credit suisse real estate fund global · 2017-10-31 · credit suisse real estate fund global •...

Credit Suisse Funds AG

Credit Suisse Real Estate Fund GlobalInvestment fund under Swiss law of the “Real estate funds” category with real estate investments located exclusively outside Switzerland

Audited Annual Report as at December 31, 2014

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

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Contents

Information in Brief 3Management and Statutory Bodies 4Information on Third Parties 5Report on Activities 6Geographical Distribution of the Fund’s Properties / Regional Breakdown by Market Value / Development of Net Asset Value and Distribution 10Structural Breakdown by Actual Net Rental Income / Breakdown of Property/Real Estate 11Statement of Assets 12Statement of Income 13Schedule of Properties in Swiss Francs / General Information about the Properties / Financial Data on the Properties / Breakdown of Residential / Commercial Premises / Schedule of Properties (Local Currencies) 14Land 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 18Mortgages / Loans / Transactions between Funds 19Capital Gains/Losses on Currencies 20Further Information on Off-Balance-Sheet Business 21Notes to the Audited Annual Report 22Valuation Report 23Report of the Audit Company 24


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Information in Brief

Key Data 31/12/2014 31/12/2013 31/12/2012 1)

Swiss security no. 13 985 167Fund units issued – – 2 310 000Fund units redeemed – – – Number of units in circulation 2 310 000 2 310 000 2 310 000Net asset value per unit (incl. distribution) CHF 100.83 98.95 98.61Issue price per unit CHF 110.00 107.00 107.00

Redemption price per unit CHF 93.00 91.00 91.00Closing price CHF 97.70 92.45 103.90Highest price (in review period) CHF 99.95 105.80 106.00Lowest price (in review period) CHF 87.90 88.35 96.00Market capitalization CHF 225.7 mio. 213.6 mio. 240.0 mio.Premium / Discount –3.10% –6.57% 5.36%

Statement of Assets 31/12/2014 31/12/2013 31/12/2012 1)

Market value of properties CHF 323.6 mio. 309.1 mio. 296.8 mio.Book value of properties CHF 315.4 mio. 307.6 mio. 294.7 mio.Total assets CHF 354.9 mio. 349.3 mio. 316.1 mio.Third-party borrowings: 2)

– in % of investment costs 34.83% 34.76% 27.27%– in % of aggregate market value 33.94% 34.59% 27.08%Debt as a percentage of total assets 34.37% 34.55% 27.94%Net asset value CHF 232.9 mio. 228.6 mio. 227.8 mio.

Return and Performance Data 31/12/2014 31/12/2013 31/12/2012 1)

Distribution CHF 3.80 3.60 1.80Distribution yield 3.89% 3.89% 1.73%Distribution ratio 85.87% 79.00% 83.44%Return on equity (ROE) 5.74% 2.85% 1.66% 3) 4)

Return on invested capital (ROIC) 4.90% 2.93% 1.83% 3) 4)

Return on investment 5.71% 2.19% 1.57% 3) 4)

Performance 10.00% –9.49% 3.90% 3)

EBIT margin 76.52% 75.92% 69.05% 3) 4)

Total expense ratio GAV (TERREF GAV) 6) 1.12% 1.17% 0.92% 5)

Total expense ratio NAV (TERREF NAV) 6) 1.67% 1.75% 1.03% 5)

Price/earnings ratio (P/E) 16.89 32.74 63.40 3) 4)

Price/cash flow ratio 17.96 10.21 30.55 3) 4)

Statement of Income 31/12/2014 31/12/2013 31/12/2012 1)

Net income total CHF 8.8 mio. 10.5 mio. 5.0 mio.Realized capital gains/losses CHF 2.3 mio. 10.4 mio. 2.9 mio.Rental income CHF 19.1 mio. 19.7 mio. 9.0 mio.Rental losses 10.41% 2.14% 0.32%Maintenance expense CHF 0.8 mio. 0.8 mio. 0.4 mio.

1) The fund was launched as at 29/11/2011. The first financial year lasts from 29/11/2011 until 31/12/2012 (extended financial year).2) Permitted weighting: 50% of aggregate market value (Art. 65 para. 2 former Collective Investment Schemes Act / Art. 96 para. 1 former Ordinance on Collective Investment Schemes)3) Calculation for extended financial year (29/11/2011–31/12/2012)4) Key figure not reliable due to new launch of the Fund5) Annualized figure6) 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 as at December 31, 2014 were 34.37% 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– Christoph Zaborowski (until December 31, 2014), economist (Dr. oec. publ.), Wüest & Partner AG, Zurich– Pascal Roth, lic. oec. publ., André Roth AG, Baden

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 CBRE (C) Pty Ltd Chile CBRE Chile S.A.Germany BNP Paribas Real Estate Property Management GmbH Great Britain BNP Paribas Real Estate Advisory & Property Management UK Ltd.Japan Savills Asset Advisory Co., Ltd.Netherlands Jones Lang LaSalle B.V.USA CBRE Inc.

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

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

Information on

Third Parties


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Report on Activities from January 1 to December 31, 2014

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

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%. Growth in Australia’s economic output remained robust, reaching 2.8%.

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


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The economists at Credit Suisse AG predict 6.0% growth for Asia excluding Japan, and 2.6% for Australia. 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 2014 reporting year saw no change in the real estate portfolio. As at December 31, 2014, the portfolio comprised 10 properties in Houston (USA), Leeds (UK), Munich (Germany), Stuttgart (Germany), Rotterdam (Netherlands), Perth (Australia), Tokyo (Japan), and Santiago (Chile). The properties are primarily used as of-fice and retail space. Office space accounted for 75.15% (78.10%), and retail space for 14.30% (12.80%). The remaining 10.55% (9.10%) of space consisted mainly of parking facilities and warehousing.In Perth, one tenant did not renew its expiring contract. A new rental contract has already been concluded from September 1, 2014 for most (51.53%) of these premises.At the end of 2014, the regional breakdown of the property investments was as follows: North/Central and South America: 17.55% (15.65%), Europe: 51.95% (52.20%), and Asia-Pacific: 30.50% (32.15%).

Valuation of properties2014 saw the portfolio’s value appreciate. Factoring out currency effects, it was 2.96% higher on average than in the previous year. In 2014, rental income fell from CHF 19.67 million to CHF 19.07 million (–3.10%). The distribution now stands at CHF 3.80 (3.60) per fund unit, giving a dividend yield of 3.89% (3.89%).

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

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 2.07 million (loss of CHF 4.28 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 33 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.

Credit Suisse Real Estate Fund Global did not acquire or dispose of any properties in the 2014 financial year. No projects were under construction at the closing date of the financial statements.

On behalf of the fund management company and in compliance with the Collective Investment Schemes Act (CISA), the properties were individually valued by independent, FINMA-accredited 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 323.62 million (309.12 million). The weighted dis-count rate is 5.50% (5.64%) of net income after deducting long-term refurbishing.

Liquid assets amounting to CHF 26.39 million (28.71 million) were invested in bank deposits, as well as short-term fiduciary and other investments. The business assets were invested in the following currencies:

Real estate

portfolio

Notes to the annual

financial statements

Foreign exchange

differences

Statement of

assets


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euro, sterling, yen, Chilean peso, US dollar and Australian dollar. To minimize currency fluctuation risks, the currencies were mostly hedged by means of foreign exchange forward transactions. At the end of the year, the result is a net liability of CHF 0.44 million from unrealized losses on outstanding forward foreign exchange transactions.

Borrowed funds total CHF 109.83 million (106.93 million) or 33.94% (34.59%) of the market value of the properties. The estimated liquidation taxes amount to CHF 3.97 million (1.85 million).

The Fund’s net assets after deduction of the estimated liquidation taxes come to CHF 232 908 932 (228 579 298). The return on investment per unit amounts to 5.71% (2.19%) on a net asset value per unit of CHF 100.83 (95.35 ex coupon).

Total income amounts to CHF 19.17 million (19.77 million), which represents a decrease of 3.04% com-pared with the previous year. This includes rental income of CHF 19.07 million (19.67 million), representing 99.44% (99.50%) of total income. Income from other investments stands at CHF 0.03 million (0.02 million), while income from deposits on postal and bank accounts amounts to CHF 0.08 million (0.07 million).

The percentage of rental income forfeited due to vacancies and collection losses stands at 10.41% (2.14%) of target rental income. The increase in rental income forfeited is due to the expiring rental contract of an anchor tenant in Perth, Australia. More than half of the available space has already been relet.

Total expenses amount to CHF 10.35 million (9.25 million). Borrowing costs total CHF 3.35 million (3.49 mil-lion). The average weighted interest rate comes in at 3.12% (2.91%), with an average remaining term to maturity of 3.43 years (4.43 years). Maintenance and repairs accounted for CHF 0.78 million (0.85 million), which amounts to 4.09% (4.30%) of rental income. For future special investments such as structural altera-tions to vacant properties CHF 1.40 million was allocated to the provisions for future repairs. Taxes on earn-ings and capital generated expenditure of CHF 1.01 million (income of 0.92 million). Appraisal and auditing expenses come to CHF 0.47 million (0.45 million).

The Fund was charged CHF 2.44 million (2.21 million) for management activities. The commission of 0.70% is levied on the total fund assets at the beginning of the financial year.

The remuneration paid to the property management companies in accordance with the Fund regulations stands at CHF 0.13 million (0.04 million). The other expenses amount to CHF 0.64 million (1.16 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 1.12% (1.17%). This key figure enables investors to draw a direct comparison with other real estate funds.

The Fund’s net income amounts to CHF 8.82 million (10.53 million) or CHF 3.82 (4.56) per unit. The op-erating profit margin (EBIT margin) comes to 76.52% (75.92%). 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 gains realized on currency hedg-ing amount to CHF 2.34 million (gains of 10.40 million), while unrealized capital losses arising from exchange rate fluctuations come to CHF 4.41 million (loss of 14.67 million). This also includes unrealized currency con-version 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 2.07 million (loss of 4.28 million). No properties were sold in 2014. The unrealized capital gains on investments amount to CHF 6.61 million (gain of 0.27 million). Including the cost of currency hedging and the balance of realized and unrealized capital changes on investments, aggregate net income comes to CHF 13.36 million (6.52 million) or CHF 5.79 (2.82) per unit.

For the 2014 financial year, CHF 8.78 million (8.32 million) or CHF 3.80 (3.60) per unit will be paid out. The no. 3 coupons are payable free of expenses at Credit Suisse AG, Zurich and its branches in Switzerland 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 95.35 (ex coupon) to CHF 100.83. The investment return therefore comes to 5.71% (2.19%).

Financial year 2014 2013Coupon no. 3 2Gross CHF 3.80 CHF 3.60Less 35% Swiss federal withholding tax CHF 1.33 CHF 1.26Total distribution CHF 2.47 CHF 2.34

No issue took place.

Statement of

income

Distribution, yield

Issuing of units


9

The units of Credit Suisse Real Estate Fund Global have been traded on SIX Swiss Exchange since launch on November 29, 2011. The closing price stood at CHF 97.70 at the end of the financial year, corresponding to an increase of CHF 5.25 or 5.68%.

Performance amounts to 10.00%, which is 4.99 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 discount resulting from the differ-ence between the closing price and the net asset value came to 3.10% (discount 6.57%).

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

Status as at January 1, 2014 2 310 000 unitsRedemptions 0 unitsIssues 0 unitsStatus as at December 31, 2014 2 310 000 units

Unit price

performance

in CHF

(1/1/–31/12/2014)

Redemptions

Units in circulation

105

100

95

90

85

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

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


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

Regional Break-

down by

Market Value

51.95% European region

30.50% Asia/Pacific region

17.55% North/Central/South

American region

CHF 10 million

Houston

Tokyo

Perth

LeedsRotterdam

MunichStuttgart

Santiago de Chile

Development of

Net Asset Value

and Distribution

Development of Net Asset Value and Distribution

Year as at31/12/

Units incirculation

Asset value perunit ex-coupon

CHF

Distribution fromord. income

CHF

CapitalgainsCHF

Totaldistribution

CHF

Net assetsat market values

in CHF mio.

2012* 2 310 000 96.81 1.80 0.00 1.80 227.792013 2 310 000 95.35 3.60 0.00 3.60 228.582014 2 310 000 97.03 3.80 0.00 3.80 232.91

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


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Structural Breakdown by Actual Net Rental Income

2.00% Storage/warehousing

0.65% Other

14.30% Retail

75.15% Office

7.65% Parking

Breakdown of

propertyAcquisition costs Market value Insurance value

CHF CHF CHFResidential buildings 817 523 1 082 261 2 681 305 Commercial properties 314 547 218 322 541 077 235 278 633 Mixed-use properties – – –

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

– – –

Total 315 364 741 323 623 338 237 959 938

Acquisition costs Market value

Residential buildings 0.25% 0.35%Commercial properties 99.75% 99.65%Mixed-use properties 0.00% 0.00%

Development land (incl. propertiesfor demolition) and schemes underconstruction

0.00% 0.00%

Total 100.00% 100.00%

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

0.25% Dwelling units


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Statement of Assets as at December 31, 2014

31/12/2014 31/12/2013

Market value Market value CHF CHFAssetsCash holdings, balances on postal and bank accounts at sight including fiduciary investments with third-party banks 17 112 243 19 708 943Cash at time, including fiduciary investments with third-party banks 279 120 0Other investments 9 000 000 9 000 000

Sites – Residential buildings 1 082 261 1 048 274– Commercial properties 322 541 077 308 073 525

of which under leasehold 21 799 131 23 382 120Total sites 323 623 338 309 121 799

Derivative financial instruments –442 895 6 379 768Other assets 5 321 483 5 056 333Total assets 354 893 289 349 266 843

LiabilitiesMortgages and other mortgage-backed liabilities 108 155 250 106 931 351Loans and credits 1 677 497 0Other liabilities 8 182 675 11 905 919Total liabilities 118 015 422 118 837 270

Net assets before estimated liquidation taxes 236 877 867 230 429 573Estimated liquidation taxes 3 968 935 1 850 275Net assets 232 908 932 228 579 298

Number of units in circulation 2 310 000 2 310 000Net asset value per unit 100.83 98.95Less distribution for financial year 2014 (coupon no. 3) 3.80 3.60Asset value per unit after distribution 97.03 95.35

Information on balance sheet and units due to be redeemedValue of depreciation account for sites 0 0Value of reserves account for future repairs 1 400 000 0Balance 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 237 959 938 224 560 152

Change in the net asset valueNet assets at beginning of financial year 228 579 298 227 794 039Distribution –8 316 000 –4 158 000Balance 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 13 364 294 6 523 769Balance of deposit/withdrawal of reserves for repairs 1 400 000 0Change in liquidation taxes –2 118 660 –1 580 510Net assets at end of financial year 232 908 932 228 579 298

Conversion rate as at 31/12/2014 as at 31/12/2013EUR/CHF 1.202379 1.225478GBP/CHF 1.549338 1.472957100 JPY/CHF 0.828767 0.846148AUD/CHF 0.813092 0.795504USD/CHF 0.993650 0.889350100 CLP/CHF 0.163722 0.169197100 CLP/USD 0.164768 0.190248UF/CHF 40.319981 39.439076

* The fund was launched as at 29/11/2011. The first financial year lasts from 29/11/2011 until 31/12/2012 (extended financial year).

Details from previous yearsNet assets Net asset value per unit

2014 232 908 932 100.832013 228 579 298 98.952012* 227 794 039 98.61


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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 77 249 73 635Rental income 19 065 263 19 674 348Income from other investments 30 361 23 818Other income 94 1 350Current income paid in by new subscribers 0 0Total income 19 172 967 19 773 151

ExpensesMortgage interest and interest onmortgage-backed liabilities 3 351 547 3 492 346Repairs and maintenance 780 067 845 828Taxes and charges– Taxes on capital and profits 1 013 698 917 122Valuation and auditing expenses 467 006 454 386Remuneration (as per fund regulations) for – the fund management company 2 444 868 2 212 927– the custodian bank 68 574 68 338– the property management companies 130 535 42 912Costs for annual report 50 662 49 250Fees payable to supervisory bodies 4 710 2 625Other expenses 638 404 1 161 058Reserves for future repairs– Allocation 1 400 000 0– Withdrawal 0 0Net current income paid out on redemption of units 0 0 Total expenses 10 350 071 10 350 071 9 246 792 9 246 792

Net income 8 822 896 10 526 359Realized capital gains and losses from investments 0 0Realized capital gains and losses from currency 2 342 295 10 395 313Realized income 11 165 191 20 921 672

Unrealized capital gains and losses from investments 6 608 218 274 640Unrealized capital gains and losses from currency –4 409 115 –14 672 543Total income 13 364 294 6 523 769

Application of resultsNet income of financial year 8 822 896 10 526 359Carried forward from preceding year 3 035 847 825 488Net income available for distribution 11 858 743 11 351 847Net income earmarked for distribution to investors –8 778 000 –8 316 000Carried forward to following year 3 080 743 3 035 847

Average conversion rates for 1/1/–31/12/2014 for 1/1/–31/12/2013EUR/CHF 1.212460 1.229554GBP/CHF 1.511893 1.448881100 JPY/CHF 0.863389 0.944716AUD/CHF 0.825102 0.889268USD/CHF 0.919271 0.925296100 CLP/CHF 0.160115 0.186154100 CLP/USD 0.174176 0.201183UF/CHF 38.444259 42.809792


14

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

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 buildingsStuttgart, Reinsburgstrasse 17 Germany 1 10 693 474 1957 01/11/2013 Sole ownership 817 523 1 082 261 54 766 – – 54 766 – 4 4 – – 8 488 70.42 – – – – – – – 2 205 – – 2 205 29.58 Total I 1 10 693 474 817 523 1 082 261 54 766 – – 54 766 – 4 4 – – 8 488 70.42 – – – – – – – 2 205 – – 2 205 29.58

Commercial properties Houston, 777 Post Oak Boulevard USA 1 630 16 423 4 047 1973 24/10/2012 Sole ownership 40 144 063 44 734 123 3 053 428 20 107 0.66 3 033 321 – – – – – – – – 593 – – 33 16 423 – – – – 4 – 37 16 423 100.00 Leeds, “Princes Exchange”, Princes Square United Kingdom 1 182 10 087 6 810 1999 14/05/2012 Sole ownership 60 580 510 65 273 610 4 075 826 – – 4 075 826 – – – – – – – – 171 – – 8 9 625 – – 2 462 1 – 11 10 087 100.00 Munich, “Karlshöfe”, Karlstrasse 35 Germany 1 80 11 531 2 942 2005 31/12/2011 Sole ownership 57 916 804 58 688 119 3 045 765 5 496 0.18 3 040 269 – – – – – – – – 42 – – 16 10 600 – – 21 931 1 – 38 11 531 100.00 Perth, 45 St Georges Terrace Australia 1 55 10 772 1 826 1972/1995 31/08/2012 Sole ownership 51 333 858 43 923 230 4 609 528 2 150 897 46.66 2 458 631 – – – – – – – – 32 1 20 15 10 013 – – 3 739 4 – 23 10 772 100.00 Rotterdam, “Port City III”, Waalhaven Z.z. 11 Netherlands 1 201 6 918 745 2011 30/11/2011 Sole ownership on leased site 23 363 997 21 799 131 1 636 288 – – 1 636 288 – – – – – – – – 194 – – 7 6 918 – – – – – – 7 6 918 100.00 Santiago de Chile, “Ombú”, Avenida Andrés Bello 2115, Providencia Chile 1 121 3 848 1 069 2012 01/02/2013 Sole ownership 11 573 616 11 995 195 1 006 510 39 646 3.94 966 864 – – – – – – – – 103 3 478 9 3 256 – – 6 114 – – 18 3 848 100.00 Stuttgart, Marienstrassen 50 Germany 1 27 3 567 1 289 1999 01/11/2013 Sole ownership 11 538 765 11 917 981 729 018 – – 729 018 – – – – – – – – 25 – – 1 3 531 – – 1 36 – – 2 3 567 100.00 Stuttgart, Silberburgstrasse 175, 175a, 177 Germany 1 96 3 443 2 295 1969/1995 01/11/2013 Sole ownership 9 173 953 9 435 068 635 523 – – 635 523 – – – – – – – – 94 – – 1 2 861 – – 1 582 – – 2 3 443 100.00 Tokyo, “J4”, 5-4, 5-5, 5-7, 5-14, 5-15, 5-17, 5-18, 4-chome, Jingumae, Shibuya-ku Japan 1 10 2 724 1 080 2012 03/08/2012 Sole ownership 48 921 652 54 774 620 2 434 757 – – 2 434 757 – – – – – – – – 6 4 2 724 – – – – – – – – 4 2 724 100.00 Total II 9 1 402 69 313 22 103 314 547 218 322 541 077 21 226 643 2 216 146 10.44 19 010 497 – – – – – – – – 1 260 8 3 222 90 63 227 – – 34 2 864 10 – 142 69 313 100.00

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

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

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

Total 10 1 412 70 006 22 577 315 364 741 323 623 338 21 281 409 2 216 146 10.41 19 065 263 – 4 4 – – 8 488 0.70 1 260 8 3 222 90 63 227 – – 36 3 069 10 – 144 69 518 99.30

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)Tokyo, “J4”, 5-4, 5-5, 5-7, 5-14, 5-15, 5-17, 5-18, 4-chome, Jingumae, Shibuya-ku Japan 5 902 944 038 6 609 170 000 282 000 000 – – 282 000 000 Total JPY 5 902 944 038 6 609 170 000 282 000 000 – – 282 000 000

Euro (EUR)Munich, “Karlshöfe”, Karlstrasse 35 Germany 48 168 509 48 810 000 2 512 054 4 533 0.18 2 507 521 Rotterdam, “Port City III”, Waalhaven Z. z. 11 Netherlands 19 431 475 18 130 000 1 349 560 – – 1 349 560 Stuttgart, Marienstrassen 50 Germany 9 596 612 9 912 000 601 272 – – 601 272 Stuttgart, Reinsburgstrasse 17 Germany 679 921 900 100 45 169 – – 45 169 Stuttgart, Silberburgstrasse 175, 175a, 177 Germany 7 629 835 7 847 000 524 160 – – 524 160 Total EUR 85 506 352 85 599 100 5 032 215 4 533 0.09 5 027 682

Pound sterling (GBP)Leeds, “Princes Exchange”, Princes Square United Kingdom 39 100 900 42 130 000 2 695 843 – – 2 695 843 Total GBP 39 100 900 42 130 000 2 695 843 – – 2 695 843

Australian dollar (AUD)Perth, 45 St Georges Terrace Australia 63 134 132 54 020 000 5 586 616 2 606 826 46.66 2 979 790 Total AUD 63 134 132 54 020 000 5 586 616 2 606 826 46.66 2 979 790

US dollar (USD)Houston, 777 Post Oak Boulevard USA 40 400 607 45 020 000 3 321 576 21 873 0.66 3 299 703 Total USD 40 400 607 45 020 000 3 321 576 21 873 0.66 3 299 703

Chilean pesos (CLP)Santiago de Chile, “Ombú”, Avenida Andrés Bello 2115, Providencia Chile 7 069 066 000 7 326 563 000 628 617 000 24 761 000 3.94 603 856 000 Total CLP 7 069 066 000 7 326 563 000 628 617 000 24 761 000 3.94 603 856 000

1) Non-annualized

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


No. m2 %






Total 10 1 412 70 006 22 577 315 364 741 323 623 338 21 281 409 2 216 146 10.41 19 065 263 – 4 4 – – 8 488 0.70 1 260 8 3 222 90 63 227 – – 36 3 069 10 – 144 69 518 99.30

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)Tokyo, “J4”, 5-4, 5-5, 5-7, 5-14, 5-15, 5-17, 5-18, 4-chome, Jingumae, Shibuya-ku Japan 5 902 944 038 6 609 170 000 282 000 000 – – 282 000 000 Total JPY 5 902 944 038 6 609 170 000 282 000 000 – – 282 000 000

Euro (EUR)Munich, “Karlshöfe”, Karlstrasse 35 Germany 48 168 509 48 810 000 2 512 054 4 533 0.18 2 507 521 Rotterdam, “Port City III”, Waalhaven Z. z. 11 Netherlands 19 431 475 18 130 000 1 349 560 – – 1 349 560 Stuttgart, Marienstrassen 50 Germany 9 596 612 9 912 000 601 272 – – 601 272 Stuttgart, Reinsburgstrasse 17 Germany 679 921 900 100 45 169 – – 45 169 Stuttgart, Silberburgstrasse 175, 175a, 177 Germany 7 629 835 7 847 000 524 160 – – 524 160 Total EUR 85 506 352 85 599 100 5 032 215 4 533 0.09 5 027 682

Pound sterling (GBP)Leeds, “Princes Exchange”, Princes Square United Kingdom 39 100 900 42 130 000 2 695 843 – – 2 695 843 Total GBP 39 100 900 42 130 000 2 695 843 – – 2 695 843

Australian dollar (AUD)Perth, 45 St Georges Terrace Australia 63 134 132 54 020 000 5 586 616 2 606 826 46.66 2 979 790 Total AUD 63 134 132 54 020 000 5 586 616 2 606 826 46.66 2 979 790

US dollar (USD)Houston, 777 Post Oak Boulevard USA 40 400 607 45 020 000 3 321 576 21 873 0.66 3 299 703 Total USD 40 400 607 45 020 000 3 321 576 21 873 0.66 3 299 703

Chilean pesos (CLP)Santiago de Chile, “Ombú”, Avenida Andrés Bello 2115, Providencia Chile 7 069 066 000 7 326 563 000 628 617 000 24 761 000 3.94 603 856 000 Total CLP 7 069 066 000 7 326 563 000 628 617 000 24 761 000 3.94 603 856 000

16


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


No. m2 %






Total 10 1 412 70 006 22 577 315 364 741 323 623 338 21 281 409 2 216 146 10.41 19 065 263 – 4 4 – – 8 488 0.70 1 260 8 3 222 90 63 227 – – 36 3 069 10 – 144 69 518 99.30


18

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

None

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/from 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 incomeK.K. ESCRIT Tokyo 14.58%DLA Piper Leeds 13.36%Argos Groep B.V. Rotterdam 8.78%Regus Group Leeds, Munich 7.79%Allianz Stuttgart 7.29%Bayern-Invest Kapitalanlagegesellschaft Munich 5.76%

Real Estate Companies in the Fundn REF Global Holding AG, Zugn REF Global Chile Fund Holding AG, Zug

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

Overview of Units of Other 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.


19

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 03/08/2012 03/08/2019 JPY 1 999 200 000 0.828767 16 568 710 1.793%Fixed-rate mortgage 1 03/08/2012 03/08/2019 JPY 980 000 000 0.828767 8 121 917 1.793%Fixed-rate mortgage 2 15/11/2012 01/12/2017 USD 21 000 000 0.993650 20 866 650 3.350%Fixed-rate mortgage 3 17/12/2012 16/12/2015 EUR 24 000 000 1.202379 28 857 096 1.758%Fixed-rate mortgage 4 29/01/2013 30/12/2016 GBP 15 675 000 1.549338 24 285 873 4.775%Rollover mortgage 4 29/01/2013 30/12/2016 GBP 1 000 000 1.549338 1 549 338 4.308%Fixed-rate mortgage 5 01/02/2013 01/02/2023 CLP 4 828 713 069 0.163722 7 905 666 5.040%Total current mortgages 108 155 250

¹) The mortgages totaling JPY 3 040 000 000 were concluded on August 3, 2012, with the purchase of the property in Tokyo. By the balance sheet date, JPY 60 800 000 had been repaid, of which JPY 30 400 000 during the current financial year.

2) The mortgage totaling USD 21 000 000 was concluded on November 15, 2012, with encumbrance of the property in Houston. Monthly installments of USD 33 925 are to be made for the first time on January 1, 2016.

3) The mortgage totaling EUR 24 000 000 was concluded on December 17, 2012, with encumbrance of the property in Munich.4) The mortgages totaling GBP 17 675 000 were concluded on January 29, 2013, with encumbrance of the property in Leeds.

By the balance sheet date, GBP 1 000 000 had been repaid, of which GBP 625 000 during the current financial year.5) The mortgage was concluded with encumbrance of the property in Santiago de Chile.

The mortgage was concluded in the accounting currency Unidad de Fomento (UF) and amounts to UF 200 200. By the balance sheet date, UF 4 127 had been repaid, of which UF 4 127 during the current financial year. 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. The interest rate for rollover mortgage is 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 30/11/2014 28/02/2015 CLP 1 024 601 234 0.163722 1 677 497 5.280%

Matured loans Type of loan from

Termto

Currency


Interestrate

Credit 31/07/2014 30/11/2014 CLP 1 024 601 234 5.520%Credit 30/05/2014 31/07/2014 CLP 1 024 601 234 5.640%Credit 29/03/2014 30/05/2014 CLP 1 024 601 234 5.760%

Current Other Investments Type of loan from

Termto

Amount in CHF

Interestrate

Credit 10/12/2014 10/01/2015 9 000 000 0.375%Total current other investments 9 000 000

Matured Other Investments Type of loan from

Termto

Amount in CHF

Interestrate

Credit 10/11/2014 10/12/2014 7 000 000 0.375%Credit 10/10/2014 10/11/2014 7 000 000 0.375%Credit 22/09/2014 10/10/2014 7 000 000 0.375%Credit 10/09/2014 22/09/2014 7 000 000 0.375%Credit 29/08/2014 10/09/2014 7 000 000 0.375%Credit 08/08/2014 29/08/2014 7 000 000 0.375%Credit 18/07/2014 08/08/2014 7 000 000 0.375%Credit 10/07/2014 18/07/2014 8 000 000 0.375%Credit 30/06/2014 10/07/2014 8 000 000 0.375%Credit 10/06/2014 30/06/2014 8 000 000 0.375%Credit 30/05/2014 10/06/2014 8 000 000 0.310%Credit 16/05/2014 30/05/2014 8 000 000 0.310%Credit 30/04/2014 16/05/2014 10 000 000 0.310%Credit 10/04/2014 30/04/2014 10 000 000 0.310%Credit 21/03/2014 10/04/2014 10 000 000 0.310%Credit 14/03/2014 21/03/2014 10 000 000 0.310%Credit 28/02/2014 14/03/2014 14 000 000 0.310%Credit 10/02/2014 28/02/2014 14 000 000 0.310%Credit 31/01/2014 10/02/2014 14 000 000 0.310%Credit 22/01/2014 31/01/2014 14 000 000 0.310%Credit 24/12/2013 22/01/2014 9 000 000 0.310%

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

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

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


20

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

EUR 14/11/2013 21/01/2014 1 EUR 50 398 000 CHF 62 140 734 EUR 15/01/2014 21/01/2014 Total EUR 50 398 000 CHF 62 140 734 1 CHF 62 296 968 CHF –156 234

EUR 15/01/2014 20/03/2014 1 EUR 50 398 000 CHF 62 261 689 EUR 17/03/2014 20/03/2014 Total EUR 50 398 000 CHF 62 261 689 1 CHF 61 248 689 CHF 1 013 000

EUR 17/03/2014 20/05/2014 1 EUR 51 070 000 CHF 62 031 665 EUR 14/05/2014 20/05/2014 Total EUR 51 070 000 CHF 62 031 665 1 CHF 62 310 507 CHF –278 842

EUR 14/05/2014 22/07/2014 1 EUR 51 070 000 CHF 62 269 651 EUR 17/07/2014 22/07/2014 Total EUR 51 070 000 CHF 62 269 651 1 CHF 62 029 622 CHF 240 029

EUR 17/07/2014 22/09/2014 1 EUR 51 070 000 CHF 62 010 471 EUR 05/08/2014 22/09/2014 1 EUR 780 000 CHF 949 314 EUR 15/09/2014 22/09/2014 Total EUR 51 850 000 CHF 62 959 785 2 CHF 62 754 055 CHF 205 730

EUR 15/09/2014 20/11/2014 1 EUR 51 850 000 CHF 62 747 574 EUR 17/11/2014 20/11/2014 Total EUR 51 850 000 CHF 62 747 574 1 CHF 62 292 590 CHF 454 984

GBP 14/11/2013 21/01/2014 1 GBP 18 444 000 CHF 27 156 023 GBP 15/01/2014 21/01/2014 Total GBP 18 444 000 CHF 27 156 023 1 CHF 27 429 917 CHF –273 894

GBP 15/01/2014 20/03/2014 1 GBP 18 444 000 CHF 27 404 833 GBP 17/03/2014 20/03/2014 Total GBP 18 444 000 CHF 27 404 833 1 CHF 26 797 288 CHF 607 545



GBP 17/07/2014 22/09/2014 1 GBP 18 587 000 CHF 28 531 788 GBP 05/08/2014 22/09/2014 1 GBP 1 109 000 CHF 1 699 218 GBP 15/09/2014 22/09/2014 Total GBP 19 696 000 CHF 30 231 006 2 CHF 29 975 342 CHF 255 664

GBP 15/09/2014 20/11/2014 1 GBP 19 696 000 CHF 29 941 859 GBP 17/11/2014 20/11/2014 Total GBP 19 696 000 CHF 29 941 859 1 CHF 29 699 598 CHF 242 261

AUD 14/11/2013 21/01/2014 1 AUD 58 430 000 CHF 49 564 708 AUD 15/01/2014 21/01/2014 Total AUD 58 430 000 CHF 49 564 708 1 CHF 47 427 631 CHF 2 137 077

AUD 15/01/2014 20/03/2014 1 AUD 58 430 000 CHF 47 221 957 AUD 17/03/2014 20/03/2014 Total AUD 58 430 000 CHF 47 221 957 1 CHF 46 305 775 CHF 916 182

AUD 17/03/2014 20/05/2014 1 AUD 56 455 000 CHF 44 533 962 AUD 14/05/2014 20/05/2014 Total AUD 56 455 000 CHF 44 533 962 1 CHF 47 235 899 CHF –2 701 937

AUD 14/05/2014 22/07/2014 1 AUD 53 500 000 CHF 44 542 763 AUD 17/07/2014 22/07/2014 Total AUD 53 500 000 CHF 44 542 763 1 CHF 44 998 850 CHF –456 087

AUD 17/07/2014 22/09/2014 1 AUD 53 500 000 CHF 44 778 965 AUD 05/08/2014 22/09/2014 1 AUD 450 000 CHF 379 647 AUD 21/08/2014 22/09/2014 1 AUD –5 000 000 CHF –4 232 050 AUD 15/09/2014 22/09/2014 Total AUD 48 950 000 CHF 40 926 562 3 CHF 41 387 225 CHF –460 663

AUD 15/09/2014 20/11/2014 1 AUD 48 950 000 CHF 41 186 530 AUD 17/11/2014 20/11/2014 Total AUD 48 950 000 CHF 41 186 530 1 CHF 41 073 945 CHF 112 585

JPY 14/11/2013 21/01/2014 1 JPY 3 235 133 000 CHF 29 671 022 JPY 15/01/2014 21/01/2014 Total JPY 3 235 133 000 CHF 29 671 022 1 CHF 28 165 068 CHF 1 505 954

JPY 15/01/2014 20/03/2014 1 JPY 3 235 133 000 CHF 28 159 406 JPY 17/03/2014 20/03/2014 Total JPY 3 235 133 000 CHF 28 159 406 1 CHF 27 747 736 CHF 411 670

JPY 17/03/2014 20/05/2014 1 JPY 3 216 620 000 CHF 27 584 446 JPY 09/04/2014 20/05/2014 1 JPY 357 403 000 CHF 3 090 821 JPY 14/05/2014 20/05/2014 Total JPY 3 574 023 000 CHF 30 675 267 2 CHF 31 219 091 CHF –543 824

JPY 14/05/2014 22/07/2014 1 JPY 3 574 023 000 CHF 31 213 730 JPY 17/07/2014 22/07/2014 Total JPY 3 574 023 000 CHF 31 213 730 1 CHF 31 619 381 CHF –405 651

JPY 17/07/2014 22/09/2014 1 JPY 3 574 023 000 CHF 31 615 450 JPY 05/08/2014 22/09/2014 1 JPY –31 000 000 CHF –274 472 JPY 15/09/2014 22/09/2014 Total JPY 3 543 023 000 CHF 31 340 978 2 CHF 30 958 935 CHF 382 043

JPY 15/09/2014 20/11/2014 1 JPY 3 543 023 000 CHF 30 954 683 JPY 17/11/2014 20/11/2014 Total JPY 3 543 023 000 CHF 30 954 683 1 CHF 29 339 773 CHF 1 614 910

USD 14/11/2013 21/01/2014 1 USD 20 742 000 CHF 19 011 910 USD 15/01/2014 21/01/2014 Total USD 20 742 000 CHF 19 011 910 1 CHF 18 856 552 CHF 155 358


21

Currency Datetrade

Datevalue

Number ofcontracts



Liquidationproceeds

Currencyprofit/loss

USD 15/01/2014 20/03/2014 1 USD 20 650 000 CHF 18 764 139 USD 17/03/2014 20/03/2014 Total USD 20 650 000 CHF 18 764 139 1 CHF 18 006 800 CHF 757 339

USD 17/03/2014 20/05/2014 1 USD 21 370 000 CHF 18 625 558 USD 19/03/2014 20/05/2014 1 USD –250 000 CHF –218 376 USD 14/05/2014 20/05/2014 Total USD 21 120 000 CHF 18 407 182 2 CHF 18 792 576 CHF –385 394

USD 14/05/2014 22/07/2014 1 USD 21 250 000 CHF 18 897 625 USD 17/07/2014 22/07/2014 Total USD 21 250 000 CHF 18 897 625 1 CHF 19 078 250 CHF –180 625

USD 17/07/2014 22/09/2014 1 USD 21 220 000 CHF 19 041 873 USD 05/08/2014 22/09/2014 1 USD 1 170 000 CHF 1 063 662 USD 15/09/2014 22/09/2014 Total USD 22 390 000 CHF 20 105 535 2 CHF 20 983 908 CHF –878 373

USD 15/09/2014 20/11/2014 1 USD 22 390 000 CHF 20 971 370 USD 17/11/2014 20/11/2014 Total USD 22 390 000 CHF 20 971 370 1 CHF 21 595 155 CHF –623 785

CLP 14/11/2013 21/01/2014 1 CLP 2 130 264 000 USD 4 044 549 CLP 15/01/2014 21/01/2014 Total CLP 2 130 264 000 USD 4 044 549 1 USD 4 023 921 CHF 18 484


CLP 17/03/2014 20/05/2014 1 CLP 1 944 656 000 USD 3 384 954 CLP 14/05/2014 20/05/2014 Total CLP 1 944 656 000 USD 3 384 954 1 USD 3 539 600 CHF –137 898


CLP 17/07/2014 22/09/2014 1 CLP 1 944 656 000 USD 3 436 395 CLP 05/08/2014 22/09/2014 1 CLP 135 200 000 USD 233 103 CLP 15/09/2014 22/09/2014 Total CLP 2 079 856 000 USD 3 669 498 2 USD 3 504 391 CHF 154 094

CLP 15/09/2014 20/11/2014 1 CLP 2 079 856 000 USD 3 479 475 CLP 17/11/2014 20/11/2014 Total CLP 2 079 856 000 USD 3 479 475 1 USD 3 498 908 CHF –18 925

Realized capital gain on concluded forward foreign exchange contracts CHF 2 340 163

Realized capital loss on other foreign exchange transactions CHF 2 132

TOTAL REALIZED CAPITAL GAINS/LOSSES ON CURRENCIES CHF 2 342 295

Unrealized capital gains/losses on currenciesUnrealized capital gains/losses on open forward foreign exchange contracts as at 31/12/2014

Currency Datetrade

Datevalue

Number ofcontracts



Equivalentunderlying value

Currencyprofit/loss

EUR 17/11/2014 20/01/2015 1 EUR 51 850 000 CHF 62 267 858 1 CHF 62 341 163 CHF –73 305

GBP 17/11/2014 20/01/2015 1 GBP 19 696 000 CHF 29 661 940 1 CHF 30 506 817 CHF –844 877

AUD 17/11/2014 20/01/2015 1 AUD 48 950 000 CHF 40 853 670 1 CHF 39 751 877 CHF 1 101 793

JPY 17/11/2014 20/01/2015 1 JPY 3 543 023 000 CHF 29 340 659 1 CHF 29 361 072 CHF –20 413

USD 17/11/2014 20/01/2015 1 USD 22 180 000 CHF 21 375 531 1 CHF 22 035 085 CHF –659 554

CLP 17/11/2014 20/01/2015 1 CLP 2 079 856 000 USD 3 475 521 1 USD 3 421 708 CHF 53 461

Unrealized capital loss on open forward foreign exchange contracts CHF –442 895

Unrealized capital loss on the conversion of the asset and income statement positions CHF –3 966 220

TOTAL UNREALIZED CAPITAL GAINS/LOSSES ON CURRENCIES CHF –4 409 115

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 3 453 451 1.48 3 597 020 1.57 Total exposure-increasing positions 3 453 451 1.48 3 597 020 1.57

Exposure-reducing derivative positions:– Currency risk 187 395 994 80.46 184 761 649 80.83 Total exposure-reducing positions 187 395 994 80.46 184 761 649 80.83


22

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 0.7% 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 the 2014 financial year, the fund management company did not charge the Fund any fee for its services

in connection with the purchase and sale of land and properties.– As compensation for managing the individual properties, the fund management company charged the

Fund 0.7% 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 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 us-ing a dynamic capitalized income value method. The property values stated are the prices that would probably be obtained upon a diligent sale at the time of appraisal. 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 published in the German Elec-tronic Federal Gazette and that a certificate pursuant to § 5 para. 1 clause 3 of the Investment Tax Act is issued by a German auditing company. Hence, as the information was determined in accordance with the procedures specified by German tax legislation, the investment fund is deemed “transparent” in Germany from a taxation point of view. Investors are recommended to contact their tax consultant for an assessment of personal tax implications.

Note 1:

Sales restrictions

USA

Note 2:

Commissions

Note 3:

Valuation method

Note 4:

Tax treatment in

Germany


23

Valuation Report

The Collective Investment Schemes Act (CISA) requires the value of the properties held by Swiss real estate funds to be estimated by independent valuation experts at the end of each financial year.The valuation experts were tasked by the fund management company of Credit Suisse Real Estate Fund Global with conducting the valuation in consultation with support staff abroad. The brief included coordination of the over-all 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 Global were valued for accounting purposes as at Decem-ber 31 of the 2014 financial year.As at the closing date, the portfolio comprised 10 properties (including new additions and properties valued for the first time). None of the properties was under construction. The documentation relevant to the valuations was prepared by the fund management company and management companies responsible. The valuations are based firstly on an evaluation and analysis of these documents, a cycle of site visits, as well as an assessment of the general and specific market situation for each property. The FINMA-accredited valuation experts performed the entire mandate in consultation with the fund management company – from definition of the valuation parameters and entering the data in the valuation software, through the actual appraisal work, to monitoring and submission of the results – on a neutral basis and solely in accordance with the independent valuation brief.

The valuation experts confirm that the valuations were performed in accordance with the statutory requirements of the Collective Investment Schemes Act (CISA) and Collective Schemes Ordinance (CISO), as well as with the Guidelines of the Swiss Funds & Asset Management Association (SFAMA), and furthermore accord with custom-ary 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 is performed for 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 valuation 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 informa-tion connected with the valuation mandate.

As at December 31, 2014, the market value of the total portfolio is estimated by the experts at CHF 323.62 million (conversion from local currency into Swiss francs as at closing rate on December 31, 2014). Versus December 31, 2013, the value of the total portfolio has changed by CHF 14.50 million or 4.69% (includ-ing 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 the real estate markets, particular-ly the yields paid in arm’s-length transactions. The average discount rate as at December 31, 2014, was 5.50%.

Zurich, December 31, 2014

Dr. Christoph Zaborowski Pascal Roth

Commission

Valuation standards

Valuation method

Independence and

confidentiality

Result


24

Report of the Audit Company

As audit company for collective investment schemes, we have audited the accompanying financial statements of the investment fund Credit Suisse Real Estate Fund Global which comprise the statement of net as-sets and the income statement, the statement of the appropriation of available earnings and the disclosure of the total costs as well as the supplemental disclosures in accordance with article 89 paragraph 1 lit. b–h and article 90 of the Swiss Collective Investment Schemes Act (CISA) 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.

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

Phone 044 332 58 08Fax 044 337 20 82

www.credit-suisse.com/realestatefunds

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