Swiss Central: Fund increases net income slightly

The Swiss Central City Real Estate Fund sold properties for a total of CHF 40 million in 2024, including CHF 31.2 million in the second half of the year. In addition, there was a sale in Lausanne, which was notarized at the end of November and completed at the end of January. The fund describes the sales as portfolio optimization with smaller, mainly investment-intensive properties. In addition, properties were sold for which the value appreciation cycle had been completed. The sale of Luisenstrasse 40 in Zurich, which was sold at the end of the year, was not reported in the half-year report. In the last half-year report, the property was listed in the books with a value of CHF 28.1 million.

According to the fund managed by Novaproperty, the completion of the two construction projects in St. Gallen and an increase on Avenue du Léman in Lausanne had a positive impact on the market value of the portfolio. The completed projects in St. Gallen resulted in a potential increase in rental income of around CHF 0.4 million. The vacancy rate fell from 3.2 to 2.4% and target rents, excluding transactions and projects, increased by around 3.4% to CHF 19.2 million. Including the aforementioned completion in St. Gallen, target rental income amounted to CHF 19.6 million at the end of the year - although the previous year's figure was slightly higher at CHF 19.9 million.

Net income increases slightly, overall result remains negative

The fund's net income rose from CHF 8.0 million to CHF 8.2 million, while the overall result improved from CHF -20.4 million to CHF -1.0 million. This includes realized capital gains of CHF 0.4 million (2023: CHF -7.3 million) and unrealized capital losses of CHF -11.3 million (previous year: CHF -26.0 million).

For 2024, CHF 2.25 per fund unit will be distributed, which represents an increase of ten centimes. (aw)