The half year result for 2025 of SF Commercial Properties Fund show stable earnings power. Operating net income for the half-year is more than half of the distribution planned for the whole year. Two properties were sold and one new property was acquired to further optimise the portfolio.
- Significant transactions for portfolio optimisation
- Reduction in vacancy rate to 5.57% (31 December 2024: 6.76%)
- Stable rental situation and high weighted lease term
With further decreased vacancy rates, long-term lease agreements and a strong earnings position, the SF Commercial Properties Fund confirms the solidity of its portfolio in 2025. “I am delighted that we have been able to further optimise the fund through our operational success and transactions. This allows us to consolidate its high earning power and ensure that distributions remain attractive,” says Hans-Peter Wasser, Portfolio Manager of the SF Commercial Properties Fund.
Real Estate Portfolio
During the reporting period, two properties in Staad and Meisterschwanden were sold for strategic reasons. The portfolio now comprises 14 properties with a market value of CHF 261.28 million in excellent locations. These transactions, together with various leasing successes, reduced the vacancy rate by 1.19 percentage points to 5.57% as at mid-year. The rate is therefore within the target range for a portfolio of commercial properties.
The high earnings stability, the high indexation of rental agreements at 92.41% and the WAULT of over four years provide a good guarantee that distributions will remain attractive.
After the reporting period, a fully let commercial property with an above-average yield was purchased in Hünenberg. This strengthened the portfolio with an attractive property in a prime location in Central Switzerland.
Financial Result
Rental income fell by around CHF 0.35 million compared with the first half of 2024 due to the two sales. Thanks to rent adjustments, successful lettings, efficient cost management, lower interest on borrowed capital and savings in statutory remuneration, net income remained virtually unchanged at CHF 5.00 million despite the sale of two properties. With 2 302 832 units, this results in net income of CHF 2.17 per unit, which is more than half of the planned full-year distribution of CHF 4.25 per unit. The gross yield of the portfolio as at 30 June 2025 is 6.34%.
Net fund assets decreased by CHF 8.39 million to CHF 191.50 million in the reporting period. The change is due to total income of CHF 1.40 million and the distribution of CHF 9.79 million for the 2024 financial year. The net asset value is therefore CHF 83.16 per unit.
Outlook
Portfolio Management actively pursues the optimisation of the portfolio through the sale of unprofitable properties and the acquisition of properties with earnings potential. The portfolio is to be further optimised through targeted transactions with a view to long-term earnings stability and risk minimisation.
In addition to exploiting potential, maintaining value and ensuring high stability, the primary goal is to further increase net income through efficient letting activities and consistent cost management. A stable income situation should enable attractive distributions to continue.
Contact
Portfolio Manager Real Estate Direct
SF Commercial Properties Fund
Head Client Relationship Management & Marketing