SF Sustainable Property Fund – Half-year results 2025

• Successful reinvestment of capital increase of CHF 144.3 million gross
• Market value increase of 12% to CHF 1.61 billion as at 30 June 2025, of which +1.4% increase in value of the existing portfolio
• Reduction in vacancy rate by 1.03 percentage points in absolute terms to 3.71% (31 December 2024: 4.74%)

“We were able to further diversify the portfolio thanks to the successful reinvestment of the capital increase and significantly reduce vacancies through targeted vacancy management and portfolio rotation,” says Daniel Babic, Portfolio Manager of the SF Sustainable Property Fund. “With our clear focus on sustainable Investments, we not only create ecological added value, but also secure stable long-term returns and a strong market position.”

Real Estate Portfolio

During the reporting period, SF Sustainable Property Fund used the funds from the capital increase to acquire eight properties with a total purchase price of CHF 146.6 million. The market value of these acquisitions amounted to CHF 151.3 million as at the acquisition date, corresponding to an immediate valuation gain of around CHF 4.7 million. As part of the portfolio optimisation, a partial sale in Dietlikon was successfully completed.

As at 30 June 2025, the fund's real estate portfolio comprised a total of 111 properties with a market value of CHF 1.61 billion. This represents an increase in market value of around 12% compared with the end of 2024. The like-for-like increase in the value of the existing portfolio amounted to +1.4%. The vacancy rate was reduced significantly in the last six months by 1.03 percentage points to 3.71% (31 December 2024: 4.74%).

The fund's largest project involving comprehensive energy-efficient renovation in Lugano is proceeding according to plan and is on schedule. Of the six buildings there, the first will be handed over to tenants in November 2025 once the complete energy-efficient renovation has been completed. The fund is thus contributing to further improving energy efficiency and upgrading this neighbourhood.

Financial Result

Rental income rose slightly by 3.4% to CHF 26.93 million in the first half of 2025 compared with the same period of the previous year (CHF 26.04 million in the first half of 2024). At the same time, the rental default rate fell to 5.69% in the reporting period (previous year: 7.05%).

As a result of higher income and efficient cost management, net income rose significantly by 16.8% to CHF 15.01 million compared with the same period of the previous year (first half of 2024:
CHF 12.85 million). Total income for the first half of 2025 was significantly higher than in the first half of 2024 (CHF 7.09 million) at CHF 27.06 million. In March 2025, a distribution of CHF 3.20 per unit was paid to investors for the 2024 financial year.

Outlook

Portfolio Management continues to pursue its goal of optimising the real estate portfolio through targeted acquisitions and sales and achieving sustainable growth. The debt financing ratio stood at 24.60% as at 30 June 2025. The solid capital structure creates scope to examine further attractive investment opportunities in the second half of the year.

After the balance sheet date, a realignment was already carried out in Basel: the portfolio in Basel was expanded through the targeted acquisition of an adjacent neighbouring property for CHF 6.5 million.

The market value was CHF 1.3 million above the purchase price paid, resulting in a high valuation gain.

The annual GRESB rating is expected to be published in October 2025. Against the backdrop of the consistently implemented sustainability strategy and the ESG investments made, the fund management company expects the SF Sustainable Property Fund to perform well in this international sustainability benchmark.