Swiss Prime Site AG · SIX:SPSN

Swiss Prime Site — FY2018 Earnings Presentation

43 slides from Swiss Prime Site's earnings presentation, Feb 28, 2019

  1. Slide 1: 2018 Annual Results

    2018 ANNUAL RESULTS ZURICH, 28 FEBRUARY 2019

  2. Slide 2: Agenda

    1 Welcome 2 Highlights financial year 2018 3 Key figures financial year 2018 4 Project pipeline 5 Outlook Zurich | 28 February 2019 2018 – Annual results 2

  3. Slide 3: Successful financial year 2018

    Welcome Successful financial year 2018 Operating income Up 5.1% to CHF 1 214.1 million Profit Up CHF 310.9 million Property portfolio Up 5.4% to CHF 11.2 billion Vacancy rate Down from 5.2% to 4.8% Revaluations Revaluations of CHF 67.6 million within the previous year Proposed dividend of CHF 3.80 p

  4. Slide 4: Agenda

    1 Welcome 2 Highlights financial year 2018 3 Key figures financial year 2018 4 Project pipeline 5 Outlook Zurich | 28 February 2019 2018 – Annual results 4

  5. Slide 5: Successful financial year 2018

    Highlights financial year 2018 Successful financial year 2018 PROPERTY PORTFOLIO OPERATING INCOME in CHF m +5.4% in CHF m +5.1% 11 204 10 633 11 204 1 214 1 155 1 214 FY 2017 FY 2018 FY 2017 FY 2018 RENTAL INCOME EBIT in CHF m +2.0% in CHF m +1.7% 479 470 479 479 471 479 FY 2017 FY 2018 FY 2017 FY 2

  6. Slide 6: EPS at same level as previous year after capital increase

    Highlights financial year 2018 EPS at same level as previous year after capital increase PROFIT EQUITY RATIO in CHF m in % +1.8% +80 bp 311 306 311 43.9 43.1 43.9 FY 2017 FY 2018 FY 2017 FY 2018 EARNINGS PER SHARE (EPS) NET ASSET VALUE in CHF +0.0% in CHF after deferred taxes per share +1.3% * 4.27

  7. Slide 7: Successful capital increases 2018

    Highlights financial year 2018 Successful capital increases 2018 Rights issue (16:1) with Capital increase completed for the Transaction an offer price of CHF 74 Swiss Prime Investment Foundation CHF 323 million to implement the growth CHF 221 million for the financing of the Proceeds and use strate

  8. Slide 8: Good growth of core real estate business

    Highlights financial year 2018 Good growth of core real estate business Segment Real Estate highlights  New/renewed leases: Total 190 000 m2 or 12% of entire portfolio (including reduction in vacancies)  Acquisitions (portfolio): Iseli site in Regensdorf (January 2018) and office building at Beeth

  9. Slide 9: Attractive acquisitions (1|2 – portfolio)

    Highlights financial year 2018 Attractive acquisitions (1|2 – portfolio) Beethovenstrasse 33 Iseli site Zurich City Regensdorf Zurich | 28 February 2019 2018 – Annual results 9

  10. Slide 10: Attractive acquisitions (2|2 – projects)

    Highlights financial year 2018 Attractive acquisitions (2|2 – projects) West-Log Tertianum residential & Zurich-Altstetten care centre, Monthey Zurich | 28 February 2019 2018 – Annual results 10

  11. Slide 11: Asset swap (1|2)

    Highlights financial year 2018 Asset swap (1|2) Sihlcity Cornerstones real estate swap Zurich  Rationale: Increase the proportion of sole ownership properties and reduce the proportion of retail properties in the portfolio to less than 30%  Divestment: 24.2% co-ownership in the Sihlcity Urban Ente

  12. Slide 12: Asset swap (2|2)

    Highlights financial year 2018 Asset swap (2|2) Müllerstrasse 16/20 Giesshübelstrasse 15 Swisscom Head Office Zurich Zurich Worblaufen Zurich | 28 February 2019 2018 – Annual results 12

  13. Slide 13: Attractive divestments of projects and investment properties

    Highlights financial year 2018 Attractive divestments of projects and investment properties Bahnhofplatz 9 Weltpost Park Bahnhofplatz 9 Berne Berne Zurich | 28 February 2019 2018 – Annual results 13

  14. Slide 14: 5.4% increase in value of the property portfolio

    Highlights financial year 2018 5.4% increase in value of the property portfolio Property portfolio in CHF m FY 2017 FY 2018 Vacancy rate in % (group) Total 10 633.1 11 204.4 8 6.8 6.6 7.4 6.7 6.4 6.4 6.1 7 6.1 5.5 of which Projects | Developments 412.9 576.8 5.4 5.2 6 5.0 4.7 4.8 Properties (number)

  15. Slide 15: Services segment results

    Highlights financial year 2018 Services segment results Wincasa  AuM increased to CHF 68 billion and significant contract extensions realised  Ongoing digital transformation process (including acquisition of «streamnow») Jelmoli  Completed modification of key tenant’s floor space in 2018  Projec

  16. Slide 16: We offer perspectives

    WE OFFER PERSPECTIVES

  17. Slide 17: Agenda

    1 Welcome 2 Highlights financial year 2018 3 Key figures financial year 2018 4 Project pipeline 5 Outlook Zurich | 28 February 2019 2018 – Annual results 17

  18. Slide 18: 2.0% rise in rental income

    Key figures financial year 2018 2.0% rise in rental income Change in net rental income Difference in leased in CHF m properties Facts (Al*) Completion of projects 0.7 479.4  Increase in rental income due to purchases Changes in Purchases 4.0 in 2017/18 (including neighbouring building existing prop

  19. Slide 19: 5.1% increase in operating income

    Key figures financial year 2018 5.1% increase in operating income Operating income by segment EBIT by segment in CHF m in CHF m Facts FY 2017 FY 2018  Increase in EBIT in core real estate Real Estate 422.0 431.1 business compared to previous year due to Services 48.6 47.6 successful sales and renta

  20. Slide 20: Increase in profits compared to previous year

    Key figures financial year 2018 Increase in profits compared to previous year Swiss Prime Site Group income statement in CHF m Facts FY 2017 FY 2018  Growth in operating income in core Real Operating income 1 154.8 1 214.1 Estate business (+6.4%) and in the Revaluation of investment properties 65.9

  21. Slide 21: Growth in property portfolio to CHF 11.2 billion

    Key figures financial year 2018 Growth in property portfolio to CHF 11.2 billion Property portfolio development (fair value) Purchases 11 204.4 Facts in CHF m  Expansion of property portfolio to 190 444.1 investment properties (+2) Conversion & modernisation  Portfolio and development properties w

  22. Slide 22: Shareholders' equity

    Key figures financial year 2018 Shareholders' equity Shareholders’ equity 4.2 1.0 5 145.1 in CHF m Facts Settlement Miscellaneous of goodwill from 323.1 acquisition from Group  Dividend of CHF 3.80 per share paid out on companies 5 April 2018 Profit 4 777.5 Capital increase  Capital increase with

  23. Slide 23: Financing structure

    Key figures financial year 2018 Financing structure Financing structure Financial liabilities in CHF m Facts 5 076.4 4 850.5 17.1 4.6 12.5 3.2 31.12.2017 31.12.2018  Reduction of interest rate on liabilities 244.3 542.4 Ø interest rate (in %) 1.5 1.4 of ~10 basis points 1 441.5 1 517.3 Ø maturity (

  24. Slide 24: We create living spaces

    WE CREATE LIVING SPACES

  25. Slide 25: Agenda

    1 Welcome 2 Highlights financial year 2018 3 Key figures financial year 2018 4 Project pipeline 5 Outlook Zurich | 28 February 2019 2018 – Annual results 25

  26. Slide 26: Positive results of project developments

    Project pipeline Positive results of project developments REVALUATION RENTAL INCOME INNOVATION GAINS Leverage of additional Projects with above-average Use of the latest technology potential for rental income yields (e.g. BIM) INDEPENDENCE Independence from the transaction market CAPITAL GAINS SYNER

  27. Slide 27: Total 15 projects, investment volume of CHF ~1.7 billion

    Project pipeline Total 15 projects | Investment volume of CHF ~1.7 billion (incl. land) 2 projects CHF ~200 million investment volume 6 projects CHF ~480 million investment volume 3 projects CHF ~670 million investment volume Zurich | 28 February 2019 2018 – Annual results 27

  28. Slide 28: Properties under construction (1|3)

    Project pipeline Properties under construction (1|3) Values in CHF m Pipeline: CHF 2.0 billion Under construction: CHF ~800 million In development: CHF ~900 million Reserves: CHF >300 million Zurich | 28 February 2019 2018 – Annual results 28

  29. Slide 29: Properties under construction (2|3)

    Project pipeline Properties under construction (2|3) YOND Schönburg West-Log Zurich Berne Zurich Zurich | 28 February 2019 2018 – Annual results 29

  30. Slide 30: Properties under construction (3|3)

    Project pipeline Properties under construction (3|3) Espace Tourbillon JED Stücki Park Geneva Zurich Basel Zurich | 28 February 2019 2018 – Annual results 30

  31. Slide 31: Projects in planning (1|5)

    Project pipeline Projects in planning (1|5) Values in CHF m Pipeline: CHF 2.0 billion Under construction: CHF ~800 million In development: CHF ~900 million Reserves: CHF >300 million Zurich | 28 February 2019 2018 – Annual results 31

  32. Slide 32: Projects in planning (2|5) – Tertianum Olten

    Project pipeline Projects in planning (2|5) – Tertianum Olten Highlights  Project: Assisted living and modern workspaces for life sciences companies; phase 1: Residential care centre for Tertianum  Success factors: Emergent former industrial site in Olten is growing dynamically (e.g. medtech compa

  33. Slide 33: Projects in planning (3|5) – Tertianum Lugano-Paradiso

    Project pipeline Projects in planning (3|5) – Tertianum Lugano-Paradiso Highlights  Project: Exclusive residence with apartments and nursing beds for the elderly  Success factors: Prime lakeside location near Lugano; expansion of the existing Tertianum network in the canton of Ticino (Italian- spe

  34. Slide 34: Projects in planning (4|5) – Alto Pont-Rouge, Lancy

    Project pipeline Projects in planning (4|5) – Alto Pont-Rouge, Lancy Highlights  Project: Modern office building with approx. 35 000 m2 gross space in the Praille-Acacias-Vernets (PAV) development zone in Geneva  Success factors: Attractive pricing; direct link to the CEVA railway station at Lancy

  35. Slide 35: Projects in planning (5|5) – Maag site, Zurich

    Project pipeline Projects in planning (5|5) – Maag site, Zurich Highlights  Project: Further densification of the Maag site with a new residential project  Success factors: Popular city centre location with excellent links to public and private transport  Investment volume: CHF 100 million*, comp

  36. Slide 36: We shape the future

    WE SHAPE THE FUTURE

  37. Slide 37: Agenda

    1 Welcome 2 Highlights financial year 2018 3 Key figures financial year 2018 4 Project pipeline 5 Outlook Zurich | 28 February 2019 2018 – Annual results 37

  38. Slide 38: Key indicators for the real estate market 2019

    Outlook Key indicators for the real estate market 2019 ECONOMY TECHNOLOGY CAPITAL MARKET POLITICS Economic outlook Technological change SNB policy remains Increasing regulation* slightly dampened but brings opportunities for expansive, stable with potential implications still sound for Switzerland a

  39. Slide 39: Guidance 2019

    Outlook Guidance 2019 Expected rental income from development pipeline* Vacancy rate 2019E Values in CHF m Active vacancy management with an expected vacancy +27.3 rate of ≤ 5% +24.5 Earnings contribution of Services segment 2019E +14.6 Targeted further growth of Services segment earnings | 479 +2.5

  40. Slide 40: Slide 40

  41. Slide 41: Analyst and investor contact

    Analyst and investor contact Media 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 markus.waeber@sps.swiss mladen.tomic@

  42. Slide 42: Disclaimer

    Disclaimer Details published in this presentation are for information purposes only and should not form the basis for any investment decisions or recommendations to purchase Swiss Prime Site AG securities. The content of this presentation was diligently researched and compiled. However, Swiss Prime

  43. Slide 43: Slide 43

Swiss Prime Site — FY2018 Earnings Presentation on 6ix