Swiss Prime Site (SPSN) H1 2024 earnings summary

Executive summary

• Acquisition of Fundamenta Group's real estate division added over CHF 4.2 billion in assets under management, expanded product offerings, and strengthened residential focus, making the company the largest independent real estate asset manager in Switzerland.

• Jelmoli building transformation is progressing, with nearly 50% of space pre-let and a major lease with Manor secured; construction approval expected by year-end 2024.

• Rental income reached a record CHF 232 million, up 6% year-over-year, with like-for-like growth of 3.7% and vacancy rate reduced to 3.6%.

• Asset management income rose 22% to CHF 27 million, driven by the Fundamenta integration and capital increases.

• Asset management now represents a significant second pillar, with integration progressing and synergy realization expected in 2025.

Financial highlights

• Total operating income increased 3.2% year-over-year to CHF 317.4 million.

• EBITDA before revaluations was CHF 204.7 million, with adjusted EBITDA up 7.5% to CHF 202 million.

• Net profit from continuing operations was CHF 164.7 million, with EPS at CHF 2.14.

• Asset management AuM increased to CHF 12.7 billion, up from CHF 8.4 billion at FY 2023.

• CHF 435 million in green bonds issued in H1 2024 at improved terms, supporting the Green Finance Framework.

Outlook and guidance

• FFO I per share guidance raised to CHF 4.15–4.20 for the full year.

• LTV expected to fall below 40% by year-end, currently at 40.9%.

• Vacancy rate projected to be around 3.8% by year-end, with a medium-term target of 3.0%.

• Asset management AuM anticipated to reach CHF 13 billion by year-end and CHF 16 billion by 2028.

• Rental income target of over CHF 500 million by 2028, with cost ratio below 16%.