Swiss Prime Site Ag · SIX:SPSN

Swiss Prime Site — Investor Day (October 2018)

49 slides from Swiss Prime Site's investor day presentation, Oct 24, 2018

  1. Slide 1: Capital Markets Day 2018

    CAPITAL MARKETS DAY 2018 GENEVA, 24 OCTOBER 2018

  2. Slide 2: Agenda

    1 Introduction | Project development at Swiss Prime Site 2 Development pipeline | Geneva projects 3 One more thing… 4 Annex | Site Visit Geneva | 24 October 2018 Capital Markets Day 2018 2

  3. Slide 3: Guidance 2018 confirmed

    Introduction Guidance 2018 confirmed Top line Increase in operating income Profitability Growth in EBIT before revaluations (includes income from real estate development) Vacancy rate management Vacancy rate expected to stabilise at less than 5% by end of 2018 Portfolio Growth through project realis

  4. Slide 4: Overall portfolio update 2nd half 2018

    Introduction Overall portfolio update 2nd half 2018 Highlights  Acquisition: Fully-let office property Beethovenstrasse 33 in Zurich with rental income of CHF ~3.9 million p.a.  Letting success: Total 133 000 m2 let in the first 9 months. Halter as anchor tenant in Schlieren and successful letting

  5. Slide 5: Strategic swap: purchase of office properties & sale of «Sihlcity» stake

    Introduction Strategic swap: purchase of office properties & sale of «Sihlcity» stake Zurich: Müllerstrasse (left) & Giesshübelstrasse (right) Bern: Swisscom HQ in Worblaufen (new 100% ownership)  Value as at 30 June 2018: CHF 139 million, Yield: 5.7%  Value as at 30 June 2018: CHF 163 million, Yi

  6. Slide 6: Two capital increases with total proceeds of CHF ~550 m completed

    Introduction Two capital increases with total proceeds of CHF ~550 m completed Issuer Discounted rights issue (16:1) Capital increase for Swiss pension funds Transaction with offer price of CHF 74 with offer price of CHF 1 105.64 CHF 331 million in order to support the CHF 221 million in order to pu

  7. Slide 7: We shape the future

    WE SHAPE THE FUTURE

  8. Slide 8: Reasons for project development (1/2)

    Project development at Swiss Prime Site Reasons for project development (1/2) INDEPENDENCE RENTAL INCOME CAPITAL GAINS REVALUATION GAINS Independence from Exploiting additional Additional gains Projects generating transaction market rental income from sales above-average net yield Geneva | 24 Octobe

  9. Slide 9: Reasons for project development (2/2)

    Project development at Swiss Prime Site Reasons for project development (2/2) SYNERGIES INNOVATION SUSTAINABILITY Leveraging synergies Using cutting edge Actively influencing throughout the group technologies (e.g. BIM) sustainable development Geneva | 24 October 2018 Capital Markets Day 2018 9

  10. Slide 10: Land: prime locations are scarce assets in Switzerland

    Project development at Swiss Prime Site Land: prime locations are scarce assets in Switzerland Major areas of Switzerland Comments  Swiss Cantons to implement new Federal Spatial Planning Act (SPA 1) Basel Zurich Zug latest by 2019  Excellent locations protect from uncertain market situations and

  11. Slide 11: Mobility: expansion offers potential

    Project development at Swiss Prime Site Mobility: expansion offers potential Traffic development until 2040 Comments  Strong increase in traffic volume expected in Switzerland until 2040  An increase of 51% is forecasted for the passenger transport sector  The biggest driver of traffic developmen

  12. Slide 12: Migration: important driver for the real estate industry

    Project development at Swiss Prime Site Migration: important driver for the real estate industry Net migration in Switzerland 2007 to 2018E 100 000 90 000 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E Source: OFS Geneva | 24 Oc

  13. Slide 13: Energy: Swiss Federal Council with new strategy for 2050

    Project development at Swiss Prime Site Energy: Swiss Federal Council with new strategy for 2050 Impact direction of energy strategy 2050 Comments  Saving energy and increasing efficiency - buildings - mobility - industry - devices  Expansion of renewable energies - support - improvement of legal

  14. Slide 14: Technology: change in transportation due to e-commerce

    Project development at Swiss Prime Site Technology: change in transportation due to e-commerce Change in the number of parcels in millions compared to previous year (estimate) Comments  Digitalisation brings fundamental changes to the transport industry  Drone, fully automatic goods transport, rob

  15. Slide 15: Attractive projects for city logistics within our portfolio

    Project development at Swiss Prime Site Attractive projects for city logistics within our portfolio West-Log | Zurich (Altstetten) Espace Tourbillon | Geneva (Plan-les-Ouates) Geneva | 24 October 2018 Capital Markets Day 2018 15

  16. Slide 16: Agenda

    1 Introduction | Project development at Swiss Prime Site 2 Development pipeline | Geneva projects 3 One more thing… 4 Annex | Site Visit Geneva | 24 October 2018 Capital Markets Day 2018 16

  17. Slide 17: Six properties under construction

    Development pipeline Six properties under construction Properties under construction Pipeline: CHF 2.0 billion Under construction: CHF ~800 million In development: CHF ~900 million Reserves: CHF >300 million Geneva | 24 October 2018 Capital Markets Day 2018 17

  18. Slide 18: Constructions (1/6): «Espace Tourbillon»

    Development pipeline Constructions (1/6): «Espace Tourbillon» – two sold & one pre-let Highlights  Project: Multifunctional industrial and commercial park with efficient logistics, total 95 000 m2 usable space (incl. already sold buildings)  Success factors: Tailor- made areas for 4 000 new workpl

  19. Slide 19: Constructions (2/6): NZZ Print site

    Development pipeline Constructions (2/6): NZZ Print site – Zühlke & Halter as anchor tenants Highlights  Project: Will create a centre for research, enterprise and the transfer of knowledge  Success factors: Zühlke and Halter Group are both strong anchor tenants and ideal partners for this site (c

  20. Slide 20: Constructions (3/6): «Stücki Park»

    Development pipeline Constructions (3/6): «Stücki Park» – cluster for pharma-/bio- & medtech Highlights  Project: Creates a new centre for 1 700 workplaces  Success factors: Meets need for laboratory and office spaces from new and existing tenants such as Lonza, Medartis, Technology Park Basel; sy

  21. Slide 21: Constructions (4/6): «West-Log»

    Development pipeline Constructions (4/6): «West-Log» – urban logistic hub for EM (Rexel) Highlights  Project: Urban logistic property at the city border  Success factors: Located right by the railway station and tramline; the site is also ideally connected for logistic and private traffic thanks t

  22. Slide 22: Constructions (5/6): «Schönburg»

    Development pipeline Constructions (5/6): «Schönburg» – urban living in Bern Highlights  Project: Comprehensive project to generate significant added value for the city, the district and residents of Schönburg  Success factors: Budget design hotel «Prizeotel» and food retailer/fitness operater «Co

  23. Slide 23: Constructions (6/6): «YOND»

    Development pipeline Constructions (6/6): «YOND» – flexible office & service space in Zurich Highlights  Project: Rapidly available, flexible spaces for small, medium and large service providers and traders  Success factors: Innovative real estate project, planned and developed based on lean princ

  24. Slide 24: Nine projects in planning

    Development pipeline Nine projects in planning Projects in planning Pipeline: CHF 2.0 billion Under construction: CHF ~800 million In development: CHF ~900 million Reserves: CHF >300 million Geneva | 24 October 2018 Capital Markets Day 2018 24

  25. Slide 25: Developments (1/9): Tertianum residence Du Lac

    Development pipeline Developments (1/9): Tertianum residence Du Lac, Lugano-Paradiso Highlights  Project: Exclusive Tertianum residence with senior living and care beds  Success factors: Prime lake front location close to Lugano, expansion of the existing Tertianum network in the Canton of Ticino

  26. Slide 26: Developments (2/9): Tertianum centre, Monthey

    Development pipeline Developments (2/9): Tertianum living & care centre, Monthey Highlights  Project: Senior living and geriatric care beds for Tertianum  Success factors: New construction in an attractive inner-city location; expansion of the Tertianum network in the Canton of Valais (french- spe

  27. Slide 27: Developments (3/9): Etzelblick, Richterswil

    Development pipeline Developments (3/9): Etzelblick, Richterswil Highlights  Project: Senior living and care beds for the community of Richterswil  Success factors: Successful Public Private Partnership («PPP») project with the community of Richterswil, Tertianum and Swiss Prime Site Immobilien 

  28. Slide 28: Developments (4/9): Usego site, Olten

    Development pipeline Developments (4/9): Usego site, Olten Highlights  Project: Senior living and modern work spaces for life science companies; senior living and care centre for Tertianum in phase 1  Success factors: The up- and-coming former industrial site of the city of Olten is growing very d

  29. Slide 29: Developments (5/9): Alto Pont-Rouge, Lancy

    Development pipeline Developments (5/9): Alto Pont-Rouge, Lancy Highlights  Project: Modern office building with approx. 35 000 m2 gross area in Geneva’s Praille-Acacias-Vernets (PAV) development zone  Success factors: Attractive price offering («factor 4»), directly connected with the CEVA railwa

  30. Slide 30: Developments (6/9): NZZ Print site

    Development pipeline Developments (6/9): NZZ Print site – «low tech/high effect» project Highlights  Project «2226»: Densification of the existing site through a building with high comfort for residents (without heating, cooling and ventilation, however, with stable temperature of 22-26° and optima

  31. Slide 31: Developments (6/9): NZZ Print site – «low tech/high effect»

    Development pipeline Developments (6/9): NZZ Print site – «low tech/high effect» project Life Cycle Costs (LCC) Energy Consumption Construction Costs Source: Baumschlager Eberle Architekten Geneva | 24 October 2018 Capital Markets Day 2018 31

  32. Slide 32: Developments (7/9): «Stücki Park»

    Development pipeline Developments (7/9): «Stücki Park» – cluster for pharma-/bio-/medtech Highlights  Project: Creates a new centre for 1 700 workplaces  Success factors: Meets need for laboratory and office spaces from new and existing tenants such as Lonza, Medartis, Technology Park Basel; syner

  33. Slide 33: Developments (8/9): «maaglife», Zurich-West

    Development pipeline Developments (8/9): «maaglife», Zurich-West Highlights  Project: Further densification of the existing Maag site: project «maaglife»  Success factors: Popular city location with excellent transport connections  Investment volume: CHF 95 million*, completion 2023  Net yield:

  34. Slide 34: Developments (9/9): «VMA Pré-Bois», Meyrin

    Development pipeline Developments (9/9): «VMA Pré-Bois», Meyrin Highlights  Project: Covers 186 hectares and will accommodate new homes and jobs, while developing public facilities that contribute to the quality of life in the city  Success factors: Potential of 5 700 jobs by 2030  Investment vol

  35. Slide 35: Expected growth in rental income of CHF 92 m

    Development pipeline Expected growth in rental income of CHF 92 m Projects Realisation Rental space Gross yield (on cost) Investment volume* Rentail income** Net yield (on cost) Under construction  2017 – 2021  157 000 m2  5.7% (Capex 2018 – 2021: CHF ~500 m)  CHF ~800 million  CHF ~45 million

  36. Slide 36: We offer perspectives

    WE OFFER PERSPECTIVES

  37. Slide 37: Agenda

    1 Introduction | Project development at Swiss Prime Site 2 Development pipeline | Geneva projects 3 One more thing… 4 Annex | Site Visit Geneva | 24 October 2018 Capital Markets Day 2018 37

  38. Slide 38: Presentation «streamnow»

    One more thing… Presentation «streamnow» Streamnow: business model, services, partner and clients Facts CLIENTS  Acquisition of streamnow with existing client base to speed up the implementation of Wincasa’s multi portal strategy  Portal and App solutions to enable end-to- end process optimization

  39. Slide 39: Agenda

    1 Introduction | Project development at Swiss Prime Site 2 Development pipeline | Geneva projects 3 One more thing… 4 Annex | Site Visit Geneva | 24 October 2018 Capital Markets Day 2018 39

  40. Slide 40: Site visit – Riantbosson Centre, Meyrin

    Annex Site visit – Riantbosson Centre, Meyrin Highlights  Realisation: 2016 – 2018  Value as at 30 June 2018: CHF 43 million  Rental space: 6 800 m2  Tenants: McDonald’s, Aldi, Maxi Bazar, Coworking spaces (letting status: ~70%)  Gross Yield: 5.3% Geneva | 24 October 2018 Capital Markets Day 20

  41. Slide 41: Site visit – Espace Tourbillon, Plan-les-Ouates

    Annex Site visit – Espace Tourbillon, Plan-les-Ouates Highlights  Project: Multifunctional industrial and commercial park with efficient logistics, total 95 000 m2 usable space (incl. already sold buildings)  Success factors: Tailor- made areas for 4 000 new workplaces  Partial sale and letting:

  42. Slide 42: Site visit – Geneva high-street retail assets (1/2)

    Annex Site visit – Geneva high-street retail assets (1/2) Rue du Rhône 48-50, Geneva Place du Molard 2-4, Geneva  Value as at 30 June 2018: CHF 568.4 million, Yield: 3.3%  Value as at 30 June 2018: CHF 265.3 million, Yield: 3.3%  Anchor tenant: Globus (Migros). Rental space: 33 300 m2  Anchor te

  43. Slide 43: Site visit – Geneva high-street retail assets (2/2)

    Annex Site visit – Geneva high-street retail assets (2/2) Rue de la Croix-d’Or 7, Geneva Rue de la Croix-d’Or 11, Geneva  Value as at 30 June 2018: CHF 66 million, Yield: 3.5%  Value as at 30 June 2018: CHF 31 million, Yield: 4.1%  Anchor tenant: Douglas. Rental space: 3 500 m2  Anchor tenant: Z

  44. Slide 44: Site visit – Alto Pont-Rouge, Lancy

    Annex Site visit – Alto Pont-Rouge, Lancy Highlights  Phase 1 – Other investors: KPMG, EY, Swisscom, Migros etc. as tenants  Phase 2 – Swiss Prime Site Immobilien: Planned investment volume of CHF 270 million until 2022  Railway station «Lancy- Pont-Rouge»: Léman Express (CEVA) will directly conn

  45. Slide 45: Site visit – CEVA railway network by end of 2019

    Annex Site visit – CEVA railway network by end of 2019 Geneva | 24 October 2018 Capital Markets Day 2018 45

  46. Slide 46: We create living spaces

    WE CREATE LIVING SPACES

  47. Slide 47: Analyst and investor contact

    Analyst and investor contact Press 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@

  48. Slide 48: 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

  49. Slide 49: Swiss Prime Site

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