Pure Swiss Opportunity with strong growth

The Pure Swiss Opportunity Real Estate Fund 2025 has completed its fifth full financial year - and reached a milestone with its listing on the SIX Swiss Exchange in October. Six acquisitions totaling CHF 94.6 million and three disposals fundamentally changed the portfolio: the number of properties rose from 15 to 18 and the market value from CHF 189.6 million to CHF 256.3 million.

Net rental income increased by around CHF 25 % to CHF 7.7 million (previous year: CHF 6.1 million). The rental loss rate fell slightly to 1.53 % (previous year: 1.92 %). However, the vacancy rate rose from 0.49 % to 1.38 % as at the reporting date: At Bederstrasse 103/103a in Zurich (ZH), only 84 % of the space was let at the end of the year, while in Risch-Rotkreuz (ZG) at Rigiweg 23 the rate was around 90 %. With a WAULT of just six months, Bederstrasse also has the shortest weighted remaining lease term in the entire portfolio.

Costs fall, operating profit rises

The operating profit margin improved to 79.7 % (previous year: 74.7 %). A key factor was mortgage interest, which fell from CHF 1.3 million to CHF 0.9 million despite the higher balance sheet total - the result of both the halving of debt and lower interest rates. The average interest rate on external financing fell to % 0.80 (previous year: % 1.55). Other income includes CHF 0.9 million from contributions in kind: as the fund units were quoted above NAV after listing, the PSO was able to recognize the difference as income from the two partial contributions in kind in Lausanne and on Universitätstrasse in Zurich.

Net income amounted to CHF 9.5 million - a jump compared to the previous year's CHF 3.8 million, although this was also influenced by the high purchase in current net income of CHF 5.3 million (previous year: CHF 0.7 million). With the three sales in Moosleerau (AG) and Sissach (BL), the PSO realized capital gains for the first time: gross CHF 3.7 million, CHF 2.4 million after property gains tax. The existing portfolio (excluding the properties sold) was revalued like for like by CHF 1.7 million, which corresponds to 1.05 % on the adjusted initial value. The six new additions contributed a revaluation gain of just under CHF 3.0 million. In total, this results in an overall profit of CHF 13.6 million, more than double the previous year's figure (CHF 5.4 million).

Capital increases and stock exchange listing

Over the course of the year, the PSO carried out two ordinary capital increases (net CHF 24.0 million and CHF 36.9 million) and three partial contributions in kind. On October 20, the fund was listed on SIX and included in the «SXI Real Estate Broad» and «SXI Real Estate Funds Broad» indices. At the end of the year, the market capitalization was CHF 220.1 million with a premium of just under 1 %. The leverage ratio fell sharply from 44.1 % to 22.0 %.

A distribution of CHF 4.50 per unit is planned for the 2025 financial year (previous year: CHF 4.30), which corresponds to a distribution yield of 3.48 %. The payout ratio will fall from 98.8 % to 81.0 %.

Further acquisitions in Zurich and Berne

After the balance sheet date, the PSO invested the issue proceeds from the December capital increase. This was followed in January by the acquisition of a mixed-use property in Zurich-Oerlikon at Nansenstrasse 9 (market value: approx. CHF 13.5 million), 65 % of whose income comes from restaurant space - the main tenant is Burger King. In February, a residential portfolio with three properties in Zurich (Grüngasse 5, Freyastrasse 4, Pestalozzistrasse 34) was added for over CHF 33.3 million, and at the beginning of March a completely renovated property in Bern at Rathausgasse 57 (approx. CHF 6.9 million).

Purchases

• Zurich, Altstetterstrasse 186 (residential
• Kriens (LU), Kosthausstrasse 1, 3, 5 & 7 (residential)
• Zurich, Bederstrasse 103 & 103a (residential/commercial
• Berne, Amthausgasse 1 (commercial)
• Lausanne, Place Chauderon 24/26 / Avenue de France 1, 3, 5 (mixed)
• Zurich, Universitätstrasse 25 (commercial)

Purchases after the balance sheet date

• Zurich-Oerlikon, Nansenstrasse 9 (mixed)
• Zurich, Grüngasse 5 (residential)
• Zurich, Freyastrasse 4 (residential
• Zurich, Pestalozzistrasse 34 (residential
• Berne, Rathausgasse 57 (mixed)

Sales

• Moosleerau (AG), Im Winkel 215 (residential)
• Sissach (BL), Itingerstrasse 4-14 (residential)
• Moosleerau (AG), Im Winkel 406 (residential) (aw)