Swiss Prime Site Solutions Investment Fund Commercial Reports Strong Performance in H1 2023/2024

Swiss Prime Site Solutions Investment Fund Commercial (SPSS IFC) achieved a cash flow yield of 2.75% in the first half of the 2023/2024 period, surpassing the target range of 1.75%-2.0%. This yield corresponds to earnings per share of CHF 2.74, with over 60% of the target dividend per share already reached halfway through the year.

Since its launch on 17 December 2021, SPSS IFC has shown a total return of +7.24% up to 31 March 2024, outperforming the SXI Real Estate Funds Total Return Index (SWIIT) by +12.77%.

The fund’s vacancy rate dropped to 1.7% from 3.2% in H1 2022/2023, reflecting effective asset management. The property "Centro Lugano Sud" was fully let, and the rent default rate decreased to 1.6% from 3.7%.

Net revenue increased by 2%, aided by high indexing and reduced vacancies, contributing to an EBIT margin of 86% at property level. The weighted average unexpired lease term (WAULT) stabilized at 5.5 years.

Sustainability efforts include reliance on heat pumps for 60% of the energy mix and integrating long-term investment plans for CO2 reduction. The fund secured 17% of the target rent through green leases and is participating in a GRESB assessment.