Unaudited Semi-Annual Report Credit Suisse Real Estate Fund … · 2017-10-31 · Credit Suisse Real Estate Fund International • Unaudited Semi-Annual Report as at June 30, 2015

Unaudited Semi-Annual Report Credit Suisse Real Estate Fund InternationalInvestment fund under Swiss law of the “Real estate funds” category for qualified investorsJune 30, 2015

Credit Suisse Real Estate Fund International • Unaudited Semi-Annual Report as at June 30, 2015

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Contents

Information in Brief 3Management and Statutory Bodies 4 Information on Third Parties 5Statement of Assets 6Statement of Income 7Schedule of Properties in Swiss Francs / General Information about the Properties / Financial Data on the Properties / Breakdown of Residential / Commercial Premises 8Schedule of Properties (Local Currencies) / Financial Data on the Properties 12Land 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 / Units in Circulation 14Mortgages / Loans / Transactions between Funds 15Capital Gains/Losses on Currencies 16Further Information on Off-Balance-Sheet Business 17Brief Report 18Valuation Report 19Notes to the Unaudited Semi-Annual Report 21


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Information in Brief

Key Data 30/6/2015 31/12/2014 31/12/2013Swiss 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 991.46 1 034.42 1 016.22Issue price per unit CHF 1 060.00 1 105.00 1 085.00Redemption price per unit CHF 920.00 960.00 945.00Closing price (bid price) CHF 1 165.00 1 075.00 1 005.00Highest price (in review period) CHF 1 250.00 1 075.00 1 070.00Lowest price (in review period) CHF 1 075.00 955.00 955.00Market capitalization CHF 2 461.5 mio. 2 271.4 mio. 2 123.5 mio.Premium / discount 17.50% 3.92% –1.10%

Statement of Assets 30/6/2015 31/12/2014 31/12/2013Market value of properties CHF 2 265.8 mio. 2 431.7 mio. 2 190.4 mio.Book value of properties CHF 2 177.2 mio. 2 345.4 mio. 2 193.6 mio.Total assets CHF 2 538.0 mio. 2 678.6 mio. 2 366.7 mio.Third-party borrowings: 1)

– in % of investment costs 13.10% 14.25% 4.01%– in % of aggregate market value 12.59% 13.74% 4.02%Debt as a percentage of total assets 17.34% 18.27% 9.13%Net asset value attributable to the unitholders of the Fund CHF 2 094.9 mio. 2 185.6 mio. 2 147.2 mio.

Return and Performance Data 30/6/2015 31/12/2014 31/12/2013Distribution CHF n/a 41.00 40.00Distribution yield n/a 3.81% 3.98%Distribution ratio n/a 92.87% 91.18%Return on equity (ROE) attributable to the unitholders of the Fund –0.33% 2) 6.77% 4.43%

Return on invested capital (ROIC) –0.07% 2) 6.27% 4.23%Return on investment –0.23% 2) 5.92% 4.49%Performance 12.11% 2) 11.35% 7.04%EBIT margin 73.44% 74.03% 72.63%Total expense ratio GAV (TERREF GAV) 3) 0.85% 0.85% 0.95%Total expense ratio NAV (TERREF NAV) 3) 1.00% 0.98% 1.04%Price/earnings ratio (P/E) n/a 15.36 22.33Price/cash flow ratio 6.84 34.35 14.31

Statement of Income 30/6/2015 30/6/2014 30/6/2013Net income total CHF 42.5 mio. 45.9 mio. 49.0 mio.Realized capital gains/losses CHF 137.5 mio. 10.4 mio. –11.0 mio.Rental income CHF 68.9 mio. 67.4 mio. 65.9 mio.Rental losses 4.63% 7.10% 5.59%Maintenance expense CHF 7.7 mio. 7.7 mio. 5.8 mio.1) Permitted weighting: 50% of aggregate market value (Regulations § 14, para. 2)2) Calculation for six months (1/1/–30/6/2015)3) 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 June 30, 2015 were 17.46% lower than the total fund assets.


4

Management and Statutory Bodies

Management and Statutory Bodies

Management CompanyCredit Suisse Funds AG, Zurich

Board of Directors– Dr. Thomas Schmuckli, Chairman– Luca Diener, Vice President, Managing Director, Credit Suisse AG, Zurich– Maurizio Pedrini, Member, Managing Director, Credit Suisse AG, Zurich– Petra Reinhard Keller (since April 7, 2015), 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

– Markus Graf (until January 31, 2015), Member, Chief Executive Officer, Swiss Prime Site AG, Olten– Lars Kalbreier (until March 31, 2015), Member, Managing Director, Credit Suisse AG, Zurich

Executive Board– Thomas Schärer, Chief Executive Officer– Patrick Tschumper, Deputy CEO and Head Fund Solutions– Michael Bünzli, Member, Legal Counsel– Thomas Federer, Member, Performance & Risk Management– Tim Gutzmer, Member, Fund Services– Hans Christoph Nickl, Member, COO– Thomas Vonaesch, Member, Real Estate Fund Management– Gabriele Wyss, Member, Compliance

Custodian BankCredit Suisse AG, Zurich

Audit CompanyKPMG AG, Zurich


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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– Gino Fiorentin (since January 1, 2015), architect (HTL degree), Wüest & Partner AG, Zurich– Pascal Marazzi-de Lima (since January 1, 2015), architect (degree ETH), 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 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., CBRE 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

Statement of Assets as at June 30, 2015 30/6/2015 31/12/2014

Market value Market value CHF CHFAssetsCash holdings, balances on postal and bank accounts at sight including fiduciary investments with third-party banks 70 331 502 154 759 325Cash at time, including fiduciary investments with third-party banks 25 061 378 55 000 613Other investments 155 000 000 38 000 000

Sites– Commercial properties 2 165 757 076 2 336 091 775

of which under leasehold 173 344 644 199 515 307 of which under condominium rights 70 168 086 75 599 963

– Development land (incl. properties for demolition) and schemes under construction 100 064 745 95 630 812Total sites 2 265 821 821 2 431 722 587

Derivative financial instruments 9 135 430 –24 996 838Other assets 12 657 401 24 084 748Total assets 2 538 007 532 2 678 570 435

LiabilitiesMortgages and other mortgage-backed liabilities 285 157 214 321 427 425Receivables and loans 0 12 730 379Other liabilities 54 349 035 51 887 387Total liabilities 339 506 249 386 045 191

Net assets before estimated liquidation taxes 2 198 501 283 2 292 525 244Estimated liquidation taxes 100 608 858 103 423 412Net assets 2 097 892 425 2 189 101 832– of which attributable to minority interests 3 032 084 3 479 672– of which attributable to the unitholders of the Fund 2 094 860 341 2 185 622 160

Number of units in circulation 2 112 896 2 112 896Net asset value per unit 991.46 1 034.42 Less distribution for financial year 2014 (coupon no. 10) 0.00 41.00Asset value per unit after distribution 991.46 993.42

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 43 500 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 1 797 150 581 1 902 806 681

Change in the net asset value of the unitholders of the FundNet assets at beginning of financial year 2 185 622 160 2 147 173 541Distribution –86 628 736 –84 515 840Balance from sales and purchases of units, excl. equalization on the issue of units andpayouts of current income on the redemption of units 0 0Total income –6 947 637 147 917 663Balance of deposit/withdrawal of reserves for repairs 0 6 500 000Change in liquidation taxes 2 814 554 –31 453 204Net assets at end of financial year 2 094 860 341 2 185 622 160

Details from previous yearsNet assets Net asset value per unit

30/6/2015 2 094 860 341 991.46 31/12/2014 2 185 622 160 1 034.42 31/12/2013 2 147 173 541 1 016.22

Conversion rate as at 30/6/2015 as at 31/12/2014CAD/CHF 0.748568 0.857826EUR/CHF 1.041276 1.202379GBP/CHF 1.469767 1.549338100 JPY/CHF 0.763740 0.828767AUD/CHF 0.718295 0.813092USD/CHF 0.934550 0.993650NZD/CHF 0.632036 0.776637100 CLP/CHF 0.146131 0.163722100 CLP/USD 0.156365 0.164768UF/CHF 36.507849 40.319981


7

Statement of Income as at June 30, 2015 1/1/2015 1/1/2015 1/1/2014 1/1/2014 to 30/6/2015 to 30/6/2015 to 30/6/2014 to 30/6/2014

CHF CHF CHF CHFIncomeIncome from postal and bank accounts 378 318 222 680Rental income 68 909 081 67 420 837Income from other investments 215 394 132 415Other income 108 240 55 864Current income paid in by new subscribers 0 0Total income 69 611 033 67 831 796

ExpensesMortgage interest and interest on mortgage-backedliabilities 5 201 126 2 467 821 Other interest due 0 38 747 Ground rent 451 430 550 458 Repairs and maintenance 7 651 496 7 728 641 Taxes and charges – Taxes on capital and profits 2 904 549 824 811 Valuation and auditing expenses 646 178 673 580 Remuneration (as per fund regulations) for – the fund management company 8 035 711 7 100 015 – the custodian bank 327 843 322 076 – the property management companies 578 580 539 842 Costs for annual report 26 146 21 888 Fees payable to supervisory bodies 4 000 750 Other expenses 1 283 479 1 696 063 Net current income paid out on redemption of units 0 0 Total expenses 27 110 538 27 110 538 21 964 692 21 964 692

Net income 42 500 495 45 867 104– of which attributable to minority interests –4 636 –6 679– of which attributable to the unitholders of the Fund 42 505 131 45 873 783 Realized capital gains and losses from investments 0 784 828Realized capital gains and losses from currency 137 482 649 9 568 206Realized income 179 983 144 56 220 138– of which attributable to minority interests –4 636 –6 679– of which attributable to the unitholders of the Fund 179 987 780 56 226 817

Unrealized capital gains and losses from investments 5 290 501 13 964 692Unrealized capital gains and losses from currency –192 225 707 –19 289 176Total income –6 952 062 50 895 654– of which attributable to minority interests –4 425 –6 679– of which attributable to the unitholders of the Fund –6 947 637 50 902 333

Average conversion rates for 1/1/–30/6/2015 for 1/1/–30/6/2014CAD/CHF 0.754912 0.811042EUR/CHF 1.045015 1.218350GBP/CHF 1.439635 1.489925100 JPY/CHF 0.782161 0.870780AUD/CHF 0.729980 0.813619USD/CHF 0.942358 0.888500NZD/CHF 0.688341 0.755125100 CLP/CHF 0.150887 0.159916100 CLP/USD 0.160116 0.179984UF/CHF 37.306464 37.921377


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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 29 339 418 10 954 224 811 874 – – 811 874 – – – – – – – – 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 43 366 402 19 971 674 1 282 554 345 936 26.97 936 618 – – – – – – – – 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 69 775 180 58 957 047 2 867 589 – – 2 867 589 – – – – – – – – 480 – – 7 19 515 – – – – – – 7 19 515 100.00 Berlin, Invalidenstrasse 91 Germany 1 42 6 438 1 379 2011 01/07/2011 Sole ownership 22 500 967 24 584 526 641 884 89 828 13.99 552 056 – – – – – – – – 28 – – 11 6 438 – – – – 3 – 14 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 64 700 303 68 869 995 2 058 769 59 716 2.90 1 999 053 – – – – – – – – 288 9 17 098 6 2 226 – – 6 1 056 – – 21 20 380 100.00

Boston, “Independence Wharf”, 470 Atlantic Avenue USA 1 134 31 249 3 361 1927/2001 25/09/2009 Sole ownership 111 421 349 146 509 404 4 571 968 145 810 3.19 4 426 158 – – – – – – – – 110 2 407 21 30 566 – – – – 1 276 24 31 249 100.00 Brisbane, 55 Elizabeth Street Australia 1 68 19 659 1 998 2013 17/06/2011 Sole ownership 124 049 551 136 037 890 4 722 171 – – 4 722 171 – – – – – – – – 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 33 908 357 39 404 453 1 188 527 – – 1 188 527 – – – – – – – – 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 30 151 297 24 637 519 1 451 068 5 174 0.36 1 445 894 – – – – – – – – 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 21 676 994 22 678 505 713 735 – – 713 735 – – – – – – – – 31 – – 10 4 909 – – – – – – 10 4 909 100.00 Chicago, 250 South Wacker Drive USA 1 87 22 757 1 811 1957/2007 15/12/2011 Sole ownership 89 029 423 88 754 214 2 942 968 – – 2 942 968 – – – – – – – – 58 1 927 23 21 327 1 503 – – 4 – 29 22 757 100.00 Den Haag, Anna van Saksenlaan 69/71 Netherlands 1 113 9 324 4 510 2003 29/09/2006 Sole ownership on leased site 41 779 352 27 708 354 1 025 471 – – 1 025 471 – – – – – – – – 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 38 051 919 53 292 506 1 677 478 – – 1 677 478 – – – – – – – – 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 34 202 622 34 931 176 940 284 – – 940 284 – – – – – – – – – 4 1 494 – – – – – – – – 4 1 494 100.00 Hanover, “Kontorhaus”, Ernst-August-Platz 3–3A Germany 1 34 11 025 2 848 1850/2002 01/08/2005 Sole ownership 29 858 524 28 353 945 927 020 62 620 6.75 864 400 – – – – – – – – – 1 5 217 15 4 400 1 79 15 1 329 2 – 34 11 025 100.00 Houston, 919 Milam Street USA 1 471 50 440 5 806 1956/1992/2006 23/05/2013 Sole ownership 112 215 293 113 089 896 5 094 648 574 241 11.27 4 520 407 – – – – – – – – 365 10 1 390 58 46 080 5 1 304 17 1 429 16 237 106 50 440 100.00 Leeds, “One Leeds City Office Park”, Meadow Lane United Kingdom 1 202 5 234 5 388 1996 16/09/2009 Sole ownership 23 956 998 25 309 388 1 056 886 – – 1 056 886 – – – – – – – – 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 75 120 229 94 300 251 2 008 058 – – 2 008 058 – – – – – – – – 7 – – 9 8 606 – – – – – – 9 8 606 100.00 Mayence, “Römerpassage”, Adolf-Kolping-Strasse Germany 2 322 16 651 4 945 2003 28/12/2006 Sole ownership 74 101 878 74 503 298 2 063 478 62 941 3.05 2 000 537 – 29 7 – – 36 2 685 16.13 181 44 6 610 17 4 784 5 553 32 1 981 7 38 105 13 966 83.87 Mayence, Isaac-Fulda-Allee 3 Germany 1 155 7 748 5 940 1994 01/08/2005 Sole ownership 24 141 640 18 753 381 617 472 – – 617 472 – – – – – – – – 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 73 714 963 56 967 976 2 250 534 14 720 0.65 2 235 814 – – – – – – – – 100 4 668 15 17 354 – – – – 2 – 21 18 022 100.00 Montreal, “Place du Canada”, 1010 Rue de la Gauchetière West Canada 1 472 36 777 2 907 1967 30/06/2006 Sole ownership 68 715 044 80 673 173 2 743 445 181 348 6.61 2 562 097 – – – – – – – – 353 10 932 69 34 560 – – 36 1 285 4 – 119 36 777 100.00 Munich, “Laimer Würfel”, Landsberger Strasse 300 Germany 1 195 25 300 5 353 2007 10/02/2012 Sole ownership 79 528 969 80 698 890 2 674 430 190 604 7.13 2 483 826 – – – – – – – – 161 2 590 11 19 388 – – 16 1 933 5 3 389 34 25 300 100.00 Osnabrück, Nikolaiort 5 Germany 1 6 8 939 1 711 1946/1991/1992 01/04/2006 Sole ownership 26 012 950 22 377 021 589 466 – – 589 466 – – – – – – – – – 6 8 939 – – – – – – – – 6 8 939 100.00 Rotterdam, “The Corner”, Binnenwegplein 26–68 Netherlands 1 12 13 628 3 013 1959/1999 12/09/2006 Sole ownership 38 787 303 40 078 713 1 350 748 116 515 8.63 1 234 233 – – – – – – – – – 9 13 145 – – 1 378 2 105 – – 12 13 628 100.00 San Francisco, “Adam Grant Building”, 114 Sansome Street USA 1 52 17 194 1 756 1908/1926/2000 31/10/2013 Sole ownership 103 209 455 112 024 509 2 789 777 334 110 11.98 2 455 667 – – – – – – – – – 2 1 446 30 15 107 1 142 19 499 – – 52 17 194 100.00 Santiago de Chile, Apoquindo 5400, Las Condes Chile 2 768 22 265 4 069 2014 15/05/2014 Condominium 63 978 922 70 168 086 2 927 858 773 756 26.43 2 154 102 – – – – – – – – 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 20 211 010 32 094 050 1 224 087 4 647 0.38 1 219 440 – – – – – – – – 226 1 88 20 8 328 – – 36 267 – – 57 8 683 100.00 Sydney, “Latitude East Building”, 52 Goulburn Street Australia 1 222 23 104 1 832 2) 2007 03/03/2008 Co-ownership 91 582 052 75 729 842 2 854 032 – – 2 854 032 – – – – – – – – 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 27 563 764 17 840 508 468 241 62 183 13.28 406 058 – – – – – – – – 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 66 425 051 36 635 997 837 460 18 772 2.24 818 688 – – – – – – – – 5 – – 10 3 663 – – 6 638 4 – 20 4 301 100.00 Toronto, 121 Bloor Street East Canada 1 219 22 694 2 104 1982 15/02/2005 Sole ownership on leased site 38 211 367 55 753 345 1 972 163 292 131 14.81 1 680 032 – – – – – – – – 158 1 37 30 21 782 – – 21 875 9 – 61 22 694 100.00 Toronto, 160 Bloor Street East Canada 1 368 35 329 4 593 1982 15/02/2005 Sole ownership 64 510 861 106 715 854 3 361 769 2 660 0.08 3 359 109 – – – – – – – – 304 7 1 513 32 33 157 2 290 17 369 6 – 64 35 329 100.00 Washington, 1099 New York Avenue USA 1 168 16 563 1 610 2008 21/09/2009 Sole ownership 92 806 370 161 359 403 4 394 383 – – 4 394 383 – – – – – – – – 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 1 159 35 267 5 365 1966/2009/2011 15/11/2012 Sole ownership 104 970 087 105 038 063 2 724 176 4 698 0.17 2 719 478 – – – – – – – – 134 3 277 17 34 097 – – 3 819 2 74 25 35 267 100.00

Total II 38 6 213 573 441 111 118 2 053 575 864 2 165 757 076 71 826 471 3 342 410 4.65 68 484 061 – 29 7 – – 36 2 685 0.47 5 075 123 62 327 564 485 089 17 3 766 329 15 560 69 4 014 1 102 570 756 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 45 911 573 22 386 703 425 020 – – 425 020 – – – – – – – – – – – – – – – – – – – – – – Vancouver, “The Exchange”, 475 Howe Street, 819-829 West Pender Street Canada 2 – – 1 739 1929/2017 01/08/2011 Sole ownership 77 678 042 77 678 042 – – – – – – – – – – – – – – – – – – – – – – – – – – Total IV 3 – – 6 457 123 589 615 100 064 745 425 020 – – 425 020 – – – – – – – – – – – – – – – – – – – – – –

Lots under leasehold Total V – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Total 41 6 213 573 441 117 575 2 177 165 479 2 265 821 821 72 251 491 3 342 410 4.63 68 909 081 – 29 7 – – 36 2 685 0.47 5 075 123 62 327 564 485 089 17 3 766 329 15 560 69 4 014 1 102 570 756 99.53

1) Non-annualized2) Co-ownership 50/100 = 1 832 m2 (total site area = 3 663 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 6 213 573 441 111 118 2 053 575 864 2 165 757 076 71 826 471 3 342 410 4.65 68 484 061 – 29 7 – – 36 2 685 0.47 5 075 123 62 327 564 485 089 17 3 766 329 15 560 69 4 014 1 102 570 756 99.53




Total 41 6 213 573 441 117 575 2 177 165 479 2 265 821 821 72 251 491 3 342 410 4.63 68 909 081 – 29 7 – – 36 2 685 0.47 5 075 123 62 327 564 485 089 17 3 766 329 15 560 69 4 014 1 102 570 756 99.53


10


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 6 213 573 441 111 118 2 053 575 864 2 165 757 076 71 826 471 3 342 410 4.65 68 484 061 – 29 7 – – 36 2 685 0.47 5 075 123 62 327 564 485 089 17 3 766 329 15 560 69 4 014 1 102 570 756 99.53




Total 41 6 213 573 441 117 575 2 177 165 479 2 265 821 821 72 251 491 3 342 410 4.63 68 909 081 – 29 7 – – 36 2 685 0.47 5 075 123 62 327 564 485 089 17 3 766 329 15 560 69 4 014 1 102 570 756 99.53



12

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 4 573 700 000 120 216 167 – – 120 216 167 Tokyo, “HN Green Building”, 2-8-3 Higashi-Nihonbashi, Chuo-ku Japan 3 609 050 732 2 335 940 000 59 864 997 7 950 120 13.28 51 914 877 Tokyo, “Toranomon 1-chome”, 1-16-16 Toranomon, Minato-ku Japan 8 697 338 240 4 796 920 000 107 070 000 2 400 000 2.24 104 670 000 Total JPY 16 784 695 930 11 706 560 000 287 151 164 10 350 120 3.60 276 801 044

Euro (EUR)Amsterdam, “Spectrum”, Gatwickstraat 9–39 Netherlands 28 176 409 10 520 000 776 902 – – 776 902 Amsterdam, “Teleport Towers”, Kingsfordweg 151–241 Netherlands 41 647 365 19 180 000 1 227 307 331 035 26.97 896 272 Amsterdam, “MediArena”, Mediarena 1–8 Netherlands 67 009 304 56 620 000 2 744 065 – – 2 744 065 Arnheim, Koningstraat 26–37 Netherlands 44 091 646 21 499 298 406 712 – – 406 712 Berlin, Invalidenstrasse 91 Germany 21 609 033 23 610 000 614 234 85 958 13.99 528 276 Berlin, “Kant Center”, Wilmersdorfer Str. 108–111, Kantstr. 112–114, Krumme Str. 48–49 Germany 62 135 594 66 140 000 1 970 086 57 144 2.90 1 912 942

Den Haag, Anna van Saksenlaan 69/71 Netherlands 40 123 226 26 610 000 981 298 – – 981 298 Dublin, “La Touche House”, IFSC Ireland 36 543 548 51 180 000 1 605 219 – – 1 605 219 Hanover, “Kontorhaus”, Ernst-August-Platz 3–3A Germany 28 674 937 27 230 000 887 088 59 923 6.76 827 165 Mayence, “Römerpassage”, Adolf-Kolping-Strasse Germany 71 164 492 71 550 000 1 974 592 60 230 3.05 1 914 362 Mayence, Isaac-Fulda-Allee 3 Germany 23 184 670 18 010 000 590 874 – – 590 874 Munich, “Laimer Würfel”, Landsberger Strasse 300 Germany 76 376 454 77 500 000 2 559 226 182 393 7.13 2 376 833 Osnabrück, Nikolaiort 5 Germany 24 981 801 21 490 000 564 074 – – 564 074 Rotterdam, “The Corner”, Binnenwegplein 26–68 Netherlands 37 249 781 38 490 000 1 292 563 111 496 8.63 1 181 067 Total EUR 602 968 260 529 629 298 18 194 240 888 179 4.88 17 306 061

Canadian dollar (CAD)Montreal, “Place du Canada”, 1010 Rue de la Gauchetière West Canada 91 795 326 107 770 000 3 634 126 240 225 6.61 3 393 901 Toronto, 121 Bloor Street East Canada 51 045 953 74 480 000 2 612 441 386 974 14.81 2 225 467 Toronto, 160 Bloor Street East Canada 86 179 026 142 560 000 4 453 193 3 524 0.08 4 449 669 Vancouver, “The Exchange”, 475 Howe Street, 819-829 West Pender Street Canada 103 768 852 103 768 852 – – – – Total CAD 332 789 157 428 578 852 10 699 760 630 723 5.89 10 069 037

Pound sterling (GBP)Bristol, “Temple Quay”, 3 Rivergate United Kingdom 23 070 566 26 810 000 825 575 – – 825 575 Cardiff, 5 Callaghan Square United Kingdom 14 748 592 15 430 000 495 775 – – 495 775 Leeds, “One Leeds City Office Park”, Meadow Lane United Kingdom 16 299 861 17 220 000 734 135 – – 734 135 London, “Earl Place”, 15 Appold Street United Kingdom 51 110 298 64 160 000 1 394 838 – – 1 394 838 Total GBP 105 229 317 123 620 000 3 450 323 – – 3 450 323

Australian dollar (AUD)Brisbane, 55 Elizabeth Street Australia 172 700 006 189 390 000 6 468 905 – – 6 468 905 Canberra, 62 Northbourne Avenue Australia 41 976 204 34 300 000 1 987 819 7 088 0.36 1 980 731 Melbourne, “Zurich House”, 505 Little Collins Street Australia 102 624 914 79 310 000 3 083 008 20 165 0.65 3 062 843 Sydney, “Latitude East Building”, 52 Goulburn Street Australia 127 499 219 105 430 000 3 909 740 – – 3 909 740 Total AUD 444 800 343 408 430 000 15 449 472 27 253 0.18 15 422 219

US dollar (USD)Boston, “Independence Wharf”, 470 Atlantic Avenue USA 119 224 599 156 770 000 4 851 625 154 728 3.19 4 696 897 Chicago, 250 South Wacker Drive USA 95 264 483 94 970 000 3 122 983 – – 3 122 983 Houston, 919 Milam Street USA 120 074 146 121 010 000 5 406 277 609 366 11.27 4 796 911 San Francisco, “Adam Grant Building”, 114 Sansome Street USA 110 437 596 119 870 000 2 960 422 354 547 11.98 2 605 875 Washington, 1099 New York Avenue USA 99 305 944 172 660 000 4 663 178 – – 4 663 178 Total USD 544 306 768 665 280 000 21 004 485 1 118 641 5.33 19 885 844

Chilean pesos (CLP)Santiago de Chile, Apoquindo 5400, Las Condes Chile 43 781 896 000 48 017 249 000 1 940 431 000 512 805 000 26.43 1 427 626 000 Santiago de Chile, “Edificio Magdalena Norte”, Magdalena 181, Las Condes Chile 13 830 748 000 21 962 520 000 811 261 000 3 080 000 0.38 808 181 000 Total CLP 57 612 644 000 69 979 769 000 2 751 692 000 515 885 000 18.75 2 235 807 000

New Zealand dollar (NZD)Wellington, “Justice Centre”, 19 Aitken Street, Mulgrave Street & Kat Sheppard Place, Thorndon New Zealand 166 082 450 166 190 000 3 957 596 6 825 0.17 3 950 771

Total NZD 166 082 450 166 190 000 3 957 596 6 825 0.17 3 950 771

1) Non-annualized


13

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 4 573 700 000 120 216 167 – – 120 216 167 Tokyo, “HN Green Building”, 2-8-3 Higashi-Nihonbashi, Chuo-ku Japan 3 609 050 732 2 335 940 000 59 864 997 7 950 120 13.28 51 914 877 Tokyo, “Toranomon 1-chome”, 1-16-16 Toranomon, Minato-ku Japan 8 697 338 240 4 796 920 000 107 070 000 2 400 000 2.24 104 670 000 Total JPY 16 784 695 930 11 706 560 000 287 151 164 10 350 120 3.60 276 801 044

Euro (EUR)Amsterdam, “Spectrum”, Gatwickstraat 9–39 Netherlands 28 176 409 10 520 000 776 902 – – 776 902 Amsterdam, “Teleport Towers”, Kingsfordweg 151–241 Netherlands 41 647 365 19 180 000 1 227 307 331 035 26.97 896 272 Amsterdam, “MediArena”, Mediarena 1–8 Netherlands 67 009 304 56 620 000 2 744 065 – – 2 744 065 Arnheim, Koningstraat 26–37 Netherlands 44 091 646 21 499 298 406 712 – – 406 712 Berlin, Invalidenstrasse 91 Germany 21 609 033 23 610 000 614 234 85 958 13.99 528 276 Berlin, “Kant Center”, Wilmersdorfer Str. 108–111, Kantstr. 112–114, Krumme Str. 48–49 Germany 62 135 594 66 140 000 1 970 086 57 144 2.90 1 912 942

Den Haag, Anna van Saksenlaan 69/71 Netherlands 40 123 226 26 610 000 981 298 – – 981 298 Dublin, “La Touche House”, IFSC Ireland 36 543 548 51 180 000 1 605 219 – – 1 605 219 Hanover, “Kontorhaus”, Ernst-August-Platz 3–3A Germany 28 674 937 27 230 000 887 088 59 923 6.76 827 165 Mayence, “Römerpassage”, Adolf-Kolping-Strasse Germany 71 164 492 71 550 000 1 974 592 60 230 3.05 1 914 362 Mayence, Isaac-Fulda-Allee 3 Germany 23 184 670 18 010 000 590 874 – – 590 874 Munich, “Laimer Würfel”, Landsberger Strasse 300 Germany 76 376 454 77 500 000 2 559 226 182 393 7.13 2 376 833 Osnabrück, Nikolaiort 5 Germany 24 981 801 21 490 000 564 074 – – 564 074 Rotterdam, “The Corner”, Binnenwegplein 26–68 Netherlands 37 249 781 38 490 000 1 292 563 111 496 8.63 1 181 067 Total EUR 602 968 260 529 629 298 18 194 240 888 179 4.88 17 306 061

Canadian dollar (CAD)Montreal, “Place du Canada”, 1010 Rue de la Gauchetière West Canada 91 795 326 107 770 000 3 634 126 240 225 6.61 3 393 901 Toronto, 121 Bloor Street East Canada 51 045 953 74 480 000 2 612 441 386 974 14.81 2 225 467 Toronto, 160 Bloor Street East Canada 86 179 026 142 560 000 4 453 193 3 524 0.08 4 449 669 Vancouver, “The Exchange”, 475 Howe Street, 819-829 West Pender Street Canada 103 768 852 103 768 852 – – – – Total CAD 332 789 157 428 578 852 10 699 760 630 723 5.89 10 069 037

Pound sterling (GBP)Bristol, “Temple Quay”, 3 Rivergate United Kingdom 23 070 566 26 810 000 825 575 – – 825 575 Cardiff, 5 Callaghan Square United Kingdom 14 748 592 15 430 000 495 775 – – 495 775 Leeds, “One Leeds City Office Park”, Meadow Lane United Kingdom 16 299 861 17 220 000 734 135 – – 734 135 London, “Earl Place”, 15 Appold Street United Kingdom 51 110 298 64 160 000 1 394 838 – – 1 394 838 Total GBP 105 229 317 123 620 000 3 450 323 – – 3 450 323

Australian dollar (AUD)Brisbane, 55 Elizabeth Street Australia 172 700 006 189 390 000 6 468 905 – – 6 468 905 Canberra, 62 Northbourne Avenue Australia 41 976 204 34 300 000 1 987 819 7 088 0.36 1 980 731 Melbourne, “Zurich House”, 505 Little Collins Street Australia 102 624 914 79 310 000 3 083 008 20 165 0.65 3 062 843 Sydney, “Latitude East Building”, 52 Goulburn Street Australia 127 499 219 105 430 000 3 909 740 – – 3 909 740 Total AUD 444 800 343 408 430 000 15 449 472 27 253 0.18 15 422 219

US dollar (USD)Boston, “Independence Wharf”, 470 Atlantic Avenue USA 119 224 599 156 770 000 4 851 625 154 728 3.19 4 696 897 Chicago, 250 South Wacker Drive USA 95 264 483 94 970 000 3 122 983 – – 3 122 983 Houston, 919 Milam Street USA 120 074 146 121 010 000 5 406 277 609 366 11.27 4 796 911 San Francisco, “Adam Grant Building”, 114 Sansome Street USA 110 437 596 119 870 000 2 960 422 354 547 11.98 2 605 875 Washington, 1099 New York Avenue USA 99 305 944 172 660 000 4 663 178 – – 4 663 178 Total USD 544 306 768 665 280 000 21 004 485 1 118 641 5.33 19 885 844

Chilean pesos (CLP)Santiago de Chile, Apoquindo 5400, Las Condes Chile 43 781 896 000 48 017 249 000 1 940 431 000 512 805 000 26.43 1 427 626 000 Santiago de Chile, “Edificio Magdalena Norte”, Magdalena 181, Las Condes Chile 13 830 748 000 21 962 520 000 811 261 000 3 080 000 0.38 808 181 000 Total CLP 57 612 644 000 69 979 769 000 2 751 692 000 515 885 000 18.75 2 235 807 000

New Zealand dollar (NZD)Wellington, “Justice Centre”, 19 Aitken Street, Mulgrave Street & Kat Sheppard Place, Thorndon New Zealand 166 082 450 166 190 000 3 957 596 6 825 0.17 3 950 771

Total NZD 166 082 450 166 190 000 3 957 596 6 825 0.17 3 950 771

1) Non-annualized


14

Land Purchases and SalesStatement of Land Purchases and Sales in Financial Year 2015 (Status as at 30/6/2015)Purchases Country Building class Site area m2

Wellington, “Justice Centre”, 19 Aitken Street, Mulgrave Street & Kat Sheppard Place, Thorndon 1) New Zealand Commercial property 2 682 1)

1) Acquisition of the second co-ownership share (total site area 5 365 m2)

Sales Country Building class Site area m2

None

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, status as at April 20, 2015).

Tenants Accounting for over 5% of Rental IncomeTenant Property location Percentage of rental incomeAustralian Tax Office Sydney and Brisbane 10,44%

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 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 the first six months of fiscal 2015.

Units in CirculationStatus as at January 1, 2015 2 112 896 unitsRedemptions 0 unitsIssues 0 unitsStatus as at June 30, 2015 2 112 896 units


15

MortgagesMortgages current (as at 30/6/2015) Type of loan from

Termto

Currency

Amountin foreign currency

Exchange rateas at 30/6/2015

Amount in CHF Interest rate

Fixed-rate mortgage 1) 07/07/2011 07/07/2015 JPY 1 812 500 000 0.763740 13 842 787 2.340%Fixed-rate mortgage 1) 07/07/2011 07/07/2015 JPY 1 212 500 000 0.763740 9 260 348 2.340%Rollover mortgage 07/07/2011 07/07/2015 JPY 187 500 000 0.763740 1 432 013 1.840%Fixed-rate mortgage 2) 28/11/2011 07/07/2015 JPY 822 700 000 0.763740 6 283 289 2.270%Fixed-rate mortgage 2) 28/11/2011 07/07/2015 JPY 502 500 000 0.763740 3 837 794 2.270%Rollover mortgage 28/11/2011 07/07/2015 JPY 81 500 000 0.763740 622 448 1.840%Rollover mortgage 3) 22/12/2011 21/12/2016 JPY 1 132 750 000 0.763740 8 651 265 1.794%Rollover mortgage 3) 22/12/2011 21/12/2016 JPY 985 000 000 0.763740 7 522 839 1.794%Fixed-rate mortgage 4) 27/04/2010 27/04/2020 CLP 8 812 549 140 0.146131 12 877 866 5.610%Fixed-rate mortgage 5) 15/05/2014 15/05/2021 CLP 32 470 602 942 0.146131 47 449 617 3.760%Fixed-rate mortgage 31/01/2014 29/06/2018 EUR 84 450 000 1.041276 87 935 758 2.461%Fixed-rate mortgage 17/10/2014 17/10/2019 AUD 118 950 000 0.718295 85 441 190 4.985%Total current mortgages 285 157 214

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 187 500 000 had been repaid, of which JPY 25 000 000 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 53 300 000 had been repaid, of which JPY 8 000 000 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 32 250 000 in past financial years.

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 72 258 had been repaid, of which UF 10 796 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.

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 (as at 30/6/2015) Type of loan from

Termto

Currency


Interest rate

None

Matured Loans (1/1/ to 30/6/2015) Type of loan from

Termto

Currency


Interest rate

Credit 11/11/2014 09/02/2015 CLP 7 775 606 902 4.440%

Transactions between FundsDuring the first six months of the 2015 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 (as at 30/6/2015) Type of loan from

Termto

Amount in CHF

Interestrate

Credit 30/06/2015 20/07/2015 155 000 000 0.525%

Matured Other Investments (1/1/ to 30/6/2015) Type of loan from

Termto

Amount in CHF

Interestrate

Credit 19/06/2015 30/06/2015 135 800 000 0.525%Credit 10/06/2015 19/06/2015 151 000 000 0.525%Credit 29/05/2015 10/06/2015 10 000 000 0.325%Credit 20/05/2015 10/06/2015 141 000 000 0.325%Credit 05/05/2015 20/05/2015 53 000 000 0.325%Credit 30/04/2015 20/05/2015 30 000 000 0.325%Credit 15/04/2015 05/05/2015 53 000 000 0.325%Credit 31/03/2015 15/04/2015 68 000 000 0.325%Credit 26/03/2015 31/03/2015 148 000 000 0.325%Credit 19/03/2015 26/03/2015 213 000 000 0.325%Credit 20/02/2015 19/03/2015 90 000 000 0.375%Credit 19/02/2015 19/03/2015 138 000 000 0.375%Credit 10/02/2015 19/02/2015 38 000 000 0.375%Credit 30/01/2015 19/02/2015 100 000 000 0.375%Credit 20/01/2015 30/01/2015 38 000 000 0.375%Credit 20/01/2015 30/01/2015 10 000 000 0.375%Credit 10/01/2015 20/01/2015 38 000 000 0.375%Credit 09/01/2015 20/01/2015 10 000 000 0.375%Credit 10/12/2014 10/01/2015 38 000 000 0.375%

The applied interest rates were average, current market rates between the prevailing rates for fixed advances and fixed-term deposits or similar investments respectively. The interest rates are always set for the entire term.Credit Suisse Real Estate Fund International did not receive any loans from other real estate funds of Credit Suisse AG during the first six months of the 2015 fiscal year.


16

Capital Gains/Losses on CurrenciesRealized Capital Gains/Losses on CurrenciesRealized capital gains/losses on concluded forward foreign exchange contracts (1/1/–30/6/2015)

Currency Datetrade

Datevalue

Number ofcontracts

Amount inforeign currency

Purchase price Number ofcontracts

Liquidationproceeds

Currencyprofit/loss

CAD 15/12/2014 20/02/2015 1 CAD 351 530 500 CHF 292 396 039 CAD 22/01/2015 20/02/2015 1 CAD 1 845 450 CHF 1 291 490 CAD 09/02/2015 20/02/2015 1 CAD –19 632 000 CHF –14 521 398 CAD 17/02/2014 20/02/2015 Total CAD 333 743 950 CHF 279 166 131 3 CHF 251 542 815 CHF 27 623 316

CAD 17/02/2015 20/04/2015 1 CAD 333 743 950 CHF 250 621 682 CAD 19/02/2015 20/04/2015 1 CAD 1 763 750 CHF 1 328 516 CAD 16/03/2015 20/04/2015 1 CAD –624 000 CHF –490 475 CAD 24/03/2015 20/04/2015 1 CAD 2 133 500 CHF 1 629 631 CAD 15/04/2015 20/04/2015 Total CAD 337 017 200 CHF 253 089 354 4 CHF 261 727 558 CHF –8 638 204

CAD 15/04/2015 19/06/2015 1 CAD 337 017 200 CHF 260 911 976 CAD 20/05/2015 19/06/2015 1 CAD 1 254 000 CHF 960 610 CAD 16/06/2015 19/06/2015 Total CAD 338 271 200 CHF 261 872 586 2 CHF 255 969 817 CHF 5 902 769

EUR 15/12/2014 20/02/2015 1 EUR 347 398 000 CHF 417 224 998 EUR 17/02/2015 20/02/2015 Total EUR 347 398 000 CHF 417 224 998 1 CHF 368 936 676 CHF 48 288 322

EUR 17/02/2015 20/04/2015 1 EUR 347 398 000 CHF 368 111 606 EUR 16/03/2015 20/04/2015 1 EUR 2 384 000 CHF 2 536 373 EUR 15/04/2015 20/04/2015 Total EUR 349 782 000 CHF 370 647 979 2 CHF 361 674 588 CHF 8 973 391

EUR 15/04/2015 19/06/2015 1 EUR 349 782 000 CHF 361 128 928 EUR 16/06/2015 19/06/2015 Total EUR 349 782 000 CHF 361 128 928 1 CHF 365 976 907 CHF –4 847 979

JPY 17/11/2014 20/01/2015 1 JPY 5 250 717 000 CHF 43 482 920 JPY 15/01/2015 20/01/2015 Total JPY 5 250 717 000 CHF 43 482 920 1 CHF 39 564 153 CHF 3 918 767

JPY 15/01/2015 20/03/2015 1 JPY 5 250 717 000 CHF 39 515 583 JPY 16/03/2015 20/03/2015 Total JPY 5 250 717 000 CHF 39 515 583 1 CHF 43 554 698 CHF –4 039 115

JPY 16/03/2015 20/05/2015 1 JPY 5 495 336 000 CHF 45 514 241 JPY 13/05/2015 20/05/2015 Total JPY 5 495 336 000 CHF 45 514 241 1 CHF 42 407 508 CHF 3 106 733

AUD 17/11/2014 20/01/2015 1 AUD 229 086 000 CHF 191 195 176 AUD 15/01/2015 20/01/2015 Total AUD 229 086 000 CHF 191 195 176 1 CHF 166 797 517 CHF 24 397 659

AUD 15/01/2015 20/03/2015 1 AUD 229 086 000 CHF 165 778 084 AUD 16/03/2015 20/03/2015 Total AUD 229 086 000 CHF 165 778 084 1 CHF 176 487 854 CHF –10 709 770

AUD 16/03/2015 20/05/2015 1 AUD 242 000 000 CHF 185 302 304 AUD 13/05/2015 20/05/2015 Total AUD 242 000 000 CHF 185 302 304 1 CHF 180 338 400 CHF 4 963 904

USD 17/11/2014 20/01/2015 1 USD 569 500 000 CHF 548 844 235 USD 15/01/2015 20/01/2015 Total USD 569 500 000 CHF 548 844 235 1 CHF 502 185 100 CHF 46 659 135

USD 15/01/2015 20/03/2015 1 USD 569 500 000 CHF 501 387 800 USD 21/01/2015 20/03/2015 1 USD –61 025 000 CHF –52 603 550 USD 16/03/2015 20/03/2015 Total USD 508 475 000 CHF 448 784 250 2 CHF 511 475 003 CHF –62 690 753

USD 16/03/2015 20/05/2015 1 USD 524 500 000 CHF 526 366 171 USD 13/05/2015 20/05/2015 Total USD 524 500 000 CHF 526 366 171 1 CHF 482 802 250 CHF 43 563 921

CLP 17/11/2014 20/01/2015 1 CLP 24 094 109 000 USD 40 237 323 CLP 16/01/2015 20/01/2015 Total CLP 24 094 109 000 USD 40 237 323 1 USD 38 632 785 CHF 1 382 348

CLP 16/01/2015 20/03/2015 1 CLP 24 094 109 000 USD 38 132 641 CLP 16/03/2015 20/03/2015 Total CLP 24 094 109 000 USD 38 132 641 1 USD 37 588 314 CHF 538 666

CLP 16/03/2015 20/05/2015 1 CLP 25 422 202 USD 39 402 049 CLP 13/05/2015 20/05/2015 Total CLP 25 422 202 USD 39 402 049 1 USD 42 398 602 CHF –2 811 594

GBP 15/12/2014 20/02/2015 1 GBP 100 263 000 CHF 151 629 740 GBP 17/02/2015 20/02/2015 Total GBP 100 263 000 CHF 151 629 740 1 CHF 144 077 931 CHF 7 551 809

GBP 17/02/2015 20/04/2015 1 GBP 100 263 000 CHF 143 598 674 GBP 16/03/2015 20/04/2015 1 GBP 6 924 000 CHF 10 297 089 GBP 15/04/2015 20/04/2015 Total GBP 107 187 000 CHF 153 895 763 2 CHF 154 381 436 CHF –485 673

GBP 15/04/2015 19/06/2015 1 GBP 107 187 000 CHF 153 943 577 GBP 16/06/2015 19/06/2015 Total GBP 107 187 000 CHF 153 943 577 1 CHF 156 225 053 CHF –2 281 476

NZD 17/11/2014 20/01/2015 1 NZD 71 870 000 CHF 54 423 558 NZD 15/01/2015 20/01/2015 Total NZD 71 870 000 CHF 54 423 558 1 CHF 49 676 544 CHF 4 747 014

NZD 15/01/2015 20/03/2015 1 NZD 71 870 000 CHF 49 302 820 NZD 16/03/2015 20/03/2015 Total NZD 71 870 000 CHF 49 302 820 1 CHF 53 464 093 CHF –4 161 273


17

Further Information on Off-Balance-Sheet Business

Equivalent underlying value in CHF

30/6/2015% of

net fund assetsEquivalent underlying value

in CHF

31/12/2014% of

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

Exposure-reducing derivative positions:– Currency risk 1 570 615 617 74.87 1 764 175 210 80.59 Total exposure-reducing positions 1 570 615 617 74.87 1 764 175 210 80.59

Currency Datetrade

Datevalue

Number ofcontracts



Liquidationproceeds

Currencyprofit/loss

NZD 16/03/2015 20/05/2015 1 NZD 75 520 000 CHF 55 715 258 NZD 25/03/2015 20/05/2015 1 NZD 76 500 000 CHF 55 613 588 NZD 30/03/2015 20/05/2015 1 NZD –713 700 CHF –515 223 NZD 13/05/2015 20/05/2015 Total NZD 151 306 300 CHF 110 813 623 3 CHF 104 280 302 CHF 6 533 321

Realized capital gain on concluded forward foreign exchange contracts CHF 137 485 238

Realized capital loss on other foreign exchange transactions CHF –2 589

TOTAL REALIZED CAPITAL GAINS/LOSSES ON CURRENCIES CHF 137 482 649

Unrealized Capital Gains/Losses on CurrenciesUnrealized capital gains/losses on open forward foreign exchange contracts as at 30/6/2015

Currency Purchasedate

Valuedate

Number ofcontracts



Equivalentunderlying value

Currencyprofit/loss

CAD 16/06/2015 20/08/2015 1 CAD 338 271 200 CHF 255 149 509 CAD 19/06/2015 20/08/2015 1 CAD 2 465 000 CHF 1 848 109 CAD 20/08/2015 Total CAD 340 736 200 CHF 256 997 618 2 CHF 254 427 380 CHF 2 570 238

EUR 16/06/2015 20/08/2015 1 EUR 349 782 000 CHF 365 452 234 1 CHF 363 787 971 CHF 1 664 263

JPY 13/05/2015 21/07/2015 1 JPY 4 945 800 000 CHF 38 101 949 1 CHF 37 755 248 CHF 346 701

AUD 13/05/2015 21/07/2015 1 AUD 251 000 000 CHF 185 960 880 AUD 30/06/2015 21/07/2015 1 AUD 2 040 000 CHF 1 466 207 AUD 21/07/2015 Total AUD 253 040 000 CHF 187 427 087 2 CHF 181 442 838 CHF 5 984 249

USD 13/05/2015 21/07/2015 1 USD 512 500 000 CHF 470 603 125 USD 19/05/2015 21/07/2015 1 USD 2 100 000 CHF 1 949 514 USD 21/07/2015 Total USD 514 600 000 CHF 472 552 639 2 CHF 480 599 863 CHF –8 047 224

GBP 16/06/2015 20/08/2015 1 GBP 107 187 000 CHF 155 801 664 1 CHF 157 195 524 CHF –1 393 860

NZD 13/05/2015 21/07/2015 1 NZD 151 306 300 CHF 103 417 856 1 CHF 95 406 793 CHF 8 011 063

Unrealized capital gain on open forward foreign exchange contracts CHF 9 135 430

Unrealized capital loss on the conversion of the asset and income statement positions CHF –201 361 137

TOTAL UNREALIZED CAPITAL GAINS/LOSSES ON CURRENCIES CHF –192 225 707


18

Brief Report for the Period January 1 – June 30, 2015

Credit Suisse Real Estate Fund International is the first real estate fund under Swiss law to undertake direct invest-ment 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 the first half of 2015, global real economic growth remained in the region of 3% despite a loss of momentum in some key emerging markets in Asia and Latin America. The economic slowdown in China was at the center of attention. For various commodity locations, however, the significant decline in commodity prices is also creating challenges. By contrast, economic output in the industrialized countries is rising again. The European economies in particular are on a clear recovery trend, driven by stronger consumer spending and an increase in corporate invest-ment. The UK and Germany are continuing to follow their robust growth trajectory. Economic activity has also shown a pleasing improvement in Spain, France, Italy and the Netherlands. The US economy, and notably the labor market, also remains in robust form, while growth in Canada has slowed significantly. Credit Suisse economists expect the current year to see a continuation of the current trend and see real global growth reaching 3.2%. 2015 should see real economic output increase by 2.5% in the UK and the USA, 1.6% in the eurozone and 0.8% in Japan. While European interest rates look set to persist at very low levels, in the US the Fed is expected to start normalizing USD rates toward the end of the year. The economic recovery in the industrialized countries has also led to an improvement in demand for rental space and a decline in vacancies for commercial real estate. Rents for office and commercial space showed the strongest growth rates in the US and the UK, but various European and Asian cities also experienced positive trends. The first half of 2015 again saw strong demand for premium-quality real estate investments. Capitalization rates continued to decline in most markets in the US and Europe. As interest rates are still very low, however, risk premi-ums in the core real estate investment segment (long-term rental contracts, tenants with high credit ratings, first-class properties) remain high. In most markets, risk premiums are between 200 and 300 basis points and therefore above the historical average for the past fifteen years. Owing to their stable cash flows and their suitability for diversification purposes, the Australian and New Zealand markets are the current favorites in the Asia-Pacific region. In the Americas, the price cycle in the “Gateway Cities” is generally already at an advanced stage. However, outside these cities there are still some attractive opportunities. Real estate investments in Europe are also once again increasingly finding favor with many investors. The ECB’s strongly expansionary monetary policy – and in particular the QE bond-buying program, which should continue until September 2016 – has again boosted interest in eurozone real estate. The most liquid real estate markets are those in Germany and the UK. However, the Dutch, Spanish and Irish markets are also showing signs of recovery again and are currently enjoying strong demand.

On January 15, 2015, the Swiss National Bank abandoned its exchange rate floor of CHF 1.20 against the euro, leading to a sharp appreciation of the Swiss franc against other currencies.Weighted to the portfolio allocation, the exchange rates applied to the statement of assets as of June 30, 2015 are approximately 10.3% lower than on December 31, 2014, while the average exchange rates applied to the income statement as of June 30, 2015 are roughly 5.5% lower than during the corresponding year-back period, 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 54.74 million (loss of CHF 9.72 mil-lion), which corresponds to 2.61% of the net asset value as of June 30, 2015. The exchange rate fluctuations in the income statement are not hedged. On behalf of the fund management company and in compliance with the Collective Investment Schemes Act (CISA), the Fund’s properties were individually valued by independent, FINMA-accredited valuation experts as at December 31, 2014 and, in addition, at June 30, 2015. This also involved recourse to external consultants abroad.The estimates are prepared on the basis of the International Valuation Standards. The valuations themselves are carried out using the discounted cash flow (DCF) method. The resulting aggregate market value as at June 30, 2015 comes to CHF 2 265.82 million (2 431.72 million as at Dec. 31, 2014). The average weighted discount rate is 5.49% (5.45% as at Dec. 31, 2014). Excluding currency factors, this means on balance that the real estate portfolio appreciated by around 0.55% from the December 31, 2014 position.

In the first half of 2015, the real estate portfolio was expanded by an investment in New Zealand.On November 15, 2012, the Fund acquired a 50% co-ownership share in the Justice Centre office property in Wellington (NZ) and was able to acquire the remaining 50% as of April 1, 2015. The property is now held in sole ownership. The Justice Centre is located in the government district of New Zealand’s capital city. Built in 1966, the property was totally refurbished and extended in three phases between 2009 and 2011. The principal long-term tenants are the Accident Compensation Corporation and the Ministry of Justice. All tenants are government organizations. In addition, after the balance sheet date, the Fund signed a contract for the sale of the property at Nikolaiort 5 in Osnabrück.

Investor Base,

Special Features

International Real

Estate Markets in

the First Half of

2015

Foreign Exchange

Influences

Half-Year

Valuation

Continuing Port-

folio Development


19

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. In addition, the prop-erties of Credit Suisse Real Estate Fund International are valued in the semi-annual statement of the financial year.The valuation experts were tasked by the fund management company of Credit Suisse Real Estate Fund Inter-national with conducting the valuation in consultation with support staff abroad. The brief included coordination of the overall valuation process, including data preparation, provision of valuation software plus compilation and monitoring of the results supplied by the individual agents abroad. The valuation experts mandated by the fund management company and accredited by the Swiss Financial Market Supervisory Authority (FINMA) are responsible for the actual valuation of the properties. Credit Suisse Funds AG is responsible for procuring the necessary documentation.All properties held by Credit Suisse Real Estate Fund International were valued for accounting purposes as at June 30 of the 2015 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 soft-ware, 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 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 equivalents. Income is discounted separately for each property with adjustment for market conditions and risks, i.e. with allowance for specific opportunities and risks.The valuation includes a detailed analysis and assessment of the individual income and cost items. The 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 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.

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

Commission

Valuation

Standards

Valuation Method

Independence and

Confidentiality


20

As at June 30, 2015, the market value of the portfolio properties is estimated by the experts at CHF 2 165.76 million (conversion from local currency into Swiss francs as at closing rate on June 30, 2015). 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 100.06 million. The total value of the portfolio is therefore CHF 2 265.82 million.Compared to December 31, 2014, the value of the total portfolio has decreased by CHF 165.90 million or 6.82% (including exchange rate movements).Planned refurbishment work for the next 10 years was reviewed. The scheduling and scale of investment for the individual properties were consequently reassessed and adjusted where necessary.The discount rates used in the valuations are based on constant observation of real estate markets, particularly the yields paid in arm’s-length transactions. The average discount rate as at June 30, 2015, was 5.49%.

Zurich, July 17, 2015Wüest & Partner AG

Pascal Marazzi-de Lima Andreas Ammann

Result


21

Notes to the Unaudited Semi-Annual Report as at June 30, 2015

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 0.8% 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 and again as at June 30, 2015 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

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

Phone 044 332 58 08Fax 044 337 20 82

www.credit-suisse.com/realestatefunds 08.1

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Documents

Unaudited Semi-Annual Report Credit Suisse Real Estate Fund … · 2017-10-31 · Credit Suisse Real Estate Fund International • Unaudited Semi-Annual Report as at June 30, 2015