SF Urban Properties: net loss of CHF 1.1 million in H1
With write-downs of CHF 8 million, the result turned negative. Opportunistic acquisitions could be made in the second half of the year.
SF Urban Properties AG increased its real estate income by CHF 6.8% year-on-year to CHF 14.7 million in the first half of the year. This is attributable to the acquisition of Binningerstrasse 5/Innere Margarethenstrasse 2 in Basel. The indexation of commercial leases and the re-letting of apartments following the implementation of construction projects also contributed to this, according to a statement. The vacancy rate fell from 2.4 to 1.7%. The reduction in income decreased by 72.5% to CHF 0.3 million. The portfolio value remained almost constant at CHF 754.4 million, while devaluations amounted to CHF 8.0 million or 1.1% of the portfolio value. This was due in particular to the development of the discount rate. The average weighted real discount rate increased from 2.70TP3T to 2.74% in the first half of the year. In the previous year, the portfolio had been revalued by CHF 15.1 million.
Based on the current project progress for the development properties, this results in corresponding income of CHF 8.9 million compared to CHF 11.4 million in the same period of the previous year. Costs fell from CHF 9.0 million to CHF 6.5 million. Total operating expenses (excluding developments) amounted to CHF 5.8 million compared to CHF 5.1 million in the prior-year period. The EBIT margin fell from 64.6TP3T to 22.2% due to the revaluation. The bottom line is a net loss of CHF 1.1 million (previous year: CHF +21.7 million). Excluding revaluations, net profit fell from CHF 9.2 million to CHF 5.4 million.
Opportunistic acquisitions possible
In the second half of the year, purchases of investment properties in the city of Zurich or Basel will be opportunistically examined "against the backdrop of rising initial yields". On the other hand, there could be further sales of properties that do not fit the strategy - such as the sale of the property at Aarbergergasse 57 in Berne on August 2. The management expects a "positive annual result, which should allow a distribution of the same magnitude as before." (aw)
