Increase in earning power and net profit

• Net profit incl. revaluations CHF 16.5 million (previous year CHF 0.7 million)
• Net profit excl. revaluations CHF 13.1 million (previous year CHF 15.4 million)
• Property income increased significantly to CHF 31.2 million (+4.9%)
• Portfolio value increased from CHF 745.6 million to CHF 786.8 million (+5.5%)
• Unchanged low vacancy rate (reporting date) at 1.4% (previous year 1.3%)
• Increase in the distribution to CHF 3.65 per listed registered share, which will be repaid in full from capital contribution reserves

Increase in property income and EBIT margin

Property income including ancillary income increased by CHF 1.4 million or 4.86% year-on-year to CHF 31.2 million in 2024. This extremely positive increase is due, among other things, to the completed conversion projects, the indexation of commercial leases and the change in the yield portfolio.

Operating expenses for the investment portfolio fell by 12.81% to CHF 9.0 million (previous year
CHF 10.3 million). The reduction is mainly due to lower maintenance and repairs as well as lower administrative costs. The positive development is reflected accordingly in the EBIT margin for investment properties excluding revaluations, which increased by 9.00% in the year 2024, i.e. from 65.74% to 71.65%.

At CHF 3.2 million, the EBIT contribution from the promotion business was slightly below the previous year's figure of CHF 3.8 million.

Acquisitions of investment properties and plots for promotional developments

Two properties in Basel and Zurich with a volume of CHF 23.9 million were added to the yield-producing portfolio. In addition, Seefeldstrasse 186 in Zurich was reclassified from a development property to an investment property, adding a total of three properties to the yield-producing portfolio.

In the second half of the year, new plots were acquired for promotional developments in line with the strategic guidelines: a plot at Berghaldenstrasse 32/34 in Zurich Witikon and another plot at Dorfstrasse 68 in Zumikon totalling CHF 29.7 million.

Slight increase in the value of the yield portfolio

The like-for-like market value of the yield portfolio increased by a gross CHF 4.5 million or 0.59% compared to the previous year. Including the new additions, the volume of the portfolio increased by 5.5% to CHF 786.6 million.

GRESB result

The SF Urban Properties Ltd portfolio was valued with 4 out of 5 stars in the GRESB (Global Real Estate Sustainability Benchmark) report of the year 2024 and achieved 4^th place out of 10 in the direct peer comparison (Switzerland, Diversified, Listed).

Outlook for the year 2025

In the year 2025, the focus will be on consolidating the portfolio in line with the strategy with a focus on Zurich and Basel. Acquisitions in central locations are to be offset by sales of properties outside these urban locations. As part of this process, the management was already able to sell two residential properties in Zurich's renowned Seefeld neighbourhood worth CHF 36.3 million at the beginning of the year 2025.

Due to the expected reduction in the reference interest rate, a slight decline in rental income from residential properties is expected. However, prices for new lettings are likely to continue to rise, as the low level of construction activity and continued population growth will not change the current shortage of residential space. Rents for commercial space are expected to remain stable, with a slight upward trend anticipated.

The projects for promotional developments are all on track and will strengthen the EBIT contribution accordingly in the year 2025. In the current year, the construction projects for the promotional properties at Fuederholzstrasse 8 in Herrliberg and Minervastrasse 124 in Zurich will be completed on schedule.

Application for an increase in the distribution

The Board of Directors is proposing an increase in the distribution for the year to CHF 3.65 (previous year CHF 3.60) per registered share at CHF 9.00 or CHF 0.73 (previous year CHF 0.72) per voting share at CHF 1.80, resulting in a distribution yield of 3.71% (previous year 3.87%). The distribution will be made 100% from the capital contribution reserve and is therefore exempt from withholding tax.