According to the press service of the company, shareholders of funds managed by the company “Modern Real Estate Funds” (MC SFN) earned 11.8 billion rubles in the first nine months of this year. This figure reflects investment income generated from the rental of commercial real estate that is held within closed-end investment funds (CLIF). In the third quarter of 2023, payments reached 4.5 billion rubles, underscoring a steady pace of returns. The flagship closed-end mutual funds delivered annual yields in the range of 10 to 13.5 percent, illustrating a favorable performance for investors who prefer regulated vehicles with professional management.
Experts explain that a stable rise in income is driven by two key factors: the regular indexing of rental payments and the gradual appreciation in property values as time passes. Inflation and increasing construction costs contribute to higher rents and replacement costs, even before new construction projects are completed. These dynamics help sustain the money flow from tenants while also supporting long-term asset value growth, according to Ekaterina Vasilchenko, project director at the SFS management company. This perspective highlights how the combination of lease escalations and price growth in property markets can reinforce investment outcomes during a period of market volatility.
Company representatives note that these numbers stand out in the history of the firm. They recall that total investment income for the entire year 2022 exceeded 10 billion rubles, while the year 2021 saw income of 5.8 billion rubles. The consistent figure of 4.5 billion rubles in the third quarter of 2023 is repeated here as a marker of ongoing momentum and the ability of the portfolio to absorb seasonal variations and macroeconomic shifts. Investors are often drawn to the reliability offered by closed-end real estate funds, where professional management handles property selection, tenant relations, and maintenance decisions on behalf of shareholders, allowing investors to participate without direct involvement in every day-to-day operation.
Looking ahead, the management team иденtifies warehouse and logistics properties as a primary source of growth. High-quality warehouse complexes are priced higher due to their limited supply and strong demand. The trend is further reinforced by the rapid expansion of e-commerce in Russia, which continues to place upward pressure on the value and liquidity of these assets. As supply chains adapt to evolving consumer patterns, warehouse real estate remains a critical component of portfolio strategies for funds seeking stable income streams and capital appreciation over time. The emphasis on well-located, well-maintained facilities helps ensure tenants remain in place and rents stay aligned with market fundamentals, contributing to predictable distributions for shareholders.
Closed-end real estate investment funds operate as collective investment vehicles that enable exposure to commercial real estate without the need for individual property scouting or direct property management. Shareholders avoid the chores of tenant communications, maintenance logistics, and repairs because the management company takes responsibility for all these tasks. This structure helps investors focus on long-term objectives while enjoying the benefits of a professionally managed real estate portfolio. The model has grown in popularity as demand for dependable income and diversified real estate exposure continues to rise, especially among investors who value transparency, governance, and explicit reporting on performance. The firm’s approach emphasizes disciplined asset selection, ongoing portfolio optimization, and clear communication with investors about risk and return profiles, which together aim to deliver attractive risk-adjusted outcomes over multi-year horizons.