SF Retail Properties Fund had a successful first half of 2024. The market value of the properties increased by 0.9% to CHF 893.3 million as at 30 June 2024.
- Net income increased by 2.7% to CHF 2.27 per unit in the first half of 2024 (prior-year period CHF 2.21 per unit)
- Vacancy rate declines to 5.33% as at 30 June 2024
- Successful capital increase at the end of March 2024
Real Estate Portfolio
The portfolio strategy of focusing on everyday consumer goods once again proved successful in 2024 in an environment dominated by persistent inflation. Renewals and new rental contracts were concluded for 30 000 m2 of rentable floor space.
The new construction project in Flawil was commissioned fully in April. The fully let property comprises a retail space on the ground floor, parking spaces in the underground garage and apartments on the upper floors. Completion of the project translates into new annual rental income of CHF 705 000.
A capital increase was carried out successfully in the first quarter. The new capital that was raised will be invested in full in three new properties between July and October 2024. One property was registered after the balance sheet date on 1st July 2024, and two other properties are due to be registered in September.
The market value of the 83 properties of SF Retail Properties Fund totalled CHF 893.3 million as at 30 June 2024. Rental income amounted to CHF 22.4 million. The gross yield on the portfolio amounts to an attractive 5.44%. The vacancy rate of 5.33% as at 30 June 2024 was down 0.06 percentage points from 31 December 2023. The weighted average unexpired lease term (WAULT) of the SF Retail Properties Fund portfolio remained steady at a high level of 6.03 years as at 30 June 2024.
Financial Result
Total income for the reporting period amounted to CHF 23.2 million (30 June 2023: CHF 21.8 million).
Expenses totalled CHF 8.4 million (30 June 2023: CHF 8.4 million). Net income increased year-on-year to CHF 14.7 million (30 June 2023: CHF 13.4 million), equivalent to CHF 2.27 per unit for 6 480 000 units (30 June 2023: CHF 2.21 per unit for 6 075 000 units).
Net fund assets increased CHF 24.6 million in the reporting period to CHF 640.3 million (31 December 2023: CHF 615.7 million).
Investment Projects
Construction work will continue on Clara Huus at Untere Rebgasse 17 in Basel until the end of 2024. The mall is being modernised, vertical development optimised, and additional rentable space (+6%) developed, while the offices on the third and fourth floors are being converted into business apartments. Letting of the business apartments has started and the first tenants will move in during the fourth quarter of 2024. Retail rental contracts with the large tenants have already been signed for a fixed term until 2037. Construction work has started on the new build in Schöftland, where retail spaces, parking spaces and apartments will be built in two phases over the next three years.
Outlook
The implementation of the dedicated long-term strategy to optimise and expand the portfolio is ongoing. The main focus is on letting available space. Opportunities for acquisitions suitable for expanding the portfolio in line with the strategy are constantly being investigated.
Contact
Head Direct Funds & Foundation
Portfolio Manager Real Estate Direct
SF Retail Properties Fund
Head Client Relationship Management & Marketing