Swiss Prime Site Ag · SIX:SPSN
Swiss Prime Site — Investor Day (October 2022)
36 slides from Swiss Prime Site's investor day presentation, Oct 26, 2022
Slide 1: Capital Markets Day 2022
CAPITAL MARKETS DAY 2022 BASEL, 26 OCTOBER 2022
Slide 2: Agenda
AGENDA 1 CAPITAL MARKETS DAY PROGRAMME RENÉ ZAHND 2 MARKET OUTLOOK WÜEST PARTNER GINO FIORENTIN 3 SWISS PRIME SITE IN A NUTSHELL RENÉ ZAHND 4 PORTFOLIO AND DEVELOPMENT BUSINESS RENÉ ZAHND 5 REAL ESTATE ASSET MANAGEMENT ANASTASIUS TSCHOPP 6 CAPITAL MANAGEMENT MARCEL KUCHER 7 OUTLOOK AND OBJECTIVES RE
Slide 3: Capital Markets Day programme and locations
AIRPORT Stücki Park Medartis | Tech Park Ariv 9:30 am – 2:00 pm 11:00 am – 12 noon 12 noon – 2:00 pm (incl. lunch) 1 3 Messeturm Steinenvorstadt 3:00 – 5:00 pm (incl. drinks reception) 2:00 – 3:00 pm 2 TRAIN STATION
Slide 4: Agenda
AGENDA 1 CAPITAL MARKETS DAY PROGRAMME RENÉ ZAHND 2 MARKET OUTLOOK WÜEST PARTNER GINO FIORENTIN 3 SWISS PRIME SITE IN A NUTSHELL RENÉ ZAHND 4 PORTFOLIO AND DEVELOPMENT BUSINESS RENÉ ZAHND 5 REAL ESTATE ASSET MANAGEMENT ANASTASIUS TSCHOPP 6 CAPITAL MANAGEMENT MARCEL KUCHER 7 OUTLOOK AND OBJECTIVES RE
Slide 5: Swiss Prime Site in a nutshell: Switzerland's largest listed real estate company
SW ISS PRIME SITE IN A NUTSHELL Switzerland’s largest listed real estate company ▪ The real estate market leader in Switzerland (AUM CHF > 13 billion | #3 in Europe) Two strong pillars ▪ Second-largest independent real estate asset manager in Switzerland (AuM ~CHF 7 billion) ▪ Growing cash flows wit
Slide 6: Two strong pillars with resilient business models
SW ISS PRIME SITE IN A NUTSHELL Two strong pillars with resilient business models PROPERTY PORTFOLIO REAL ESTATE ASSET MANAGEMENT FOR THIRD Swiss Prime Site invests in high-quality properties in the best PARTIES locations in Switzerland that are occupied by commercial tenants. Swiss Prime Site Solut
Slide 7: Agenda
AGENDA 1 CAPITAL MARKETS DAY PROGRAMME RENÉ ZAHND 2 MARKET OUTLOOK WÜEST PARTNER GINO FIORENTIN 3 SWISS PRIME SITE IN A NUTSHELL RENÉ ZAHND 4 PORTFOLIO AND DEVELOPMENT BUSINESS RENÉ ZAHND 5 REAL ESTATE ASSET MANAGEMENT ANASTASIUS TSCHOPP 6 CAPITAL MANAGEMENT MARCEL KUCHER 7 OUTLOOK AND OBJECTIVES RE
Slide 8: Focus on urban centres – key region Basel holds 10% of market value
PORTFOLIO Focus on urban centres – key region Basel holds 10% of market value REGIONS* as at 30.06.2022 Northwestern Switzerland** Zurich and 14% central Switzerland Berne 52% 9% Lake Geneva 20% Source: admin.ch *Southern Switzerland / Western Switzerland / Eastern Switzerland: 5% of market value **
Slide 9: Life sciences industry an attractive market for real estate investors
PORTFOLIO Life sciences industry an attractive market for real estate investors FINANCING EXPORTS 2018 – 2020 in USD billion 1998 – 2021 in CHF billion UK Switzerland Germany Belgium France Israel Netherlands Ireland Denmark Sweden Spain Austria Italy Norway Finland 0 1 2 3 4 Switzerland is no. 2 in
Slide 10: Strong tenant base ensures a stable cash flow and low vacancy rate
PORTFOLIO Strong tenant base ensures a stable cash flow and low vacancy rate LARGEST RETAIL TENANTS TYPES OF USE LARGEST OFFICE TENANTS in % of net rental income as at 30.06.2022 as at 30.06.2022 in % of net rental income as at 30.06.2022 Residential and other 3% Infrastructure and logistics 9%* Swi
Slide 11: Balanced lease expiry profile for rental contracts, long WAULT
PORTFOLIO Balanced lease expiry profile for rental contracts, long WAULT LEASE EXPIRY OF RENTAL CONTRACTS as at 30.06.2022 14.6% 13.6% 12.9% 11.0% 10.3% 8.1% 6.6% ~60% already 5.8% 5.8% extended 4.6% extended 3.6% already 3.1% ~88% <1 year >1 >2 >3 >4 >5 >6 >7 >8 >9 >10 Open-end WAULT 5.5 years Base
Slide 12: Large proportion of indexed rental contracts
PORTFOLIO Large proportion of indexed rental contracts TOP FIVE TENANTS TENANT STRUCTURE ▪ High-quality tenant structure with around 2 000 tenants in % of rental income as at 30.06.2022 as at 30.06.2022 ▪ The top 30 tenants make up around 46% of the portfolio; these are mostly large-scale companies
Slide 13: Scheduled projects under construction with high levels of pre-letting
DEVELOPMENT BUSINESS Scheduled projects under construction with high levels of pre-letting 90% 60% full full full full UNDER CONSTRUCTION Stücki Park I+II Alto Pont-Rouge Tertianum Müllerstrasse Tertianum JED new build Basel Lancy Paradiso Zurich Olten Schlieren Construction Construction Constructio
Slide 14: Balanced investments in promising development projects
DEVELOPMENT BUSINESS Balanced investments in promising development projects PROJECT PIPELINE ▪ Pipeline: High densification potential and utilisation in CHF million reserves within the existing portfolio and ongoing «refreshing» of the landbank through acquisitions Reserves ▪ Projects under construc
Slide 15: Capital recycling as a source of financing for the project pipeline
DEVELOPMENT BUSINESS Capital recycling as a source of financing for the project pipeline Portfolio streamlining SALES >CHF 290 million 9 smaller properties Building, Plan-les-Ouates, Geneva Retail portfolio, Western Switzerland ▪ Sale of nine smaller existing properties (H1 2022) and Building B in «
Slide 16: Sustainability in our portfolio and development business
DEVELOPMENT BUSINESS Sustainability in our portfolio and development business CERTIFICATION STRATEGY ▪ Development projects will be planned and built in accordance with the Swiss Sustainable Building Standard (SNBS) ▪ Existing buildings will be certified according to «BREEAM-in-use»; 75% of the floo
Slide 17: Our 2020–22 GRESB track record shows a marked improvement
DEVELOPMENT BUSINESS Our 2020–22 GRESB track record shows a marked improvement 62 62 2020 64 2020 Basel | 26 October 2022 Capital Markets Day 2022 17
Slide 18: Agenda
AGENDA 1 CAPITAL MARKETS DAY PROGRAMME RENÉ ZAHND 2 MARKET OUTLOOK WÜEST PARTNER GINO FIORENTIN 3 SWISS PRIME SITE IN A NUTSHELL RENÉ ZAHND 4 PORTFOLIO AND DEVELOPMENT BUSINESS RENÉ ZAHND 5 REAL ESTATE ASSET MANAGEMENT ANASTASIUS TSCHOPP 6 CAPITAL MANAGEMENT MARCEL KUCHER 7 OUTLOOK AND OBJECTIVES RE
Slide 19: Convincing strengths of the real estate asset management
REAL ESTATE ASSET MANAGEMENT Convincing strengths of the real estate asset management Asset-light business model – 360º real estate asset management for 3rd parties Total >CHF 7.3 billion AuM (YTD + CHF 1.6 billion compared to 2021) Strong, consistent growth of our products (Ø CHF 550 million per pr
Slide 20: Real estate funds: focus on an attractive and diversified portfolio
REAL ESTATE ASSET MANAGEMENT Real estate funds: focus on an attractive and diversified portfolio REAL ESTATE FUNDS New equity AuM YTD 2022 YTD 2022 ~CHF 300 + CHF 550 million* million ▪ Total AuM real estate funds of CHF 2.85 billion ▪ Akara Swiss Diversity Property Fund PK: CHF 2.5 billion ▪ SPSS I
Slide 21: Investment foundation: extensive expertise and a strong track record
REAL ESTATE ASSET MANAGEMENT Investment foundation: extensive expertise and a strong track record WEALTH & EXECUTIVE MANAGEMENT New equity AuM YTD 2022 YTD 2022 ~CHF 320 + CHF 550 million* million ▪ SPIF Real Estate Switzerland: CHF 3.6 billion ▪ SPIF Living+ Europe (Senior Living Investments in Eur
Slide 22: Asset management mandates: success with customised solutions
REAL ESTATE ASSET MANAGEMENT Asset management mandates: success with customised solutions ADVISORY AuM YTD 2022 + CHF 500 million ▪ Customers: Pension funds Asga, BASF and edifondo ▪ Asset management of property portfolio (total: >CHF 1.0 billion) Basel | 26 October 2022 Capital Markets Day 2022 22
Slide 23: Recurring income considerably outweighing costs
REAL ESTATE ASSET MANAGEMENT Recurring income considerably outweighing costs RECURRING FEES AND COST COMPARISON ▪ Costs in % of total income and in CHF billion → Costs for recurring as well as non-recurring business 100% 12.0 covered by recurring revenues 29% 41% → further economies of scale and eff
Slide 24: Agenda
AGENDA 1 CAPITAL MARKETS DAY PROGRAMME RENÉ ZAHND 2 MARKET OUTLOOK WÜEST PARTNER GINO FIORENTIN 3 SWISS PRIME SITE IN A NUTSHELL RENÉ ZAHND 4 PORTFOLIO AND DEVELOPMENT BUSINESS RENÉ ZAHND 5 REAL ESTATE ASSET MANAGEMENT ANASTASIUS TSCHOPP 6 CAPITAL MANAGEMENT MARCEL KUCHER 7 OUTLOOK AND OBJECTIVES RE
Slide 25: Our key financial principles
CAPITAL MANAGEMENT Our key financial principles PRINCIPLES 1 Balanced mix of 2 Flexibility 3 Financing costs 4 Homogeneity – 5 Refinancing 6 Best-in-class IR equity and debt in by diversifying at the lower end of bank/capital market risks – minimise or for all investor the interests of all sources o
Slide 26: CHF 2.6 billion in syndicated loans extended until 2027/28 with stable margins
CAPITAL MANAGEMENT CHF 2.6 billion in syndicated loans ext. until 2027/28 wth stable margins EXPIRY PROFILE Extended FINANCING STRUCTURE at nominal values in CHF million in CHF billion and % 1 496 Unbesicherte Kredite Credit facilities Green Bonds Green bonds 1 019 Wandelanleihen Convertible bonds C
Slide 27: Wide range of financing options
CAPITAL MANAGEMENT Wide range of financing options Instrument Private Mortgages Revolving Convertible Straight Bond Eurobond Placements Credit Facility Bond (Green) (Green) (Green) (RCF) Volume CHF 200 CHF 800 CHF 800 CHF ~ 250 – 300 CHF ~ 250 – 300 CHF ~ 300 – 500 million million (maximum) million
Slide 28: Influence of a possibly challenging interest rate situation manageable
CAPITAL MANAGEMENT Influence of a possibly challenging interest rate situation manageable COMPENSATION INTEREST RATE INCREASE (UNTIL 2027) ▪ Additional costs: With a hypothetical 1.8% in CHF million increase in borrowing costs (total 2.5%), higher interest costs of around CHF ~90 million will result
Slide 29: Comprehensive sustainable financing of Swiss Prime Site as a goal
CAPITAL MANAGEMENT Comprehensive sustainable financing of Swiss Prime Site as a goal Green Finance Framework serves as the basis for Swiss Prime Site's medium-term fully 1 sustainable corporate financing (Green Bonds, Green Loans, etc.) Orientation according to the latest international standards (la
Slide 30: Transparent process of the Green Finance Framework
CAPITAL MANAGEMENT Transparent process of the Green Finance Framework USAGE EVALUATION MANAGEMENT REPORTING REVIEW ▪ Financing or ▪ A Green Finance ▪ Allocation of ▪ Swiss Prime Site will ▪ Mandate of an refinancing of Committee evaluates emissions to one of publish an annual external ESG agency and
Slide 31: Key findings and financing targets
CAPITAL MANAGEMENT Key findings and financing targets No further funding necessary until 2025 if conditions are unsuitable Compensation of additional financing costs through indexation and development pipeline Wide range of financial instruments prepared and ready for issuance Key financing targets:
Slide 32: Agenda
AGENDA 1 CAPITAL MARKETS DAY PROGRAMME RENÉ ZAHND 2 MARKET OUTLOOK WÜEST PARTNER GINO FIORENTIN 3 SWISS PRIME SITE IN A NUTSHELL RENÉ ZAHND 4 PORTFOLIO AND DEVELOPMENT BUSINESS RENÉ ZAHND 5 REAL ESTATE ASSET MANAGEMENT ANASTASIUS TSCHOPP 6 CAPITAL MANAGEMENT MARCEL KUCHER 7 OUTLOOK AND OBJECTIVES RE
Slide 33: Guidance 2022
OUTLOOK AND OBJECTIVES Guidance 2022 SWISS PRIME SITE AuM: > CHF 20 billion Vacancies: < 4.4% Increase in FFO I: ≥ 5%* LTV: < 40% REAL ESTATE Sales profits: ~ CHF 50 million L4L rental income: ~ 1.5% REAL ESTATE ASSET MANAGEMENT AuM: ~ CHF 7.5 billion EBIT: ~ CHF 30 million *Adjusted for early repay
Slide 34: Analyst and investor contact
Analyst and investor contact Media contact MARKUS WAEBER MLADEN TOMIC Investor Relations Media Relations Head Group Investor Relations & Communications Head Group 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.
Slide 35: 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
Slide 36: We create living spaces
WE CRATE LIVING SPACES