PSP Swiss Property AG · SIX:PSPN
PSP Swiss Property — 4th Pan-European Property Seminar 2002
38 slides from PSP Swiss Property's conference presentation, Mar 21, 2002
Slide 1: Company Presentation, 4th Pan-European Property Seminar
Company Presentation 4th Pan-European Property Seminar SG, Paris, 21&22 March 2002
Slide 2: Speakers
Speakers Fritz Jörg Chief Executive Officer Vasco Cecchini Head of Investor Relations 2
Slide 3: Agenda
Agenda Ø Company Profile Ø Key Figures 2001 Ø Milestones Ø Key Figures Portfolio Ø Real Estate Management Services Ø Financial Figures 2001 Ø Share Price Ø Outlook 2002 Ø Appendix Ø Company Contacts 3
Slide 4: Company Profile – Fact&Figures
Company Profile – Fact&Figures1 Basel Zurich 118 Commercial properties mainly in growth areas Berne Lausanne Market value portfolio CHF 2'264.5 mm Geneva Gross potential income CHF 140.9 mm Rental income CHF 119.8 mm Net rental income CHF 104.3 mm Implied yield, gross 6.4% Implied yield, net 5.6% Va
Slide 5: Company Profile – Formation&Milestones
Company Profile – Formation&Milestones Ø July 1999 Formation PSP Swiss Property Ltd (PSP) through Zurich Financial Services Group (ZFS) - ZFS transferred most of its commercial Swiss real estate into PSP - Before, the whole real estate portfolio (commercial and residential properties) was managed by
Slide 6: Company Profile – Structure
Company Profile – Structure Zurich Financial Services Converium Ltd Other shareholders PubliGroupe SA 22.3% 62.9% 9.7% 5.1% PSP Swiss Property Ltd Holding 100% 100% 100% PSP Management Ltd PSP Real Estate Ltd PSP Finance Ltd Real Estate Mgmt. Real Estate Investments Financing Company Services Asset
Slide 7: Company Profile – Investment Story
Company Profile – Investment Story Swiss real estate Swiss commercial real estate market still offers opportunities with market with good good underlying economic fundamentals opportunities PSP Swiss Property is the largest Swiss publicly traded property Leading market company with a strong office f
Slide 8: Company Profile – Strategy
Company Profile – Strategy Grow existing portfolio by focused acquisitions of real estate portfolios and companies in Switzerland ... but only if accretive Optimise portfolio by - sale of non-strategic assets - realising full potential of existing properties Build up asset management services and fu
Slide 9: Company Profile – Investment Policy
Company Profile – Investment Policy Ø Direct and indirect real estate investments (single objects, portfolios) Ø Investments in land, building and renovation objects are possible Ø Target areas: Zurich, Geneva, Lausanne, Basel, Berne Ø Risk diversification limits: - max. 10% of gross potential incom
Slide 10: Company Profile – Growth
Company Profile – Growth Ø Target size portfolio - Within 2 years CHF 3 bn - Medium- and long-term CHF 5 bn - EPRA-Index: Among the top 15 Ø Measures - Acquisitions - Realising full potential of existing portfolio Ø Guidelines - Target leverage ratio: shareholders' equity min. 50% of total fixed ass
Slide 11: Company Profile – Divestments
Company Profile – Divestments Ø Objects - Non-strategic assets acquired on portfolio transactions - Value optimised properties Ø Consideration of - Real estate cycle - Tax implications (property gain taxes) Ø Actual situation - Approx. 20 properties for approx. CHF 200 mm are designated for sale 11
Slide 12: Company Profile – Positioning
Company Profile – Positioning Property type PSP Swiss Property Strong focus Züblin SPS Maag Real Estate Group Allreal Intershop Diversified Geographically diversified Key market focus Concentration on growth areas 12
Slide 13: Key Figures 2001
Key Figures 2001 PSP Swiss Property Group 2000 2001 (consolidated, in CHF mm) Operating income 198.0 339.2 71% Operating expenses -36.0 -51.0 42% Operating profit before financial expenses 162.0 288.2 78% Operating profit before taxes 150.6 257.8 71% Net income 119.5 211.5 77% Net income excl. gains
Slide 14: Key Figures 2001 – Per Share
Key Figures 2001 Per Share Figures 2000 2001 (in CHF) EPS 1 20.83 31.78 53% EPS excl. gains on real estate investments 1 8.80 9.59 9% NAV per share 2 168.83 188.34 12% NAV per share before deferred taxes 2 172.73 195.78 13% Discount to NAV 7.6% 19.3% Dividend 4.00 5.00 25% 1 Based on weighted averag
Slide 15: Milestones
Milestones 2001 Ø Acquisition Swisscom-Portfolio, WTF joint venture Ø Businesspark SWING, 2nd project, Wallisellen (nearby Zurich) Ø Acquisition commercial property Förrlibuckstr. 10, Zurich Ø Acquisition commercial property Steinentorberg 8-12, Basel Ø New PSP branch office in Berne Ø Capital incre
Slide 16: Milestones – Lancy-Office-Center, Geneva
Milestones Lancy-Office-Center, Geneva 16
Slide 17: Key Figures Portfolio – Income by area and use
Key Figures Portfolio Gross potential income by area Other locations 24% Zurich 46% Lausanne, Basel und Gross potential income by use Berne 18% Geneva 12% Other 5% Parking 7% Retail 15% Office 67% 17
Slide 18: Key Figures Portfolio – Tenant structure
Key Figures Portfolio Tenant structure Other 12% Government 6% Financial Services 28% Technology 8% Services 11% Telecommunication 19% Retail 16% 18
Slide 19: Key Figures Portfolio – Largest tenants
Key Figures Portfolio Largest tenants Swisscom 19% Other 46% Zurich Financial Services Group 12% Migros 5% Next five UBS 4% largest tenants 11% Credit Suisse 3% 19
Slide 20: Key Figures Portfolio – Expiry of lease contracts
Key Figures Portfolio Expiry of lease contracts (rental income) 25% Contracts without maturity 7% 20% 15% 10% 5% 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012+ 16% 6% 5% 12% 14% 7% 4% 4% 6% 2% 24% 20
Slide 21: Real Estate Management Services
Real Estate Management Services Approx. income from management services by clients (proforma 2002) Other 5% CS Asset Management 10% Zurich Financial Services Group 35% WTF 19% PSP Real Estate Ltd 31% 21
Slide 22: Financial Figures 2001 – Consolidated
Financial Figures 2001 – Consolidated (in CHF mm) 2000 2001 Operating income 198.0 339.2 71% thereof net changes in fair value of real estate inv. 90.2 128.8 thereof income from investment in assoc. comp. 0.0 53.7 Operating expenses -36.0 -51.0 42% Operating income before financial expenses 162.0 28
Slide 23: Financial Figures 2001 – Real Estate Investments
Financial Figures 2001 – Real Estate Investments (in CHF mm) 2000 2001 Rental income 78.5 119.8 53% Real estate expenses -12.2 -15.6 28% Net rental income 66.3 104.3 57% Net changes in fair value of real estate investments 90.2 128.8 Other income -0.1 54.4 Other expenses -5.7 -6.9 22% Operating prof
Slide 24: Financial Figures 2001 – Real Estate Investments
Financial Figures 2001 – Real Estate Investments Net changes in fair value of real estate investments 2000 2001 (in CHF mm) Driven by management of properties 21.7 10.6 Driven by macro-/market factors 41.2 -38.3 Change of discount rates 0.0 46.3 Total existing portfolio 62.9 18.6 Acquisitions 27.3 1
Slide 25: Financial Figures 2001 – Discount Rates
Financial Figures 2001 – Real Estate Investments Discount rates in % (31.12.2001) Number Market value of properties in CHF mm 5.25 - 5.45 8 238.0 5.50 - 5.70 32 935.9 5.75 - 5.95 35 552.2 6.00 - 6.20 22 302.5 6.25 - 6.45 11 82.8 6.50 - 6.70 7 68.8 6.75 - 7.00 2 39.5 Total 117 2'219.7 2000 2001 Weigh
Slide 26: Realised Surplus on Property Sales
Realised Surplus on Property Sales Number of properties sold 5 Market value by CBRE per 30.6.2001 (carrying value) CHF 11.037 mm Sales price CHF 12.145 mm Surplus compared to market value by CBRE CHF 1.108 mm = 10% 26
Slide 27: WTF Holdings (Switzerland) Ltd
WTF Holdings (Switzerland) Ltd (in CHF mm) 2001 Operating income 499.4 thereof net changes in fair value of real estate investments 426.5 Operating expenses -31.8 Operating income before financial expenses 467.6 Net income 273.1 Real estate investments 1'277.9 Shareholders' equity and shareholder lo
Slide 28: Financial Figures 2001 – Management Services
Financial Figures 2001 – Management Services (in CHF mm) 2000 2000 1 2001 adj. adj. Income from management services 32.9 32.9 40.7 23% General expenses -20.5 -28.5 -33.1 16% EBITDA 12.5 4.4 8.3 90% Net income 9.4 3.4 6.6 93% 1 Adjusted for CHF 8.03 mm released pension liabilities and CHF 2 mm tax ef
Slide 29: Share Price
Share Price 190 180 170 160 150 140 130 120 110 100 90 M A M J J A S O N D J F M A M J J A S O N D J F PSP SWISS PROPERTY LTD ZKB SWISS REAL ESTATE FUNDS SWX IG REAL ESTATE SWISS MARKET INDEX SWISS PERFORMANCE INDEX 6 March 2000 until 1 March 2002 PSP: high CHF 157.25, 10 April 2001; low CHF 140.00,
Slide 30: Outlook 2002
Outlook 2002 Ø Real estate market Ø Realisation of growth strategy Ø Expansion of management services Ø Earnings expectations - EBITDA - Net changes in fair value of real estate investments - Income from WTF 30
Slide 31: Extensive and Actual Information
Extensive and Actual Information www.psp-swissproperty.ch 31
Slide 32: Appendix – Key Figures Portfolio: Zurich area
Appendix – Key Figures Portfolio Zurich area 31 December 2001 • Value: CHF 1'098.6 mm; 1'143.4 mm1 • Properties: 46; 471 • Rentable m2: 215'314; 231'610 1 • Rental income: CHF 56.4 mm • Vacancy rate2: 1.5% 31 December 2000 • Value : CHF 706.6 mm; 730.2 mm 1 • Properties : 38; 39 1 • Rentable m2: 115
Slide 33: Appendix – Key Figures Portfolio: Geneva area
Appendix – Key Figures Portfolio Geneva area 31 December 2001 • Value: CHF 285.3 mm • Properties: 14 • Rentable m2: 45'558 • Rental income: CHF 16.5 mm • Vacancy rate1: 1.2% 31 December 2000 • Value: CHF 253.7 mm • Properties: 13 • Rentable m2: 42'189 • Rental income: CHF 11.0 mm • Vacancy rate1: 5.
Slide 34: Appendix – Key Figures Portfolio: Lausanne, Basel, Berne
Appendix – Key Figures Portfolio Lausanne, Basel and Berne areas 31 December 2001 • Value: CHF 388.5 Mio. • Properties: 21 • Rentable m2: 105'835 Basel • Rental income: CHF 28.3 Mio. • Vacancy rate1: 1.5% Berne Lausanne 31 December 2000 • Value: CHF 219.6 Mio. • Properties: 17 • Rentable m2: 62'901
Slide 35: Appendix – Key Figures Portfolio: Other locations
Appendix – Key Figures Portfolio Other locations 31 December 2001 • Value: CHF 447.3 Mio. • Properties: 36 • Rentable m2: 185'475 • Rental income: CHF 28.2 Mio. • Vacancy rate1: 11.1% 31 December 2000 • Value: CHF 296.0 Mio. • Properties: 33 • Rentable m2: 82'978 • Rental income: CHF 20.2 Mio. • Vac
Slide 36: Appendix – Acquisitions 2001 (Selection)
Appendix – Acquisitions 2001 (Selection) Zurich, Binzring 15/17 Zurich, Förrlibuckstr. 10 Zurich, Förrlibuckstr. 60/62 36
Slide 37: Appendix – Acquisitions 2001 (Selection)
Appendix – Acquisitions 2001 (Selection) Zurich, Limmatstr. 291 Geneva, Rue de Berne 6 Zurich, Seebahnstr. 89 37
Slide 38: Company Contacts
Company Contacts Fritz Jörg Chief Executive Officer Phone +41 (0)1 625 55 59 Fax +41 (0)1 625 58 25 [email protected] Felix Fischer Chief Financial Officer Phone +41 (0)1 625 51 02 Fax +41 (0)1 625 58 25 [email protected] Vasco Cecchini Head of Investor Relations Phon
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