SF Urban Properties Ltd – Annual Results 2025: Portfolio Rotation Delivers Initial Results

• Net income (including revaluations): CHF 42.7 mn (previous year: CHF 16.0 mn)
• Net income (excluding revaluations): CHF 11.7 mn (previous year: CHF 12.5 mn)
• Property income increased to CHF 31.7 mn (+ 1.7%)
• Market value of the portfolio increased from CHF 786.8 mn to CHF 823.1 mn (+ 4.6%)
• Vacancy rates as at the balance-sheet date remained low at 1.9% (previous year: 1.4%)
• Unchanged distribution of CHF 3.65 per listed registered share
   

“The exceptionally strong revaluation result confirms that our focus on prime inner-city locations in Zurich and Basel is leading to a sustainable increase in the value of our portfolio,” says Bruno Kurz, CEO of SFUP. “At the same time, by expanding our development pipeline, we have laid the foundation for further growth,” Kurz adds.

Portfolio Rotation Strengthens Resilience

In the 2025 reporting year, SFUP largely completed its strategic portfolio rotation: properties outside the core regions (including Thun and Morges) were sold for CHF 49.9 mn. At the same time, targeted acquisitions were made in Zurich and Basel with an investment volume of CHF 43.6 mn, including a centrally located mixed-use property in Basel and two attractive residential properties in Zurich Seefeld. As a result, the market value of the investment portfolio increased to CHF 823.1 mn as at year-end 2025 (+ 4.6% compared to the previous year). The focus on urban locations led to a strong revaluation result (like-for-like + 3.8% net).

Property earnings rose to CHF 31.7 mn in the 2025 reporting period, 1.7% above the previous year. This positive development is mainly attributable to the indexation of commercial lease agreements and the restructuring of the investment portfolio. Operating expenses for the investment portfolio amounted to CHF 12.7 mn (previous year: CHF 9.0 mn). The increase is due to a one-off write-down of project costs that will not be realised as originally planned, as well as a higher refurbishment ratio, which had been exceptionally low in 2024.

Development Pipeline Expanded

Significant progress was also made in the development segment during the 2025 reporting year. With an EBIT contribution of CHF 4.7 mn, the company exceeded both its forecast and the previous year’s figure of CHF 3.2 mn. This strong result was driven by the successful completion of the “Fuederholzstrasse 8” project in Herrliberg (ROI: 23.4%, IRR: 19.8%) and the full sale of all condominium units in the “Alte Landstrasse 26” project in Rüschlikon prior to completion. In addition, three new development sites were acquired in Zurich and Zumikon with a total volume of CHF 43.6 mn. A further site in Rüschlikon was acquired before year-end (volume: CHF 27.5 mn). The development pipeline has thus been substantially expanded and forms a solid basis for future earnings contributions.

Improvement in GRESB Rating

The portfolio of SFUP received a 4-star rating out of 5 in the 2025 GRESB report (previous year:
4 stars). This represents a solid result in the rating of existing properties. In all three categories – Environmental, Social and Governance – SFUP ranked above the peer group average (Switzerland, Diversified, Listed).

Stable Distribution Proposed

Overall, net income including revaluations amounted to CHF 42.7 mn, representing a significant increase compared to CHF 16.0 mn in the previous year. Net income excluding revaluations declined to CHF 11.7 mn (previous year: CHF 12.5 mn) due to one-off write-down effects. Net income per share excluding revaluations amounted to CHF 3.50 (previous year: CHF 3.73). Net Asset Value (NAV) per share increased significantly during the reporting year to CHF 122.16 (previous year:
CHF 111.47).

Against the backdrop of this positive result, the Board of Directors proposes an unchanged distribution of CHF 3.65 per listed registered share. The distribution is to be paid partly as an ordinary dividend (CHF 1.825 per listed registered share) and partly from the capital contribution reserve (CHF 1.825 per listed registered share). This corresponds to a dividend yield of 3.63% for the listed registered shares on SIX Swiss Exchange, based on the closing price at year-end 2025.

Outlook

For the 2026 financial year, management expects to increase net income per listed registered share (excluding revaluation effects) back to the level of the 2024 financial year. The company is confident that its combined investment strategy consisting of a “focus on locations” and “condominium sales” will continue to prove successful even in a more regulated and uncertain market environment.