SF Sustainable Property Fund – Solid annual result 2024 and capital increase

• Net income increased to CHF 26.1 million (+3.3%)
• Portfolio value of CHF 1 441.1 million
• Vacancy rate down by a further 0.3 percentage points to 4.7% as at the reporting date
• Very good GRESB result on second participation with four out of five stars
• Capital increase of CHF 144.3 million in March 2025

Real Estate Portfolio

In 2024, a number of real estate transactions were concluded, particularly in the second half of the year, with the aim of sustainably restructuring and strengthening the portfolio.

The property at Seestrasse 23, Wädenswil (ZH) was purchased for CHF 13.0 million. A new building project is to be developed on the site, with 54 apartments, four smaller office spaces and 42 parking spaces, which are expected to be ready for occupancy at the beginning of 2027.

In turn, various properties were sold for a total of CHF 34.5 million. These are Bellinzona (TI), Via Caratti 2/4, Chiasso (TI), Via Soldini 47/49, Lamone (TI), Via Sirana 30/30a/30b, Lausen (BL), Hofmattstrasse 33/35 and Pratteln (BL), Grabenmattstrasse 1/1a.

As a result of these transactions, the SF Sustainable Property Fund experienced a slight decline in its real estate portfolio from 107 to 103 properties as at 31 December 2024. However, the total market value of the portfolio remains stable at CHF 1.44 billion (previous year: CHF 1.45 billion).

The gross return on the portfolio as at 31 December 2024 is 4.0%. The vacancy rate as at 31 December 2024 has fallen by 0.3 percentage points to 4.7% compared to 31 December 2023.

Sustainability

CO₂ emissions were again reduced compared to the previous year. They are the result of ongoing renovations as part of the impact investing approach and targeted divestments. The structural measures taken are confirmed by the very good second GRESB result with four out of five stars.

Financial Result

During the reporting period, total income amounted to CHF 52.6 million (previous year: CHF 53.1 million). The operating margin improved from 60.9% in the previous year to 63.2%. 

Total expenses amount to CHF 26.5 million (previous year: CHF 27.8 million). Net income totalled CHF 26.1 million (previous year: CHF 25.3 million), corresponding to CHF 3.11 per unit for 8 416 494 units (previous year: CHF 3.01 per unit for 8 416 494 units).

The net assets of the fund fell slightly during the reporting period, namely by CHF 9.9 million to CHF 998.5 million (previous year: CHF 1 008.4 million). This change is explained by the total comprehensive income of CHF 17.0 million and the distribution of CHF 26.9 million for the 2023 financial year.

Outlook

A change in property management in German- and French-speaking Switzerland from January 2025 should provide new impetus in the management of properties. This also includes vacancy management: the aim is to achieve 3.0% by 2027. In 2025, the coverage of sustainability consumption data will be further increased in order to be able to plan future measures in an even more targeted manner. In addition, locations for photovoltaic systems are being identified across the portfolio, which, in addition to renewable electricity production, should also lead to additional yields.

Specifically, various renovation projects will be carried out in 2025. Dornacherstrasse 270, 270a/Laufenstrasse 59 in Basel (BS) will be completely renovated and partially converted. The renovations in the form of comprehensive energy-efficient refurbishments at Via Ronchetto 16-22/Via Torricelli 21-27 in Lugano (TI) with 147 apartments and 1 600 m² of commercial space and at Via Industria 17/17a in Pregassona (TI) with 105 residential units will significantly improve the quality of the properties. In addition, a construction project for a replacement building at Brauerstrasse 25 in St. Gallen (SG) is planned. The mentioned properties will also lead to noticeably better sustainability figures and higher yields after the projects are completed.

Capital Increase of CHF 144.3 Million in March 2025

Swiss Finance & Property Funds Ltd will carry out a capital increase of CHF 144.3 million for the SF Sustainable Property Fund from 6 March to 14 March 2025 (12:00 CET). Seven (7) existing units entitle the holder to purchase one (1) new unit for a net issue price of CHF 120.00 each. The issue will be carried out on a commission basis ("best-effort basis"), within the framework of a public rights offer in Switzerland. Subscription rights can be traded on the SIX Swiss Exchange between 6 March and 12 March 2025. The number of new units to be issued is limited to 1 202 356. It is possible that unsubscribed units, if any, will not be issued, which will reduce the issue amount. The exact number of new units to be issued will be determined after expiry of the subscription period, based on the subscriptions received. The fund management company will inform investors of the final number of new units to be issued by 19 March 2025 at the latest. The subscription paid-up date is 21 March 2025. The proceeds from the issue will be used to purchase new properties, to systematically optimise sustainability, to further develop the potential of selected investment properties and to reduce interest-bearing debt. 
 

Issue Conditions