SF Commercial Properties Fund – Convincing annual result 2024

• Significant increase in earning power
• Further reduction in the vacancy rate to 6.76%
• Stable letting situation and high weighted lease term (WAULT)
• Unchanged distribution of CHF 4.25 per unit, of which CHF 2.60 is exempt from withholding tax 

Real Estate Portfolio

There were no transactions in the reporting year, so the portfolio still comprises 16 properties in excellent locations. The stability of the portfolio was maintained at a high level thanks to various successful lettings. In the reporting year, new leases and contract extensions were concluded for space totalling 17 941 m², or 12.90% of the total rental space. The vacancy rate as at the end of the year was 6.76%, which is in line with a product for a commercial portfolio.

With the unchanged good credit rating of the tenants and the high indexation level of the rental agreements of around 95% as well as the WAULT of 4.59 years, the portfolio offers very high income stability. 

Financial Result

The SF Commercial Properties Fund's real estate portfolio had a market value of CHF 278.19 million as at 31 December 2024 (previous year: CHF 279.55 million). The target rent of CHF 17.84 million and the market value in CHF 278.19 million result in a gross yield at an unchanged high level of 6.41% (previous year: 6.31%).  

Total income in the past financial year amounted to CHF 16.32 million (previous year: CHF 16.83 million). Rental income decreased by CHF 0.58 million to CHF 16.15 million (previous year: CHF 16.73 million) due to the sale of properties in the year 2023.

Total expenses totalled CHF 6.29 million (previous year: CHF 6.90 million). Net income totalled CHF 10.04 million (previous year: CHF 9.93 million). This corresponds to CHF 4.36 per unit for 2 302 832 units (previous year: CHF 4.14 per unit for 2 400 000 units). 

Net fund assets decreased by CHF 11.32 million to CHF 199.89 million in the reporting period (previous year: CHF 211.21 million). The change is the result of total income, the distribution made for the 2023 financial year and the planned capital repayment of the cancelled units. This results in a net asset value of CHF 86.80 per unit. 

Outlook

Portfolio management actively pursues the optimisation of the portfolio through sales of unprofitable properties and acquisitions of properties with earnings potential. The portfolio is to be further optimised with targeted transactions with a view to long-term income stability and risk minimisation. 

In addition to realising potential, preserving value and maintaining a high level of stability, the primary goal is to further increase net income through efficient letting activities and consistent cost management. A stable earnings situation should enable the company to continue to achieve an above-average distribution, with a distribution payout ratio of less than 100%.