SF Retail Properties Fund – Strong financial year 2024

• Portfolio's market value increased to CHF 1 005.95 million
• Net income increased by 19.12% to CHF 31.76 million (previous year: CHF 26.66 million)
• Reduction in the vacancy rate (reporting date) to 4.82%
• Unchanged distribution of CHF 4.35 per unit 

Real Estate Portfolio

The fund's portfolio strategy is focussed on investments in "everyday consumer goods", which also proved successful in 2024. As at 31 December 2024, the real estate portfolio had a market value in CHF 1 005.95 million, spread across 87 properties. The gross yield at the portfolio was 5.39% as at 31 December 2024. The vacancy rate decreased by 57 basis points to 4.82% as at 31 December 2024.

As at 31 December 2024, a total of four properties below market value were acquired with a total purchase price of CHF 82.35 million and annual rental income totalling CHF 4.66 million. The main usages are food retail and pet food, which are in line with the strategy and focused on everyday consumer goods. No properties were sold in the financial year.  

Construction and Development Projects

The construction projects in Flawil (new building), Basel (expansion of rentable floor space, redesign of ground floor), Sierre (expansion of space) and Derendingen (replacement of heating system) were successfully completed and the space handed over to the tenants. Contracts with a term of up to 15 years were signed for the new rental properties.  

The new building at Dorfstrasse 31/33 in Schöftland has been started. Construction of the underground car park is now well advanced. An important milestone was reached with the conclusion of a lease agreement with Coop for 15 years from 2027. The new building will be constructed with the Minergie-P-Eco label in order to fulfil the highest sustainability standards and further strengthen the fund strategy in the long term. 

The expansion of photovoltaic systems was further accelerated in the year 2024: New systems were put into operation in Aigle, Reinach, St. Gallen, Zweisimmen, Kirchberg and Flawil. A total of  13 systems with a total of 2,173 kWp have been built since 2021. Further plants are planned for the year 2025. The main consumers of the electricity produced are the building's own tenants (Coop, Migros, Aldi, etc.) or the properties themselves for operation and heating. 

Financial Result

The target rent of CHF 48.67 million increased by CHF 2.68 million compared to the previous year. Total income totalled CHF 49.79 million in the past financial year (previous year: CHF 43.44 million).

Total expenses amounted to CHF 18.03 million (previous year: CHF 16.78 million). The fund operating expense ratio (TER_REF GAV) as an indicator of the burden of operating expenses remains stable at 0.86% (previous year: 0.85%). Net income increased by 19.12% and totalled CHF 31.76 million (previous year: CHF 26.66 million). This corresponds to CHF 4.52 per unit.

Net fund assets increased by CHF 102.99 million to CHF 718.73 million in the reporting year (previous year: CHF 615.74 million). The change is due to the capital increases in March 2024 and October 2024 totalling CHF 92.69 million as well as the total income of CHF 36.72 million less the distribution for the 2023 financial year of CHF 26.43 million made in the reporting year. The investment yield at the end of the year was 5.54% (previous year: 1.29%), with a net asset value of CHF 102.38 per unit and an unchanged distribution of CHF 4.35 per unit (CHF 2.15 per unit is exempt from withholding tax). The distribution yield for 2024 is 3.75%. 

Outlook

The planned construction projects will be continued or started in the next twelve months. The focus will be on letting vacant space and extending existing rental agreements.  

Further value creation options in the portfolio are evaluated on an ongoing basis and feasibility studies and preliminary clarifications are commissioned as required. These form the basis for future value increases in the portfolio. Investments in photovoltaic systems will also be made in the current year. The fund is implementing all renovations in collaboration with the anchor tenants, as these form the basis for the long-term continuation of the tenancy and thus for securing rental income.

The aim is still to expand and further develop the SF Retail Properties Fund portfolio. The fund management company will continue to review and add properties to the portfolio in line with its strategy in the year 2025.