Swiss Finance & Property: Half-year results of the funds

The first half of 2019 was "very successful" for the SF Retail Properties Fund, Swiss Finance & Property reports. Within the last six months, new leases were signed at ten locations and twelve leases with existing tenants were extended by five years. The weighted fixed rental income (WAULT) is up slightly compared to December 31, 2018, to a peak of 6.9 years.

The market value of the properties rose to 717.7 million as of June 30, up from 682.3 million a year earlier. The fund management company puts net income at 12.91 million.

Higher vacancy rate at SF Commercial Properties Fund

SF Commercial Properties Funds recorded a lower portfolio value of 321.05 million in the first half of the year (Dec. 31, 2018: 323.5 million) with no change in the property portfolio. The reason for the devaluation is the increase in the vacancy rate from 6.94% at the end of 2018 to 19.4% due to the departure of the main tenant in the City Plaza Dietikon property. However, in the meantime, the fund has signed new leases for the property and achieved an occupancy rate of 20%.

The gross yield of the fund is unchanged at 6.5%. The average lease term increased from 5.4 to 5.9 years. (ah)