Swiss Prime Site (SPSN) H2 2024 earnings summary

Executive summary

• Transitioned to a focused, profitable real estate and asset management company, marking its 25th anniversary and divesting non-core businesses like Tertianum, Wincasa, and Jelmoli.

• Achieved record rental income and strong asset management growth, supported by the integration of Fundamenta.

• Portfolio streamlined to 139 properties valued at CHF 13.1 billion, with retail share reduced below 20% and increased focus on office, logistics, and infrastructure.

• Sustainability initiatives reduced emission intensity by 13% and advanced circular construction practices, with a target of carbon neutrality by 2040 and 76% of leases now green.

Financial highlights

• Rental income reached CHF 463.5 million, up 5.7% year-over-year, with like-for-like growth of 3.3%.

• EBITDA before revaluation and deferred taxes was CHF 415 million; net profit CHF 313.5 million.

• FFO1 per share at CHF 4.22, exceeding mid-year guidance and up 4.2% year-over-year.

• Dividend proposed at CHF 3.45 per share, up CHF 0.05 year-over-year.

• Asset management income surged over 40% to CHF 71 million, driven by the Fundamenta acquisition.

Outlook and guidance

• 2025 guidance targets FFO1 of CHF 410–415 million, FFO I per share of CHF 4.10–4.15, vacancy below 3.8%, LTV under 39%, and AuM above CHF 14 billion.

• Positive outlook for transactions, especially in office properties, with institutional investors returning and interest rates expected to decline.