SF Urban Properties : June 2022

30 June 2022

SF Urban Properties Ltd

Share Price CHF 95.00

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	REAL Index
Management fee	0.75% (NAV); 0.5% > 250 Mio.
Auditors	PricewaterhouseCoopers
SIX Swiss Exchange listing	17 April 2012
Portfolio value	CHF 718.2 mn (as at 31 December 2021)
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	-2.75%	-2.56%	-4.63%	-4.63%	17.51%	12.89%	94.09%
Benchmark	-6.99%	-8.72%	-9.63%	-6.86%	8.92%	22.31%	122.76%

Key Financial Figures (as at 31 December 2021)

Income statement	Unit	1 Jan. -	1 Jan. -
		31 Dec. 2021 31 Dec. 2020
Property earnings	CHF 1 000	27	123	26	499
Total operating income before	CHF 1 000	49	683	44	738
revaluation
Revaluation of investment properties	CHF 1 000	36	755	3	260
Operating result (EBIT)	CHF 1 000	57	800	31	954
EBIT margin	%	66.87	66.57
Net profit	CHF 1 000	41	887	22	834
Net income attributable to shareholders	CHF 1 000	40	534	22	966
of SF Urban Properties Ltd
Net income attributable to shareholders	CHF 1 000	13	511	23	926
of SF Urban Properties Ltd
excluding revaluation effects 1
Balance sheet	Unit 31 Dec. 2021 31 Dec. 2020
Total assets	CHF 1 000	793	664	704	674
Equity capital	CHF 1 000	364	511	327	386
Equity ratio	%	45.93	46.46
Financial liabilities	CHF 1 000	327	475	279	608
Debt financing ratio	%	41.26	39.66
Outside capital	CHF 1 000	429	153	377	289
Debt financing ratio	%	54.07	53.54
Third-partyloan-to-value ratio of the	%	44.00	43.10
properties 2
Return on equity 3	%	12.11		7.06
Return on equity excluding revaluation	%		3.91		7.40
effects 1
Key Figures per Share	Unit 31 Dec. 2021 31 Dec. 2020
Net Asset value (NAV) per share of	CHF	21.67	19.54
CHF 1.80
Net Asset Value (NAV) per share of	CHF	108.36	97.69
CHF 9.00
Net Asset Value (NAV) per share of	CHF	24.30	21.79
CHF 1.80 before deferred taxes
Net Asset Value (NAV) per share of	CHF	121.51	108.94
CHF 9.00 before deferred taxes
Share price	CHF	101.00	97.00
Premium (+) and discount (-) on NAV	%	-6.79	-0.70
	Unit	1 Jan. -	1 Jan. -
		31 Dec. 2021 31 Dec. 2020
Earnings per share (EPS) of CHF 1.80	in CHF		2.42		1.37
nominal including revaluation
Earnings per share (EPS) of CHF 9.00	in CHF	12.09		6.85
nominal including revaluation
Earnings per share (EPS) of CHF 1.80	in CHF		0.81		1.43
nominal excluding revaluation 1
Earnings per share (EPS) of CHF 9.00	in CHF		4.03		7.14
nominal excluding revaluation 1

1 Revaluation 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

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30 June 2022

SF Urban Properties Ltd

Share Price CHF 95.00

Portfolio data	Unit	31 Dec. 2021	31 Dec. 2020
Number of investment properties	Quantity	47	43
Number of development properties	Quantity	5	4
Investment properties incl. building rights	CHF 1 000	721 518	641 813
Development properties	CHF 1 000	31 397	30 154
Gross yield 4	%	4.00	4.40
Weighted real discount rate of portfolio valuation	%	2.79	2.99
Weighted nominal discount rate of portfolio valuation	%	3.30	3.51
Vacancy rate end of period	%	2.60	2.62
Current vacancies Reporting period 5	%	2.51	2.68
Average interest rate (excluding swaps) of financial liabilities	%	0.55	0.56
Average interest rate (including swaps) of financial liabilities	%	1.35	1.62
Average fixed interest rate	Years	7.7	8.0

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 31 December 2021)

Target net rental earnings by use (as at 31 December 2021)

Quality of property and location (as at 31 December 2021)

SF Urban Properties Ltd

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30 June 2022

SF Urban Properties Ltd

Share Price CHF 95.00

Review

The company acquired the properties at Binningerstrasse 5 and Innere Margarethenstrasse 2 in Basle in early 2022. The fact that this acquisition was implemented as part of a strategy of consolidation with the properties at Binningerstrasse 7, 9, 11 and 15, which the company already owned, is particularly pleasing.

The conclusion of a large number of new rental contracts and the renewal of existing ones in the first few months of the year meant that the low vacancy rate was maintained.

As part of the ongoing development of the property strategies, SFUP pushed ahead with the planning of renovations, conversions and new builds within the portfolio. This included the completion of the total renovation of the property at Neptunstrasse 57 in Zurich as scheduled on 30 April. All apartments have been let since 1 May.

The company was able to acquire two new development properties in the first half of the year. More important milestones were achieved for ongoing development projects. Following the completion of work on the skeleton structure for the development project at Sandreuterweg 39 in Riehen, for example, most of the finishing work has been done and pre- inspections have already been carried out for half of the 10 single-family houses. The milestone of "building envelope sealed" was achieved for Klusstrasse 38 in Zurich, and finishing work began. Demolition work for the "maison johann" new construction project at Elsässerstrasse 1 + 3 in Basle started in early May. For the development project at Fueder- holzstrasse 8 in Herrliberg, important steps were taken towards making the building permit legally effective. The planning application for the development project at Minervastrasse 124 was submitted in January 2022.

Outlook

The company is planning to continue expanding its real estate portfolio by means of targeted acquisitions, mainly focusing on potential consolidations and properties with the potential to be extended.

The vacancy rate of 2.6% as of 31 December 2021, which is still low in comparison with the rest of the market, is emblematic of SF Urban Properties Ltd's portfolio. Keeping the vacancy rate low is one of the company's main aims as it acts as a basis for securing income over the long term.

Work on renovations and the repurposing of selected properties will continue in the months ahead.

Reducing the CO2 emissions of the portfolio is also a top priority for the company. The company fulfils its responsibilities, analyses and monitors greenhouse gas emissions each year, and develops corresponding measures on that basis.

The continuation of project developments will lead to more key milestones being reached in 2022. The completion of construction work and occupation of the new construction project at Sandreuterweg 39 in Riehen are scheduled for August 2022. The completion of construction work and occupation of the property at Klusstrasse 38 in Zurich are scheduled for October 2022. Work on the skeleton structure for the "maison johann" development project in Basle is scheduled to start in the third quarter. Marketing of the development project at Fuederholzstrasse 8 in Herrliberg will start once a legally effective building permit has been granted, which is expected in the third quarter. The building permit for the development project at Minervastrasse 124 in Zurich, which was acquired in the first quarter of 2021, is expected to be granted in the course of the third quarter.

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

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30 June 2022

Head Client Relationship Management & Marketing

Urs Kunz | Seefeldstrasse 275 | 8008 Zurich | [e-mail] | [phone] | 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

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