SF Commercial Properties Fund reduces vacancies
The SF Commercial Properties Fund achieved numerous leasing successes in fiscal 2020 and reduced its vacancy rate by nearly 2.8 percentage points, according to the fund's management.
Despite the challenging market conditions in the pandemic year, leases or contract extensions were concluded for rental space of around 9,560 sqm, according to the fund management of the SF Commercial Properties Fund. These leasing successes and the sale of two properties have further optimized the portfolio, it said. As of the end of 2020, it comprises 17 properties with a portfolio value of 306.8 million (previous year: 321.1 million). The target rental income decreased from 21 million to 19.8 million. This resulted in a gross yield of 6.46%, the statement said. The vacancy rate decreased from 19.76% in the prior-year period to 17.00% in the reporting period, and the average lease term (WAULT) was 5.8 years.
The leverage ratio decreased slightly compared to 2019 to 20.69% (previous year: 22.26%). Due to value adjustments, net fund assets had decreased from 242.63 million to 236.59 million (-2.49%).
For the portfolio as a whole, an amount of CHF 720,000 was recognized in the income statement in the year under review for lost revenue due to Covid-19, it added.
Based on the net income generated of 10.15 million and the carry forward from the previous year, there will be a distribution of CHF 4.25 per unit, as in the previous year, which corresponds to a distribution yield of 4.63%.
For the current fiscal year, the SF Commercial Properties Fund is aiming to increase the occupancy rate, and a selective portfolio restructuring is also planned. This will involve increasing the number of uses in the logistics, commercial, warehouse and industrial sectors. Based on the sales made in the year under review, there is growth potential to increase earnings again, according to the fund management. (ah)
