Swiss Prime Site Ag · SIX:SPSN
Swiss Prime Site — FY2019 Earnings Presentation
35 slides from Swiss Prime Site's earnings presentation, Feb 27, 2020
Slide 1: Results Financial Year 2019
RESULTS FINANCIAL YEAR 2019 ZURICH, 27 FEBRUARY 2020
Slide 2: Agenda
AGENDA 1 WELCOME 2 HIGHLIGHTS FINANCIAL YEAR 2019 3 KEY FIGURES FINANCIAL YEAR 2019 4 OUTLOOK AND EXPECTATIONS 2020 Zurich | 27 February 2020 Results Financial Year 2019 2
Slide 3: Financial year 2019 with record results
Welcome Financial year 2019 with record results PROFIT OPERATING INCOME Rose by 95.7% to CHF 608.5 million Up 3.7% to CHF 1 258.8 million (of which CHF 172.5 m from release of deferred tax liabilities as a result of cantonal tax rate reductions) PROPERTY PORTFOLIO REVALUATIONS Up 5.0% to CHF 11.8 bi
Slide 4: We offer perspectives
WE OFFER PERSPECTIVES
Slide 5: Agenda
AGENDA 1 WELCOME 2 HIGHLIGHTS FINANCIAL YEAR 2019 3 KEY FIGURES FINANCIAL YEAR 2019 4 OUTLOOK AND EXPECTATIONS 2020 Zurich | 27 February 2020 Results Financial Year 2019 5
Slide 6: Operating income increased – above-average rise in EBIT
Highlights financial year 2019 Operating income increased – above-average rise in EBIT PROPERTY PORTFOLIO OPERATING INCOME in CHF m +5.0% in CHF m +3.7% 11 765 1 259 11 765 1 214 1 259 11 204 FY 2018 FY 2019 FY 2018 FY 2019 RENTAL INCOME EBIT in CHF m +1.6% in CHF m +31.3% 479 487 487 628 628 479 FY
Slide 7: Profit doubled and NAV growth of 6.1%
Highlights financial year 2019 Profit doubled and NAV growth of 6.1% PROFIT EQUITY RATIO in CHF m +95.7% in % +50 Bp 609 44.4 * 609 43.9 44.4 311 FY 2018 FY 2019 FY 2018 FY 2019 EARNINGS PER SHARE (EPS) NET ASSET VALUE +6.1% in CHF excluding revaluations and deferred taxes in CHF after deferred taxe
Slide 8: Revaluation gain of CHF 203.4 m significantly higher than 2018
Highlights financial year 2019 Revaluation gain of CHF 203.4 m significantly higher than 2018 PROPERTY PORTFOLIO in CHF m FY 2018 FY 2019 VACANCY RATE in % (group) Total 11 204.4 11 765.4 9 8 7.4 6.8 6.6 6.7 6.4 of which Projects | Developments 576.8 684.5 7 6.1 6.4 6.1 5.5 5.2 Properties (number) 1
Slide 9: With 45% «office» is the most important type of use within the portfolio
Highlights financial year 2019 With 45% «office» is the most important type of use within the portfolio PORTFOLIO SPLIT BY TYPE OF USE COMMENTS Basis: net rental imcome as at 31 December 2019 ▪ Quality: portfolio mainly comprises properties in prime locations and with stable values ▪ Tenant structur
Slide 10: Successful letting and transaction activity
Highlights financial year 2019 Successful letting and transaction activity COMMENTS ▪ Letting success: Total of around 128 000 m2 or 8% of the entire portfolio let (incl. reduction in vacancy), including Stücki Park, Basel: Lonza (8 000 m2 new build); YOND, Zurich: ~90% let; Schönburg, Berne: ~95% l
Slide 11: Active and agile portfolio management (Müllerstrasse, Zurich)
Highlights financial year 2019 Active and agile portfolio management (Müllerstrasse, Zurich) COMMENTS ▪ Purchase: Acquired in October 2018 from a Credit Suisse real estate fund as part of the Sihlcity swap deal ▪ Location: First-class location near the main railway station in Zurich (rental area: 13
Slide 12: Two-thirds of revaluation gain «internally» generated
Highlights financial year 2019 Two-thirds of revaluation gain «internally» generated DETAILS OF REVALUATION GAINS COMMENTS in CHF m ▪ CHF 110 m, equivalent to two-thirds of the revaluation gains, came from active portfolio management of the core Existing properties Projects under construction and de
Slide 13: We create living spaces
WE CREATE LIVING SPACES
Slide 14: Projects under construction (1|4)
Update project pipeline Projects under construction (1|4) PIPELINE: CHF 2 BN Under construction: ~ CHF 560 m* In development: ~ CHF 950 m Reserves: ~ CHF 500 m * excl. Schönburg and YOND projects, which will be concluded in Q1 2020 and handed over to tenants Zurich | 27 February 2020 Results Financi
Slide 15: Projects under construction (2|4)
Update project pipeline Projects under construction (2|4) YOND Schönburg West-Log Zurich Berne Zurich Zurich | 27 February 2020 Results Financial Year 2019 15
Slide 16: Projects under construction (3|4)
Update project pipeline Projects under construction (3|4) D C B E A Espace Tourbillon JED I Stücki Park I Plan-les-Ouates Schlieren Basel * C & D: sold to Hans Wilsdorf Foundation; A: Sold in condominium ownership Zurich | 27 February 2020 Results Financial Year 2019 16
Slide 17: Projects under construction (4|4)
Update project pipeline Projects under construction (4|4) Tertianum Tertianum Etzelblick Monthey Richterswil Zurich | 27 February 2020 Results Financial Year 2019 17
Slide 18: Projects in planning (1|2)
Update project pipeline Projects in planning (1|2) PIPELINE: CHF 2 BN Under construction: CHF ~560 m In development: ~ CHF 950 m Reserves: ~ CHF 500 m Zurich | 27 February 2020 Results Financial Year 2019 18
Slide 19: Projects in planning (2|2)
Update project pipeline Projects in planning (2|2) PROJECTS Tertianum Rheinstrasse Alto Pont-Rouge JED II Stücki Park II maaglive Müllerstrasse Paradiso & Olten Augst Lancy Schlieren Basel Zurich Zurich published zone plan architecture Design plan (Olten) under way competition Planning application s
Slide 20: Pleasing Services segment results
Group companies Pleasing Services segment results GROUP COMPANY COMMENTS ▪ Increase in assets under management to CHF 71 bn (several new mandates) ▪ «streamnow» platform expanded (tenant / landlord app) ▪ Consequent and ongoing digitalisation of business model ▪ Opening of new «Beauty World» and Pal
Slide 21: Focus on Tertianum: successfully sold to Capvis
Group companies Focus on Tertianum: successfully sold to Capvis GEOGRAPHIC OVERVIEW OF TERTIANUM NETWORK COMMENTS # Employees ~4 900 # Nursing care guests 3 122 ▪ Rationale: With a strong new owner, Tertianum can gain # Residential guests 1 759 additional potential, leverage synergies and expand the
Slide 22: Agenda
AGENDA 1 WELCOME 2 HIGHLIGHTS FINANCIAL YEAR 2019 3 KEY FIGURES FINANCIAL YEAR 2019 4 OUTLOOK AND EXPECTATIONS 2020 Zurich | 27 February 2020 Results Financial Year 2019 22
Slide 23: Absolute and like-for-like increase in rental income
Key figures financial year 2019 Absolute and like-for-like increase in rental income CHANGE IN NET RENTAL INCOME Difference in COMMENTS leased in CHF m properties 486.9 ▪ EPRA-like-for-like increase in rental Completion (AL*) of projects 3.2 Purchases 2.4 479.4 Changes in income of 0.8% existing -10
Slide 24: Operating income and EBIT – growth in both segments
Key figures financial year 2019 Operating income and EBIT – growth in both segments OPERATING INCOME EBIT COMMENTS BY SEGMENT BY SEGMENT in CHF m in CHF m ▪ Rise in EBIT in core Real Estate business FY 2018 FY 2019 due to operational improvements and Real Estate 431.1 572.9 revaluations Services 47.
Slide 25: Growth on all levels
Key figures financial year 2019 Growth on all levels INCOME STATEMENT SWISS PRIME SITE GROUP COMMENTS in CHF m FY 2018 FY 2019 ▪ Income from developments (recurring) Operating income 1 214.1 1 258.8 and profit from the sale of existing Revaluation of investment properties 67.6 203.4 properties total
Slide 26: Property portfolio increased to CHF 11.8 bn
Key figures financial year 2019 Property portfolio increased to CHF 11.8 bn PROPERTY PORTFOLIO (FAIR VALUE) COMMENTS in CHF m Purchases 11 765.4 ▪ Expansion of property portfolio by 5% Conversion & modernisation projects 67.1 compared to previous year ▪ Portfolio and development properties with posi
Slide 27: Solid capitalisation
Key figures financial year 2019 Solid capitalisation SHAREHOLDER’S EQUITY DEVELOPMENT COMMENTS in CHF m Miscellaneous Profit 1.0 5 459.2 ▪ NAV increase to CHF 71.87 per share -6.8 (+6.1% compared to end of 2018) Compensation of goodwill from acquisitions from ▪ Dividend of CHF 3.80 per share paid ou
Slide 28: Further optimisation of capital market financing
Key figures financial year 2019 Further optimisation of capital market financing FINANCING STRUCTURE FINANCIAL LIABILITIES COMMENTS in CHF m 5 076.4 5 380.7 14.3 4.3 ▪ Low interest rate on financial liabilities of 17.1 4.6 FY 2018 FY 2019 1.2% with maturity of 4.2 years 543.9 Ø interest rate (in %)
Slide 29: Agenda
AGENDA 1 WELCOME 2 HIGHLIGHTS FINANCIAL YEAR 2019 3 KEY FIGURES FINANCIAL YEAR 2019 4 OUTLOOK AND EXPECTATIONS 2020 Zurich | 27 February 2020 Results Financial Year 2019 29
Slide 30: Key indicators for the real estate market 2020
Outlook and expectations 2020 Key indicators for the real estate market 2020 ECONOMY POPULATION CAPITAL MARKET POLITICS Global economic trends Continuous migration with SNB confirms expansionary Increasing regulation with «cooling down» risks +40 000 households in 2019 policy (including CO2 law) Emp
Slide 31: Focus on sustainability
Outlook and expectations 2020 Focus on sustainability CO2 EQUIVALENT PER PERMANENT RESIDENT COMMENTS INHABITANT AND YEAR POPULATION in tons in million ▪ To achieve the Swiss government’s 2050 climate goals, Switzerland needs to act Life span in years together as a society, immediately Vehicles 15 ye
Slide 32: Guidance for expected rental income until 2025
Outlook and expectations 2020 Guidance for expected rental income until 2025 EXPECTED RENTAL INCOME FROM DEVELOPMENT PIPELINE* VACANCY RATE 2020 Values in CHF m Active vacancy management with an expected vacancy rate of < 5% 7.2 21.0 486.9 18.9 65.3 8.2 EXPECTED PROFIT 2020 11.0** 16.9 11.5 Increase
Slide 33: We shape the future
WE SHAPE THE FUTURE
Slide 34: Analyst and investor contact
Analyst and investor contact Media contact Markus Waeber Mladen Tomic Investor Relations Media Relations Head of 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.tom
Slide 35: Sustainability is future viability
SUSTAINABILITY IS FUTURE VIABILITY