SF Retail Properties Fund
SF Retail Properties Fund – Very successful annual result as at 31 December 2018
  • Market value increased by 18.51% to CHF 706.7 million
  • Acquisition of six objects with a market value of CHF 103.83 million
  • Increase in rental income by CHF 10.7 million
  • Increase in unexpired contract terms to 6.8 years thanks to new business and targeted renewals

The SF Retail Properties Fund ended the 2018 financial year on a very high note. More than one-third of current rental contracts have been renewed or extended in the past twelve months. The weighted average unexpired lease term (WAULT) remains at a peak of 6.8 years. At the same time, the market value of the properties increased to CHF 706.7 million as at 31 December 2018 (31 December 2017: CHF 596.4 million). The rental income for the year 2018 rose by CHF 10.7 million to CHF 38.62 million. Net income grew by 19.4% to CHF 26.03 million, corresponding to net income per share of CHF 4.67.

Real estate portfolio

The capital increase in May 2018 brought in a total of CHF 50.14 million, which was fully invested by the end of the first half of 2018. On the reporting date, the portfolio comprised 84 properties in 19 cantons. The market value of the portfolio in 2018 improved by 18.51% compared to the valuation at the end of 2017. Compared to 31 December 2017, the WAULT stabilised at a high level with 6.8 years. It was possible to achieve this value thanks to contract renewals and new business. A tenant was found for the last free rentable floor space in Grütpark Regensdorf.

Financial result as at 31 December 2018

The increase in rental income by CHF 10.74 million (+38.52%) is chiefly due to the acquisition of new properties and the renting out of vacant spaces. The renewals of the rental contracts as well as the securing of new tenants were concluded at a level that guarantees the previous income on a sustainable basis. Net fund assets rose by CHF 50.38 million to CHF 568.08 million. The satisfactory result means that the dividend can be increased by CHF 0.10 to CHF 4.35 per share.

Outlook

The reduction in vacant rental spaces and the optimisation of the existing rental agreements remain the focal points for 2019. The fund management regularly reconciles this with the most important tenants while involving local partners in the process. Other central tasks include continuing the development and renovation projects and reviewing acquisition options. After the balance sheet date, a property was bought in Adelboden at a purchase price of CHF 6.2 million, which will be integrated into the portfolio in the coming weeks.

Download the full media release