SF Sustainable Property Fund – Annual Results 2025: Successful Portfolio Growth and Significantly Lower Vacancy Rate

• Portfolio value increased by 13.2% to CHF 1 631.9 mn (previous year: CHF 1 441.1 mn)
• Net income increased by 16.1% to CHF 30.3 mn (previous year: CHF 26.1 mn)
• Ten properties with a market value of CHF 170.3 mn acquired
• Vacancy rate significantly reduced to 2.31% as at the balance-sheet date (previous year: 4.74%)
• Another strong GRESB result with 4 out of 5 stars

The portfolio of the SF Sustainable Property Fund was selectively expanded, operationally optimised and its earnings power significantly strengthened. “The consistent implementation of our strategy through active management, targeted acquisitions and sustainable investments is delivering results,” says Daniel Babic, Portfolio Manager of the SF Sustainable Property Fund. “Particularly pleasing is the nearly halved vacancy rate while at the same time expanding the portfolio through acquisitions.”

Real Estate Portfolio

Through the acquisition of a total of ten properties with a market value of CHF 170.3 mn and selective divestments of CHF 20.3 mn, the portfolio was further strategically developed. As at 31 December 2025, the portfolio comprises 112 properties (previous year: 103 properties) with a market value of CHF 1 631.9 mn. This corresponds to an increase of CHF 190.8 mn or 13.2% compared with the previous year. Gross yield stands at 3.86% at year-end (previous year: 4.00%). Particularly encouraging is the significant reduction in the vacancy rate to 2.31% as at the balance-sheet date (previous year: 4.74%). The rental default rate was also significantly reduced to 4.79% (previous year: 6.90%).

Financial Result

Rental income increased by 5.7% in the financial 2025 year to CHF 55.3 mn (previous year: CHF 52.3 mn). Net income rose by 16.1% to CHF 30.3 mn (previous year: CHF 26.1 mn). This corresponds to CHF 3.16 per unit with 9 618 850 units (previous year: CHF 3.11 per unit with 8 416 494 units). Taking into account realised and unrealised capital gains and losses, total income amounts to CHF 46.7 mn (previous year: CHF 17.0 mn). Investment yield stands at 4.36% as at the balance-sheet date (previous year: 1.73%). The fund’s performance in the financial year 2025
exceeds 19%, clearly outperforming the development of the market index. Net asset value (NAV) as at the balance-sheet date amounts to CHF 120.47 per unit (previous year: CHF 118.63). The distribution for the financial year 2025 remains unchanged at CHF 3.20 per unit. Distribution yield amounts to 2.14% (previous year: 2.48%).

Sustainability

In the area of sustainability, the portfolio management implemented the strategy according to plan. The expansion of renewable heating systems and improved data transparency strengthen ESG management sustainably. This is reflected in a higher GRESB score (87 out of 100 points), again 4 out of 5 stars and 4. place in the direct peer comparison (Europe, Residential: Multi-Family, Listed).

Outlook

The interest rate environment and the structurally high demand for housing continue to provide a stable foundation for Swiss residential real estate. In 2026, the focus will be on the consistent continuation of the ongoing renovation projects in Lugano and Basel. Building permits have been granted for the comprehensive energy renovation in the Pregassona district of Lugano and for a new construction project in St. Gallen, allowing construction to begin in the first quarter of 2026.

At the same time, the focus will remain on further managing the very low vacancy rate, improving operational efficiency and sustainably developing the portfolio. Portfolio management is convinced that the solid earnings base, improved portfolio quality and consistently implemented sustainability strategy will continue to enable sustainable growth.