SF Retail Properties Fund increases dividend

The SF Retail Properties Fund, which invests in properties with retail space, acquired seven properties with a total market value of 168 million in the reporting period. As at December 31, 2017, the portfolio therefore consisted of 78 properties throughout Switzerland. 71.9% of the properties are located in German-speaking Switzerland and 28.1% in Latin Switzerland.

The total value of the portfolio increased from 421.2 million to 596.4 million as at December 31, 2017 (+41.6%). The target net rental income is now 26.4 million, which is 22% more than in the previous year. The return on investment for 2017 is estimated at 4.7%.

According to the fund management company, the increase in rental income resulted from the acquired properties as well as from re-lettings and the reduction in vacancies. The 2016 comparative period is based on an extended financial year (August 6, 2015 to June 30, 2016). Net fund assets increased by 108.2 million to 517.7 million in the reporting period, with the change being due in particular to the acquisitions with a market value of 168 million.

The weighted fixed lease terms (WAULT) rose from 5.9 to 6.9 years. According to the fund management company, the increase was achieved through new agreements and early extensions at a third of the locations. Terms of up to 17 years were agreed. The focus on everyday consumer goods was continued and the tenant base was broadened.

In the first half of 2018, construction work is due to start on the renovation of the sites in Bevaix and Bioggio, which should be completed in the second and fourth quarters respectively. The portfolio is also to be selectively expanded in the current year; four properties with a market value of 47.7 million were already purchased after the balance sheet date. The debt financing ratio increased to 16%.