SF Retail Properties Fund – Half-year results 2025

• Remarkable increase in market value of 1.14% to CHF 1.02 billion
• Rental income rises sharply by 14.21% to CHF 25.59 million
• Rental default rate down by 10% to 5.14%

A stable portfolio of successful properties and an attractive market environment characterise the start of the second half of 2025. "We are proud of the developments in the first half of the year and are looking ahead to the coming months with confidence. Despite the current dynamics, the retail market remains stable and offers exciting investment opportunities," says Thomas Lavater, Portfolio Manager of the SF Retail Properties Fund.

Real Estate Portfolio

The SF Retail Properties Fund recorded a solid performance in the first half of 2025. The market value of the real estate portfolio rose by 1.14% to CHF 1.02 billion as at the end of June 2025 on a like-for-like basis, which is very pleasing for a commercial portfolio in a half-year period – an out-standing figure for a commercial portfolio in a half-year period.

This increase is attributable to successful revaluations and investments in the portfolio. At the same time, the vacancy rate remained low at 4.94%. New leases concluded in the past six months are not yet included in this key figure, as the tenants will not take over the space until later in the year. This will contribute to a further reduction in vacancies in the future.

New leases and contract extensions were successfully concluded for a total of 15 773 m² of space, corresponding to annual rental income of CHF 3.37 million.

Financial Result

Rental income rose significantly in the first half of 2025 to CHF 25.59 million – an increase of 14.21% compared with the same period of the previous year. This increase is primarily attributable to the expansion of the portfolio in 2024 and successful new lettings. At the same time, the rental default rate fell to 5.14%, which was around 10% below the previous year's figure. As a result of higher income and the low default rate, earnings also improved: the fund generated net income that was 7.21% higher than in the first half of 2024. Net income increased to CHF 15.75 million compared with the same period of the previous year (30 June 2024: CHF 14.74 million). Total in-come was significantly higher than in the same period of the previous year (CHF 11.30 million) at CHF 17.36 million.

Outlook

The letting of the new apartments in the new-build project in Schöftland will begin in September 2025. The property is expected to be fully let by the time of completion. A lease agreement has already been signed with Coop as the future anchor tenant.

The construction project in Marly is nearing completion. By November 2025, the entire site will have undergone comprehensive energy, visual and technical modernisation.