SF Urban Properties Ltd: Encouraging results for the first half of 2021

• Net profit excluding revaluations of CHF 7.3 million (+32.0%)
• Net profit including revaluations of CHF 14.3 million (+195.3%)
• Portfolio value of CHF 672.7 million (+3.2%)
• Vacancy rate still low at 2.6% (balance-sheet date: 30 June 2021)
• Multiple acquisitions and registrations

SF Urban Properties Ltd (SIX Swiss Exchange: SFPN) achieved encouraging results in the first half of 2021. Although property income (including ancillary income) decreased by CHF 0.3 million or 2.25% year-on-year in 2021 to CHF 12.6 million on account of the pandemic-related lockdowns in the spring and winter, the vacancy rate as of the balance-sheet date remained steady in relation to the end of 2020 at 2.6%. A large number of existing leases were extended in the period under review, and new ones concluded for vacant spaces.

Revaluations of investment properties made a greater contribution to the total performance. This contribution amounted to CHF 10.0 million in the first half of 2021, compared to increases in value amounting to CHF 0.8 million in the same period of the previous year. The current appreciation is a consequence of the discount rate trend, the successful extension of existing leases, the conclusion of new leases on the basis of better conditions and the investments made. The average weighted real discount rate declined from 3.0% to 2.9% in the past year. Development properties accounted for income of CHF 13.2 million.

Operating expenses came to CHF 15.1 million (same period in the previous year: CHF 5.1 million), CHF 10.4 million of which stemmed from development properties. In terms of other items, a CHF 0.3 million increase in maintenance expenses was offset by a CHF 0.7 million reduction in other operating expenses.

The EBIT margin decreased to 57.8% (from 62.6% in the same period in the previous year) on account of the increased share of the development business. The financial result of CHF -2.5 million was unchanged in comparison to the same period in the previous year. The average interest expense (including hedging transactions) amounted to 1.42% in 2021 (previous year: 1.62%), with an average fixed interest period of 8.6 years (previous year: 8.8 years). Net profit after taxes came to CHF 15.3 million in 2021 (30 June 2020: 4.8 million), CHF 1.0 million of which was attributable to minority shareholders and the development cooperation partner (30 June 2020: 0.0 million). Net profit excluding revaluation effects and minority interests increased from CHF 5.5 million in the same period of the previous year to CHF 7.3 million. Earnings per registered share (excluding revaluation effects) amounted to CHF 2.17, compared to CHF 1.64 as at 30 June 2020.