Swiss Prime Site (SPSN) CMD 2025 summary

Strategic transformation and business model evolution

• Transitioned from a diversified group to a focused real estate and asset management platform since 2020, reducing employee count from over 6,000 to 200 and increasing the share of earnings from core real estate to 87% by end-2024.

• Now operates with two main pillars: direct real estate investment (commercial, core city locations) and asset management (primarily residential, more suburban), each with CHF 13 billion in assets under management.

• Asset management pillar manages CHF 13.3bn AuM, targeting CHF 16bn+ by 2027, with 70% recurring fees and EBITDA margin above 50%.

• No current plans for further acquisitions in asset management; future growth to CHF 16 billion AUM by 2027 is expected to be organic.

• No plans to spin off the asset management business; the integrated model is seen as a differentiator in the Swiss market.

Portfolio optimization and capital allocation

• Executed CHF 1.3 billion in disposals since 2020, focusing on selling smaller, non-core, or lower-value assets and reinvesting in development projects and higher-value properties.

• Reduced retail exposure from over 30% to 19.7% of portfolio, increased share of core locations from 88% to 96%, and improved efficiency by lowering the EPRA cost ratio from 22.5% to 17.3%.

• Portfolio transformation reduced building count from 187 to 139 since 2020, increasing average property value and efficiency.

• Current acquisition pipeline totals CHF 600 million, targeting net yields of 3.5%-3.8%, translating to FFO yields above 5% when leveraged.

• Rental income increased from CHF 425 million in 2020 to CHF 464 million in 2024, with a target to exceed CHF 500 million by 2028.

Market outlook and growth drivers

• Swiss real estate market remains resilient, with low vacancy rates in city centers, strong demand for residential and high-quality office space, and stable macroeconomic fundamentals.

• Pension funds are required to invest CHF 70 billion annually, with 23% typically allocated to real estate, supporting robust capital inflows into the sector.

• Asset management aims to raise CHF 600-700 million in new equity annually, with a goal to reach CHF 16 billion+ AUM by 2027, leveraging economies of scale without significant headcount increases.

• Like-for-like rental growth of 3% per year is targeted, supported by active management, tenant engagement, and a 10% reversionary potential versus market rents.

• FFO growth potential of 10% per year is projected through 2028, with 80-90% of FFO to be paid out as dividends.