SF Sustainable Property Fund seeks fresh money
The SF Sustainable Property Fund is carrying out a capital increase of up to CHF 67 million from March 17. According to the fund management company, the real estate fund closed the 2020 financial year with a "stable" result.
The subscription period for the capital increase of the SF Sustainable Property Fund runs from March 17 to March 30, 2021. Thirteen existing units entitle the holder to subscribe to one new unit at an issue price of CHF 122.00 net. A maximum of 546,525 new fund units will be issued in total, meaning that the issue will reach a volume of up to CHF 67 million.
The fund intends to use the proceeds from the issue to finance the further expansion and diversification of its real estate portfolio as well as development projects.
2020 financial year: overall result slightly up
The SF Sustainable Property Fund increased its target net rent by 7.1% to 46.8 million in 2020. According to the fund management company, this increase was due to acquisitions and higher lettings in existing properties. Net income rose by 11.8% to CHF 24.2 million (previous year: CHF 21.6 million). Total income increased slightly from CHF 30.1 million to CHF 30.4 million.
The distribution per unit remained the same as in the previous year at CHF 3.50. Net fund assets increased to CHF 854.0 million (+8.5%) and the leverage ratio fell slightly by 0.7% points to 22.3%.
According to the fund management company, the coronavirus pandemic has also left its mark on the SF Sustainable Property Fund. However, individual regions and rental properties have been affected to varying degrees depending on the type of use. As only around 1.3% of rental income in the SF Sustainable Property Fund comes from retail and gastronomy space, rental income has remained stable. The loss of rental income in 2020 amounted to a low five-figure sum due to the agreements with affected tenants. In some cases, the contract terms were extended early as a result of the agreements. Similar rent losses are expected in 2021.
Real estate portfolio grows
The SF Sustainable Property Fund's real estate portfolio grew by eight good-quality properties last year. Three properties in Biasca and one in Wängi were sold in order to streamline the portfolio. This increased the diversification of the portfolio's locations and strengthened the locations in German-speaking and French-speaking Switzerland.
As at the balance sheet date, the SF Sustainable Property Fund comprised 94 properties with a market value of 1.16 billion (+10.1%). The vacancy rate fell from 7.0% to 6.9%. (ah)
