Seraina Investment Foundation doubles its overall success

In the 2025 financial year, the Seraina Investment Foundation more than doubled total income in the Swiss Development Residential (SDR) investment group from CHF 37.7 million to CHF 84.4 million. In the SIF Living ESG portfolio investment group, it rose from CHF 3.2 million to CHF 7.9 million. Across both investment groups, net rental income amounted to CHF 21.07 million, an increase of just under 10 %. However, income in the two categories developed in opposite directions.

In the SIF Living ESG investment group, which holds investment properties in mint condition, net rental income increased by CHF 89 % to CHF 4.37 million - mainly due to the full-year income from properties acquired in the previous year. The rental loss ratio fell from % 3.88 to % 1.89. By contrast, net rental income in SDR, which invests in development projects and only generates rents from interim use and completed buildings, fell by % 13 to CHF 16.69 million (previous year: CHF 19.19 million). At the same time, the rent loss rate rose from 13.19 % to 19.37 %. However, both figures are only of limited significance for development properties, as rental income is not the key earnings indicator here.

Revaluations as a yield driver

The return on investment of the SDR was largely driven by unrealized changes in value: these amounted to CHF 83.4 million (previous year: CHF 34.5 million) and, according to the annual report, reflect project progress, declining interest rates and adjusted discount rates. After deducting deferred taxes, this left CHF 76.3 million (previous year: CHF 32.0 million). The net profit realized in SDR was CHF 2.8 million, compared to a loss of CHF 1.2 million in the previous year. This improvement was partly due to lower mortgage interest: They fell from CHF 5.0 million to CHF 3.5 million. Valuations also rose in the SIF Living ESG investment group, by CHF 4.2 million (previous year: CHF 1.3 million). The net operating income here amounted to CHF 4.5 million (previous year: CHF 1.9 million).

The portfolio value of SDR increased to CHF 1.62 billion (previous year: CHF 1.48 billion) and that of SIF Living ESG to CHF 133.2 million (previous year: CHF 125.4 million). The Investment Foundation's total net assets amounted to CHF 1.45 billion. The leverage ratio in SDR fell from 23.18 % to 17.99 %.

Six new projects

The investment foundation acquired six new projects in Zurich, Zollikon (ZH) and Langnau am Albis (ZH) in the reporting year. The SDR portfolio now comprises 46 projects, 26 of which are under development, seven under construction and seven under land reservation. In Vitznau (LU), 18 owner-occupied apartments in the «Südsicht» project were completed and most of them handed over. The building application for the planned high-rise building on Hohlstrasse in Zurich with 168 rental apartments has been submitted and construction is scheduled to start in early 2028. The «Aeschenplatz» project in Basel, at the former UBS headquarters, was completely converted from mixed use with partial condominium ownership to rental apartments. In Geneva, the «Florissant» project received the legally binding building permit. Construction started on three developments in Niederlenz (AG), Zurich and Oetwil am See (ZH). New projects will start in 2026 with Alpenda in Zollikofen (BE) and Swissroc in Gland (VD).

In the SIF Living ESG investment group, the property House D of the «Flore & Sens» project in Estavayer-le-Lac (FR) was acquired from the SDR investment group for CHF 3.656 million in December. The SIF Living portfolio now comprises 7 existing properties.

The investment foundation collected around CHF 156 million in capital commitments through four issues; eleven new investors were added, bringing the number of investors to 85 pension funds. The SIF Focus investment group was dissolved as at September 30 and transferred to the SDR. (aw)