Credit Suisse Real Estate Fund International

Credit Suisse Funds AG

Credit Suisse Real Estate Fund InternationalInvestment fund under Swiss law of the “Real estate funds” category for qualified investors

Audited Annual Report as at December 31, 2014

Credit Suisse Real Estate Fund International • Audited Annual Report as at December 31, 2014

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Contents

Information in Brief 3Management and Statutory Bodies 4 Information on Third Parties 5Report on Activities 6Geographical Distribution of the Fund’s Properties / Regional Breakdown by Market Value 11Development of Net Asset Value and Distribution 12Structural Breakdown by Actual Net Rental Income / Breakdown of Property/Real Estate 13Statement of Assets 14Statement of Income 15Schedule of Properties in Swiss Francs / General Information about the Properties / Financial Data on the Properties / Breakdown of Residential / Commercial Premises 16Schedule of Properties (Local Currencies) / Financial Data on the Properties 20Land 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 22Mortgages / Loans 23Transactions between Funds 24Capital Gains/Losses on Currencies 25Further Information on Off-Balance-Sheet Business 27Notes to the Audited Annual Report 28Valuation Report 29Report of the Audit Company 31


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Information in Brief

Key Data 31/12/2014 31/12/2013 31/12/2012Swiss security no. 1 968 511Fund units issued – – – Fund units redeemed – – – Number of units in circulation 2 112 896 2 112 896 2 112 896Net asset value per unit (incl. distribution) CHF 1 034.42 1 016.22 1 011.21Issue price per unit CHF 1 105.00 1 085.00 1 080.00Redemption price per unit CHF 960.00 945.00 940.00Closing price (bid price) CHF 1 075.00 1 005.00 975.00Highest price (in review period) CHF 1 075.00 1 070.00 1 005.00Lowest price (in review period) CHF 955.00 955.00 925.00Market capitalization CHF 2 271.4 mio. 2 123.5 mio. 2 060.1 mio.Premium / discount 3.92% –1.10% –3.58%

Statement of Assets 31/12/2014 31/12/2013 31/12/2012Market value of properties CHF 2 431.7 mio. 2 190.4 mio. 2 071.5 mio.Book value of properties CHF 2 345.4 mio. 2 193.6 mio. 2 098.3 mio.Total assets CHF 2 678.6 mio. 2 366.7 mio. 2 352.3 mio.Third-party borrowings: 1)

– in % of investment costs 14.25% 4.01% 5.14%– in % of aggregate market value 13.74% 4.02% 5.20%Debt as a percentage of total assets 18.27% 9.13% 9.03%Net asset value attributable to the unitholders of the Fund CHF 2 185.6 mio. 2 147.2 mio. 2 136.6 mio.

Return and Performance Data 31/12/2014 31/12/2013 31/12/2012Distribution CHF 41.00 40.00 39.00Distribution yield 3.81% 3.98% 4.00%Distribution ratio 92.87% 91.18% 92.86%Return on equity (ROE) attributable to the unitholders of the Fund 6.77% 4.43% 4.25%

Return on invested capital (ROIC) 6.27% 4.23% 4.09%Return on investment 5.92% 4.49% 3.69%Performance 11.35% 7.04% 0.75%EBIT margin 74.03% 72.63% 76.50%Total expense ratio GAV (TERREF GAV) 2) 0.85% 0.95% 0.91%Total expense ratio NAV (TERREF NAV) 2) 0.98% 1.04% 0.99%Price/earnings ratio (P/E) 15.36 22.33 22.68Price/cash flow ratio 34.35 14.31 863.52

Statement of Income 31/12/2014 31/12/2013 31/12/2012Net income total CHF 86.8 mio. 85.2 mio. 81.9 mio.Realized capital gains/losses CHF –27.2 mio. 55.7 mio. –86.4 mio.Rental income CHF 139.9 mio. 134.1 mio. 124.0 mio.Rental losses 5.92% 6.04% 6.44%Maintenance expense CHF 15.9 mio. 17.0 mio. 14.0 mio.1) Permitted weighting: 50% of aggregate market value (Regulations § 14, para. 2)2) The operating expenses relevant to the calculation of the Fund’s total expense ratio GAV are levied on the total fund assets. The Fund’s total expense ratio NAV shows these expenses in

relation to net fund assets (total fund assets less borrowing). The net fund assets attributable to the unitholders as at December 31, 2014 were 18.40% lower than the total fund assets.


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Management and Statutory Bodies

Management CompanyCredit Suisse Funds AG, Zurich

Board of Directors– Dr. Thomas Schmuckli, Chairman– Luca Diener, Vice-Chairman, Managing Director, Credit Suisse AG, Zurich– Markus Graf, Member, CEO, Swiss Prime Site AG, Olten– Lars Kalbreier, Member, Managing Director, Credit Suisse AG, Zurich– Maurizio Pedrini, Member, Managing Director, Credit Suisse AG, Zurich– Jürg Roth, Member, Managing Director, Credit Suisse AG, Zurich– Christian Schärer, Member, Managing Director, Credit Suisse AG, Zurich

Executive Board– Thomas Schärer, Chief Executive Officer– Patrick Tschumper (since December 1, 2014), Deputy CEO, previously Member, COO– Michael Bünzli, Member, Legal Counsel– Thomas Federer, Member, Performance & Risk Management– Tim Gutzmer (since December 1, 2014), Member, Fund Services– Hans Christoph Nickl (since December 1, 2014), Member, COO– Thomas Vonaesch, Member, Real Estate Fund Management– Gabriele Wyss, Member, Compliance

– Petra Reinhard Keller (until November 30, 2014), Deputy CEO– Dr. Daniel Siepmann (until November 30, 2014), Member, Fund Operations

Custodian BankCredit Suisse AG, Zurich

Audit CompanyKPMG AG, Zurich

Management and

Statutory Bodies


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Information on Third Parties

Accredited Valuation Experts– Andreas Ammann, architect (ETH/SIA), Wüest & Partner AG, Zurich– Marco Feusi, architect (HTL degree), Wüest & Partner AG, Zurich– Christoph Zaborowski (until December 31, 2014), economist (Dr. oec. publ.), Wüest & Partner AG,

Zurich

Delegation of Further ResponsibilitiesThe fund management company has mandated Credit Suisse AG, Zurich, as investment advisor, to assist it in investing the fund’s assets.The fund management company has delegated certain fund administration duties to the following group companies of Credit Suisse Group AG: – Credit Suisse AG, Switzerland: Duties include providing legal and tax advice, managing the fund manage-

ment company’s finances, fund and real estate accounting, real estate portfolio management and admin-istration, facility management, human resources, the Management Information System (MIS), project and user support for funds accounting, risk management, and monitoring of the investment guidelines.

– Credit Suisse Fund Services (Luxembourg) S.A., Luxembourg: Duties in relation to fund accounting.– Credit Suisse (Poland) Sp.z.o.o., Poland: Duties in relation to product master data, price publications,

factsheet production, KIID production, report preparation, and other support tasks in relation to risk man-agement.

Precise details of how the remit is to be fulfilled are laid down in an agreement between the fund manage-ment company and the aforementioned group companies. Further specific tasks may be delegated to the aforementioned group companies.

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

Australia Jones Lang LaSalle (VIC) Pty Ltd., Jones Lang LaSalle (QLD) Pty Ltd., Knight Frank Australia Pty Ltd., Multiplex Property Services Pty Ltd.

Chile CBRE Chile SAGermany BNP Paribas Real Estate Property Management GmbH, CBRE GmbHUnited Kingdom BNP Paribas Real Estate Advisory & Property Management UK Ltd.Ireland Jones Lang LaSalle Ltd.Japan Savills Asset Advisory Co., Ltd.Canada Canderel Management Inc., Colliers Macaulay Nicolls Inc., Swissreal Real Estate Services Ltd.New Zealand AMP Capital Investors (New Zealand) Ltd.Netherlands Jones Lang LaSalle B.V.

USA CBRE Inc., Cushman & Wakefield of Massachusetts Inc., Cushman & Wakefield of California Inc., Tishman Speyer Properties, L.P.

For certain accounting, tax advice and administration tasks undertaken by group companies the following service providers are involved:Alter Domus, Avendaño Merino, Citco, Colliers, Cushman & Wakefield of Pennsylvania Inc., Ernst & Young, Gowlings, Morrison & Foerster, PricewaterhouseCoopers, Savills Asset Advisory Co., Ltd., TMF Group und TMI Associates.

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

Information on

Third Parties


6

Report on Activities from January 1 to December 31, 2014

Credit Suisse Real Estate Fund International was launched in February 2005 as the first real estate fund under Swiss law to undertake direct investment in foreign real estate. The Fund grants qualified investors access to an internationally diversified portfolio of high-quality commercial properties. The custodian bank performs off-floor trading for the Fund.

In 2014, global economic growth came to 3.0% and as such showed similar momentum to the previous years. It was once again the Asian countries (excluding Japan) that turned in the strongest regional perfor-mance. Real growth in this region came to 6.0%. Despite the slowdown in momentum, Chinese GDP (up by 7.4%) still exhibited the highest growth rate. By contrast, Japan’s economy expanded by just 0.2% in 2014. However, the Bank of Japan’s extraordinary measures, and in particular the weakness of the Japanese yen, were able to lift the rate of inflation in Japan to more than 2%. Economic growth in Australia and New Zea-land remained robust, reaching 2.8% and 3.6% respectively.

In 2014, most European countries saw some improvement in their economic situation. In the UK, economic growth accelerated to 2.6%, driven by rising consumer spending and brisk corporate investment activity. In the eurozone, real economic output grew by 0.8%, having decreased by 0.4% in 2013. After some very difficult years, Ireland and Spain made the biggest progress in 2014, with increases in economic output of 4.8% and 1.6% respectively. In the Netherlands, real GDP grew by 0.7%, after contracting by the same percentage the previous year. The German economy continued to post respectable growth figures (+1.3%) and remained the eurozone’s anchor of stability. Italy and France were sources of concern and lagged behind the other European countries owing to structural problems and an unwillingness to implement reforms. An-other risk factor was the decline in the eurozone’s inflation rate, which even dipped into the negative range in December 2014. This development prompted the European Central Bank (ECB) to adopt an even more expansionary monetary policy.

The big North American economies of Canada and the USA each grew by 2.3% in 2014. The USA saw a further significant fall in unemployment, in response to which the Fed ended its program of government bond purchases and let it be known that monetary policy would be tightened in 2015.

Solid fundamentals in the office and retail markets coupled with the persistently low level of interest rates in most significant countries resulted in solid demand for real estate investments. The investment volume on the real estate markets rose by around 9% year-on-year, reaching a total transaction value of USD 770 billion (source: Real Capital Analytics). Capital values continued to recover and capitalization rates fell in markets worldwide. In some markets, they are at their lowest levels since the financial crisis; however, risk premi-ums on real estate investments are still high compared to government bond yields. Net absorption likewise remained robust amid continued muted construction and development activity. Globally, the vacancy rate for office space fell from 13.2% to 12.9% (source: JLL), which also had an impact on most regions in the form of rising rents.

Core real estate continued to enjoy high demand. These properties are characterized by good locations, new or renovated buildings, and long-term rental contracts with tenants who have high credit ratings. In the cur-rent environment of low interest rates, they nevertheless continue to offer a yield premium over many fixed-interest securities. The economic trend in Europe and the USA has led to a further increase in appetite for less central locations or “value-added” properties.

Among the liquid transparent markets, the USA, the UK and Japan experienced the strongest uptrend in commercial property prices. There was also healthy demand for property in Ireland and Spain. In Asia/Ocea-nia, investor demand for real estate increased in Japan and Australia, whereas developments in China are being viewed with caution.

Macroeconomic climateThe outlook for the global economy remains cautiously optimistic and global GDP is expected to grow by a total of 3.4% in 2015. Growth rates of 3.5% and 2.3% are expected for the US and Canada respectively, and 3.6% for Chile. 2015 is expected to see the Fed make a start on the normalization of key interest rates. However, the trend of inflation suggests that yields on longer-dated bonds are likely to remain low.

Economic growth should strengthen slightly to 1.0% in the euro countries, and should accelerate to 3.0% in the UK. With forecast economic growth of 1.5%, Germany should continue to perform solidly, while growth in the European periphery looks set to recover. The ECB’s announcement of plans for monthly purchases of government bonds and other securities totaling EUR 60 billion should keep European interest rates very low.

Investor base,

special features

Macroeconomic

climate

Commercial

property and

investor market

Outlook


7

The economists at Credit Suisse AG predict 6.0% growth in Asia excluding Japan, 2.6% in Australia and 2.8% in New Zealand. Japan’s economic growth is put at 0.9%.

Commercial property and investor marketThe expected economic recovery in 2015 will likely be accompanied by solid growth in employment and robust demand for space. The supply of new space coming onto the market in 2015 is still sluggish in the majority of cases. We therefore expect vacancy rates to continue declining in most markets. Rents for cen-trally located space are likely to increase on average in all three regions, although the rise will probably be more pronounced in the USA and Asia/Pacific than in Europe.

Real estate investments should remain in high demand because of a lack of other investment opportunities. As real estate investors in a number of regions now have easier access to capital, the use of borrowed capital is likely to increase. This suggests that transaction volumes should remain high.

In Europe, we see (geo)political risks as posing the biggest threat to the performance of the real estate markets. In Asia, there is slightly greater uncertainty owing to the state of the Chinese residential property market. In North America, where the commercial real estate markets are already at a more advanced stage in the cycle than in Europe, the interest risks are likely to be slightly higher. However, we expect the rise in interest rates to be manageable for the real estate markets.

Organization, structure and diversificationThe portfolio continued to be expanded and diversified in the 2014 reporting year: a building project in Chile was completed, while in Canada construction work started on The Exchange project. One property in Ger-many was sold.

“Apoquindo 5400” in Santiago, Chile: In May 2014, the pre-emption rights acquired in February 2012 were exercised. The property in question is a new building at Apoquindo 5400 in the city’s Las Condes quarter. This high-end property with seven basement floors, a ground floor and 21 above-ground floors was con-structed to the “LEED” Gold Standard. The building has some 20 800 m2 of rentable office space, around 700 m2 of retail floorspace, and 653 parking spaces.

The Exchange in Vancouver (CA): On August 1, 2011, the Fund became the principal owner (80% stake) of the Old Stock Exchange office building in Vancouver (Canada). Constructed in 1929 in the art deco style, this building was once home to Canada’s third-largest stock exchange. It served as an office building with some 50 tenants. In cooperation with a local partner, Credit Suisse Real Estate Fund International planned the construction of an extension and renamed the property “The Exchange”. The City of Vancouver granted planning permission for The Exchange at the end of 2013, and construction work began in the first quarter of 2014. The property is expected to be completed in 2017.

Leitzstrasse 54–56 in Stuttgart (DE): This German property was sold in the first half of 2014.

At the end of 2014, the regional breakdown of the properties was as follows: North/Central and South America: 46.15% (41.40%), Europe: 33.60% (37.15%), and Asia-Pacific: 20.25% (21.45%). Office space accounted for 79.25% (78.05%) of net rental income, while retail property accounted for 10.95% (12.00%). The remaining 9.80% (9.95%) consisted mainly of parking facilities, warehouses, restaurants & cinemas, residential and other commercial properties. In selecting investments, care is taken to ensure that tenants have good credit ratings and that sector diversification is balanced.

Valuation of properties2014 saw the portfolio’s value appreciate. Disregarding currency effects, the value of the portfolio was on average about 3.80% higher compared with 12 months previously. The cash flows from the properties de-veloped very positively. Rental income was increased by 4.37% in 2014 to CHF 139.91 million. The distribu-tion increases by CHF 1.00 to CHF 41.00 (40.00) per fund unit, giving a dividend yield of 3.81% (3.98%).

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

A minority interest in a foreign real estate company has featured since the end of 2011. A 20% stake is held by a minority shareholder.

Subsidiaries are consolidated if the Fund controls more than 50% of voting rights. Minority interests in the net asset value, the net income, the realized result and the overall result are reported separately.

The investor-related key figures are calculated on the basis of the assets and result attributable to unithold-ers.

Real estate

portfolio

Notes to the annual

financial statements

Minority interests


8

Weighted to the portfolio allocation, the exchange rates applied to the statement of assets as of Decem-ber 31, 2013, are approximately 4% higher than on December 31, 2014, while the average exchange rates applied to the income statement as of December 31, 2013 are roughly 3% lower than on December 31, 2014, again weighted to the portfolio allocation.

To minimize currency fluctuation risks, the currencies in the statement of assets were mostly hedged by means of foreign exchange forward transactions. The net result is a currency loss of CHF 9.13 million (pre-vious year: loss of 31.89 million). The exchange rate fluctuations in the income statement are not hedged.

The Swiss National Bank’s decision to remove the EUR exchange rate floor on January 15, 2015, will affect the CHF value of the unhedged foreign currency exposure (approx. CHF 287 million as of December 31, 2014). This will have a greater or lesser impact, depending on how the CHF performs against the Fund’s investment currencies between now and December 31, 2015. However, thanks to the Fund’s high hedging ratio, the impact on the net asset value will be limited.

Another consequence of the SNB’s decision could be persistently lower exchange rates for the income state-ment, which could in turn affect overall performance in CHF.

In the 2014 reporting year, Credit Suisse Real Estate Fund International purchased a commercial property in Chile (see page 22) and sold a property in Germany. Furthermore, preemptive rights to purchase the remain-der (50%) of a property in Wellington (NZ) already owned by the Fund were exercised. Two projects were under construction at the closing date of the financial statements.

On behalf of the fund management company and in compliance with the Collective Investment Schemes Act (CISA), the properties were individually valued by independent, FINMA-accredited valuation experts as at December 31, 2014. This also involved consulting support staff abroad. These estimates were made on the basis of International Valuation Standards. The portfolio properties themselves are valued using the DCF method. The resulting total market value comes to CHF 2 431.72 million (2 190.36 million). The weighted discounted rate is 5.45% (5.48%) of net income after deduction of long-term renovations.

Liquid assets amounting to CHF 247.76 million (87.36 million) were invested in bank deposits, as well as short-term fiduciary and other investments. The business assets were invested in the following currencies: euro, sterling, yen, US dollar, Australian dollar, New Zealand dollar, Canadian dollar, and Chilean peso. To minimize currency fluctuation risks, the currencies were mostly hedged by means of foreign exchange for-ward transactions. At the end of the year, the result is a net liability of CHF 25.00 million from unrealized losses on outstanding forward foreign exchange transactions.

Borrowed funds total CHF 334.16 million (87.96 million) or 13.74% (4.02%) of the market value of the properties. The debt financing operations in question were mainly contracted for the property purchases in Japan and Chile for tax reasons and in order to achieve a positive leverage effect. Furthermore, a portfo-lio in Germany and the property in Brisbane were mortgaged. The estimated liquidation taxes amount to CHF 103.42 million (71.97 million).

The net asset value attributable to fund unitholders after deduction of the estimated liquidation taxes stands at CHF 2 185 622 160 (2 147 173 541). The return on investment per unit amounts to 5.92% (4.49%) on a net asset value per unit of CHF 1 034.42 (976.22 ex coupon).

Total income amounts to CHF 141.43 million (137.32 million), an increase of 3.00% compared with the previous year. Rental income rose by 4.37% to CHF 139.91 million (134.06 million). Other income stands at CHF 0.71 million (0.11 million) and income from deposits on postal and bank accounts amounts to CHF 0.61 Mio. (0.34 million). Income from other investments amounts to CHF 0.21 million (0.11 million).

The percentage of rental income forfeited due to vacancies and collection losses was reduced once again, and stands at 5.92% (6.04%) of target rental income.

Total expenses amount to CHF 54.66 million (52.10 million). This includes ground rent amounting to CHF 1.09 million (0.98 million). Borrowing costs total CHF 7.15 million (2.96 million). The average weight-ed interest rate comes in at 3.47% (2.81%), with an average remaining term to maturity of 2.28 years (2.07 years). Maintenance and repairs accounted for CHF 15.87 million (16.99 million), which amounts to around 11.35% (12.68%) of rental income. For future extraordinary investments such as tenant fit-outs, CHF 6.50 million (CHF 7.50 million) was allocated to provisions for future repairs. Taxes on earnings and capital amount to CHF 3.15 million (1.70 million). Appraisal and auditing expenses come to CHF 1.50 mil-lion (1.65 million).

The Fund was charged CHF 14.20 million (14.11 million) for management activities. The management commission of 0.60% is levied on the total fund assets at the beginning of each financial year. The remu-neration paid to the property management companies in accordance with the Fund regulations stands at

Foreign exchange

differences

Statement of

assets

Statement of

income


9

CHF 1.34 million (1.09 million). The other expenses amount to CHF 3.20 million (4.43 million) and consist primarily of property-related operating costs and tax, legal, bookkeeping and other consultancy costs. The Fund’s operating expense ratio GAV (TERREF GAV), which is an important indicator of the burden of operating expenses, is 0.85% (0.95%). This key figure enables investors to draw a direct comparison with other real estate funds.

The Fund’s net income attributable to fund unitholders amounts to CHF 86.78 million (85.19 million) or CHF 41.07 (40.32) per unit. The operating profit margin (EBIT margin) comes to 74.03% (72.63%). The Fund’s currencies are mostly hedged. Depending on the performance of the currencies and interest rate spreads, hedging resulted in realized and unrealized capital gains or losses on forex forward transactions. The capital losses realized on the currency hedging amount to CHF 29.05 million (gain of 53.81 million). The unrealized capital gains arising from changes in exchange rates amount to CHF 19.92 million (loss of 85.69 million). This also includes unrealized currency conversion differences arising from the consolidation of the financial statements of the individual property-holding companies in foreign currency. The net result is a currency loss of CHF 9.13 million (loss of 31.89 million). One property was sold in 2014 while three holding companies were merged and one sold. As result, the realized capital gain on investments amounted to CHF 1.90 million (gain of CHF 1.88 million). The unrealized capital gains on investments amount to CHF 68.38 million (gain of CHF 39.93 million). Including the cost of currency hedging and the balance of realized and unrealized capital changes on investments, aggregate net income comes to CHF 147.92 million (95.11 million) or CHF 70.01 (45.01) per unit.

For the 2014 financial year, CHF 86.63 million (84.52 million) or CHF 41.00 (40.00) per unit will be paid out. The no. 10 coupons are payable free of expenses at Credit Suisse AG, Zurich and its branches in Swit-zerland from March 31, 2015 onward (ex date March 26, 2015). Investors can claim back the withholding tax deducted.

In the 2014 financial year, the net asset value per unit rose from CHF 976.22 (ex coupon) to CHF 1 034.42.The investment return therefore comes to 5.92% (4.49%).

Financial year 2014 2013Coupon no. 10 9Gross CHF 41.00 CHF 40.00Less 35% Swiss federal withholding tax CHF 14.35 CHF 14.00Total distribution CHF 26.65 CHF 26.00

No issue took place.

The units of Credit Suisse Real Estate Fund International are traded over-the-counter. Trading is provided by Credit Suisse AG. The closing price (bid price) stood at CHF 1 075.00 at the end of the financial year, cor-responding to an increase of CHF 70.00 or 6.97%.

Performance amounts to 11.35%, which is 3.64 percentage points lower than the benchmark. The bench-mark used is the SXI Real Estate Funds (TR), which showed a performance of 14.99% over the same period (January 1 to December 31, 2014). At the end of the reporting period, the premium resulting from the dif-ference between the closing price and the net asset value came to 3.92% (discount of 1.10%).

Distribution, yield

Issuing of units

Unit price

performance

in CHF

(1/1/–31/12/2014)

1 150

1 125

1 100

1 075

1 050

1 025

1 000

975

950

925 Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. 2014 2014 2014 2014 2014 2014 2014 2014 2014 2014 2014 2014

SXI Real Estate Funds (TR) Credit Suisse Real Estate Fund International Swiss Market Index (SMI)


10

As of December 31, 2014 no units had been submitted for redemption.

Status as at January 1, 2014 2 112 896 unitsRedemptions 0 unitsIssues 0 unitsStatus as at December 31, 2014 2 112 896 units

Redemptions

Anteile im Umlauf


11

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

Regional Break-

down by

Market Value

33.60% European region

20.25% Asia/Pacific region

46.15% North/Central/South

American region

Vancouver

CHF 10 million

Toronto

Montreal

Tokyo

Canberra

SydneyMelbourne

BostonWashington D.C.

Santiago de ChileBrisbane

Fukuoka

Chicago

Bristol

Leeds

London

Cardiff Den Haag

Arnheim

Amsterdam

Rotterdam

BerlinHannover

Mainz

Osnabrück

Stuttgart

Bristol

Leeds

London

Cardiff Den Haag

Arnheim

Amsterdam

Rotterdam

BerlinHannover

Mainz

Osnabrück

StuttgartBristol

Leeds

London

Cardiff The HagueArnheim

Amsterdam

Rotterdam

BerlinHanover

Mayence

Osnabrück

Munich

Wellington

Dublin

San FranciscoHouston


12

Development of

Net Asset Value

and Distribution

Development of Net Asset Value and Distribution

Year as at31/12/

Units incirculation

Asset valueper unit

ex-coupon

Distribution fromord. income

CHF

CapitalgainsCHF

Totaldistribution

CHF

Net assetsat market values

in CHF mio.

2005* 585 000 1 000.93 22.00 0.00 22.00 598.412006 1 170 000 1 018.78 30.00 0.00 30.00 1 227.082007 1 560 000 1 107.60 33.00 0.00 33.00 1 779.342008 1 820 000 1 002.49 35.00 0.00 35.00 1 888.222009 1 811 054 956.55 35.00 0.00 35.00 1 795.752010 1 811 054 966.74 37.00 0.00 37.00 1 817.832011 2 112 896 974.88 37.00 0.00 37.00 2 138.012012 2 112 896 972.21 39.00 0.00 39.00 2 136.582013 2 112 896 976.22 40.00 0.00 40.00 2 147.172014 2 112 896 993.42 41.00 0.00 41.00 2 185.62

* The fund was launched as of February 1, 2005 (issue price CHF 1 000.00). The first financial year thus comprised only 11 months (1/2/2005–31/12/2005)


13

Structural Breakdown by Actual Net Rental Income

1.00% Storage/warehousing

0.60% Other

0.25% Dwelling units

0.90% Cinemas, hotels, restaurants

10.95% Retail

79.25% Office

7.05% Parking

Breakdown of

propertyAcquisition costs Market value Insurance value

CHF CHF CHFResidential buildings – – –Commercial properties 2 222 649 084 2 336 091 775 1 783 181 006 Mixed-use properties – – –

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

122 795 377 95 630 812 119 625 675

Total 2 345 444 461 2 431 722 587 1 902 806 681

Acquisition costs Market value

Residential buildings 0.00% 0.00%Commercial properties 94.75% 96.05%Mixed-use properties 0.00% 0.00%

Development land (incl. propertiesfor demolition) and schemes underconstruction

5.25% 3.95%

Total 100.00% 100.00%

Breakdown of Property/Real Estate as at December 31, 2014

Structural Break-

down by

Market value

3.95% Development land (incl. properties for demolition) and schemes under construction

96.05% Commercial properties


14

Statement of Assets as at December 31, 2014 31/12/2014 31/12/2013

Verkehrswert Verkehrswert CHF CHFAssetsCash holdings, balances on postal and bank accounts at sight including fiduciary investments with third-party banks 154 759 325 78 262 058Cash at time, including fiduciary investments with third-party banks 55 000 613 9 102 509Other investments 38 000 000 0

Sites– Commercial properties 2 336 091 775 2 139 130 859 of which under leasehold 199 515 307 208 726 683 of which under condominium rights 75 599 963 0– Development land (incl. properties for demolition) and schemes under construction 95 630 812 51 232 810Total sites 2 431 722 587 2 190 363 669

Derivative financial instruments –24 996 838 35 180 399Other assets 24 084 748 53 762 714Total assets 2 678 570 435 2 366 671 349

LiabilitiesMortgages and other mortgage-backed liabilities 321 427 425 87 962 637Receivables and loans 12 730 379 0Other liabilities 51 887 387 56 164 794Total liabilities 386 045 191 144 127 431

Net assets before estimated liquidation taxes 2 292 525 244 2 222 543 918Estimated liquidation taxes 103 423 412 71 970 208Net assets 2 189 101 832 2 150 573 710– of which attributable to minority interests 3 479 672 3 400 169– of which attributable to the unitholders of the Fund 2 185 622 160 2 147 173 541

Number of units in circulation 2 112 896 2 112 896Net asset value per unit 1 034.42 1 016.22 Less distribution for financial year 2014 (coupon no. 10) 41.00 40.00Asset value per unit after distribution 993.42 976.22

Information on balance sheet and units due to be redeemedValue of depreciation account for sites 0 0Value of reserves account for future repairs 43 500 000 37 000 000Balance on account of earnings retained for reinvestment 0 0Number of units due be redeemed at end of next financial year none none

Total insurance value of assets 1 902 806 681 1 753 188 224

Change in the net asset value of the unitholders of the FundNet assets at beginning of financial year 2 147 173 541 2 136 582 814Distribution –84 515 840 –82 402 944Balance from sales and purchases of units, excl. equalization on the issue of units and payouts of current income on the redemption of units 0 0Total income 147 917 663 95 107 139Balance of deposit/withdrawal of reserves for repairs 6 500 000 7 500 000Change in liquidation taxes –31 453 204 –9 613 468Net assets at end of financial year 2 185 622 160 2 147 173 541

Details from previous yearsNet assets Net asset value per unit

2014 2 185 622 160 1 034.42 2013 2 147 173 541 1 016.22 2012 2 136 582 814 1 011.21

Conversion rate as at 31/12/2014 as at 31/12/2013CAD/CHF 0.857826 0.836959EUR/CHF 1.202379 1.225478GBP/CHF 1.549338 1.472957100 JPY/CHF 0.828767 0.846148AUD/CHF 0.813092 0.795504USD/CHF 0.993650 0.889350NZD/CHF 0.776637 0.731980100 CLP/CHF 0.163722 0.169197100 CLP/USD 0.164768 0.190248UF/CHF 40.319981 39.439076


15

Statement of Income 2014 (ending December 31, 2014) 1/1/2014 1/1/2014 1/1/2013 1/1/2013 to 31/12/2014 to 31/12/2014 to 31/12/2013 to 31/12/2013

CHF CHF CHF CHFIncomeIncome from postal and bank accounts 608 687 335 967Rental income 139 909 831 134 057 275Capitalized building loan rates 0 2 697 318Income from other investments 210 019 114 189Other income 706 373 110 370Current income paid in by new subscribers 0 0Total income 141 434 910 137 315 119

ExpensesMortgage interest and interest on mortgage-backed liabilities 7 096 886 2 750 821Other interest due 51 069 209 967Ground rent 1 085 843 979 975Repairs and maintenance 15 874 147 16 991 984Taxes and charges– Taxes on capital and profits 3 149 116 1 695 099Valuation and auditing expenses 1 497 938 1 646 828Remuneration (as per fund regulations) for – the fund management company 14 200 028 14 113 867– the custodian bank 644 152 640 975– the property management companies 1 338 067 1 094 713Costs for annual report 21 888 45 241Fees payable to supervisory bodies 750 1 500Other expenses 3 201 995 4 432 830Reserves for future repairs – Allocation 6 500 000 7 500 000– Withdrawal 0 0Net current income paid out on redemption of units 0 0 Total expenses 54 661 879 54 661 879 52 103 800 52 103 800

Net income 86 773 031 85 211 319– of which attributable to minority interests –5 096 23 573– of which attributable to the unitholders of the Fund 86 778 127 85 187 746

Realized capital gains and losses from investments 1 896 452 1 877 067Realized capital gains and losses from currency –29 052 281 53 805 357Realized income 59 617 202 140 893 743– of which attributable to minority interests –5 096 23 573– of which attributable to the unitholders of the Fund 59 622 298 140 870 170

Unrealized capital gains and losses from investments 68 377 557 39 929 761Unrealized capital gains and losses from currency 19 917 808 –85 692 792Total income 147 912 567 95 130 712– of which attributable to minority interests –5 096 23 573– of which attributable to the unitholders of the Fund 147 917 663 95 107 139

Appropriation of the net income of the unitholders of the Fund Net income of financial year 86 778 127 85 187 746Carried forward from preceding year 9 937 650 9 265 744Net income available for distribution 96 715 777 94 453 490Net income earmarked for distribution to investors –86 628 736 –84 515 840Carried forward to following year 10 087 041 9 937 650

Average conversion rates for 1/1/–31/12/2014 for 1/1/–31/12/2013CAD/CHF 0.829761 0.894763EUR/CHF 1.212460 1.229554GBP/CHF 1.511893 1.448881100 JPY/CHF 0.863389 0.944716AUD/CHF 0.825102 0.889268USD/CHF 0.919271 0.925296NZD/CHF 0.757962 0.755268100 CLP/CHF 0.160115 0.186154100 CLP/USD 0.174176 0.201183UF/CHF 38.444259 42.809792


16

Dwelling units Commercial premises Location, address

Number

Country of buildings

Totalrental

premises

Totallettable

area (m2)

Site area

(m2)

Year of

construction

Acquisition

date

Ownership type

Acquisition

costs

Market value

Projected

rental income 1)

Rental losses 1)

in CHF as percentage

Gross income(net rentalincome) 1)

Rooms

1–1.5 2–2.5 3–3.5 4–4.5 5+

Total dwelling units

No. m2 %

Parking

Retail outlets

No. m2

Offices, practices etc.

No. m2

Cinemas/hotels/restaurants

No. m2

Storerooms

No. m2

Other commercial premises

No. m2

Total commercial premises excl. parking

No. m2 %Residential buildingsTotal I – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Commercial properties Amsterdam, “Spectrum”, Gatwickstraat 9–39 Netherlands 1 119 7 685 4 265 1991 20/03/2008 Sole ownership on leased site 33 938 841 12 877 479 1 864 611 – – 1 864 611 – – – – – – – – 109 – – 9 7 219 – – 1 466 – – 10 7 685 100.00 Amsterdam, “Teleport Towers”, Kingsfordweg 151–241 Netherlands 1 146 12 201 5 065 2001 20/03/2008 Sole ownership on leased site 50 086 723 23 326 152 2 997 938 915 143 30.53 2 082 795 – – – – – – – – 127 – – 18 11 771 – – 1 430 – – 19 12 201 100.00 Amsterdam, “MediArena”, Mediarena 1–8 Netherlands 1 487 19 515 4 571 2010 01/09/2010 Sole ownership on leased site 80 570 580 68 475 484 6 626 848 – – 6 626 848 – – – – – – – – 480 – – 7 19 515 – – – – – – 7 19 515 100.00 Berlin, Invalidenstrasse 91 Germany 1 40 6 438 1 379 2011 01/07/2011 Sole ownership 25 983 235 28 015 431 1 350 365 103 008 7.63 1 247 357 – – – – – – – – 28 – – 11 6 438 – – – – 1 – 12 6 438 100.00 Berlin, “Kant Center”, Wilmersdorfer Str. 108–111, Kantstr. 112–114, Krumme Str. 48–49 Germany 2 309 20 380 6 211 1930/1993/2004 15/07/2011 Sole ownership 74 799 781 78 948 205 4 779 316 160 417 3.36 4 618 899 – – – – – – – – 288 9 17 098 6 2 226 – – 6 1 056 – – 21 20 380 100.00

Boston, “Independence Wharf”, 470 Atlantic Avenue USA 1 133 31 249 3 361 1927/2001 25/09/2009 Sole ownership 119 079 996 153 608 355 9 016 275 1 047 846 11.62 7 968 429 – – – – – – – – 110 2 407 20 30 566 – – – – 1 276 23 31 249 100.00 Brisbane, 55 Elizabeth Street Australia 1 68 19 659 1 998 2013 17/06/2011 Sole ownership 141 071 467 153 763 828 10 498 699 – – 10 498 699 – – – – – – – – 50 3 525 14 18 627 – – 1 507 – – 18 19 659 100.00 Bristol, “Temple Quay”, 3 Rivergate United Kingdom 1 82 7 021 2 569 2002 06/08/2009 Sole ownership 35 744 105 40 887 030 2 545 372 – – 2 545 372 – – – – – – – – 75 – – 7 7 021 – – – – – – 7 7 021 100.00 Canberra, 62 Northbourne Avenue Australia 1 117 10 217 1 943 1986 31/10/2008 Sole ownership 34 130 516 28 393 173 3 216 296 – – 3 216 296 – – – – – – – – 109 – – 8 10 217 – – – – – – 8 10 217 100.00 Cardiff, 5 Callaghan Square United Kingdom 1 41 4 909 2 450 2008 25/10/2011 Sole ownership 22 850 554 23 518 951 1 625 430 24 533 1.51 1 600 897 – – – – – – – – 31 – – 10 4 909 – – – – – – 10 4 909 100.00 Chicago, 250 South Wacker Drive USA 1 87 22 721 1 811 1957/2007 15/12/2011 Sole ownership 94 256 932 95 300 971 5 792 133 215 664 3.72 5 576 469 – – – – – – – – 58 1 927 23 21 291 1 503 – – 4 – 29 22 721 100.00 Den Haag, Anna van Saksenlaan 69/71 Netherlands 1 113 9 324 4 510 2003 29/09/2006 Sole ownership on leased site 48 243 324 31 983 281 2 501 266 – – 2 501 266 – – – – – – – – 107 – – 6 9 324 – – – – – – 6 9 324 100.00 Dublin, “La Touche House”, IFSC Ireland 1 169 9 513 4 117 1990 01/05/2013 Sole ownership 43 961 136 60 587 878 3 686 652 – – 3 686 652 – – – – – – – – 150 – – 16 9 361 – – 3 152 – – 19 9 513 100.00 Fukuoka, 1-12-64 Daimyo, Chuo-ku Japan 1 4 1 494 592 2005 22/12/2011 Sole ownership 37 114 730 37 875 315 1 760 200 – – 1 760 200 – – – – – – – – – 4 1 494 – – – – – – – – 4 1 494 100.00 Hanover, “Kontorhaus”, Ernst-August-Platz 3–3A Germany 1 33 11 025 2 848 1850/2002 01/08/2005 Sole ownership 34 494 089 32 488 281 1 349 413 66 016 4.89 1 283 397 – – – – – – – – – 1 5 217 14 4 400 1 79 15 1 329 2 – 33 11 025 100.00 Houston, 919 Milam Street USA 1 479 50 439 5 806 1956/1992/2006 23/05/2013 Sole ownership 119 226 320 121 235 236 9 531 807 1 334 426 14.00 8 197 381 – – – – – – – – 365 10 1 390 56 45 938 5 1 445 25 1 429 18 237 114 50 439 100.00 Leeds, “One Leeds City Office Park”, Meadow Lane United Kingdom 1 202 5 234 5 388 1996 16/09/2009 Sole ownership 25 253 994 26 028 879 2 225 726 – – 2 225 726 – – – – – – – – 198 – – 4 5 234 – – – – – – 4 5 234 100.00 London, “Earl Place”, 15 Appold Street United Kingdom 1 16 8 606 1 936 1991 10/02/2010 Sole ownership 79 212 998 97 840 694 1 715 889 324 0.02 1 715 565 – – – – – – – – 7 – – 9 8 606 – – – – – – 9 8 606 100.00 Mayence, “Römerpassage”, Adolf-Kolping-Strasse Germany 2 321 16 649 4 945 2003 28/12/2006 Sole ownership 85 830 148 86 006 170 4 882 087 343 900 7.04 4 538 187 – 29 7 – – 36 2 685 16.13 181 44 6 608 17 4 784 5 553 32 1 981 6 38 104 13 964 83.87 Mayence, Isaac-Fulda-Allee 3 Germany 1 155 7 748 5 940 1994 01/08/2005 Sole ownership 27 882 620 21 642 821 1 560 158 – – 1 560 158 – – – – – – – – 149 – – 5 7 535 – – 1 213 – – 6 7 748 100.00 Melbourne, “Zurich House”, 505 Little Collins Street Australia 1 121 18 022 1 894 1991 30/04/2008 Sole ownership 77 603 326 63 234 164 5 225 563 350 715 6.71 4 874 848 – – – – – – – – 100 4 668 15 17 354 – – – – 2 – 21 18 022 100.00 Montreal, “Place du Canada”, 1010 Rue de la Gauchetière West Canada 1 473 36 855 2 907 1967 30/06/2006 Sole ownership 77 749 783 94 489 533 5 935 236 255 176 4.30 5 680 060 – – – – – – – – 355 10 932 68 34 638 – – 36 1 285 4 – 118 36 855 100.00 Munich, “Laimer Würfel”, Landsberger Strasse 300 Germany 1 190 24 676 5 353 2007 10/02/2012 Sole ownership 91 529 949 93 689 372 6 274 287 446 759 7.12 5 827 528 – – – – – – – – 161 2 590 10 19 018 – – 12 1 679 5 3 389 29 24 676 100.00 Osnabrück, Nikolaiort 5 Germany 1 6 8 939 1 711 1946/1991/1992 01/04/2006 Sole ownership 30 240 421 25 670 792 1 138 376 – – 1 138 376 – – – – – – – – – 6 8 939 – – – – – – – – 6 8 939 100.00 Rotterdam, “The Corner”, Binnenwegplein 26–68 Netherlands 1 12 13 618 3 013 1959/1999 12/09/2006 Sole ownership 44 614 813 46 375 759 3 121 173 159 446 5.11 2 961 727 – – – – – – – – – 9 13 135 – – 1 378 2 105 – – 12 13 618 100.00 San Francisco, “Adam Grant Building”, 114 Sansome Street USA 1 50 17 178 1 756 1908/1926/2000 31/10/2013 Sole ownership 108 878 707 117 002 288 5 285 281 1 017 664 19.25 4 267 617 – – – – – – – – – 2 1 446 30 15 107 1 142 17 483 – – 50 17 178 100.00 Santiago de Chile, Apoquindo 5400, Las Condes Chile 2 768 22 265 4 069 2014 15/05/2014 Condominium 71 525 153 75 599 963 4 029 699 1 261 535 31.31 2 768 164 – – – – – – – – 653 2 709 25 20 742 – – 88 814 – – 115 22 265 100.00 Santiago de Chile, “Edificio Magdalena Norte”, Magdalena 181, Las Condes Chile 1 283 8 683 2 025 2010 27/04/2010 Sole ownership 22 540 102 35 404 978 2 595 575 14 849 0.57 2 580 726 – – – – – – – – 226 1 88 20 8 328 – – 36 267 – – 57 8 683 100.00 Stuttgart*, Bürozentrum “Pragsattel”, Leitzstrasse 54–56 Germany 379 804 33 797 8.90 346 007 Sydney, “Latitude East Building”, 52 Goulburn Street Australia 1 222 23 104 1 832 2) 2007 03/03/2008 Co-ownership 103 668 595 85 378 725 6 255 022 – – 6 255 022 – – – – – – – – 210 1 104 10 22 931 – – 1 69 – – 12 23 104 100.00 Tokyo, “HN Green Building”, 2-8-3 Higashi-Nihonbashi, Chuo-ku Japan 1 25 3 309 599 1988 28/02/2007 Sole ownership 29 855 817 19 318 310 1 014 559 15 606 1.54 998 953 – – – – – – – – 12 – – 10 3 309 – – – – 3 – 13 3 309 100.00 Tokyo, “Toranomon 1-chome”, 1-16-16 Toranomon, Minato-ku Japan 1 25 4 301 582 1964/2005 22/09/2006 Sole ownership 72 080 669 39 727 609 1 981 637 33 621 1.70 1 948 016 – – – – – – – – 5 – – 10 3 663 – – 6 638 4 – 20 4 301 100.00 Toronto, 121 Bloor Street East Canada 1 219 22 704 2 104 1982 15/02/2005 Sole ownership on leased site 43 958 539 62 852 911 4 281 086 693 331 16.20 3 587 755 – – – – – – – – 158 1 37 30 21 792 – – 21 875 9 – 61 22 704 100.00 Toronto, 160 Bloor Street East Canada 1 368 35 140 4 593 1982 15/02/2005 Sole ownership 74 141 204 121 210 814 6 984 011 263 735 3.78 6 720 276 – – – – – – – – 304 7 1 480 32 32 997 2 290 17 373 6 – 64 35 140 100.00 Washington, 1099 New York Avenue USA 1 168 16 563 1 610 2008 21/09/2009 Sole ownership 99 047 657 168 841 007 8 421 290 1 953 0.02 8 419 337 – – – – – – – – 137 1 211 21 15 511 1 517 7 324 1 – 31 16 563 100.00 Wellington, “Justice Centre”, 19 Aitken Street, Mulgrave Street & Kat Sheppard Place, Thorndon New Zealand 1 160 35 267 2 683 3) 1966/2009/2011 15/11/2012 Co-ownership 61 482 260 64 491 936 4 930 435 34 108 0.69 4 896 327 – – – – – – – – 134 3 277 17 34 097 – – 3 819 3 74 26 35 267 100.00

Total II 38 6 211 572 651 108 436 2 222 649 084 2 336 091 775 147 379 515 8 793 572 5.97 138 585 943 – 29 7 – – 36 2 685 0.47 5 077 123 62 282 558 484 469 17 3 907 331 15 294 69 4 014 1 098 569 966 99.53

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

Development land (incl. properties for demolition) and schemes under constructionArnheim, Koningstraat 26–37 Netherlands 1 – – 4 718 1969/2015 15/10/2007 Sole ownership 45 481 419 18 316 854 1 314 230 – – 1 314 230 – – – – – – – – – – – – – – – – – – – – – – Vancouver, “The Exchange”, 475 Howe Street, 819-829 West Pender Street Canada 2 – – 1 739 1929/2017 01/08/2011 Sole ownership 77 313 958 77 313 958 14 384 4 726 32.86 9 658 – – – – – – – – – – – – – – – – – – – – – – Total IV 3 – – 6 457 122 795 377 95 630 812 1 328 614 4 726 0.36 1 323 888 – – – – – – – – – – – – – – – – – – – – – –

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

Total 41 6 211 572 651 114 893 2 345 444 461 2 431 722 587 148 708 129 8 798 298 5.92 139 909 831 – 29 7 – – 36 2 685 0.47 5 077 123 62 282 558 484 469 17 3 907 331 15 294 69 4 014 1 098 569 966 99.53

* Property sold during the period under review1) Non-annualized2) Co-ownership 50/100 = 1 832 m2 (total site area = 3 663 m2)3) Co-ownership 50/100 = 2 683 m2 (total site area = 5 365 m2)

Schedule of Properties in Swiss Francs (CHF) General Information about the Proper-ties / Financial Data on the Properties / Breakdown of Residential/Commercial Premises


Number


Totalrental

premises

Totallettable

area (m2)

Site area

(m2)

Year of

construction

Acquisition

date

Ownership type

Acquisition

costs

Market value

Projected

rental income 1)

Rental losses 1)



Rooms

1–1.5 2–2.5 3–3.5 4–4.5 5+


No. m2 %

Parking

Retail outlets

No. m2


No. m2


No. m2

Storerooms

No. m2


No. m2





Total II 38 6 211 572 651 108 436 2 222 649 084 2 336 091 775 147 379 515 8 793 572 5.97 138 585 943 – 29 7 – – 36 2 685 0.47 5 077 123 62 282 558 484 469 17 3 907 331 15 294 69 4 014 1 098 569 966 99.53




Total 41 6 211 572 651 114 893 2 345 444 461 2 431 722 587 148 708 129 8 798 298 5.92 139 909 831 – 29 7 – – 36 2 685 0.47 5 077 123 62 282 558 484 469 17 3 907 331 15 294 69 4 014 1 098 569 966 99.53


18


Number


Totalrental

premises

Totallettable

area (m2)

Site area

(m2)

Year of

construction

Acquisition

date

Ownership type

Acquisition

costs

Market value

Projected

rental income 1)

Rental losses 1)



Rooms

1–1.5 2–2.5 3–3.5 4–4.5 5+


No. m2 %

Parking

Retail outlets

No. m2


No. m2


No. m2

Storerooms

No. m2


No. m2





Total II 38 6 211 572 651 108 436 2 222 649 084 2 336 091 775 147 379 515 8 793 572 5.97 138 585 943 – 29 7 – – 36 2 685 0.47 5 077 123 62 282 558 484 469 17 3 907 331 15 294 69 4 014 1 098 569 966 99.53




Total 41 6 211 572 651 114 893 2 345 444 461 2 431 722 587 148 708 129 8 798 298 5.92 139 909 831 – 29 7 – – 36 2 685 0.47 5 077 123 62 282 558 484 469 17 3 907 331 15 294 69 4 014 1 098 569 966 99.53



20

Schedule of Properties (Local Currencies) Financial Data on the Properties

Location, address

Country

Acquisition costs

in national currency

Market value


Projected rental income 1)


Rental losses 1) in national currency as per-

centage

Gross income(net rental income)

in national currency 1)

Yen (JPY)Fukuoka, 1-12-64 Daimyo, Chuo-ku Japan 4 478 306 958 4 570 080 000 203 871 000 – – 203 871 000 Tokyo, “HN Green Building”, 2-8-3 Higashi-Nihonbashi, Chuo-ku Japan 3 602 437 932 2 330 970 000 117 508 934 1 807 520 1.54 115 701 414 Tokyo, “Toranomon 1-chome”, 1-16-16 Toranomon, Minato-ku Japan 8 697 338 240 4 793 580 000 229 518 435 3 894 109 1.70 225 624 326 Total JPY 16 778 083 130 11 694 630 000 550 898 369 5 701 629 1.03 545 196 740

Euro (EUR)Amsterdam, “Spectrum”, Gatwickstraat 9–39 Netherlands 28 226 409 10 710 000 1 537 874 – – 1 537 874 Amsterdam, “Teleport Towers”, Kingsfordweg 151–241 Netherlands 41 656 352 19 400 000 2 472 608 754 782 30.53 1 717 826 Amsterdam, “MediArena”, Mediarena 1–8 Netherlands 67 009 304 56 950 000 5 465 622 – – 5 465 622 Arnheim, Koningstraat 26–37 Netherlands 37 826 192 15 233 844 1 083 937 – – 1 083 937 Berlin, Invalidenstrasse 91 Germany 21 609 854 23 300 000 1 113 740 84 958 7.63 1 028 782 Berlin, “Kant Center”, Wilmersdorfer Str. 108–111, Kantstr. 112–114, Krumme Str. 48–49 Germany 62 209 820 65 660 000 3 941 834 132 307 3.36 3 809 527

Den Haag, Anna van Saksenlaan 69/71 Netherlands 40 123 226 26 600 000 2 062 968 – – 2 062 968 Dublin, “La Touche House”, IFSC Ireland 36 561 796 50 390 000 3 040 638 – – 3 040 638 Hanover, “Kontorhaus”, Ernst-August-Platz 3–3A Germany 28 688 200 27 020 000 1 112 955 54 448 4.89 1 058 507 Mayence, “Römerpassage”, Adolf-Kolping-Strasse Germany 71 383 605 71 530 000 4 026 596 283 638 7.04 3 742 958 Mayence, Isaac-Fulda-Allee 3 Germany 23 189 543 18 000 000 1 286 771 – – 1 286 771 Munich, “Laimer Würfel”, Landsberger Strasse 300 Germany 76 124 042 77 920 000 5 174 840 368 473 7.12 4 806 367 Osnabrück, Nikolaiort 5 Germany 25 150 490 21 350 000 938 898 – – 938 898 Rotterdam, “The Corner”, Binnenwegplein 26–68 Netherlands 37 105 449 38 570 000 2 574 248 131 506 5.11 2 442 742 Stuttgart*, Bürozentrum “Pragsattel”, Leitzstrasse 54–56 Germany 313 251 27 875 8.90 285 376 Total EUR 596 864 282 522 633 844 36 146 780 1 837 987 5.08 34 308 793

Canadian dollar (CAD)Montreal, “Place du Canada”, 1010 Rue de la Gauchetière West Canada 90 635 843 110 150 000 7 152 946 307 529 4.30 6 845 417 Toronto, 121 Bloor Street East Canada 51 244 121 73 270 000 5 159 421 835 579 16.20 4 323 842 Toronto, 160 Bloor Street East Canada 86 429 187 141 300 000 8 416 895 317 845 3.78 8 099 050 Vancouver, “The Exchange”, 475 Howe Street, 819-829 West Pender Street Canada 90 127 786 90 127 786 17 335 5 696 32.86 11 639 Total CAD 318 436 937 414 847 786 20 746 597 1 466 649 7.07 19 279 948

Pound sterling (GBP)Bristol, “Temple Quay”, 3 Rivergate United Kingdom 23 070 566 26 390 000 1 683 566 – – 1 683 566 Cardiff, 5 Callaghan Square United Kingdom 14 748 592 15 180 000 1 075 096 16 227 1.51 1 058 869 Leeds, “One Leeds City Office Park”, Meadow Lane United Kingdom 16 299 861 16 800 000 1 472 145 – – 1 472 145 London, “Earl Place”, 15 Appold Street United Kingdom 51 126 996 63 150 000 1 134 927 214 0.02 1 134 713 Total GBP 105 246 015 121 520 000 5 365 734 16 441 0.31 5 349 293

Australian dollar (AUD)Brisbane, 55 Elizabeth Street Australia 173 500 006 189 110 000 12 724 122 – – 12 724 122 Canberra, 62 Northbourne Avenue Australia 41 976 204 34 920 000 3 898 059 – – 3 898 059 Melbourne, “Zurich House”, 505 Little Collins Street Australia 95 442 245 77 770 000 6 333 232 425 056 6.71 5 908 176 Sydney, “Latitude East Building”, 52 Goulburn Street Australia 127 499 219 105 005 000 7 580 907 – – 7 580 907 Total AUD 438 417 674 406 805 000 30 536 320 425 056 1.39 30 111 264

US dollar (USD)Boston, “Independence Wharf”, 470 Atlantic Avenue USA 119 840 986 154 590 000 9 808 072 1 139 868 11.62 8 668 204 Chicago, 250 South Wacker Drive USA 94 859 288 95 910 000 6 300 789 234 603 3.72 6 066 186 Houston, 919 Milam Street USA 119 988 245 122 010 000 10 368 876 1 451 613 14.00 8 917 263 San Francisco, “Adam Grant Building”, 114 Sansome Street USA 109 574 505 117 750 000 5 749 427 1 107 034 19.25 4 642 393 Washington, 1099 New York Avenue USA 99 680 629 169 920 000 9 160 835 2 125 0.02 9 158 710 Total USD 543 943 653 660 180 000 41 387 999 3 935 243 9.51 37 452 756

Chilean pesos (CLP)Santiago de Chile, Apoquindo 5400, Las Condes Chile 43 686 953 000 46 175 813 000 2 516 753 000 787 893 000 31.31 1 728 860 000 Santiago de Chile, “Edificio Magdalena Norte”, Magdalena 181, Las Condes Chile 13 767 302 000 21 625 057 000 1 621 069 000 9 274 000 0.57 1 611 795 000 Total CLP 57 454 255 000 67 800 870 000 4 137 822 000 797 167 000 19.27 3 340 655 000

New Zealand dollar (NZD)Wellington, “Justice Centre”, 19 Aitken Street, Mulgrave Street & Kat Sheppard Place, Thorndon New Zealand 79 164 732 83 040 000 6 504 858 45 000 0.69 6 459 858

Total NZD 79 164 732 83 040 000 6 504 858 45 000 0.69 6 459 858

* Property sold during the period under review1) Non-annualized


21

Location, address

Country

Acquisition costs


Market value


Projected rental income 1)


Rental losses 1) in national currency as per-

centage

Gross income(net rental income)

in national currency 1)

Yen (JPY)Fukuoka, 1-12-64 Daimyo, Chuo-ku Japan 4 478 306 958 4 570 080 000 203 871 000 – – 203 871 000 Tokyo, “HN Green Building”, 2-8-3 Higashi-Nihonbashi, Chuo-ku Japan 3 602 437 932 2 330 970 000 117 508 934 1 807 520 1.54 115 701 414 Tokyo, “Toranomon 1-chome”, 1-16-16 Toranomon, Minato-ku Japan 8 697 338 240 4 793 580 000 229 518 435 3 894 109 1.70 225 624 326 Total JPY 16 778 083 130 11 694 630 000 550 898 369 5 701 629 1.03 545 196 740

Euro (EUR)Amsterdam, “Spectrum”, Gatwickstraat 9–39 Netherlands 28 226 409 10 710 000 1 537 874 – – 1 537 874 Amsterdam, “Teleport Towers”, Kingsfordweg 151–241 Netherlands 41 656 352 19 400 000 2 472 608 754 782 30.53 1 717 826 Amsterdam, “MediArena”, Mediarena 1–8 Netherlands 67 009 304 56 950 000 5 465 622 – – 5 465 622 Arnheim, Koningstraat 26–37 Netherlands 37 826 192 15 233 844 1 083 937 – – 1 083 937 Berlin, Invalidenstrasse 91 Germany 21 609 854 23 300 000 1 113 740 84 958 7.63 1 028 782 Berlin, “Kant Center”, Wilmersdorfer Str. 108–111, Kantstr. 112–114, Krumme Str. 48–49 Germany 62 209 820 65 660 000 3 941 834 132 307 3.36 3 809 527

Den Haag, Anna van Saksenlaan 69/71 Netherlands 40 123 226 26 600 000 2 062 968 – – 2 062 968 Dublin, “La Touche House”, IFSC Ireland 36 561 796 50 390 000 3 040 638 – – 3 040 638 Hanover, “Kontorhaus”, Ernst-August-Platz 3–3A Germany 28 688 200 27 020 000 1 112 955 54 448 4.89 1 058 507 Mayence, “Römerpassage”, Adolf-Kolping-Strasse Germany 71 383 605 71 530 000 4 026 596 283 638 7.04 3 742 958 Mayence, Isaac-Fulda-Allee 3 Germany 23 189 543 18 000 000 1 286 771 – – 1 286 771 Munich, “Laimer Würfel”, Landsberger Strasse 300 Germany 76 124 042 77 920 000 5 174 840 368 473 7.12 4 806 367 Osnabrück, Nikolaiort 5 Germany 25 150 490 21 350 000 938 898 – – 938 898 Rotterdam, “The Corner”, Binnenwegplein 26–68 Netherlands 37 105 449 38 570 000 2 574 248 131 506 5.11 2 442 742 Stuttgart*, Bürozentrum “Pragsattel”, Leitzstrasse 54–56 Germany 313 251 27 875 8.90 285 376 Total EUR 596 864 282 522 633 844 36 146 780 1 837 987 5.08 34 308 793

Canadian dollar (CAD)Montreal, “Place du Canada”, 1010 Rue de la Gauchetière West Canada 90 635 843 110 150 000 7 152 946 307 529 4.30 6 845 417 Toronto, 121 Bloor Street East Canada 51 244 121 73 270 000 5 159 421 835 579 16.20 4 323 842 Toronto, 160 Bloor Street East Canada 86 429 187 141 300 000 8 416 895 317 845 3.78 8 099 050 Vancouver, “The Exchange”, 475 Howe Street, 819-829 West Pender Street Canada 90 127 786 90 127 786 17 335 5 696 32.86 11 639 Total CAD 318 436 937 414 847 786 20 746 597 1 466 649 7.07 19 279 948

Pound sterling (GBP)Bristol, “Temple Quay”, 3 Rivergate United Kingdom 23 070 566 26 390 000 1 683 566 – – 1 683 566 Cardiff, 5 Callaghan Square United Kingdom 14 748 592 15 180 000 1 075 096 16 227 1.51 1 058 869 Leeds, “One Leeds City Office Park”, Meadow Lane United Kingdom 16 299 861 16 800 000 1 472 145 – – 1 472 145 London, “Earl Place”, 15 Appold Street United Kingdom 51 126 996 63 150 000 1 134 927 214 0.02 1 134 713 Total GBP 105 246 015 121 520 000 5 365 734 16 441 0.31 5 349 293

Australian dollar (AUD)Brisbane, 55 Elizabeth Street Australia 173 500 006 189 110 000 12 724 122 – – 12 724 122 Canberra, 62 Northbourne Avenue Australia 41 976 204 34 920 000 3 898 059 – – 3 898 059 Melbourne, “Zurich House”, 505 Little Collins Street Australia 95 442 245 77 770 000 6 333 232 425 056 6.71 5 908 176 Sydney, “Latitude East Building”, 52 Goulburn Street Australia 127 499 219 105 005 000 7 580 907 – – 7 580 907 Total AUD 438 417 674 406 805 000 30 536 320 425 056 1.39 30 111 264

US dollar (USD)Boston, “Independence Wharf”, 470 Atlantic Avenue USA 119 840 986 154 590 000 9 808 072 1 139 868 11.62 8 668 204 Chicago, 250 South Wacker Drive USA 94 859 288 95 910 000 6 300 789 234 603 3.72 6 066 186 Houston, 919 Milam Street USA 119 988 245 122 010 000 10 368 876 1 451 613 14.00 8 917 263 San Francisco, “Adam Grant Building”, 114 Sansome Street USA 109 574 505 117 750 000 5 749 427 1 107 034 19.25 4 642 393 Washington, 1099 New York Avenue USA 99 680 629 169 920 000 9 160 835 2 125 0.02 9 158 710 Total USD 543 943 653 660 180 000 41 387 999 3 935 243 9.51 37 452 756

Chilean pesos (CLP)Santiago de Chile, Apoquindo 5400, Las Condes Chile 43 686 953 000 46 175 813 000 2 516 753 000 787 893 000 31.31 1 728 860 000 Santiago de Chile, “Edificio Magdalena Norte”, Magdalena 181, Las Condes Chile 13 767 302 000 21 625 057 000 1 621 069 000 9 274 000 0.57 1 611 795 000 Total CLP 57 454 255 000 67 800 870 000 4 137 822 000 797 167 000 19.27 3 340 655 000

New Zealand dollar (NZD)Wellington, “Justice Centre”, 19 Aitken Street, Mulgrave Street & Kat Sheppard Place, Thorndon New Zealand 79 164 732 83 040 000 6 504 858 45 000 0.69 6 459 858

Total NZD 79 164 732 83 040 000 6 504 858 45 000 0.69 6 459 858

* Property sold during the period under review1) Non-annualized


22

Land PurchasesStatement of Land Purchases and Sales in Financial Year 2014Purchases Country Building class Site area m2

Santiago de Chile, Apoquindo 5400, Las Condes Chile Commercial property 4 069

Sales Country Building class Site area m2

Stuttgart, Bürozentrum “Pragsattel”, Leitzstrasse 54–56 Germany Commercial property 3 258

Transactions with Related PartiesThe management company confirms that there has not been any transfer of real estate assets to related parties and that other transactions with related parties were concluded at the usual market conditions (section 18 of the Guidelines for Real Estate Funds of the Swiss Funds & Asset Management Association SFAMA dated April 2, 2008).

Tenants Accounting for over 5% of Rental IncomeTenant Property location Percentage of rental incomeAustralian Tax Office Sydney and Brisbane 10.80%

Real Estate Companies in the Fundn Credit Suisse Real Estate Fund International Holding AG, Zugn CS REFI Chile Fund Holding AG, Zug

The two holding companies in Zug and their national companies are wholly owned by Credit Suisse Real Estate Fund International. The only exception is a foreign real estate company in which a minority shareholder holds 20% of the shares.

Overview of Units of Other Investments 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 the 2014 financial year.


23

MortgagesMortgages current Type of loan from

Termto

Currency

Amountin foreign currency

Exchange rateas at 31/12/2014

Amount in CHF Interest rate

Fixed-rate mortgage 1) 07/07/2011 07/07/2015 JPY 1 837 500 000 0.828767 15 228 594 2.340%Fixed-rate mortgage 1) 07/07/2011 07/07/2015 JPY 1 212 500 000 0.828767 10 048 800 2.340%Rollover mortgage 07/07/2011 07/07/2015 JPY 187 500 000 0.828767 1 553 938 1.920%Fixed-rate mortgage 2) 28/11/2011 07/07/2015 JPY 830 700 000 0.828767 6 884 567 2.270%Fixed-rate mortgage 2) 28/11/2011 07/07/2015 JPY 502 500 000 0.828767 4 164 554 2.270%Rollover mortgage 28/11/2011 07/07/2015 JPY 81 500 000 0.828767 675 445 1.920%Rollover mortgage 3) 22/12/2011 21/12/2016 JPY 1 132 750 000 0.828767 9 387 858 1.811%Rollover mortgage 3) 22/12/2011 21/12/2016 JPY 985 000 000 0.828767 8 163 355 1.811%Fixed-rate mortgage 4) 27/04/2010 27/04/2020 CLP 8 952 877 553 0.163722 14 657 830 5.610%Fixed-rate mortgage 5) 15/05/2014 15/05/2021 CLP 32 008 088 141 0.163722 52 404 282 3.760%Fixed-rate mortgage 6) 31/01/2014 29/06/2018 EUR 84 450 000 1.202379 101 540 907 2.461%Fixed-rate mortgage 7) 17/10/2014 17/10/2019 AUD 118 950 000 0.813092 96 717 295 4.985%Total current mortgages 321 427 425

Mortgages matured Type of loan from

Termto

Currency

Amountin foreign currency Interest rate

Fixed-rate mortgage 8) 01/02/2012 31/03/2014 CAD 17 776 032 4.350%

1) The mortgages totaling JPY 3 212 500 000 were concluded on July 7, 2011 for a four-year term until July 7, 2015. By the balance sheet date, JPY 162 500 000 had been repaid, of which JPY 50 000 000 during the current financial year

2) The mortgages totaling JPY 1 378 500 000 were concluded on November 28, 2011 for a three-year term until July 7, 2015. By the balance sheet date, JPY 45 300 000 had been repaid, of which JPY 16 000 000 during the current financial year.

3) The mortgages were concluded on December 22, 2011 with the purchase of the property in Fukuoka for a total of JPY 2 150 000 000. By the balance sheet date, JPY 32 250 000 had been repaid, of which JPY 10 750 000 during the current financial year.

4) The fixed-rate mortgage was concluded in the accounting currency Unidad de Fomento (UF) and originally amounted to UF 425 000. By the balance sheet date, UF 61 462 had been repaid, of which UF 20 639 during the current financial year. The net debt was converted into CLP at the exchange rate applicable on the reference date.

5) The mortgage was concluded in the accounting currency Unidad de Fomento (UF) and amounts to UF 1 299 710. The net debt was converted into CLP at the exchange rate applicable on the reference date.

6) The mortgage totaling EUR 84 450 000 was concluded on January 31, 20147) The mortgage totaling AUD 118 950 000 was concluded on October 17, 2014 for a term lasting until October 17, 2019.8) The mortgage totaling CAD 18 750 000 was concluded on February 1, 2012 for a term lasting until March 31, 2014.

Interest rates for fixed-rate mortgages are always set for the entire term.Interest rates for rollover mortgages are adapted based on the 3-month LIBOR (London Interbank Offered Rate).

LoansCurrent loans Type of loan from

Termto

Currency


Exchange rateas at 31/12/2014

Amount in CHF

Interestrate

Credit 11/11/2014 09/02/2015 CLP 7 775 606 902 0.163722 12 730 379 4.440%

Matured loans Type of loan from

Termto

Currency


Interestrate

Credit 15/05/2014 11/11/2014 CLP 7 775 606 902 4.940%


24

Transactions between FundsDuring the 2014 fiscal year, Credit Suisse Real Estate Fund International made the following investments (pursuant to Art. 86 prov. 3a CISO) in the real estate fund Credit Suisse Real Estate Fund Hospitality:

Current Other Investments Type of loan from

Termto

Amount in CHF

Interestrate

Credit 10/12/2014 10/01/2015 38 000 000 0.375%

Type of loan from

Termto

Amount in CHF

Interestrate

Credit 16/05/2014 30/05/2014 82 000 000 0.310%Credit 30/04/2014 16/05/2014 100 000 000 0.310%Credit 17/04/2014 30/04/2014 100 000 000 0.310%Credit 10/04/2014 17/04/2014 90 000 000 0.310%Credit 26/03/2014 10/04/2014 80 000 000 0.310%Credit 21/03/2014 10/04/2014 10 000 000 0.310%Credit 19/03/2014 26/03/2014 144 000 000 0.310%Credit 10/03/2014 19/03/2014 144 000 000 0.310%Credit 26/02/2014 10/03/2014 140 000 000 0.310%Credit 17/02/2014 26/02/2014 130 000 000 0.310%Credit 10/02/2014 17/02/2014 120 000 000 0.310%Credit 03/02/2014 10/02/2014 120 000 000 0.310%

The applied interest rates were average, current market rates between the prevailing rates for fixed advances and fixed-term de-posits or similar investments respectively. The interest rates are always set for the entire term.

Credit Suisse Real Estate Fund International did not receive any loans from other real estate funds of Credit Suisse AG during the 2014 fiscal year.

Matured Other Investments Type of loan from

Termto

Amount in CHF

Interestrate

Credit 20/11/2014 10/12/2014 38 000 000 0.375%Credit 20/10/2014 20/11/2014 38 000 000 0.375%Credit 10/10/2014 20/10/2014 38 000 000 0.375%Credit 22/09/2014 10/10/2014 38 000 000 0.375%Credit 10/09/2014 22/09/2014 60 000 000 0.375%Credit 20/08/2014 10/09/2014 60 000 000 0.375%Credit 08/08/2014 20/08/2014 49 000 000 0.375%Credit 18/07/2014 08/08/2014 49 000 000 0.375%Credit 10/07/2014 18/07/2014 61 000 000 0.375%Credit 30/06/2014 10/07/2014 51 000 000 0.375%Credit 19/06/2014 30/06/2014 51 000 000 0.375%Credit 10/06/2014 19/06/2014 75 000 000 0.375%Credit 30/05/2014 10/06/2014 78 000 000 0.310%


25

Capital gains/losses on currenciesRealized capital gains/losses on currenciesRealized capital gains/losses on concluded forward foreign exchange contracts (1/1/–31/12/2014)

Currency Datetrade

Datevalue

Number ofcontracts

Amount inforeign currency

Purchase price Number ofcontracts

Liquidationproceeds

Currencyprofit/loss

CAD 17/12/2013 20/02/2014 1 CAD 305 452 000 CHF 255 568 634 CAD 17/12/2013 20/02/2014 1 CAD 765 000 CHF 638 240 CAD 15/01/2014 20/02/2014 1 CAD 2 250 000 CHF 1 869 728 CAD 20/01/2014 20/02/2014 1 CAD 90 000 CHF 74 768 CAD 27/01/2014 20/02/2014 1 CAD 1 390 000 CHF 1 127 772 CAD 13/02/2014 20/02/2014 Total CAD 309 947 000 CHF 259 279 142 5 CHF 252 234 869 CHF 7 044 273

CAD 13/02/2014 17/04/2014 1 CAD 309 947 000 CHF 251 769 948 CAD 21/02/2014 17/04/2014 1 CAD 2 115 000 CHF 1 684 308 CAD 06/03/2014 17/04/2014 1 CAD 6 886 000 CHF 5 531 916 CAD 14/04/2014 17/04/2014 Total CAD 318 948 000 CHF 258 986 172 3 CHF 254 998 926 CHF 3 987 246

CAD 14/04/2014 20/06/2014 1 CAD 318 948 000 CHF 254 472 662 CAD 23/04/2014 20/06/2014 1 CAD 1 413 000 CHF 1 125 439 CAD 06/06/2014 20/06/2014 1 CAD 1 363 500 CHF 1 115 389 CAD 17/06/2014 20/06/2014 Total CAD 321 724 500 CHF 256 713 490 3 CHF 266 066 162 CHF –9 352 672

CAD 17/06/2014 20/08/2014 1 CAD 321 724 500 CHF 265 527 273 CAD 25/06/2014 20/08/2014 1 CAD 17 559 000 CHF 14 585 910 CAD 23/07/2014 20/08/2014 1 CAD 900 000 CHF 756 537 CAD 31/07/2014 20/08/2014 1 CAD 4 984 000 CHF 4 149 778 CAD 18/08/2014 20/08/2014 Total CAD 345 167 500 CHF 285 019 498 4 CHF 286 730 642 CHF –1 711 144

CAD 18/08/2014 20/10/2014 1 CAD 345 167 500 CHF 286 185 278 CAD 25/08/2014 20/10/2014 1 CAD 1 782 000 CHF 1 483 134 CAD 24/09/2014 20/10/2014 1 CAD 2 178 000 CHF 1 853 326 CAD 15/10/2014 20/10/2014 Total CAD 349 127 500 CHF 289 521 738 3 CHF 292 743 409 CHF –3 221 671

CAD 15/10/2014 19/12/2014 1 CAD 349 127 500 CHF 292 155 129 CAD 27/10/2014 19/12/2014 1 CAD 2 403 000 CHF 2 028 762 CAD 15/12/2014 19/12/2014 Total CAD 351 530 500 CHF 294 183 891 2 CHF 293 070 978 CHF 1 112 913

EUR 17/12/2013 20/02/2014 1 EUR 434 663 000 CHF 530 287 556 EUR 31/01/2014 20/02/2014 1 EUR –67 290 000 CHF –82 201 464 EUR 13/02/2014 20/02/2014 Total EUR 367 373 000 CHF 448 086 092 2 CHF 448 819 594 CHF –733 502

EUR 13/02/2014 17/04/2014 1 EUR 367 373 000 CHF 448 613 865 EUR 06/03/2014 17/04/2014 1 EUR –8 540 000 CHF –10 421 388 EUR 14/04/2014 17/04/2014 Total EUR 358 833 000 CHF 438 192 477 2 CHF 435 802 679 CHF 2 389 798

EUR 14/04/2014 20/06/2014 1 EUR 358 833 000 CHF 435 515 612 EUR 07/05/2014 20/06/2014 1 EUR –9 560 000 CHF –11 646 680 EUR 04/06/2014 20/06/2014 1 EUR –1 040 000 CHF –1 269 287 EUR 17/06/2014 20/06/2014 Total EUR 348 233 000 CHF 422 599 645 3 CHF 424 426 380 CHF –1 826 735

EUR 17/06/2014 20/08/2014 1 EUR 348 233 000 CHF 424 318 428 EUR 31/07/2014 20/08/2014 1 EUR –835 000 CHF –1 016 147 EUR 18/08/2014 20/08/2014 Total EUR 347 398 000 CHF 423 302 281 2 CHF 420 594 759 CHF 2 707 522

EUR 18/08/2014 20/10/2014 1 EUR 347 398 000 CHF 420 520 068 EUR 15/10/2014 20/10/2014 Total EUR 347 398 000 CHF 420 520 068 1 CHF 419 344 126 CHF 1 175 942

EUR 15/10/2014 19/12/2014 1 EUR 347 398 000 CHF 419 330 230 EUR 15/12/2014 19/12/2014 Total EUR 347 398 000 CHF 419 330 230 1 CHF 417 363 957 CHF 1 966 273

JPY 14/11/2013 21/01/2014 1 JPY 4 562 252 000 CHF 41 842 694 JPY 15/01/2014 21/01/2014 Total JPY 4 562 252 000 CHF 41 842 694 1 CHF 39 718 966 CHF 2 123 728

JPY 15/01/2014 20/03/2014 1 JPY 4 562 252 000 CHF 39 710 982 JPY 06/03/2014 20/03/2014 1 JPY 138 443 000 CHF 1 185 155 JPY 17/03/2014 20/03/2014 Total JPY 4 700 695 000 CHF 40 896 137 2 CHF 40 317 861 CHF 578 276

JPY 17/03/2014 20/05/2014 1 JPY 4 700 695 000 CHF 40 311 280 JPY 09/04/2014 20/05/2014 1 JPY 522 301 000 CHF 4 516 859 JPY 14/05/2014 20/05/2014 Total JPY 5 222 996 000 CHF 44 828 139 2 CHF 45 622 870 CHF –794 731

JPY 14/05/2014 22/07/2014 1 JPY 5 222 996 000 CHF 45 615 036 JPY 17/07/2014 22/07/2014 1 JPY 5 222 996 000 CHF 45 615 036 1 CHF 46 207 846 CHF –592 810

JPY 17/07/2014 22/09/2014 1 JPY 5 222 996 000 CHF 46 202 100 JPY 31/07/2014 22/09/2014 1 JPY 27 721 000 CHF 244 763 JPY 15/09/2014 22/09/2014 Total JPY 5 250 717 000 CHF 46 446 863 2 CHF 45 880 765 CHF 566 098

JPY 15/09/2014 20/11/2014 1 JPY 5 250 717 000 CHF 45 874 464 JPY 17/11/2014 20/11/2014 1 JPY 5 250 717 000 CHF 45 874 464 1 CHF 43 481 187 CHF 2 393 277

AUD 14/11/2013 21/01/2014 1 AUD 369 039 000 CHF 313 046 558 AUD 15/01/2014 21/01/2014 Total AUD 369 039 000 CHF 313 046 558 1 CHF 299 548 956 CHF 13 497 602


26

Currency Datetrade

Datevalue

Number ofcontracts



Liquidationproceeds

Currencyprofit/loss

AUD 15/01/2014 20/03/2014 1 AUD 369 039 000 CHF 298 249 939 AUD 06/03/2014 20/03/2014 1 AUD 11 870 000 CHF 9 492 617 AUD 17/03/2014 20/03/2014 Total AUD 380 909 000 CHF 307 742 556 2 CHF 301 870 383 CHF 5 872 173

AUD 17/03/2014 20/05/2014 1 AUD 380 909 000 CHF 300 476 256 AUD 14/05/2014 20/05/2014 Total AUD 380 909 000 CHF 300 476 256 1 CHF 318 706 560 CHF –18 230 304

AUD 14/05/2014 22/07/2014 1 AUD 360 861 000 CHF 300 443 847 AUD 17/07/2014 22/07/2014 Total AUD 360 861 000 CHF 300 443 847 1 CHF 303 520 187 CHF –3 076 340

AUD 17/07/2014 22/09/2014 1 AUD 360 861 000 CHF 302 037 048 AUD 31/07/2014 22/09/2014 1 AUD 3 225 000 CHF 2 714 144 AUD 21/08/2014 22/09/2014 1 AUD –25 000 000 CHF –21 160 250 AUD 15/09/2014 22/09/2014 Total AUD 339 086 000 CHF 283 590 942 3 CHF 286 697 213 CHF –3 106 271

AUD 15/09/2014 20/11/2014 1 AUD 339 086 000 CHF 285 306 960 AUD 21/10/2014 20/11/2014 1 AUD –110 000 000 CHF –91 740 000 AUD 17/11/2014 20/11/2014 Total AUD 229 086 000 CHF 193 566 960 2 CHF 192 226 063 CHF 1 340 897

USD 14/11/2013 21/01/2014 1 USD 555 600 000 CHF 509 257 404 USD 15/01/2014 21/01/2014 Total USD 555 600 000 CHF 509 257 404 1 CHF 505 095 960 CHF 4 161 444

USD 15/01/2014 20/03/2014 1 USD 555 395 000 CHF 504 673 552 USD 06/03/2014 20/03/2014 1 USD 12 900 000 CHF 11 374 330 USD 17/03/2014 20/03/2014 Total USD 568 295 000 CHF 516 047 882 2 CHF 495 837 388 CHF 20 210 494

USD 17/03/2014 20/05/2014 1 USD 568 000 000 CHF 495 338 600 USD 19/03/2014 20/05/2014 1 USD –2 900 000 CHF –2 533 162 USD 14/05/2014 20/05/2014 Total USD 565 100 000 CHF 492 805 438 2 CHF 502 825 980 CHF –10 020 542

USD 14/05/2014 22/07/2014 1 USD 566 800 000 CHF 504 055 240 USD 17/07/2014 22/07/2014 Total USD 566 800 000 CHF 504 055 240 1 CHF 508 873 040 CHF –4 817 800

USD 17/07/2014 22/09/2014 1 USD 566 400 000 CHF 508 261 872 USD 31/07/2014 22/09/2014 1 USD 5 300 000 CHF 4 817 594 USD 15/09/2014 22/09/2014 Total USD 571 700 000 CHF 513 079 466 2 CHF 535 797 240 CHF –22 717 774

USD 15/09/2014 20/11/2014 1 USD 571 700 000 CHF 535 477 088 USD 17/11/2014 20/11/2014 Total USD 571 700 000 CHF 535 477 088 1 CHF 551 404 650 CHF –15 927 562

CLP 14/11/2013 21/01/2014 1 CLP 23 453 552 000 USD 44 529 242 CLP 15/01/2014 21/01/2014 Total CLP 23 453 552 000 USD 44 529 242 1 USD 44 302 138 CHF 204 712

CLP 15/01/2014 20/03/2014 1 CLP 23 453 552 000 USD 43 961 672 CLP 06/03/2014 20/03/2014 1 CLP 547 604 000 USD 978 214 CLP 17/03/2014 20/03/2014 Total CLP 24 001 156 000 USD 44 939 886 2 USD 42 070 387 CHF 2 536 063

CLP 17/03/2014 20/05/2014 1 CLP 24 001 156 000 USD 41 741 141 CLP 14/05/2014 20/05/2014 Total CLP 24 001 156 000 USD 41 741 141 1 USD 43 686 123 CHF –1 734 340

CLP 14/05/2014 22/07/2014 1 CLP 24 001 156 000 USD 43 331 208 CLP 17/07/2014 22/07/2014 Total CLP 24 001 156 000 USD 43 331 208 1 USD 42 737 101 CHF 526 854

CLP 17/07/2014 22/09/2014 1 CLP 24 001 156 000 USD 42 412 363 CLP 31/07/2014 22/09/2014 1 CLP 92 953 000 USD 161 648 CLP 15/09/2014 22/09/2014 Total CLP 24 094 109 000 USD 42 574 011 2 USD 40 596 645 CHF 1 846 720

CLP 15/09/2014 20/11/2014 1 CLP 24 094 109 000 USD 40 308 003 CLP 17/11/2014 20/11/2014 Total CLP 24 094 109 000 USD 40 308 003 1 USD 40 507 917 CHF –192 175

GBP 17/12/2013 20/02/2014 1 GBP 92 649 000 CHF 133 647 943 GBP 13/02/2014 20/02/2014 Total GBP 92 649 000 CHF 133 647 943 1 CHF 137 815 388 CHF –4 167 445

GBP 13/02/2014 17/04/2014 1 GBP 92 649 000 CHF 137 692 164 GBP 06/03/2014 17/04/2014 1 GBP 5 238 000 CHF 7 722 132 GBP 14/04/2014 17/04/2014 Total GBP 97 887 000 CHF 145 414 296 2 CHF 143 629 595 CHF 1 784 701

GBP 14/04/2014 20/06/2014 1 GBP 97 887 000 CHF 143 483 743 GBP 17/06/2014 20/06/2014 Total GBP 97 887 000 CHF 143 483 743 1 CHF 149 297 252 CHF –5 813 509

GBP 17/06/2014 20/08/2014 1 GBP 97 887 000 CHF 149 144 549 GBP 31/07/2014 20/08/2014 1 GBP 2 376 000 CHF 3 642 244 GBP 18/08/2014 20/08/2014 Total GBP 100 263 000 CHF 152 786 793 2 CHF 151 697 919 CHF 1 088 874

GBP 18/08/2014 20/10/2014 1 GBP 100 263 000 CHF 151 550 031 GBP 15/10/2014 20/10/2014 Total GBP 100 263 000 CHF 151 550 031 1 CHF 152 098 971 CHF –548 940

GBP 15/10/2014 19/12/2014 1 GBP 100 263 000 CHF 151 951 584 GBP 15/12/2014 19/12/2014 Total GBP 100 263 000 CHF 151 951 584 1 CHF 151 818 235 CHF 133 349

NZD 14/11/2013 21/01/2014 1 NZD 72 114 000 CHF 54 301 121 NZD 15/01/2014 21/01/2014 Total NZD 72 114 000 CHF 54 301 121 1 CHF 54 763 372 CHF –462 251

NZD 15/01/2014 20/03/2014 1 NZD 72 114 000 CHF 54 510 251 NZD 06/03/2014 20/03/2014 1 NZD 342 000 CHF 255 437 NZD 17/03/2014 20/03/2014 Total NZD 72 456 000 CHF 54 765 688 2 CHF 54 139 123 CHF 626 565


27

Currency Datetrade

Datevalue

Number ofcontracts



Liquidationproceeds

Currencyprofit/loss

NZD 17/03/2014 20/05/2014 1 NZD 72 456 000 CHF 53 853 647 NZD 01/04/2014 20/05/2014 1 NZD –1 530 000 CHF –1 166 778 NZD 14/05/2014 20/05/2014 Total NZD 70 926 000 CHF 52 686 869 2 CHF 54 698 131 CHF –2 011 262


NZD 17/07/2014 22/09/2014 1 NZD 70 926 000 CHF 54 974 743 NZD 31/07/2014 22/09/2014 1 NZD 944 000 CHF 723 894 NZD 15/09/2014 22/09/2014 Total NZD 71 870 000 CHF 55 698 637 2 CHF 54 987 737 CHF 710 900


Realized capital loss on concluded forward foreign exchange contracts CHF –31 606 527

Realized capital gain on other foreign exchange transactions CHF 2 554 246

TOTAL REALIZED CAPITAL GAINS/LOSSES ON CURRENCIES CHF –29 052 281

Unrealized Capital Gains/Losses on CurrenciesUnrealized capital gains/losses on open forward foreign exchange contracts as at 31/12/2014

Currency Purchasedate

Valuedate

Number ofcontracts



Equivalentunderlying value

Currencyprofit/loss

CAD 15/12/2014 20/02/2015 1 CAD 351 530 500 CHF 292 396 039 1 CHF 301 010 646 CHF –8 614 607

EUR 15/12/2014 20/02/2015 1 EUR 347 398 000 CHF 417 224 998 1 CHF 417 550 857 CHF –325 859

JPY 17/11/2014 20/01/2015 1 JPY 5 250 717 000 CHF 43 482 920 1 CHF 43 512 692 CHF –29 772

AUD 17/11/2014 20/01/2015 1 AUD 229 086 000 CHF 191 195 176 1 CHF 186 038 679 CHF 5 156 497

USD 17/11/2014 20/01/2015 1 USD 569 500 000 CHF 548 844 235 1 CHF 565 778 887 CHF –16 934 652

CLP 17/11/2014 20/01/2015 1 CLP 24 094 109 000 USD 40 237 323 1 USD 39 638 423 CHF 594 987

GBP 15/12/2014 20/02/2015 1 GBP 100 263 000 CHF 151 629 740 1 CHF 155 162 407 CHF –3 532 667

NZD 17/11/2014 20/01/2015 1 NZD 71 870 000 CHF 54 423 558 1 CHF 55 734 323 CHF –1 310 765

Unrealized capital loss on open forward foreign exchange contracts CHF –24 996 838

Unrealized capital gain on the conversion of the asset and income statement positions CHF 44 914 646

TOTAL UNREALIZED CAPITAL GAINS/LOSSES ON CURRENCIES CHF 19 917 808

Further Information on Off-Balance-Sheet Business

Equivalent underlying value in CHF

31/12/2014% of

net fund assetsEquivalent underlying value

in CHF

31/12/2013% of

net fund assetsExposure-increasing derivative positions:– Currency risk 39 981 816 1.83 39 602 081 1.84 Total exposure-increasing positions 39 981 816 1.83 39 602 081 1.84

Exposure-reducing derivative positions:– Currency risk 1 764 175 210 80.59 1 843 011 834 85.70 Total exposure-reducing positions 1 764 175 210 80.59 1 843 011 834 85.70


28

Notes to the audited Annual Report as at December 31, 2014

Units of this Real Estate Fund may not be offered, sold or delivered within the United States or any of its ter-ritories. Units of this Real Estate Fund may not be offered, sold or delivered to US citizens or persons resident or incorporated in the US and/or other natural or legal persons whose income and/or returns, regardless of origin, are subject to US income tax, as well as persons who are considered to be US persons pursuant to Regulation S of the U.S. Securities Act of 1933 and/or the U.S. Commodity Exchange Act, in each case as amended from time to time.

a) Payments to management company– A management commission of 0.6% was levied on the total fund assets at the beginning of the financial

year for managing the Fund and the real estate companies.– In respect of its activities in the construction of properties, as well as major renovation and conversion

projects, the management company charged the fund a fee equivalent to 2.0% of the cost of construction.– In respect of its activities in connection with the purchase and sale of land and property, the management

company charged the Fund a fee equivalent on average to 2.0% of the purchase/sales price.– As compensation for managing the individual properties, the fund management company charged the

Fund 1.0% of rental income during the reporting period for costs that could not be passed on to tenants.

b) Payments to the custodian bank– The custodian bank did not charge the investment fund any fee for the safekeeping of securities or the

handling of payment transactions.– For supervision of the management company the custodian bank charged the fund a fee equivalent to

0.03% of the net assets at the start of the financial year.– The custodian bank did not charge the investment fund any commission for the distribution of annual

income to the investors.

In compliance with the Federal Act on Collective Investment Schemes (CISA), the management company had the market values of the properties re-estimated as at December 31, 2014 using the discounted cash flow method (DCF method) as applied by Wüest & Partner AG. Under Art. 88 para. 2 CISA, Arts. 92 and 93 CISO and the SFAMA guidelines for real estate funds, the Fund’s properties are regularly valued by independent appraisers accredited by the supervisory authority using a dynamic capitalized income value method. The property values stated are the prices that would prob-ably be obtained upon a diligent sale at the time of appraisal. On the purchase or sale of properties contained in the Fund’s assets and at the close of each accounting year, the appraisers must review the market value of the real estate contained in the Fund’s assets. The market value of the individual properties represents the price that would probably be achieved in customary business transactions and on the assumption of diligent conduct by the purchaser and vendor. In individual cases, and especially on the purchase or sale of Fund properties, possible opportunities arising will be used in the best interests of the Fund. This may result in deviations from the valuations stated. Regarding tax treatment of the real estate fund in Germany, it should be noted that the details specified in § 5 para. 1 clauses 1 and 2 of the German Investment Tax Act (InvStG) are not published in the German Electronic Federal Gazette and that no certificate pursuant to § 5 para. 1 clause 3 of the Investment Tax Act is issued by a German auditing company. Hence, as the information for the review period was not determined in accordance with the procedures specified by German tax legislation, the investment fund is not deemed “transparent” in Germany from a taxation point of view. Investors are therefore recommended to contact their tax consultant for an assessment of personal tax implications.

Note 1:

Sales Restrictions

USA/Investor Base

Note 2:

Commissions

Note 3:

Valuation Method

Note 4:

Tax Treatment in

Germany


29

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 International with conducting the valuation in consultation with support staff abroad. The brief included co-ordination of the overall valuation process, including data preparation, provision of valuation software plus compilation and monitoring of the results supplied by the individual agents abroad. The valuation experts mandated by the fund management company and accredited by the Swiss Financial Market Supervisory Authority (FINMA) are responsible for the actual valuation of the properties. Credit Suisse Funds AG is responsible for procuring the necessary documentation.All properties held by Credit Suisse Real Estate Fund International were valued for accounting purposes as at December 31 of the 2014 financial year. As at the closing date, the portfolio comprised 35 properties (including new additions and properties valued for the first time). Two of the properties were under construction. The portfolio therefore comprises a total of 37 properties.The documentation relevant to the valuations was prepared by the fund management company and manage-ment companies responsible. The valuations are based firstly on an evaluation and analysis of these docu-ments, 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 require-ments of the Collective Investment Schemes Act (CISA) and Collective Schemes Ordinance (CISO), as well as with the Guidelines of the Swiss Funds & Asset Management Association (SFAMA), and furthermore accord with customary industry valuation standards. The market value of each property is reported on a “fair value” basis, i.e. the likely achievable sale price under normal circumstances and current market conditions excluding any transaction costs.Properties under construction are valued at cost, provided the effective market value is not exceeded (impair-ment).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 excludes any undeveloped land, which would be valued using the comparison and residual value method. A DCF valuation at completion was performed for the buildings under construction. With the DCF method, the market value of a property is determined as the total of all projected future net earnings discounted to valuation-date equiva-lents. Income is discounted separately for each property with adjustment for market conditions and risks, i.e. with allowance for specific opportunities and risks.The valuation includes a detailed analysis and assessment of the individual income and cost items. The valua-tion experts based their assessment on recent year’s individual accounts for each property, the current rental situation, as well as extensive market intelligence. This is used as the basis for the estimation and modeling of future cash flows and for definition of the discount rate. Valuations are prepared on the basis of a continu-ation 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.

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

Commission

Valuation

Standards

Valuation Method

Independence and

Confidentiality


30

As at December 31, 2014, the market value of the portfolio properties is estimated by the experts at CHF 2 336.09 million (conversion from local currency into Swiss francs as at closing rate on December 31, 2014). The acquisition cost of the buildings under construction as at the valuation date, which if applicable has been corrected by value adjustments on the basis of valuations for completions less residual construction costs, is reported by the fund management company at CHF 95.63 million. The total value of the portfolio is therefore CHF 2 431.72 million.Compared to December 31, 2013, the value of the total portfolio has increased by CHF 241.36 million or 11.02% (including exchange rate movements).Planned refurbishment work for the next 10 years was reviewed. The scheduling and scale of investment for the individual properties were consequently reassessed and adjusted where necessary.The discount rates used in the valuations are based on constant observation of real estate markets, particu-larly the yields paid in arm’s-length transactions. The average discount rate as at December 31, 2014, was 5.45%.

Zurich, December 31, 2014Wüest & Partner AG

Dr. Christoph Zaborowski Andreas Ammann

Result


31

Report of the Audit Company

As audit company for collective investment schemes, we have audited the accompanying financial state-ments of the investment fund Credit Suisse Real Estate Fund International which comprise the state-ment 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 para-graph 1 lit. b–h and article 90 of the Swiss Collective Investment Schemes Act (CISA) for the year ended 31 December 2014.

Responsibility of the Fund Management Company’s Board of DirectorsThe Board of Directors of the Fund Management Company is responsible for the preparation of the finan-cial statements in accordance with the requirements of the Swiss Collective Investment Schemes Act, the related ordinances as well as the sales prospectus with integrated fund contract. This responsibility includes designing, implementing and maintaining an internal control system relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The Board of Directors of the Fund Management Company is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.

Responsibility of the audit company for collective investment schemesOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control system relevant to the entity’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the existence and effectiveness of the entity’s internal control system. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements for the year ended 31 December 2014 comply with the Swiss Col-lective Investment Schemes Act, the related ordinances as well as the sales prospectus with integrated fund contract. Report on other legal requirementsWe confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) and article 127 CISA as well as on independence (article 11 AOA) and that there are no circumstances incompatible with our independence.

KPMG AG

Dominik Rüttimann Markus SchunkLicensed Audit Expert Licensed Audit ExpertLead Auditor

Zurich, 31 March 2015

As KPMG audited the German version of the annual financial statements, this audit report exclusively refers to the German version of the financial statements.

* Information on the special features, the macroeconomic environment, the commercial property and investor market, the real estate portfolio, the outlook, the price performance, the geographical and regional distribution of the investments, the structural breakdown according to actual net rental income and the valuation report do not form part of the additional information and are subject to audit procedures within the meaning of PS 720.

Brief Report of the

collective invest-

ment scheme regu-

latory auditor to the

Board of Directors

of the Fund

Management Com-

pany concerning

the annual financial

statements

Credit Suisse Funds AGUetlibergstrasse 231 / SDRS 6CH-8045 Zurich

Phone 044 332 58 08Fax 044 337 20 82

www.credit-suisse.com/realestatefunds 04.1

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Credit Suisse Real Estate Fund International