SF Urban Properties in profit thanks to revaluations

SF Urban Properties AG is satisfied with the course of the business year 2021: Rental income increased from CHF 26.5 million in the previous year to CHF 27.1 million, the real estate company reports. Earnings before interest and taxes (Ebit) rose from 32.0 million to 57.8 million in the same period, and net profit increased from 23.0 million to 40.5 million - an increase of 76.5%, it said.

Revaluations reportedly increased significantly to 36.8 million (previous year: 3.3 million). However, net profit excluding revaluation effects and deferred taxes decreased by43.5% to13.5 million, mainly due to the gain on the sale of the properties at Badenerstrasse 425-431 in Zurich in the previous year, SF Urban Properties said.

Overall, the portfolio value excluding building rights increased from 638.3 million to 718.2 million, an increase of 12.5%. The vacancy rate remained unchanged at 2.6%.

The real estate company's outlook for 2022 is positive: The investment pressure of institutional investors remains unchanged due to the low interest rate level, and therefore no signals are seen that the attractiveness of the real estate market is decreasing, according to SF Urban Properties. The transaction market will remain competitive in 2022, he added. As for the impact of the pandemic, leasing commercial space is likely to remain challenging, especially for hospitality and retail space, the company says. Demand for office space, on the other hand, is expected to improve overall, particularly for centrally located, attractive space. The residential market will continue to benefit from positive net migration. (ah)