SF Urban Properties with significant profit increase

SF Urban Properties AG (SFUP) is satisfied with its results for the first half of 2022. Real estate income including ancillary income increased by CHF 1.2 million or 9.2 percent year-on-year to CHF 13.8 million.

Numerous existing leases were renewed and new leases were signed for vacant space, SFUP reports. The renewals represent 6.3 percent and the new leases represent 2.7 percent of annual target rental income, it adds. Vacancy decreased from 2.6 to 2.4 percent compared to year-end 2021.

The contribution of revaluations of investment properties in the first half of the year was CHF 15.1 million (previous year: CHF 10.0 million). The revaluations were the result of the development of the discount rate, lease extensions, new leases and investments made, SFUP said in the statement.

The EBIT margin increased from 57.9 percent to 64.6 percent. After taxes, net profit amounted to CHF 22.3 million (previous year: 15.3 million). Total comprehensive income attributable to shareholders increased by CHF 24.2 million to CHF 43.3 million. Net income excluding revaluation effects attributable to shareholders increased from CHF 6.3 million to CHF 9.2 million compared to the previous year.

SFUP expects institutional investors to review their real estate ratios in light of key interest rate increases and economic uncertainty. However, it is expected that real estate with a stable cash flow yield will continue to be considered attractive, SFUP said.

The real estate company intends to make targeted acquisitions in the second half of the year, with a focus on rounding off existing properties in the immediate vicinity and on properties for promotional development. (ah)