SF Commercial Properties Fund – Significant improvements in the first half of 2024

• Sharp increase of 14.27% in net income to CHF 5.21 million (prior-year period CHF 4.56 million) 
• Substantial reduction in vacancy rate to 7.05% (reporting period) 
• EBIT margin improves to 74.09% 
• Market value stable at CHF 279.56 million 
• Attractive net income of CHF 2.17 per unit (prior-year period CHF 1.90) 

Real Estate Portfolio

SF Commercial Properties Fund’s portfolio comprises 16 properties. In the past six months, renewals and new rental contracts were concluded for 6 300 m² or 4.53% of total rentable floor space. The commercial portfolio focuses on warehouse, logistics, industrial and commercial usage. The investment properties are all found in locations with excellent transport connections along the main traffic routes in Switzerland. 

Financial Result 

The market value of the real estate portfolio of SF Commercial Properties Fund totalled CHF 279.56 million as at 30 June 2024 (previous year: CHF 279.55 million). The portfolio's gross yield was 6.36% as at 30 June 2024. The weighted average unexpired lease term (WAULT) was stable at a high level of 4.73 years. The vacancy rate for the reporting period declined substantially compared to the previous year by 6.70 percentage points to 7.05%. 

Net income for the period under review improved on the same period last year by 14.27% to CHF 5.21 million (30 June 2023: CHF 4.56 million), which is equivalent to CHF 2.17 per unit for 2 400 000 units (previous year: CHF 1.90 per unit for 2 400 000 units). 

Expenses totalled CHF 2.94 million (previous year: CHF 3.79 million). 

Costs fell by CHF 0.85 million thanks to the optimisation of maintenance and operating costs and reductions in remunerations as per the fund regulations. The EBIT margin improved by more than 8% to 74.09%. The fund’s total expense ratio (TER) decreased by 4 basis points to 0.89% (30 June 2023: 0.93%). 

Net fund assets amounted to CHF 205.09 million as at 30 June 2024 (previous year: CHF 211.21 million). This change derives from total income of CHF 4.08 million, minus the distribution - which has been stable since the launch of the fund - of CHF 10.20 million or CHF 4.25 per unit paid out in spring for the 2023 financial year. 

Outlook 

In addition to more letting successes, the focus is on the construction projects. Strategically relevant divestments and acquisitions of properties are constantly being assessed to optimise the portfolio. The objective is to further increase the net income to secure the same distribution from the operating result.