Swiss Prime Site AG · SIX:SPSN
Swiss Prime Site — H1 2018 Earnings Presentation
36 slides from Swiss Prime Site's earnings presentation, Aug 9, 2018
Slide 1: Results First Half-Year 2018
RESULTS FIRST HALF-YEAR 2018 ZURICH, 9 AUGUST 2018
Slide 2: Agenda
1 Welcome 2 Highlights first half-year 2018 3 Key figures first half-year 2018 4 Outlook Zürich | 9 August 2018 Results first half-year 2018 2
Slide 3: Successful first half-year 2018
Welcome Successful first half-year 2018 Operating income Growth by 10.3% to CHF 585.3 million Profit Up by 7.8% to CHF 152.0 million Property portfolio Increase of 5.4% to CHF 10.8 billion Vacancy rate Reduction from 5.5% to 4.7% Revaluations Revaluation gains of CHF 35.0 million in line with last y
Slide 4: We offer perspectives
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Slide 5: Agenda
1 Welcome 2 Highlights first half-year 2018 3 Key figures first half-year 2018 4 Outlook Zurich | 9 August 2018 Results first half-year 2018 5
Slide 6: Successful start to the 2018 financial year
Highlights first half-year 2018 Successful start to the 2018 financial year PROPERTY PORTFOLIO OPERATING INCOME in CHF m +5.4% in CHF m +10.3% 10 819 10 264 10 819 585 531 585 H1 2017 H1 2018 H1 2017 H1 2018 RENTAL INCOME EBIT in CHF m +4.2% in CHF m +7.9% 241 231 241 233 216 233 H1 2017 H1 2018 H1
Slide 7: Earnings per share forms a solid basis for an attractive dividend 2018
Highlights first half-year 2018 Earnings per share forms a solid basis for an attractive dividend 2018 PROFIT EQUITY RATIO in CHF million excluding revaluations in % and deferred taxes +15.4% -190 bps 151 131 151 41.2 43.1 41.2 H1 2017 H1 2018 H1 2017 H1 2018 EARNINGS PER SHARE (EPS) NET ASSET VALUE
Slide 8: Core Real Estate business with good growth
Highlights first half-year 2018 Core Real Estate business with good growth Real estate New/renewed leases: Total 96 400 m2 or 6.1% of the entire portfolio (including reductions of vacancies) Acquisitions (investment property): Iseli site, Regensdorf (Jan. 2018); office building at Beethovenstras
Slide 9: Attractive property acquisitions
Highlights first half-year 2018 Attractive property acquisitions Office building Beethovenstrasse 33, Zurich City Iseli site, Regensdorf Office property in CBD: Fully leased, extremely flexible Commercial site: Industrial/commercial site in Regensdorf building in Zurich's city centre, walking di
Slide 10: Attractive project acquisitions
Highlights first half-year 2018 Attractive project acquisitions West-Log, Zurich Altstetten Tertianum residential and care centre, Monthey City logistics: Superbly developed location. Designed as Assisted living: Residential and care centre situated in 85% logistics building for local distributi
Slide 11: Attractive project sales
Highlights first half-year 2018 Attractive project sales Weltpost Park, Bern (sold H1 2018) Espace Tourbillon, Geneva (sold H1 2017) Residential complex: Sale of «Weltpost Park» as a Commercial property: Sale of two buildings from development project in an attractive residential district in deve
Slide 12: Vacancy rate reduced further to 4.7%
Highlights first half-year 2018 Vacancy rate reduced further to 4.7% Property portfolio in CHF m H1 2017 Vacancy rate in % (Group) H1 2018 Total 10 263.7 10 819.1 8 6.8 6.6 7.4 6.4 6.7 7 6.1 of which projects | developments 422.3 483.8 5.4 6 5.0 6.4 187 189 5 6.1 Properties (number) 5.5 5.2 4 4.7 Re
Slide 13: Six properties under construction
Highlights first half-year 2018 Six properties under construction Pipeline: CHF 2.0 billion Under construction: CHF ~800 million In development: CHF ~900 million Reserves: CHF >300 million Zurich | 9 August 2018 Results first half-year 2018 13
Slide 14: Nine projects in planning
Highlights first half-year 2018 Nine projects in planning Pipeline: CHF 2.0 billion Under construction: CHF ~800 million In development: CHF ~900 million Reserves: CHF >300 million Zurich | 9 August 2018 Results first half-year 2018 14
Slide 15: Expected growth in rental income of CHF 92 m
Highlights first half-year 2018 Expected growth in rental income of CHF 92 m Projects Realisation Rental space Gross yield (on cost) Investment volume* Rentail income** Net yield (on cost) Under construction 2017 – 2021 157 000 m2 5.7% (Capex 2018 – 2021: CHF ~500 m) CHF ~800 million CHF ~
Slide 16: Developments (1/4): Stücki Park new build
Highlights first half-year 2018 Developments (1/4): «Stücki Park» new build – Construction begun Highlights Project: Creates a new centre for 1 700 workplaces Success factors: Meets need for laboratory and office spaces, positive inspirations and synergies from other uses (innovation, health, we
Slide 17: Developments (2/4): Espace Tourbillon
Highlights first half-year 2018 Developments (2/4): «Espace Tourbillon» – Foundation stone laid Highlights Project: Multifunctional industrial and commercial park with efficient logistics, approx. 95 000 m2 usable space Success factors: Tailor- made areas for 4 000 new workplaces Partial sale:
Slide 18: Developments (3/4): YOND Zurich
Highlights first half-year 2018 Developments (3/4): «YOND» Zurich – Topping-out achieved Highlights Project: Rapidly available, flexible spaces for small, medium and large service providers and traders Success factors: Innovative real estate project, planned and developed based on lean principle
Slide 19: Developments (4/4): Pont Rouge Lancy
Highlights first half-year 2018 Developments (4/4): «Pont Rouge» Lancy – Planning start Highlights Project: Fantastic position, excellent reinvestment opportunity Success factors: Location comparable to Zurich's Hardbrücke (mixed use: services, trade and residential) Investment volume: CHF 270
Slide 20: Services segment achieving good results
Highlights first half-year 2018 Services segment achieving good results Wincasa Expansion of services with a focus on digitalisation (CVC, My Wincasa, etc.) New record high for assets under management: CHF 67 billion Jelmoli Increase in sales per customer (+5.7%) and articles per receipt (+0.5
Slide 21: We shape the future
WE SHAPE THE FUTURE
Slide 22: Agenda
1 Welcome 2 Highlights first half-year 2018 3 Key figures first half-year 2018 4 Outlook Zurich | 9 August 2018 Results first half-year 2018 22
Slide 23: Rental income rises by 4.2%
Key figures first half year 2018 Rental income rises by 4.2% Growth in rental income Difference in CHF m In leased Facts properties (AI*) 240.9 Completion of projects 1.8 Increase in rental income thanks to purchases during 2017/18 (e.g. building Acquisitions 2.7 Changes to adjacent to «Roter Turm
Slide 24: Rise in operating income by 10.3%
Key figures first half year 2018 Rise in operating income by 10.3% Operating income by segment EBIT by segment in CHF m in CHF m Facts H1 2017 H1 2018 Year-on-year rise in EBIT for the core Real Real estate 202.1 217.0 Estate business, thanks to sales gains and Services 13.7 15.9 reductions of the
Slide 25: Profits rise by 7.8%/15.4% (excluding revaluations and deferred taxes)
Key figures first half year 2018 Profits rise by 7.8%/15.4% (excluding revaluations and deferred taxes) Swiss Prime Site Group Income Statement in CHF m Facts H1 2017 H1 2018 Operating income 530.5 585.3 Growth in operating income for core Real Estate business (+16.3%) and services Revaluation of
Slide 26: Property portfolio expands to CHF 10.8 billion
Key figures first half year 2018 Property portfolio expands to CHF 10.8 billion Property portfolio development (fair value) in CHF m Facts Purchases 10 819.1 Conversion & 56.0 Expansion of property portfolio to modernisation projects 189 investment properties Investment and development propertie
Slide 27: Shareholders' equity
Key figures first half year 2018 Shareholders’ equity Shareholders’ equity in CHF m Facts 4 777.5 Acquisition Settlement of goodwill from Dividend payment of CHF 3.80 per share Group acquisition from on 5 April 2018 company Group with minority interests companies Miscellaneous 0.3 4 663.8 Annual
Slide 28: Financing structure
Key figures first half year 2018 Financing structure Financing structure Financial liabilities in CHF m Facts 5 162.2 4 850.5 18.1 3.0 12.5 3.2 542.0 30.06.2017 30.06.2018 Borrowing costs reduced by 30 basis points 244.3 Ø interest rate (in %) 1.7 1.4 Higher interest rate spread of 2.3% 1 441.5
Slide 29: We create living spaces
WE CREATE LIVING SPACES
Slide 30: Agenda
1 Welcome 2 Highlights first half-year 2018 3 Key figures first half-year 2018 4 Outlook Zurich | 9 August 2018 Results first half-year 2018 30
Slide 31: Key indicators for the real estate market 2018+
Outlook Key indicators for the real estate market 2018+ ECONOMY POPULATION CAPITAL MARKET POLICY SNB remains «Lex Koller» Economic Reduction in impact of expansionary, moderate decision taken by Federal growth across the positive impetus from evolution expected for Council in the interests of board
Slide 32: Expectations for 2018 confirmed
Outlook Expectations for 2018 confirmed Top line Increase in operating income Profitability Growth in EBIT before revaluations (includes income from real estate development) Vacancy rate management Vacancy rate expected to stabilise at less than 5% by end of 2018 Portfolio Growth through project rea
Slide 33: PE.-XANNNN,
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Slide 34: Analyst and investor contact
Analyst and investor contact Press contact Markus Waeber Mladen Tomic Investor Relations Media Relations Head Investor Relations Head Corporate Communications Business: +41 58 317 17 64 Business: +41 58 317 17 42 Mobile: +41 79 566 63 34 Mobile: +41 79 571 10 56 [email protected] mladen.tomic@
Slide 35: Disclaimer
Disclaimer All the information contained in this presentation is provided for information purposes only and does not constitute a basis for any investment decision or a recommendation to buy Swiss Prime Site AG securities. The contents of this presentation were carefully prepared and researched. Not
Slide 36: Swiss Prime Site
SWISS PRIME SITE