SF Urban Properties: Profit increase in the first half-year
SF Urban Properties AG is satisfied with its performance in the first half of the year: Progress with the development properties and positive revaluations would have led to a significantly higher profit than in the previous year.
SF Urban Properties AG reports that property income including ancillary income fell by CHF 0.3 million or 2.25% to CHF 12.6 million in 2021 compared with the previous year. This was due to the two pandemic-related lockdowns in spring and winter. However, the vacancy rate as of the reporting date remained stable at 2.6% compared to the end of 2020. In the reporting period, numerous contract extensions of existing leases and new leases of vacant space were realized. The contribution of revaluations from investment properties in the first half of the year was reportedly 10m (previous year: 0.8m). The revaluations were the result of the development of the discount rate, lease extensions, the conclusion of new leases at better conditions and investments.
Operating expenses increased significantly, mainly due to the development properties. The EBIT margin fell toTP1T 57.81 (previous year:TP1T 62.61) due to the higher share of the development business. After taxes, net profit amounted to 15.3 million, compared to 4.8 million in the previous year. According to the company, net profit excluding revaluation effects and minority interests increased from 5.5 million to 7.3 million compared to the same period of the previous year.
Granted and recorded rent reductions since the start of the Corona pandemic in March 2020 total 1.25M as of June 30, 2021, according to SF Urban Properties, of which 0.47M is attributable to the first lockdown (1.7% of net annualized actual rental income in 2020) and 0.78M is attributable to the second lockdown (2.7% of annualized net annualized actual rental income in 2021).
SF Urban Properties expects the transaction market to remain competitive in the second half of the current fiscal year due to persistently low interest rates and excess demand. As far as portfolio expansion is concerned, the company still intends to focus on the economic areas of Zurich and Basel. Although there is considerable uncertainty in the rental market due to the pandemic, the company expects a strong economic recovery to have a positive effect on demand. (ah)
