SF Commercial Properties Fund – Profitability strengthened

• Property at Lerzenstrasse 10 in Dietikon sold 
• Substantial improvement in the income on the overall portfolio to strengthen future distributions  
• Vacancy rate reduced by half to approximately 6.6% 
• Divestment took place retroactively as at 1^st  January 2024 

The vacancy rate at the property in Dietikon has been steadily reduced in recent years. However, cutting it further would have required considerable resources for marketing, making the space ready and investing in the building. These expenses would have had a disproportionate impact on the income of the overall portfolio.  

Given the long-term improvement and in order to strengthen the portfolio, the fund management company decided to sell the property. The sale reduces NAV by CHF 4.75 per unit. 

The divestment substantially strengthens the profitability of the portfolio. The portfolio borrowing ratio after the sale is around 23%, giving the potential for acquisition opportunities and development
projects. Following the sale, the vacancy rate fell significantly from 13.9% as at 30 June 2023 to approximately 6.6%. At the same time, net income will improve considerably, which will enable the distribution to be sustainably strengthened.

More detailed information on the fund’s future strategy and the measures taken will be given at the presentation of the 2023 annual results.