SFP Investment Foundation – Annual Report 2025: Strong Development of the Swiss Investment Group and Repositioning of the Global Investment Group

• SFP AST Swiss Real Estate (SFP AST SRE) surpasses the one billion mark
• Increase in net income per unit by 4.8% to CHF 34.18 for SFP AST SRE
• Two successful capital raises by SFP AST SRE totalling over CHF 560 mn
• Further strategic development of SFP AST Global Core Property Hedged CHF (SFP AST GCP) and significant improvement of portfolio diversification
• High currency hedging costs and isolated negative valuation effects affected the annual performance of the globally investing fund
• Dividend yield of the SFP AST GCP underlying funds improved by year-on-year by over 12%, at the investment group level, it remained stable at 2%

Investment Group SFP AST Swiss Real Estate

Portfolio

The investment group continued its growth trajectory in 2025, achieving a return of 5.22% (previous year: 4.21%) and again increasing net income per unit, this time by 4.8% to CHF 34.18 (previous year: CHF 32.60), outperforming the benchmark. The market value of the real estate portfolio rose to CHF 1 104.3 mn (previous year: CHF 841.0 mn), surpassing the billion mark for the first time. The portfolio was expanded through the addition of nine properties, including one consolidation. It now comprises 52 properties (previous year: 44). The WAULT decreased to 5.5 years (previous year: 7.0 years) but remains at an attractive level. Rental income increased significantly to CHF 41.1 mn (previous year: CHF 31.0 mn), while the vacancy rate remained very low at 0.4% as at the reporting date (previous year: 0.7%).

Financial Results

The net asset value per unit before distribution rose to CHF 1 213.91 (previous year: CHF 1 181.68), representing an increase of 2.7%.

The investment return amounts to 5.22% and increased by 24% compared with the previous year (4.21%). 

The distribution remains stable at CHF 28.00 per unit, corresponding to a distribution yield of 2.3%. The payout ratio was thus reduced to 81.9% (previous year: 85.9%).

The EBIT margin improved further to 71.6% (previous year: 70.8%). The debt-to-equity ratio remains within the target range at 19.9% (previous year: 20.3%).

Capital Raises and Growth

In the 2025 financial year, two successful capital raises totalling CHF 560 mn were carried out.

The capital raise in the first quarter amounted to CHF 202 mn, whilst in the fourth quarter, CHF 360 mn was subscribed. The investment group gained 24 new investors and increased its investor base to 146 with these capital raises.

Sustainability

In the 2025 GRESB rating, the investment group achieved four out of five stars and 87 out of 100 points, improving by one star compared with the previous year. The data collection process introduced last year and organised by a specialist energy trustee has proven its worth. Data quality and consumption monitoring were further improved and raised to a certifiable level.

Outlook

SFP AST SRE will continue to pursue its growth strategy. Secured development properties with a volume of CHF 253.4 mn will be gradually integrated into the portfolio upon completion. In parallel, several construction projects within the existing portfolio, with a volume of approximately CHF 50.0 mn, will be launched, with which additional value creation can be captured.

Investment Group SFP AST Global Core Property Hedged CHF

Portfolio

2025 was marked by a normalisation of international real estate markets. Despite an improvement in market conditions, performance was impacted by high hedging costs and isolated valuation losses. Operating income of the underlying funds developed positively and increased by more than 12% year-on-year. This supports the continuation of a conservative distribution policy and ensured a stable distribution yield of 2%.

The portfolio benefited from an improved interest rate environment, rising transaction activity and stable fundamentals. The value of the underlying real estate assets increased to CHF 159.7 bn (previous year: CHF 135.8 bn), reflecting improved diversification.

The portfolio includes 21 underlying funds (previous year: 18) and 4 356 properties (previous year: 3 435). The leverage ratio decreased slightly to 26.7% (previous year: 27.0%), while the average debt maturity increased to 4.1 years (previous year: 3.3 years). The vacancy rate remained unchanged at a low level of 6.3% (previous year: 6.3%), whereas the WAULT rose significantly to 7.0 years at the end of 2025 (previous year: 5.9 years), indicating a more resilient rental income profile.

Strategic Development

The aim is to optimally position investment portfolio for the current upswing. In the 2025 financial year, the strategic repositioning of the portfolio was advanced further. A total of six new underlying funds were integrated, and full redemptions were received for two funds. 

Against the backdrop of structural changes and the strong Swiss franc, it was decided to discontinue one of the investment groups, SFP AST Global Core Property (Unhedged).

Sustainability

The SFP AST GCP investment group achieved a GRESB rating of 86 out of 100 points and a four-star rating in 2025, thereby exceeding both the GRESB average (81 points) and the peer average (76 points). 

All underlying funds in the portfolio are GRESB members and aim to continuously improve their  sustainability performance in line with international standards. The renewed outperformance relative to the benchmark underscores the long-term commitment to the consistent implementation of ESG standards.

Outlook

The outlook for international real estate markets remains constructive. The portfolio is well positioned to benefit from the new cycle. A supportive interest rate environment, rising rental growth momentum and structural demand factors support a positive outlook. The portfolio repositioning carried out in recent years, together with its broad diversification, form a solid foundation for future performance. Active portfolio management remains crucial to capitalising on market opportunities in a targeted manner.

Investor Meeting

The Board of Trustees proposes to the Annual General Meeting to be held on 6 May 2026 approve the 2025 annual report, including the audited financial statements, as well as the distribution proposals of the investment groups. The full 2025 annual report is available on the SFP Investment Foundation website.