Houston 5.00%

Real Estate Companies in the FundREF Global Holding AG, ZugREF Global Chile Fund Holding AG, Zug

The two holding companies in Zug and their national companies are wholly owned by Credit Suisse Real Estate Fund Global.

Overview of Units of Other Investment FundsIn 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 fiscal 2018.


Capital Gains/Losses on CurrenciesRealized Capital Gains/Losses on CurrenciesRealized capital gains/losses on concluded forward foreign exchange contracts (1/1/–31/12/2018)

CurrencyDatetrade

Datevalue

Number ofcontracts

Amount inforeign currency Purchase price

Number ofcontracts

Liquidationproceeds

Currencyprofit/loss

EUR 15/11/2017 19/01/2018 1 EUR 86 770 000 CHF 101 265 362 EUR 16/01/2018 19/01/2018 Total EUR 86 770 000 CHF 101 265 362 1 CHF 102 388 600 CHF –1 123 238

EUR 16/01/2018 20/02/2018 1 EUR 86 770 000 CHF 102 350 855 EUR 16/01/2018 20/02/2018 Total EUR 86 770 000 CHF 102 350 855 1 CHF 102 350 855 CHF –

EUR 16/01/2018 20/03/2018 1 EUR 86 770 000 CHF 102 317 015 EUR 15/03/2018 20/03/2018 Total EUR 86 770 000 CHF 102 317 015 1 CHF 101 442 807 CHF 874 208

EUR 15/03/2018 18/05/2018 1 EUR 86 770 000 CHF 101 369 920 EUR 12/04/2018 18/05/2018 1 EUR 3 030 000 CHF 3 594 519 EUR 15/05/2018 18/05/2018 Total EUR 89 800 000 CHF 104 964 439 2 CHF 107 128 706 CHF –2 164 267

EUR 15/05/2018 20/07/2018 1 EUR 89 800 000 CHF 107 053 274 EUR 17/07/2018 20/07/2018 Total EUR 89 800 000 CHF 107 053 274 1 CHF 104 886 400 CHF 2 166 874

EUR 17/07/2018 20/09/2018 1 EUR 89 800 000 CHF 104 818 601 EUR 18/09/2018 20/09/2018 Total EUR 89 800 000 CHF 104 818 601 1 CHF 100 799 602 CHF 4 018 999

EUR 18/09/2018 23/11/2018 1 EUR 90 540 000 CHF 101 557 722 EUR 20/11/2018 23/11/2018 Total EUR 90 540 000 CHF 101 557 722 1 CHF 102 581 820 CHF –1 024 098

GBP 15/11/2017 19/01/2018 1 GBP 31 140 000 CHF 40 255 830 GBP 16/01/2018 19/01/2018 Total GBP 31 140 000 CHF 40 255 830 1 CHF 41 415 048 CHF –1 159 218

GBP 16/01/2018 20/02/2018 1 GBP 31 140 000 CHF 41 364 757 GBP 16/01/2018 20/02/2018 Total GBP 31 140 000 CHF 41 364 757 1 CHF 41 364 757 CHF –

GBP 16/01/2018 20/03/2018 1 GBP 31 140 000 CHF 41 319 292 GBP 15/03/2018 20/03/2018 Total GBP 31 140 000 CHF 41 319 292 1 CHF 41 098 852 CHF 220 440

GBP 15/03/2018 18/05/2018 1 GBP 31 140 000 CHF 40 994 315 GBP 12/04/2018 18/05/2018 1 GBP 2 730 000 CHF 3 710 127 GBP 15/05/2018 18/05/2018 Total GBP 33 870 000 CHF 44 704 442 2 CHF 45 929 075 CHF –1 224 633

GBP 15/05/2018 20/07/2018 1 GBP 33 870 000 CHF 45 819 370 GBP 17/07/2018 20/07/2018 Total GBP 33 870 000 CHF 45 819 370 1 CHF 44 637 713 CHF 1 181 657

GBP 17/07/2018 20/09/2018 1 GBP 33 870 000 CHF 44 521 065 GBP 18/09/2018 20/09/2018 Total GBP 33 870 000 CHF 44 521 065 1 CHF 42 730 731 CHF 1 790 334

GBP 18/09/2018 23/11/2018 1 GBP 34 710 000 CHF 43 662 889 GBP 20/11/2018 23/11/2018 Total GBP 34 710 000 CHF 43 662 889 1 CHF 44 248 308 CHF –585 419

AUD 15/11/2017 19/01/2018 1 AUD 46 320 000 CHF 34 518 822 AUD 16/01/2018 19/01/2018 Total AUD 46 320 000 CHF 34 518 822 1 CHF 35 533 925 CHF –1 015 103

AUD 16/01/2018 20/02/2018 1 AUD 46 320 000 CHF 35 448 696 AUD 16/01/2018 20/02/2018 Total AUD 46 320 000 CHF 35 448 696 1 CHF 35 448 696 CHF –

AUD 16/01/2018 20/03/2018 1 AUD 46 320 000 CHF 35 374 121 AUD 14/02/2018 20/03/2018 1 AUD –45 892 500 CHF –33 609 831 AUD 15/03/2018 20/03/2018 Total AUD 427 500 CHF 1 764 290 2 CHF 317 970 CHF 1 446 320

AUD 15/03/2018 18/05/2018 1 AUD 427 500 CHF 316 299 AUD 12/04/2018 18/05/2018 1 AUD –427 500 CHF –317 381 AUD 12/04/2018 18/05/2018 Total AUD – CHF –1 082 2 CHF – CHF –1 082

JPY 15/11/2017 19/01/2018 1 JPY 4 117 600 000 CHF 35 970 530 JPY 16/01/2018 19/01/2018 Total JPY 4 117 600 000 CHF 35 970 530 1 CHF 35 889 002 CHF 81 528

JPY 16/01/2018 20/02/2018 1 JPY 4 117 600 000 CHF 35 865 737 JPY 16/01/2018 20/02/2018 Total JPY 4 117 600 000 CHF 35 865 737 1 CHF 35 865 737 CHF –

JPY 16/01/2018 20/03/2018 1 JPY 4 117 600 000 CHF 35 843 708 JPY 15/03/2018 20/03/2018 Total JPY 4 117 600 000 CHF 35 843 708 1 CHF 36 716 639 CHF –872 931

JPY 15/03/2018 18/05/2018 1 JPY 4 117 600 000 CHF 36 675 051 JPY 12/04/2018 18/05/2018 1 JPY 269 400 000 CHF 2 416 591 JPY 15/05/2018 18/05/2018 Total JPY 4 387 000 000 CHF 39 091 642 2 CHF 39 925 648 CHF –834 006

JPY 15/05/2018 20/07/2018 1 JPY 4 387 000 000 CHF 39 879 146 JPY 15/05/2018 20/07/2018 1 JPY 1 608 600 000 CHF 14 625 874 JPY 17/07/2018 20/07/2018 Total JPY 5 995 600 000 CHF 54 505 020 2 CHF 53 150 994 CHF 1 354 026

JPY 17/07/2018 20/09/2018 1 JPY 5 995 600 000 CHF 53 090 438 JPY 18/09/2018 20/09/2018 Total JPY 5 995 600 000 CHF 53 090 438 1 CHF 51 418 266 CHF 1 672 172

JPY 18/09/2018 26/11/2018 1 JPY 6 199 100 000 CHF 53 103 970 JPY 20/11/2018 26/11/2018 Total JPY 6 199 100 000 CHF 53 103 970 1 CHF 54 738 053 CHF –1 634 083


CurrencyDatetrade

Datevalue

Number ofcontracts


Number ofcontracts

Liquidationproceeds

Currencyprofit/loss

USD 15/11/2017 19/01/2018 1 USD 61 210 000 CHF 60 099 039 USD 16/01/2018 19/01/2018 Total USD 61 210 000 CHF 60 099 039 1 CHF 59 043 166 CHF 1 055 873

USD 16/01/2018 20/02/2018 1 USD 61 370 000 CHF 59 064 943 USD 16/01/2018 20/02/2018 Total USD 61 370 000 CHF 59 064 943 1 CHF 59 064 943 CHF –

USD 16/01/2018 20/03/2018 1 USD 61 370 000 CHF 58 946 499 USD 15/03/2018 20/03/2018 Total USD 61 370 000 CHF 58 946 499 1 CHF 58 019 198 CHF 927 301

USD 15/03/2018 18/05/2018 1 USD 61 380 000 CHF 57 706 714 USD 12/04/2018 18/05/2018 1 USD 3 590 000 CHF 3 435 831 USD 15/05/2018 18/05/2018 Total USD 64 970 000 CHF 61 142 545 2 CHF 64 989 491 CHF –3 846 946

USD 15/05/2018 20/07/2018 1 USD 64 800 000 CHF 64 470 168 USD 17/07/2018 20/07/2018 Total USD 64 800 000 CHF 64 470 168 1 CHF 64 527 840 CHF –57 672

USD 17/07/2018 20/09/2018 1 USD 64 620 000 CHF 64 019 680 USD 18/09/2018 20/09/2018 Total USD 64 620 000 CHF 64 019 680 1 CHF 62 151 516 CHF 1 868 164

USD 18/09/2018 23/11/2018 1 USD 66 910 000 CHF 63 990 717 USD 20/11/2018 23/11/2018 Total USD 66 910 000 CHF 63 990 717 1 CHF 66 381 411 CHF –2 390 694 Realized capital gain on concluded forward foreign exchange contracts CHF 724 506 Realized capital loss on other foreign exchange transactions CHF –2 634 342 TOTAL REALIZED CAPITAL GAINS/LOSSES ON CURRENCIES CHF –1 909 836

Unrealized Capital Gains/Losses on CurrenciesUnrealized capital gains/losses on open forward foreign exchange contracts as at 31/12/2018

CurrencyDatetrade

Datevalue

Number ofcontracts


Number ofcontracts

Equivalentunderlying value

Currencyprofit/loss

EUR 20/11/2018 22/01/2019 1 EUR 90 540 000 CHF 102 499 881 1 CHF 102 027 867 CHF 472 014

GBP 20/11/2018 22/01/2019 1 GBP 34 710 000 CHF 44 103 220 1 CHF 43 550 742 CHF 552 478

JPY 20/11/2018 22/01/2019 1 JPY 6 199 100 000 CHF 54 694 969 1 CHF 55 676 196 CHF –981 227

USD 20/11/2018 22/01/2019 1 USD 67 020 000 CHF 66 058 933 1 CHF 65 964 599 CHF 94 334

Unrealized capital loss on open forward foreign exchange contracts CHF 137 599 Unrealized capital gain on the conversion of the asset and income statement positions CHF –3 030 540 TOTAL UNREALIZED CAPITAL GAINS/LOSSES ON CURRENCIES CHF –2 892 941

Further Information on Off-Balance-Sheet Business31/12/2018 31/12/2017

Equivalent underlying value in CHF

% ofnet fund assets

Equivalent underlying value in CHF

% ofnet fund assets

Exposure-increasing derivative positions:– Currency risk – – – –Total exposure-increasing positions – – – –

Exposure-reducing derivative positions:– Currency risk 267 219 404 88.37 273 016 548 91.66Total exposure-reducing positions 267 219 404 88.37 273 016 548 91.66


Breakdown of Property/Real EstateAcquisition costs Market value Insurance value

CHF % CHF % CHF

Residential buildings 766 278 0.25 1 405 381 0.35 1 915 917

Commercial properties 332 262 409 99.75 374 042 563 99.65 296 973 712

Mixed-use properties – – – – –

Development land (incl. properties for demolition) and schemes under construction – – – – –

Total 333 028 687 100.00 375 447 944 100.00 298 889 629

Breakdown of Property as at December 31, 2018

0.20% Dwelling units

13.15% Retail

78.00% Office

Structural Breakdown by Actual Net Rental Income

0.45% Storage/warehousing

1.05% Other 7.15% Parking


Geographical Distribution of the Fund’s Properties

32.20% North/Central/South American region

26.55% Asia/Pacific region

41.25% European region

Yokohama

69.07

30.54

Munich69.42

Stuttgart23.37

Rotterdam18.48Leeds

43.61

Santiago de Chile11.82

Houston41.65

Seattle44.41

Denver23.03

CHF 10 million

Tokyo

Regional Breakdown by Market Value


Schedule of Propertiesin Swiss Francs (CHF)

Schedule of PropertiesFinancial Data (Local Currencies)

Dwelling units Commercial premises

Number Country of buildings

Total rental

premises

Total lettable

area Site areaYear of

constructionAcquisition

date Ownership typeAcquisition

costs Market valueProjected

rental income 1 Rental losses

Gross income(net rentalincome) 1 Rooms Total dwelling units Parking

Retail outlets

Offices,practices etc.

Cinemas/hotels/restaurants Storerooms

Other commercialpremises

Total commercial premisesexcl. parking

Location, address m2 m2 in CHF % 1–1.5 2–2.5 3–3.5 4–4.5 5+ No. m2 % No. m2 No. m2 No. m2 No. m2 No. m2 No. m2 %

Residential buildingsStuttgart, Reinsburgstrasse 17 Germany 1 9 697 474 1957 01/11/2013 Sole ownership 766 278 1 405 381 51 975 – – 51 975 – 4 4 – – 8 507 72.74 – – – – – – – 1 190 – – 1 190 27.26 Total I 1 9 697 474 766 278 1 405 381 51 975 – – 51 975 – 4 4 – – 8 507 72.74 – – – – – – – 1 190 – – 1 190 27.26

Commercial propertiesDenver, 4555 Airport Way USA 1 311 8 047 22 951 2008 29/04/2016 Sole ownership 19 585 826 23 038 146 1 354 266 – – 1 354 266 – – – – – – – – 307 – – 4 8 047 – – – – – – 4 8 047 100.00 Houston, 777 Post Oak Boulevard USA 1 626 16 423 4 047 1973 24/10/2012 Sole ownership 39 905 264 41 650 050 4 019 097 693 280 17.25 3 325 817 – – – – – – – – 588 – – 33 16 423 – – – – 5 – 38 16 423 100.00 Leeds, No 1, 26 Whitehall Road Great Britain 1 101 11 302 2 530 2008 13/05/2016 Sole ownership 43 549 748 43 618 710 3 011 904 432 975 14.38 2 578 929 – – – – – – – – 92 – – 9 11 302 – – – – – – 9 11 302 100.00 Munich, “Karlshöfe”, Karlstrasse 35 Germany 1 80 11 574 2 942 2005 31/12/2011 Sole ownership 54 624 314 69 423 817 3 003 767 33 208 1.11 2 970 559 – – – – – – – – 42 – – 15 10 605 – – – – 23 969 38 11 574 100.00 Perth*, 45 St Georges Terrace Australia 349 444 86 894 24.87 262 550Rotterdam, “Port City III”, Waalhaven Z.z. 11 Netherlands 1 201 6 918 745 2011 30/11/2011 Sole ownership on leased site 22 577 788 18 482 964 1 611 351 – – 1 611 351 – – – – – – – – 194 – – 7 6 918 – – – – – – 7 6 918 100.00 Santiago de Chile, “Ombú”, Avenida Andrés Bello 2115, Providencia Chile 1 121 3 848 1 069 2012 01/02/2013 Sole ownership 10 060 559 11 829 475 1 057 609 42 336 4.00 1 015 273 – – – – – – – – 103 3 478 9 3 256 – – 6 114 – – 18 3 848 100.00 Seattle, 101 Elliott Avenue West USA 1 242 9 625 4 292 1985 10/02/2016 Sole ownership 41 749 094 44 410 290 2 543 845 110 153 4.33 2 433 692 – – – – – – – – 226 – – 8 9 461 – – 4 118 4 46 16 9 625 100.00 Stuttgart, Marienstrassen 50 Germany 1 27 3 567 1 289 1999 01/11/2013 Sole ownership 10 815 478 12 261 869 691 851 – – 691 851 – – – – – – – – 25 – – 1 3 531 – – 1 36 – – 2 3 567 100.00 Stuttgart, Silberburgstrasse 175, 175a, 177 Germany 1 96 3 443 2 295 1969/1995 01/11/2013 Sole ownership 8 598 900 9 710 318 603 120 – – 603 120 – – – – – – – – 94 – – 1 2 861 – – 1 582 – – 2 3 443 100.00 Tokyo, “J4”, 5-4, 5-5, 5-7, 5-14, 5-15, 5-17, 5-18, 4-chome, Jingumae, Shibuya-ku Japan 1 10 2 724 1 080 2012 03/08/2012 Sole ownership 53 023 726 69 076 118 2 498 055 – – 2 498 055 – – – – – – – – 6 4 2 724 – – – – – – – – 4 2 724 100.00 Yokohama City, 89-6 Yamashitacho, Naka-ku Japan 1 84 4 691 1 243 1986 25/05/2018 Sole ownership 27 771 712 30 540 806 819 850 26 679 3.25 793 171 – – – – – – – – 61 3 532 12 3 914 – – 4 245 4 – 23 4 691 100.00 Total II 11 1 899 82 162 44 483 332 262 409 374 042 563 21 564 159 1 425 525 6.61 20 138 634 – – – – – – – – 1 738 10 3 734 99 76 318 – – 16 1 095 36 1 015 161 82 162 100.00

Mixed-use propertiesTotal III – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Development land (incl. properties for demolition) and schemes under constructionTotal IV – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Lots under leaseholdTotal V – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Total 12 1 908 82 859 44 957 333 028 687 375 447 944 21 616 134 1 425 525 6.59 20 190 609 – 4 4 – – 8 507 0.61 1 738 10 3 734 99 76 318 – – 17 1 285 36 1 015 162 82 352 99.39

Location, address CountryAcquisition costs

in national currencyMarket value

in national currencyProjected rental income 1

in national currencyRental losses 1

in national currency %

Gross income(net rental income) 1 in national currency

Yen (JPY)Tokyo, “J4”, 5-4, 5-5, 5-7, 5-14, 5-15, 5-17, 5-18, 4-chome, Jingumae, Shibuya-ku Japan 5 902 944 038 7 690 000 000 282 000 000 – – 282 000 000Yokohama City, 89-6 Yamashitacho, Naka-ku Japan 3 091 726 523 3 400 000 000 92 551 083 3 011 675 3.25 89 539 408Total JPY 8 994 670 561 11 090 000 000 374 551 083 3 011 675 0.80 371 539 408

Euro (EUR)Munich, “Karlshöfe”, Karlstrasse 35 Germany 48 468 349 61 600 000 2 610 509 28 860 1.11 2 581 649Rotterdam, “Port City III”, Waalhaven Z.z. 11 Netherlands 20 033 352 16 400 000 1 400 389 – – 1 400 389Stuttgart, Marienstrassen 50 Germany 9 596 612 10 880 000 601 272 – – 601 272Stuttgart, Reinsburgstrasse 17 Germany 679 921 1 247 000 45 170 – – 45 170Stuttgart, Silberburgstrasse 175, 175a, 177 Germany 7 629 835 8 616 000 524 160 – – 524 160Total EUR 86 408 069 98 743 000 5 181 500 28 860 0.56 5 152 640

Pound sterling (GBP)Leeds, No 1, 26 Whitehall Road Great Britain 34 685 075 34 740 000 2 317 533 333 156 14.38 1 984 377Total GBP 34 685 075 34 740 000 2 317 533 333 156 14.38 1 984 377

Australian dollar (AUD)Perth*, 45 St Georges Terrace Australia 480 489 119 480 24.87 361 009Total AUD 480 489 119 480 24.87 361 009

US dollar (USD)Denver, 4555 Airport Way USA 19 867 951 23 370 000 1 386 248 – – 1 386 248Houston, 777 Post Oak Boulevard USA 40 480 081 42 250 000 4 114 011 709 652 17.25 3 404 359Seattle, 101 Elliott Avenue West USA 42 350 470 45 050 000 2 603 921 112 754 4.33 2 491 167Total USD 102 698 502 110 670 000 8 104 180 822 406 10.15 7 281 774

Chilean pesos (CLP)Santiago de Chile, “Ombú”, Avenida Andrés Bello 2115, Providencia Chile 7 082 357 000 8 327 625 000 696 354 000 27 875 000 4.00 668 479 000Total CLP 7 082 357 000 8 327 625 000 696 354 000 27 875 000 4.00 668 479 000

General Information about the Properties / Financial Data on the Properties / Breakdown of Residential / Commercial PremisesOther investments in accordance with Art. 84 para. 2 lit. c CISO-FINMA



Total rental

premises

Total lettable







Retail outlets











Total 12 1 908 82 859 44 957 333 028 687 375 447 944 21 616 134 1 425 525 6.59 20 190 609 – 4 4 – – 8 507 0.61 1 738 10 3 734 99 76 318 – – 17 1 285 36 1 015 162 82 352 99.39













26Credit Suisse Real Estate Fund Global Audited Annual Report as at December 31, 2018



Total rental

premises

Total lettable







Retail outlets











Total 12 1 908 82 859 44 957 333 028 687 375 447 944 21 616 134 1 425 525 6.59 20 190 609 – 4 4 – – 8 507 0.61 1 738 10 3 734 99 76 318 – – 17 1 285 36 1 015 162 82 352 99.39













* Property sold during the period under review1 Non-annualized


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 consid-ered 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.

For detailed information on commissions, please see “Appendix” starting on page 14.

As an asset pool, the foreign fund is not subject to corporation tax or trade tax in Germany. However, it is partially liable for corporation tax on account of its domestic real estate income, income from domestic affiliated companies and other domestic income within the meaning of limited income tax liability, with the exception of gains from the sale of units to stock corporations. The tax rate is 15%.Income from investment funds (investment income) has been subject to tax since January 1, 2018. This includes distributions made by the Fund, advance flat fees and gains from the sale of invest-ment units at investor level.As an investment fund with – from a German perspective – investments held mainly abroad, Credit Suisse Real Estate Fund Global qualifies for partial exemption of 80% where applicable. As of 2018, investment income where applicable is therefore 80% tax-free at investor level.The element of investment income liable to tax is generally subject to tax at 25% (plus solidarity surcharge and church tax, if applicable).Tax can be waived if the investor is a tax resident in Germany and presents an application for exemp-tion from taxation, as long as the taxable earnings do not exceed EUR 801 in the case of individual tax returns or EUR 1,602 for a jointly assessed married couple. The same applies in the event of the presentation of a certificate for persons not likely to be as-sessed for income tax (“non-assessment certificate”). If the domestic investor keeps the units in a domestic safekeeping account, the institution holding the safekeeping account, as the paying agent, may waive the tax if before the relevant distribution date it is provided with a declaration for exemption from withholding tax which conforms to official principles or with a certificate of tax exemption issued by the German tax authorities for a period of a maximum of three years. In this case the total distribution is credited to the investor.

General NoteThese remarks on taxation reflect the current legal position. They apply to persons with unlimited income or corporation tax liability in Germany. This information pertains to the legal situation since January 1, 2018. Where fund units were acquired prior to January 1, 2018, additional specific con-ditions – details of which are not provided here – may arise in connection with investing in the Fund. However, it should be noted that changes in legislation, court rulings or decrees issued by the tax authorities can affect this position at any time.

Note 1:Sales restrictions USA

Note 2:Commissions

Note 3: Tax Treatment in Germany

Notesto the audited Annual Report as at December 31, 2018


Valuation Report

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 Global 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 soft-ware 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 proper-ties. Credit Suisse Funds AG is responsible for procuring the necessary documentation.

All properties held by Credit Suisse Real Estate Fund Global were valued for accounting purposes as at December 31 of the 2018 financial year.

As at the closing date, the portfolio comprised 12 properties (including new additions and properties valued for the first time). Since December 31, 2017, one purchase has been made and one property has been sold. None of the properties was under construction.

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.

The valuation experts confirm that the valuations were performed in accordance with the statutory requirements of the Collective Investment Schemes Act (CISA) and Collective Investment Schemes Ordinance (CISO), as well as with the Guidelines of the Swiss Funds & Asset Management Associa-tion (SFAMA), and furthermore accord with customary industry valuation standards.

Market value is reported on the basis of the “fair market value”, i.e. the sale price that can probably be realized under normal circumstances and current market conditions.

Property under construction is also stated at the fair market value.

In evaluating real estate, the valuation experts adhere to the internationally recognized International Valuation Standards (IVSC).

The valuations were carried out uniformly using the discounted cash flow (DCF) method. This ex-cludes any undeveloped land, which would be valued using the comparison and residual value meth-od. 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.

Commission

Valuation Standards

Valuation Method


The valuation includes a detailed analysis and assessment of the individual income and cost items. Operating and maintenance costs are determined on the basis of empirical values, approved budgets and benchmarks. Repair costs are based on 10-year investment plans. In the case of fixed-term rental agreements, the potential, sustainable rental income deemed achievable from a current per-spective is used for the period after the contract expires. Credit risks posed by individual tenants are not explicitly factored into the valuation.

The valuation experts based their assessment on recent years’ 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.

As at December 31, 2018, the market value of the total portfolio is estimated by the experts at CHF 375.45 million (conversion from local currency into Swiss francs as at closing rate on Decem-ber 31, 2018).

Compared with December 31, 2017 (CHF 380.87 million), the value of the total portfolio has de-creased by CHF 5.42 million or –1.42% (including exchange rate movements). Planned refurbishment work for the next 10 years was reviewed. The scheduling and scale of invest-ment 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 Decem-ber 31, 2018, was 4.54%.

The accredited valuation experts confirm their independence and guarantee the confidential treatment of information connected with the valuation mandate.

Wüest Partner AGZurich, December 31, 2018

Pascal Marazzi-de Lima Marius Malek

Valuation Result

Independence and Confiden-tiality


Report of the Audit Company

Short form report of the audit company for collective investment schemes to the Board of Directors of the Fund Management Company on the financial statements of

Credit Suisse Real Estate Fund Global

Report of the audit company for collective investment schemes on the financial statements

As audit company for collective investment schemes, we have audited the financial statements of the investment fund Credit Suisse Real Estate Fund Global 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)1 or the year ended 31 December 2018.

Responsibility of the Fund Management Company’s Board of DirectorsThe 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 inter-nal 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 SchemesOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in ac-cordance 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 state-ments. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material mis-statement 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 effective-ness 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.

OpinionIn our opinion, the financial statements for the year ended 31 December 2018 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 as well as on independence according to the Auditor Oversight Act and that there are no circumstances incompatible with our independence.

KPMG AG

Jakub Pesek Astrid KellerLicensed Audit Expert Licensed Audit ExpertAuditor in Charge

Zurich, April 5, 2019

1 Information on the investor base, the special features, the macroeconomic climate, the commercial property and investor market, the outlook, the real estate portfolio, the unit price performance, the structural breakdown by actual net rental income, the geographical distribution of the fund’s properties and the regional breakdown by market value do not form part of the additional information within the meaning of Swiss Auditing Standards (SAS 720).

Credit Suisse Funds AGUetlibergstrasse 231 / SYSU 13CH-8045 Zurich

Phone 044 332 58 08Fax 044 337 20 82credit-suisse.com/realestatefunds

© 2019, Credit Suisse Funds AG

0755

02E

04.1

9 P

ublis

hed

in G

erm

an, F

renc

h an

d En

glis

h

Documents

Audited Annual Report Credit Suisse Real Estate Fund Global · 4 Credit Suisse Real Estate Fund Global Audited Annual Report as at December 31, 2018 Management and Statutory Bodies