Strong half-year results 2024

• Net profit incl. revaluations CHF 6.0 million (prior-year period CHF -1.0 million) 
• Net profit excl. revaluations CHF 6.4 million (prior-year period CHF 5.4 million) 
• Property income increased sharply to CHF 15.6 million (+5.7%) 
• Vacancy rate (as at reporting date) still low at 1.8% (+0.5 percentage points) 
• Portfolio value increased by CHF 19.9 million to CHF 765.5 million 

Increase income from investment properties 

Property income increased CHF 0.9 million or 5.7% to CHF 15.6 million year-on-year, driven by the acquisition of the residential property Austrasse 71/73/75 in Basel, the adjustment of rental contracts to indexation or the reference interest rate and reletting after construction projects. On a like-for-like basis, rental income increased by 2.1%. At 1.8%, the vacancy rate as at the reporting date was the same as the previous year. The current development projects proceeded according to plan in the first half, but at CHF 8.2 million, the income from them lagged slightly behind the amount of the prior-year period (CHF 8.9 million). 

Decline in administrative expenses 

Operating expenses amounted to CHF 12.0 million, compared to CHF 12.2 million in the same period last year, of which CHF 6.6 million related to development properties (previous year: CHF 6.5 million). Administrative expenses in particular decreased by CHF 0.3 million year-on-year, mainly because of disciplined cost management. An impairment of CHF 0.3 million was reversed after Seefeldstrasse 186 in Zurich was reclassified from a development to an investment property. The EBIT margin on investment properties excluding revaluations improved from 61.90% to 63.63% because property income was higher, while costs remained stable. 

Increase in net profit 

Net profit excluding revaluation effects attributable to the shareholders of SFUP increased from CHF 5.4 million in the previous year to CHF 6.4 million, resulting in earnings per registered share excluding revaluation effects of CHF 1.90 (prior-year period: CHF 1.62). 

Solid valuation for property portfolio 

In spite of the higher average discount rate, the value of the portfolio remained stable in the first half thanks to higher income and the progress made with construction projects. Including reclassifications and acquisitions, the portfolio value was CHF 765.5 million as at 30 June 2024, compared to CHF 745.6 million as at 31 December 2023. The average weighted real discount rate increased in the first half from 2.76% to 2.79%. The acquisition of Austrasse 71/73/75 in Basel resulted in a revaluation gain of CHF 1.7 million. The total revaluation of investment properties came to CHF -0.8 million (prior-year period: CHF -8.0 million). 

Outlook for the second half of 2024 

In the second half of 2024 management will further sharpen its focus on acquiring properties for development projects and initiating new construction projects in the city of Zurich to sustainably secure the income base for the coming years. Management will also concentrate on purchases of properties in the direct vicinity of the investment properties, and will investigate selling specific properties that do not fit the defined portfolio strategy. 

Based on the strong result achieved in the first half of the year, the company expects property income of CHF 31.2 million by the end of the year. Strong demand for rental space and the attractiveness of the portfolio properties are predicted to help keep the vacancy rate below 2% in the second half. The company expects the reference project development business to contribute to EBIT of between CHF 4.0 and 5.0 million for the 2024 financial year.