Swiss Prime Site (SPSN) H2 2023 earnings summary

Executive summary

• Portfolio fair value remained stable at CHF 13.1bn; rental income reached a record CHF 438.3m, up 1.3% reported and 4.3% like-for-like.

• Operating EBIT before revaluations increased 6.1% to CHF 403.0m; FFO I per share excluding Wincasa rose 1.3% to CHF 4.05.

• Strategic focus remained on core real estate investment and Asset Management, supported by capital recycling, a 4.0% vacancy rate and AuM growth to CHF 8.4bn.

Financial highlights

• Operating income rose 1.9% to CHF 658.6m; rental income increased 1.3% to CHF 438.3m, while Asset Management income declined 4.4% to CHF 49.7m.

• EBIT excluding revaluations increased 6.1% to CHF 403.0m; reported EBIT was CHF 152.5m after net revaluations of CHF -250.5m.

• FFO I excluding Wincasa increased 1.5% to CHF 311.0m; FFO I per share rose from CHF 4.00 to CHF 4.05.

• Operating expenses adjusted for Jelmoli one-off effects fell 5.7% to CHF 269.4m, reflecting cost management and a streamlined structure.

• EPRA NTA declined 1.1% to CHF 101.52 per share, reflecting property devaluations.

Outlook and guidance

• 2024 FFO I guidance: CHF 4.10–4.15 per share; vacancy target below 4.0% and LTV below 40%.

• 2024 Asset Management AuM target exceeds CHF 9bn.

• Planned investments of CHF 1.15bn for projects in planning through 2030, with a target return of 4–5%; CHF 230m is already invested or committed.