SF Commercial Properties Fund: Realisation of further earnings potential

Continuous improvement in vacancy management

The development property in Möhlin was fully let, in Aarau the redevelopment of the nearby railway station district has created significant income potential, in Dietikon several new tenants were found and the lease with the tenant in Lyss was extended until 2030 before the end of the fixed lease term. The vacancy rate was reduced from 13.9% as at June 2023 to 12.2% as at the end of November 2023 and the WAULT was stabilised at a high level of 4.7 years.

Sustainable investments and identification of future earnings potential

Extensive energy-related measures totalling around CHF 3.14 million are currently being implemented at the property at Zürcherstrasse 493 in St. Gallen. The property in a prime location, which is let to a renowned tenant until 2031, will thus be upgraded in the long term and ensure a stable earnings situation.

The property at Rohrerstrasse 100 in Aarau is located in an urban development area in the immediate vicinity of Aarau railway station. The city of Aarau has launched the "Arealentwicklung Torfeld Nord" project for the area and approved a loan of around CHF 1.8 million for it. The plan is to redevelop the area and significantly expand its potential uses. The aim is to expand the city centre with high building densities up to a utilisation rate of 4.2 and the possibility of high-rise buildings along the railway tracks. The site covers an area of around 123 000 m². The SF Commercial Properties Fund property with a plot area of over 10 000 m² is located in the centre of this area in the immediate vicinity of Aarau railway station. The property is fully let until 2034. It therefore offers stable income until the realisation of the significant utilisation potential once the development process has been completed.

A development project for the Industriestrasse 3 property in Möhlin has been driven forward. In place of the current building with a rental area of around 500 m², a new logistics building with rentable space of over 7,000 m² can be constructed. The existing property has been let to a general tenant until the development project is realised.

Measures and portfolio adjustments to realise earnings potential

The fund management decided to implement various measures and adjustments to the portfolio in order to exploit and realise the considerable earnings potential in the portfolio. These will lead to a sustainable strengthening of the portfolio's earning power and are expected to be implemented by mid-2024.

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

Hans-Peter Wasser will be happy to answer any questions you may have.