Swiss Prime Site Ag · SIX:SPSN
Swiss Prime Site — H1 2021 Earnings Presentation
36 slides from Swiss Prime Site's earnings presentation, Aug 26, 2021
Slide 1: Results first half-year 2021
RESULTS FIRST HALF-YEAR 2021 ZURICH, 26 AUGUST 2021
Slide 2: Agenda
AGENDA 1 HIGHLIGHTS FIRST HALF-YEAR 2021 2 RECONCILIATION RESULTS FIRST HALF-YEAR 2021 3 KEY FINDINGS AND PROJECT PIPELINE 4 FINANCIAL FIGURES FIRST HALF-YEAR 2021 5 EXPECTATIONS 2021 AND SUMMARY Zurich | 26 August 2021 Results first half-year 2021 2
Slide 3: Key results at a glance
HIGHLIGHTS FIRST HALF-YEAR 2021 Key results at a glance ASSETS UNDER MANAGEMENT GROWTH FALL IN VACANCIES ▪ Increase in property portfolio by +1.1% to ▪ Decrease of 0.4 percentage points to 4.7% [FY 2020 CHF 12.5 billion 5.1%] ▪ Real Estate AuMs of Swiss Prime Site Solutions ▪ Vacancies reduced by ar
Slide 4: Agenda: Reconciliation results first half-year 2021
AGENDA 1 HIGHLIGHTS FIRST HALF-YEAR 2021 2 RECONCILIATION RESULTS FIRST HALF-YEAR 2021 3 KEY FINDINGS AND PROJECT PIPELINE 4 FINANCIAL FIGURES FIRST HALF-YEAR 2021 5 EXPECTATIONS 2021 AND SUMMARY Zurich | 26 August 2021 Results first half-year 2021 4
Slide 5: Strong business performance on a like-for-like basis (1/2)
RECONCILIATION RESULTS FIRST HALF -YEAR 2021 Strong business performance on a like-for-like basis (1/2) OPERATING INCOME EBIT AND EBIT MARGIN (EXCLUDING REV AL U AT IO NS ) in CHF million in CHF million and % 425.2 3.1 361.0 72.4 4.8 362.8 Assisted 4.2 Other living 341.2 7.5 Asset management 2.5 43.
Slide 6: Strong business performance on a like-for-like basis (2/2)
RECONCILIATION RESULTS FIRST HALF -YEAR 2021 Strong business performance on a like-for-like basis (2/2) PROFIT RETURN ON EQUITY ( EXCLUDING REV AL U AT IO N S AND ALL DEFERRED T AXES ) (AN NU A LIS E D) in CHF m in % 320.0 9.6 8.4 163.5 114.9 2.4 +42.3% +6%P H1 2020 H1 2020 H1 2021 H1 2020 H1 2020 H
Slide 7: Agenda: Key findings and project pipeline
AGENDA 1 HIGHLIGHTS FIRST HALF-YEAR 2021 2 RECONCILIATION RESULTS FIRST HALF-YEAR 2021 3 KEY FINDINGS AND PROJECT PIPELINE 4 FINANCIAL FIGURES FIRST HALF-YEAR 2021 5 EXPECTATIONS 2021 AND SUMMARY Zurich | 26 August 2021 Results first half-year 2021 7
Slide 8: Letting success and attractive transactions in the core business
KEY FINDINGS Letting success and attractive transactions in the core business ▪ Around 47 000 m2 [H1 2020: 41 000 m2] of office and retail space let or re-let, in some cases on better terms ▪ Google is the new anchor tenant of the redevelopment project at Müllerstrasse in Zurich ▪ CMS and Westhive w
Slide 9: Sale of PLO Building E
Sale of PLO Building E Placeholder for Communication slide about sale of PLO Building E Sale in condominium To let ownership A B C Sold 2017 Info: Canton waiver received Transfer of ownership to Wilsdorf Foundation as at xx.xx.2021 E D Sold 2021 Zurich | 25 August 2021 Results first half-year 2021 9
Slide 10: Attractive portfolio: High revaluations and low vacancies
KEY FINDINGS Attractive portfolio: High revaluations and low vacancies PROPERTY PORTFOLIO FY / H1 2020 H1 2021 VACANCY RATE in CHF million in % (Group) Total 12 322.6 12 457.6 9 8 7.4 6.8 6.6 6.7 6.4 of which projects | developments 829.5 1 031.4 7 6.1 5.5 5.2 5.4 185 184 6 4.7 4.8 4.7 4.7 5.1 Prope
Slide 11: Portfolio focused on centres, office and commercial use
KEY FINDINGS Portfolio focused on centres, office and commercial use PROPERTY PORTFOLIO TYPES OF USE REGIONS Zurich | 26 August 2021 Results first half-year 2021 11
Slide 12: Balanced expiry profile of rental contracts
KEY FINDINGS Balanced expiry profile of rental contracts EXPIRY PROFILE OF RENTAL CONTRACTS* ▪ Structure: Balanced expiry profile of existing rental in % as at 30 June 2021 contracts Under 1 year 7.4 ▪ Due to expire: Of the rental contracts due to expire, Over 1 year 11.1 82% (2021) and 39% (2022) h
Slide 13: Asset management success story continues
KEY FINDINGS Asset management success story continues ASSETS UNDER MANAGEMENT ▪ Increase in assets under management from CHF 3.0 billion in CHF billion at the end of 2020 to CHF 3.2 billion, of which Swiss Prime Investment Foundation (SPIF) is CHF 2.8 billion 3.2 3.0 ▪ Additional development pipelin
Slide 14: Progress in ESG along the sustainability capitals
KEY FINDINGS Progress in ESG along the sustainability capitals STAKEHOLDER EMPLOYEES ▪ Rent waivers of CHF -3.1 million granted in H1 2021 ▪ Employee survey with high participation (80%) ▪ Third stakeholder dialogue in September 2021 ▪ Improvement of the already very good results ▪ Environmental pol
Slide 15: Sustainable progress since 2012 across different levels
KEY FINDINGS Sustainable progress since 2012 across different levels Green Bond (CHF 300 million) Green Bond (CHF 300 million) Climate change workshop REPORT 2nd stakeholder dialogue GRESB submission (GP) 1st stakeholder dialogue 1st Sustainability Board Green Bond Framework GRESB submission Sustain
Slide 16: We create living spaces
WE CREATE LIVING SPACES
Slide 17: Scheduled projects under construction with high levels of pre-letting
PROJECT PIPELINE Scheduled projects under construction with high levels of pre-letting Tertianum Tertianum Stücki Park I+II Alto Pont-Rouge Tertianum Müllerstrasse Monthey Richterswil Basel Lancy Paradiso Zurich Construction status scheduled scheduled scheduled scheduled scheduled scheduled Occupanc
Slide 18: Planned projects with attractive uses
PROJECT PIPELINE Planned projects with attractive uses JED II (new build) Tertianum maaglive Saarstahl Rheinstrasse Dreispitz Mitte Schlieren Olten Zurich Altstetten Augst Münchenstein Design plan / building and Building and Building and Zone plan District plan Design plan final Design plan final zo
Slide 19: Significant potential through densification, utilisation and landbank
PROJECT PIPELINE Significant potential through densification, utilisation and landbank PROJECT PIPELINE ▪ Completed projects: Projects completed totalling in CHF million around CHF ~600 million; target rental income per annum of around CHF ~29 million Reserves ~560 ~28 ▪ Projects under construction:
Slide 20: We create living spaces
WE CREATE LIVING SPACES
Slide 21: Agenda: Financial figures first half-year 2021
AGENDA 1 HIGHLIGHTS FIRST HALF-YEAR 2021 2 RECONCILIATION RESULTS FIRST HALF-YEAR 2021 3 KEY FINDINGS AND PROJECT PIPELINE 4 FINANCIAL FIGURES FIRST HALF-YEAR 2021 5 EXPECTATIONS 2021 AND SUMMARY Zurich | 26 August 2021 Results first half-year 2021 21
Slide 22: Key figures first half-year 2021 on comparable basis
FINANCIAL FIGURES FIRST HALF-YEAR 2021 Key figures first half-year 2021 on comparable basis OPERATING INCOME EBIT (EXCLUDING REVALUATIONS) in CHF million in CHF million +6.3% +36.6% 362.8 211.0 341.2 362.8 211.0 154.5 H1 2020 adj. H1 2021 H1 2020 adj. H1 2021 PROFIT (EXCLUDING REVALUATIONS AND ALL D
Slide 23: Four main influencing factors
FINANCIAL FIGURES FIRST HALF-YEAR 2021 Four main influencing factors COVID-19 RENTAL INCOME ASSET MANAGEMENT RETAIL Pandemic impacted operational Increase in rental income Strong performance in asset Increase in income at Jelmoli business activities at Jelmoli (excluding Tertianum Jan/Feb management
Slide 24: Like-for-like increase in rental income of 0.5%
FINANCIAL FIGURES FIRST HALF-YEAR 2021 Like-for-like increase in rental income of 0.5% CHANGE IN GROUP NET RENTAL INCOME ▪ Adjusted for Tertianum (January / February in CHF million 2020) increase in rental income of 2.2% or CHF 4.5 million 219.9 ▪ Driven by completion of significant projects and Com
Slide 25: Jump in profit on a like-for-like basis of around 42%
FINANCIAL FIGURES FIRST HALF-YEAR 2021 Jump in profit on a like-for-like basis of around 42% INCOME STATEMENT SWISS PRIME SITE GROUP ▪ Revaluations of CHF 144.5 million, mostly from office in CHF million H1 2020 H1 2020 H1 2021 premises in central locations (excl. Tertianum) Operating income 425.2 3
Slide 26: Growth in property portfolio due to prime locations
FINANCIAL FIGURES FIRST HALF-YEAR 2021 Growth in property portfolio due to prime locations PROPERTY PORTFOLIO GROWTH (FAIR VALUE) ▪ Total 184 properties (end of 2020: 185) in CHF million with a total value of CHF 12.5 billion Valuation effects 144.5 12 457.6 ▪ Effective capital recycling with a bala
Slide 27: Extension of duration with lower interest charges and stable LTV
FINANCIAL FIGURES FIRST HALF-YEAR 2021 Extension of duration with lower interest charges and stable LTV FINANCING STRUCTURE FINANCIAL LIABILITIES ▪ Bond redemption of CHF 300 million in CHF million due on 16 April 2021 (coupon: 1.75%) 5 232.7 5 164.3 0.3 0.1 FY 2020 H1 2021 ▪ Issue of a CHF 300 mill
Slide 28: Stable equity ratio and strong ROE of 8.4%
FINANCIAL FIGURES FIRST HALF-YEAR 2021 Stable equity ratio and strong ROE of 8.4% CHANGE IN SHAREHOLDERS’ EQUITY ▪ Slight increase in equity despite dividend payout in CHF million of CHF 3.35 per share in March 2021 Profit (total CHF 254.5 million) 6 085.6 6 087.8 257.1 -0.4 ▪ Equity ratio of 47.3%
Slide 29: Increase in results also on EPRA basis
FINANCIAL FIGURES FIRST HALF-YEAR 2021 Increase in results also on EPRA basis ADJUSTED EPRA EPS EPRA NTA (NET TANGIBLE ASSETS) in CHF in CHF per share ~1.90 96.28 95.58 1.53 1.29 +19% H1 2021 FFO FY 2020 H1 2021 +0.7% H1 2020 H1 2021 Swiss Prime Site Zurich | 26 August 2021 Results first half-year 2
Slide 30: Agenda: Expectations 2021 and summary
AGENDA 1 HIGHLIGHTS FIRST HALF-YEAR 2021 2 RECONCILIATION RESULTS FIRST HALF-YEAR 2021 3 KEY FINDINGS AND PROJECT PIPELINE 4 FINANCIAL FIGURES FIRST HALF-YEAR 2021 5 EXPECTATIONS 2021 AND SUMMARY Zurich | 26 August 2021 Results first half-year 2021 30
Slide 31: Guidance Swiss Prime Site 2021 confirmed
EXPECTATIONS 2021 Guidance Swiss Prime Site 2021 confirmed Comments ▪ Financial years 2019 and 2020 affected by one-off special effects concerning 2019 → extraordinary tax income of CHF 172.5 million the guidance 2020 → profit from the sale of Tertianum of CHF 204.2 million ▪ Revaluation effects in
Slide 32: Wrap up: H1 as excellent basis for full year 2021
SUMMARY Wrap up: H1 as excellent basis for full year 2021 FURTHER GROWTH OF STABLE DEVELOPMENT REAL ESTATE ASSETS OF VACANCIES UNDER MANAGEMENT OPTIMISATION OF FURTHER POSITIVE FINANCING REVALUATIONS MODERATE POSITIVE OUTLOOK COVID-19 IMPACT Zurich | 26 August 2021 Results first half-year 2021 32
Slide 33: We create living spaces
WE CREATE LIVING SPACES
Slide 34: Analyst and investor contact
Analyst and investor contact Media contact MARKUS WAEBER MLADEN TOMIC Investor Relations Media Relations Head Group Investor Relations 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.swiss mladen.tomi
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: Wir schaffen Lebensräume
WIR SCHAFFEN LEBENSRÄUME