SF Urban Properties (SFPN) H2 2024 earnings summary

Executive summary

• Achieved a sustainable increase in earning power and net profit, reaching CHF 16.5 million for 2024, with a portfolio appreciation of 5.5% despite a higher discount rate.

• Maintained a low vacancy rate and significantly increased WAULT, reflecting strong tenant retention and operational efficiency.

• Strengthened the portfolio through strategic acquisitions in Zurich and Basel, and secured future development contributions with new property purchases.

• Optimized cost structure for asset management and improved future financing costs, reducing the average interest rate to 1.78%.

• Achieved a 4 out of 5 stars GRESB rating, indicating strong sustainability performance.

Financial highlights

• Real estate earnings increased to CHF 31.2 million, up from CHF 29.8 million in 2023.

• Net profit rose to CHF 16.5 million, with EBIT margin for investment properties (excluding revaluation effects) at 71.65%.

• Portfolio value increased to CHF 786.8 million, a 5.5% rise year-over-year.

• Gross yield remained stable at 4.15%, and distribution yield at 3.71%.

• Funds From Operations (FFO) per share increased to CHF 4.64.

Outlook and guidance

• Plans to consolidate the portfolio with purchases of CHF 30-40 million and sales of CHF 50-60 million in 2025.

• Targeting a vacancy rate below 2% and stable property income above CHF 31.2 million.

• Refurbishment of Genferstrasse 21 in Zurich and start of construction at Seefeldstrasse 186.

• Proposal to increase the dividend to CHF 3.65 per share.