SF URBAN PROPERTIES AG 31 October 2022
SF Urban Properties Ltd
Share Price CHF 85.00
Description
SF Urban Properties Ltd (SFUP) is a Swiss real estate company based in Zurich. It is engaged in the development and management of an existing real estate portfolio and in the acquisition of new properties. SFUP invests in commercial, residential and development properties as part of its activities. The company's geographic investment focus is on the cities of Zurich and Basel. As such, the company gears its strategy to economic areas and locations that offer more potential than others through demographic, legal or economic framework conditions or changes.
In making its investments, the company focuses on investing in Swiss real estate that generates strong cash flow over the long term or demonstrates unrealised value potential that can be exploited to generate income through active management, such as through conversion, renovations, expansion projects or development projects.
Company Data
Company | SF Urban Properties Ltd |
Legal form | Swiss Corporation (AG) |
CEO | Bruno Kurz |
CFO | Reto Schnabel |
Asset manager | Swiss Finance & Property Funds Ltd |
Benchmark | SXI Real Estate Shares Broad |
Management fee | 0.75% (NAV); 0.5% > 250 Mio. |
Auditing company | PricewaterhouseCoopers |
SIX Swiss Exchange listing | 17 April 2012 |
Portfolio value | CHF 753.2 mn (as at 30 June 2022) |
investment properties | |
Security number | 3281613 |
ISIN number | CH0032816131 |
Bloomberg code | SFPN SW Equity |
Distribution for 2021 | CHF 3.60 |
Distribution yield as at 31 December | 3.6% |
2021 | |
Performance (reset on base 100)
Cumulative performance (in %)
YTD | 1 mt | 3 mts | 1 year | 3 years | 5 years | Since | |
Inception | |||||||
SFUP | -12.98% | -4.49% | -8.60% | -10.32% | 0.13% | 2.32% | 89.31% |
Benchmark | -10.10% | 3.51% | -6.77% | -10.67% | -7.60% | 21.76% | 158.48% |
Key Financial Figures (as at 30 June 2022)
Income statement | Unit | 1 Jan. | 1 Jan. | ||
- 30 Jun. 2022 | - 30 Jun. 2021 | ||||
Property earnings | CHF 1 000 | 13 | 783 | 12 | 618 |
Total operating income before | CHF 1 000 | 25 | 338 | 25 | 985 |
revaluation | |||||
Revaluation of investment properties | CHF 1 000 | 15 | 128 | 10 | 041 |
Operating result (EBIT) | CHF 1 000 | 26 | 097 | 20 | 817 |
EBIT margin | % | 64.62 | 57.91 | ||
Net profit | CHF 1 000 | 22 | 301 | 15 | 346 |
Net income attributable to share- | CHF 1 000 | 21 | 369 | 14 | 346 |
holders of SF Urban Properties Ltd | |||||
Net profit excluding revaluation | CHF 1 000 | 9 | 225 | 6 | 312 |
effects 1 | |||||
Balance sheet | Unit | 30 Jun. 2022 | 31 Dec. 2021 | ||
Total assets | CHF 1 000 | 852 | 504 | 793 | 664 |
Equity capital | CHF 1 000 | 396 | 637 | 364 | 511 |
Equity ratio | % | 46.53 | 45.93 | ||
Financial liabilities | CHF 1 000 | 375 | 629 | 327 | 475 |
Debt financing ratio | % | 44.06 | 41.26 | ||
Outside capital | CHF 1 000 | 455 | 867 | 429 | 153 |
Debt financing ratio | % | 53.47 | 54.07 | ||
Third-partyloan-to-value ratio of the | % | 45.80 | 44.00 | ||
properties 2 | |||||
Return on equity 3 | % | 11.23 | 8.29 | ||
Return on equity excluding revaluation | % | 4.85 | 3.65 | ||
effects 1 | |||||
Key Figures per Share | Unit | 30 Jun. 2022 | 30 Jun. 2021 | ||
Net Asset value (NAV) per share of | CHF | 23.53 | 19.96 | ||
CHF 1.80 | |||||
Net Asset Value (NAV) per share of | CHF | 117.67 | 99.78 | ||
CHF 9.00 | |||||
Net Asset Value (NAV) per share of | CHF | 26.61 | 22.45 | ||
CHF 1.80 before deferred taxes | |||||
Net Asset Value (NAV) per share of | CHF | 133.05 | 112.25 | ||
CHF 9.00 before deferred taxes | |||||
Share price | CHF | 95.00 | 103.00 | ||
Premium (+) and discount (-) on NAV | % | -19.26 | 3.23 | ||
Unit | 1 Jan. | 1 Jan. | |||
- 30 Jun. 2022 | - 30 Jun. 2021 | ||||
Earnings per share (EPS) of CHF 1.80 | in CHF | 1.28 | 0.86 | ||
nominal | |||||
Earnings per share (EPS) of CHF 9.00 | in CHF | 6.38 | 4.28 | ||
nominal | |||||
Earnings per share (EPS) of CHF 1.80 | in CHF | 0.55 | 0.38 | ||
nominal excluding revaluation 1 | |||||
Earnings per share (EPS) of CHF 9.00 | in CHF | 2.75 | 1.88 | ||
nominal excluding revaluation 1 | |||||
1 Rrevaluation effects: revaluations as well as their tax effects and further tax effects
2 Interest bearing debt in relation to properties including developments dedicated to be sold 3 Profit in relation to average equity
SF Urban Properties Ltd | Page 1/4 |
31 October 2022
SF Urban Properties Ltd
Share Price CHF 85.00
Portfolio data | Unit | 30 Jun. 2022 | 30 Jun. 2021 |
Number of investment properties | Quantity | 48 | 45 |
Number of development properties | Quantity | 7 | 5 |
Investment properties incl. building rights | CHF 1 000 | 756 436 | 672 672 |
Development properties | CHF 1 000 | 41 994 | 33 829 |
Gross yield 4 | % | 4.00 | 4.24 |
Weighted real discount rate of portfolio valuation | % | 2.70 | 2.88 |
Weighted nominal discount rate of portfolio valuation | % | 3.73 | 3.40 |
Vacancy rate end of period | % | 2.40 | 2.64 |
Current vacancies Reporting period 5 | % | 2.36 | 2.59 |
Average interest rate (excluding swaps) of financial liabilities | % | 0.70 | 0.57 |
Average interest rate (including swaps) of financial liabilities | % | 1.40 | 1.42 |
Average fixed interest rate | Years | 6.9 | 8.6 |
4 Gross profit yield equals targeted rental income as a percentage of market value (fair value)
5 Vacancy rate corresponds to vacancy excluding inconsistencies, rent reductions and discounts / target net rental when fully let
Market values by region (as at 30 June 2022) | Target net rental earnings by use (as at 30 June 2022) |
Quality of property and location (as at 30 June 2022)
SF Urban Properties Ltd | Page 2/4 |
31 October 2022
SF Urban Properties Ltd
Share Price CHF 85.00
Review
After overcoming challenging times during the pandemic, the real estate market is currently experiencing uncertainties concerning growth and continuity as the turnaround in interest rates is taking hold. SF Urban Properties AG (SFUP) achieved a very good operating result in the first half of the year despite these changes. The company generates stable rental income, is solidly financed and is working on implementing its sustainability strategy as planned.
In the first half of the year, the company acquired the investment property Binningerstrasse 5 / Innere Margarethenstrasse 2 in Basel. It is particularly pleasing that this purchase was made as part of a realignment strategy to the properties already owned by SFUP at Binningerstrasse 7, 9, 11 and 15. The company also invested in two new development projects: one in the popular lakeside community of Rüschlikon, the other in Zurich's renowned Seefeld district.
The conclusion of numerous new leases and the extension of selected leases led to a further reduction in the vacancy rate in the first months of the year: 2.4% as at the reporting date 30 June 2022.
The implementation of the individual property strategies in the city of Zurich is being driven forward. For example, renovation work at Neptunstrasse 57 was completed at the end of April. The property is fully let as of 1st May.
Important milestones were reached in the ongoing development projects. At Sandreuterweg 39 in Riehen, for example, the construction work was largely completed by the end of the first half of the year and preliminary inspections have already been carried out on five of ten single-family houses. At the beginning of May, demolition work began on the new "maison johann" project at Elsässerstrasse 1 in Basel. At Klusstrasse 38 in Zurich, finishing work began on schedule. The building application for the development project at Minervastrasse 124 was submitted in January 2022. After delays in the development project at Fuederholzstrasse 8 in Herrliberg, we were now able to obtain the legal validity of the building permit.
Outlook
The company believes that properties with a stable cash flow yield will continue to be attractive for investors. In the second half of the year, the company will examine targeted acquisitions. Primarily, these will be acquisitions in the direct vicinity of the existing properties as well as properties for promotional development. Sales scenarios are possible if individual properties do not fit the defined portfolio strategy or for properties without recognisable potential.
The company assumes that earnings will not be affected by the pandemic until the end of the year. Due to the marked increase in net immigration to Switzerland in 2022, it is expected that the residential market will continue to benefit. In addition, we expect demand for office space to remain stable overall, especially for contemporary and attractive space in central locations.
The profitable SFUP portfolio, with a low vacancy rate, central locations, a diverse mix of uses and a development pipeline rich in value creation, allows a positive outlook on the earnings situation in the second half of the year.
The properties are constantly optimised through a long-term defined and consistently implemented individual property strategy. The planned renovations and conversions of selected properties will therefore also be pushed forward in the second half of the year, taking into account the reduction of CO2 emissions in the portfolio.
The development business is expected to continue to have an extremely positive impact on the operating result, as the initiated project developments are again expected to reach important milestones by the end of the year.
Top Properties from the Portfolio
«Haus zum Tanz», Basle | Zeltweg 67, Zurich | Witikonerstrasse 15, Zurich |
Steinenvorstadt 67, Basle | Schaffhauserstrasse 6, Zurich | Klausstrasse 4, Zurich |
SF Urban Properties Ltd | Page 3/4 |
31 October 2022
Head Client Relationship Management & Marketing
Urs Kunz | Seefeldstrasse 275 | 8008 Zurich | kunz@sfp.ch | +41 43 344 74 78 | www.sfp.ch
Disclaimer
This document is intended for use solely by the person to whom it is conveyed on a confidential basis. By accepting and retaining this material and the information therein, which is intended for marketing purposes, the recipients confirm and agree to uphold the confidentiality of this document. The recipient is not authorised to transmit this document to third parties. This material may not be duplicated or copied, in whole or in part, for any purpose without the written prior consent of Swiss Finance & Property Funds Ltd and Swiss Finance & Property Ltd ("Swiss Finance & Property"). This document constitutes neither an offer nor a recommendation to buy or sell securities or instruments and should not be interpreted as investment advice or any other type of decision-making tool or suggestion with regard to legal, tax-related or other matters. Neither the present document nor copies thereof may be sent, taken or distributed to the United States of America, or given to US persons (within the meaning of Regulation S of the US Securities Act of 1933 in its current valid version). Past performance is neither a guarantee nor an indicator of current or future performance or returns. The performance does not take into account any commissions and costs for issue or redemption of fund units. The prospectus, the simplified prospectus and/or the key investor information document (KIID) or basic information sheet as well as the annual and semi-annual reports can be obtained free of charge from Swiss Finance & Property Funds Ltd.
SF Urban Properties Ltd | Page 4/4 |
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SF Urban Properties AG published this content on 31 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2022 10:51:00 UTC.
