Swiss Prime Site Ag · SIX:SPSN
Swiss Prime Site — FY2017 Earnings Presentation
34 slides from Swiss Prime Site's earnings presentation, Mar 1, 2018
Slide 1: 2017 Annual Results
2017 ANNUAL RESULTS ZURICH, 1 MARCH 2018
Slide 2: Agenda
1 Welcome address 2 2017 highlights 3 Key metrics for 2017 4 Outlook Zurich | 1 March 2018 2017 results 2
Slide 3: Successful performance in 2017
Welcome address Successful performance in 2017 Operating income New high of CHF 1 154.8 million achieved (+10.0%) Profit Profit before revaluations and deferred taxes climbs to record-high CHF 307.4 million (+11.5%) Property portfolio Value increased to CHF 10.6 billion (+5.4%) Vacancy rate Vacancy
Slide 4: We shape the future
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Slide 5: Agenda: 2017 highlights
1 Welcome address 2 2017 highlights 3 Key metrics for 2017 4 Outlook Zurich | 1 March 2018 2017 results 5
Slide 6: Growth across the board
2017 highlights Growth across the board PROPERTY PORTFOLIO OPERATING INCOME in CHF million +5.4% in CHF million +10.0% 10 633 10 092 10 633 1 155 1 050 1 155 2016 2017 2016 2017 RENTAL INCOME EBIT +3.7% +2.4% in CHF million in CHF million 470 453 470 471 459 471 2016 2017 2016 2017 Zurich | 1 March
Slide 7: EPS before revaluations and deferred taxes raised by 10%
2017 highlights EPS before revaluations and deferred taxes raised by 10% PROFIT EQUITY RATIO in CHF million before revaluations and in % -190 bps deferred taxes +11.5% 307 276 307 43.1 45.0 43.1 2016 2017 2016 2017 EARNINGS PER SHARE NET ASSET VALUE in CHF before revaluations and deferred +10.0% in
Slide 8: Strong performance in core Real Estate business (1/2)
2017 highlights Strong performance in core Real Estate business (1/2) Real Estate New leases/lease extensions signed on floorspace totalling 200 000 m2 or 12% of overall portfolio incl. 25 000 m2 or 15% vacant properties re-let Completion of two projects in Zurich – Motel One (July 2017) and Etz
Slide 9: Strong performance in core Real Estate business (2/2)
2017 highlights Strong performance in core Real Estate business (2/2) Real Estate Acquired three additional properties for Asissted Living business (Richterswil, Paradiso, Morges) Acquired attractive large sites in Winterthur (three properties adjacent to Roter Turm tower) and Geneva (Pont-Rouge
Slide 10: Real Estate: reduces vacancy rates by 0.9 percentage point to 5.2%
2017 highlights Real Estate: reduces vacancy rates by 0.9 percentage point to 5.2% Property portfolio in CHF million 2016 2017 Vacancy rate in % (Group) Total 10 092.1 10 633.1 8 6.8 6.6 7.4 6.7 7 6.4 6.1 of which projects | developments 307.3 412.9 5.4 6 5.0 4.6 6.4 Number of properties 184 188 5 6
Slide 11: Real Estate: major projects under construction, in planning phase
2017 highlights Real Estate: 6 major projects under construction, 6 in planning phase Land bank Investments: CHF ~600 million Total site area: 129 000 m2 Floorspace: 175 000 m2 Zurich | 1 March 2018 2017 results 11
Slide 12: Real Estate: expects CHF 83 million of additional rental income by 2025
2017 highlights Real Estate: expects CHF 83 million of additional rental income by 2025 Projects Realisation Rental floorspace Gross yield (on cost) Investment volume* Rental income** Net yield (on cost) under construction 2017 – 2021 101 800 m2 6.1% (capex 2018 – 2021: CHF 313 m) CHF ~600 m
Slide 13: Development projects (1/4): new Stücki Park centre for North Basel
2017 highlights Development projects (1/4): new Stücki Park centre for North Basel Highlights New workplaces Project will create a new centre employing 1 700 staff Success factors Meets the need for laboratory and office space and also creates positive synergies with other users (in fields of in
Slide 14: Development projects (2/4): innovative new YOND facility for Zurich
2017 highlights Development projects (2/4): innovative new YOND facility for Zurich Highlights Rationale Rapidly available, flexible floorspace for small, medium and large service providers and manufacturers Success factors Innovative design based on lean construction principles with clear focus
Slide 15: Development projects (3/4): Espace Tourbillon, Plan-les-Ouates
2017 highlights Development projects (3/4): Espace Tourbillon, Plan-les-Ouates Highlights Rationale Multifunctional industrial & manufacturing park with high-end logistics and approx. 95 000 m2 of space Success factors Tailor- made premises for 4 000 new workplaces Partial sale with two buildi
Slide 16: Development projects (4/4): Pont Rouge in Lancy
2017 highlights Development projects (4/4): Pont Rouge in Lancy – gateway to PAV Highlights Rationale Superb location, excellent reinvestment opportunity Success factors Location comparable to Hardbrücke in Zurich and scope for mixed-use development for services, retail and residential lettings
Slide 17: Roter Turm Winterthur unites elements that belong together
2017 highlights Roter Turm Winterthur unites elements that belong together Highlights Rationale Creates small business hub for Winterthur with significant potential synergies Success factors Fully let building within walking distance of railway station Fair value CHF 195.4 million, Yield: 3.
Slide 18: Service segment achieving good results
2017 highlights Service segment achieving good results Wincasa Assets under management reach new CHF 66 billion record Mixed-Use Site Management and Customer Value Centre units established Jelmoli Turnover increased despite challenging retail climate and fewer shopping days Strong operationa
Slide 19: Sustainability reporting milestones in 2017
2017 highlights Sustainability reporting milestones in 2017 Sustainable investments and services Stakeholders Maintaining the primary structures of the Schönburg project in Our first stakeholder dialogue enabled us to evaluate and Berne resulted in a documented saving of 26 750 MWh of grey augment t
Slide 20: We create living spaces
WE CREATE LIVING SPACES
Slide 21: Agenda: Key metrics for 2017
1 Welcome address 2 2017 highlights 3 Key metrics for 2017 4 Outlook Zurich | 1 March 2018 2017 results 21
Slide 22: Rental income rises by 3.7%
Key metrics for 2017 Rental income rises by 3.7% Differential Rental income performance arising from in CHF million additionally Facts leased properties (AL*) 469.9 Rental income increased due to full-year 9.7 effect of 2016 acquisitions (e.g. Gotthard Completed building in Lucerne) projects 6.3
Slide 23: Operating income raised by 10.0%
Key metrics for 2017 Operating income raised by 10.0% Operating income by segment EBIT by segment in CHF million in CHF million Facts 2016 2017 EBIT in core Real Estate segment in line Real Estate 420.8 422.0 with 2016, lower revaluation gains Services 38.7 48.6 Substantial 25% increase in EBIT
Slide 24: Profit before revaluations & deferred taxes climbs to record-high
Key metrics for 2017 Profit before revaluations & deferred taxes climbs to record-high Swiss Prime Site Group income statement in CHF million Facts 2016 2017 Operating income 1 049.5 1 154.8 Operating income rose +14.6% in core Real Estate segment and +7.2% in Services Revaluation of investment pr
Slide 25: Property portfolio successfully expanded
Key metrics for 2017 Property portfolio successfully expanded Property portfolio (at fair value) Acquisitions 10 633.1 Facts in CHF million Four additional properties bring total 299.2 investment property portfolio to 188 Transformation Value of completed properties and and modernisation project
Slide 26: Equity ratio remains robust at 43.1%
Key metrics for 2017 Equity ratio remains robust at 43.1% Shareholders’ equity in CHF million Facts Profit 1.1 -11.5 0.6 4 777.5 4 746.3 Dividend distribution Goodwill Goodwill on Miscellaneous One-off reduction in shareholders’ equity on sales credited Group company of CHF 430.3 million at year-e
Slide 27: Long-term financing on attractive terms
Key metrics for 2017 Long-term financing on attractive terms Financing structure Financial liabilities in CHF million Facts 4 850.5 4 483.6 12.5 3.2 13.3 4.5 244.3 244.3 31.12.2016 31.12.2017 Interest rate on liabilities cut by 30 basis 243.2 1.8 1.5 points Ø interest rate (in %) 11 191.5 191.5 1
Slide 28: We offer perspectives
+ PERSPE COT LANOO FOE! i
Slide 29: Agenda: Outlook
1 Welcome address 2 2017 highlights 3 Key metrics for 2017 4 Outlook Zurich | 1 March 2018 2017 results 29
Slide 30: Key indicators for property market 2018 and beyond
Outlook Key indicators for property market 2018 and beyond ECONOMY POPULATION CAPITAL MARKET POLITICS Moderate population Long-term interest Decisions on regulatory Robust growth growth expected to rates have now started environment expected in continue, with number to rise, further (Lex Koller) and
Slide 31: Projections for 2018
Outlook Projections for 2018 Top line Increase in operating income Profitability Higher EBIT before revaluations (including income from real estate development) Vacancy management Lower vacancy rates Portfolio Further expansion thanks to projection completions and acquisitions Dividend polic
Slide 32: We shape the future
WE SHAPE THE FUTURE
Slide 33: Analyst and investor contact
Analyst and investor contact Media contact Markus Waeber Mladen Tomic Investor Relations Media Relations Head of Investor Relations Head of 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.
Slide 34: Disclaimer
Disclaimer All the information contained in this presentation is provided for information purposes only and does not constitute a basis for any investment decision or a recommendation to buy Swiss Prime Site AG securities. The contents of this presentation were carefully prepared and researched. Not