Swiss Prime Site Ag · SIX:SPSN
Swiss Prime Site — H1 2020 Earnings Presentation
36 slides from Swiss Prime Site's earnings presentation, Aug 25, 2020
Slide 1: 1st Half-Year 2020 Results
1ST HALF-YEAR 2020 RESULTS ZURICH, 25 AUGUST 2020
Slide 2: Agenda
AGENDA 1 FIRST HALF-YEAR 2020 SUMMARY 2 SALE OF THE TERTIANUM GROUP 3 COVID-19 PANDEMIC 4 KEY FINANCIAL FIGURES 5 PROJECT PIPELINE 6 OUTLOOK Zurich | 25 August 2020 First half-year 2020 results 2
Slide 3: First Half-Year 2020 Summary: Profit from Tertianum sale lifts EBIT
FIRST HALF-YEAR 2020 SUMMARY Profit from the sale of Tertianum leads to marked EBIT increase REAL ESTATE PORTFOLIO EBIT EXCLUDING REVALUATIONS in CHF m in CHF m 11 881 361 11 468 201 +3.6% HY 2019 HY 2020 +79.8% HY 2019 HY 2020 RENTAL INCOME* ROIC EXCLUDING REVALUATIONS in CHF m in % 216 217 5.7 +0.
Slide 4: Profit doubled and significant NAV rise of over 10%
FIRST HALF-YEAR 2020 SUMMARY Profit doubled and significant NAV rise of over 10% PROFIT* EQUITY RATIO in CHF m in % 320 43.6 46.0 +111.5% 151 HY 2019 HY 2020 +240 Bp HY 2019 HY 2020 EARNINGS PER SHARE (EPS)* NET ASSET VALUE in CHF in CHF after deferred taxes per share 4.21 68.64 75.62 +111.6% +10.2%
Slide 5: Core real estate business: rental income increase
FIRST HALF-YEAR 2020 SUMMARY Core real estate business: rental income increase REAL ESTATE PORTFOLIO HY 2019* HY 2020 VACANCY RATE in CHF m in % (Group) Total 11 765.4 11 880.9 9 8 7.4 6.8 6.6 6.7 6.4 of which projects | developments 684.5 794.3 6.4 6.1 5.5 7 6.1 5.4 5.2 187 185 6 4.7 4.8 4.7 4.7 Pr
Slide 6: Real estate: strong letting and transaction activity
FIRST HALF-YEAR 2020 SUMMARY Real estate: strong letting and transaction activity COMMENTS ▪ Letting success: Spaces in Prime Tower, CBD Zurich and Opus Zug let to international and Swiss companies, in some cases lettings extended at better terms (total 41 194 m2 / 2.6% of the rentable space) ▪ Purc
Slide 7: Services: increase in AuM at Wincasa and Solutions
FIRST HALF-YEAR 2020 SUMMARY Services: increase in AuM at Wincasa and Solutions GROUP COMPANIES COMMENTS ▪ Assets under management rose by 2% to CHF 71.2 billion ▪ Development of residential letting advisory service ▪ Introduction of digital lease contract in 2020 ▪ Several months of lockdown signif
Slide 8: Agenda
AGENDA 1 FIRST HALF-YEAR 2020 SUMMARY 2 SALE OF THE TERTIANUM GROUP 3 COVID-19 PANDEMIC 4 KEY FINANCIAL FIGURES 5 PROJECT PIPELINE 6 OUTLOOK Zurich | 25 August 2020 First half-year 2020 results 8
Slide 9: Tertianum is Swiss Prime Site's largest tenant
SALE OF THE TERTIANUM GROUP Tertianum is Swiss Prime Site’s largest tenant GEOGRAPHIC OVERVIEW OF TERTIANUM (31.12.2019) COMMENTS ▪ Sale: Closing took place on 28 February 2020 ▪ Purchaser: Swiss private equity company Capvis ▪ Sales agreement: Includes the operation of residential and geriatric car
Slide 10: Divestment strengthens balance sheet
SALE OF THE TERTIANUM GROUP Divestment strengthens balance sheet COMMENTS ▪ Implications for the Swiss Prime Site Group: Drop in operating income of CHF ~500 million and EBIT of CHF ~34 million per annum respectively ▪ Impact on the balance sheet: Return of CHF 304.5 million in goodwill into shareho
Slide 11: Agenda
AGENDA 1 FIRST HALF-YEAR 2020 SUMMARY 2 SALE OF THE TERTIANUM GROUP 3 COVID-19 PANDEMIC 4 KEY FINANCIAL FIGURES 5 PROJECT PIPELINE 6 OUTLOOK Zurich | 25 August 2020 First half-year 2020 results 11
Slide 12: Impact on the society and first normalisation trends
COVID-19 PANDEMIC Impact on the society and first normalisation trends DEVELOPMENT OF MOVEMENT DATA IN SWITZERLAND COMMENTS ▪ Mobility in general: Steep fall in all areas of Third First infection in Switzerland easing mobility from the beginning of March stage Second easing Car ▪ Commuter traffic: A
Slide 13: Impact on the Swiss Prime Site Group
COVID-19 PANDEMIC Impact on the Swiss Prime Site Group ▪ Closure of retail and ▪ Closure of site in Zurich ▪ More complicated working ▪ Slower growth of assets under gastronomy spaces (17 March – 11 May 2020) conditions due to work form management ▪ Parking had a significant ▪ FOOD MARKET was the on
Slide 14: Moderate financial implications 2020
COVID-19 PANDEMIC Moderate financial implications 2020 REAL ESTATE PORTFOLIO TENANT REQUESTS Basis: Net rental income as at 30.06.2020 ▪ A total of approx. 500 tenant requests for rent deferral and waivers, amicable solutions found for ~320 FINANCIAL IMPACT AS AT 30 JUNE 2020 ▪ Impairments totalling
Slide 15: Maturities of existing rental agreements
COVID-19 PANDEMIC Maturities of existing rental agreements MATURITIES OF RENTAL AGREEMENTS* COMMENTS in % as at 30 June 2020 ▪ Structure: Balanced maturity of existing rental Under 1 year 60% already extended 8.5 contracts in the portfolio with a value of Over 1 year 12.9 CHF 11.9 billion Over 2 yea
Slide 16: Agenda
AGENDA 1 FIRST HALF-YEAR 2020 SUMMARY 2 SALE OF THE TERTIANUM GROUP 3 COVID-19 PANDEMIC 4 KEY FINANCIAL FIGURES 5 PROJECT PIPELINE 6 OUTLOOK Zurich | 25 August 2020 First half-year 2020 results 16
Slide 17: Key events and their impact on the financial figures
KEY FINANCIAL FIGURES Key events and their impact on the financial figures SALE OF TERTIANUM TAXES REVALUATIONS COVID-19 Sale of operation of 80 High tax income of Impact of the COVID-19 Pandemic with impact on the residential and geriatric CHF 158.1 million (non-cash) pandemic on the market operati
Slide 18: Jump in the equity ratio to 46.0%
KEY FINANCIAL FIGURES Jump in the equity ratio to 46.0% SHAREHOLDERS’ EQUITY COMMENTS Goodwill from in CHF m divestment of group companies ▪ NAV increase to CHF 75.62 per share; 303.5 5 744.4 +10.2% year-on-year and +5.2% compared to the -1.7 end of 2019 Miscellaneous ▪ Dividend payout was overcompe
Slide 19: Real estate portfolio grows to CHF 11.9 billion
KEY FINANCIAL FIGURES Real estate portfolio grows to CHF 11.9 billion REAL ESTATE PORTFOLIO (FAIR VALUE) COMMENTS in CHF m Purchases Modifications & modernisations 43.9 11 880.9 ▪ Real estate portfolio grew by 1% compared to the Projects 20.8 end of 2019 Other 105.7 11 765.4 building land 0.2 ▪ Tota
Slide 20: Interest rate on liabilities improved to 1.2% and duration extended
KEY FINANCIAL FIGURES Interest rate on liabilities improved to 1.2% and duration extended FINANCING STRUCTURE FINANCIAL LIABILITIES COMMENTS in CHF m 5 380.7 5 354.0 ▪ Total of 10 bonds outstanding, totalling 14.3 4.3 0.7 HY 2019 HY 2020 CHF ~2.4 billion with maturity dates until 2031 543.9 538.9 Ø
Slide 21: Highest ever half-year profit (excl. revaluations & deferred taxes)
KEY FINANCIAL FIGURES Highest ever half-year profit (excl. revaluations & deferred taxes) INCOME STATEMENT SWISS PRIME SITE GROUP COMMENTS in CHF m HY 2019 HY 2020 ▪ Income from real estate developments (recurring) and profit Operating income 607.7 425.2 from the sale of investment properties totall
Slide 22: Rental income growth in the core real estate business
KEY FINANCIAL FIGURES Rental income growth in the core real estate business CHANGE IN GROUP NET RENTAL INCOME COMMENTS in CHF m Completion Modifications | Modernisations Purchases Projects 2.9 ▪ Core real estate business with rental income 239.3 1.9 growth of CHF 217.0 million (+0.7%) 0.4 -2.7 -0.8
Slide 23: EBIT increase of 9.6%; excluding revaluations of 79.8%
KEY FINANCIAL FIGURES EBIT increase of 9.6%; excluding revaluations of 79.8% OPERATING INCOME EBIT COMMENTS BY SEGMENT BY SEGMENT in CHF m in CHF m ▪ Real Estate segment reported a lower EBIT HY 2019 HY 2020 excluding revaluations of CHF 162.1 million Real Estate 263.5 114.8 [2019: CHF 177.8 million
Slide 24: Agenda
AGENDA 1 FIRST HALF-YEAR 2020 SUMMARY 2 SALE OF THE TERTIANUM GROUP 3 COVID-19 PANDEMIC 4 KEY FINANCIAL FIGURES 5 PROJECT PIPELINE 6 OUTLOOK Zurich | 25 August 2020 First half-year 2020 results 24
Slide 25: Project pipeline: net yields significantly above portfolio average
PROJECT PIPELINE Net yields significantly above portfolio average PROJECT PIPELINE OVERVIEW COMMENTS CHF ~2.0 billion CHF 83 million p.a. ▪ Investment volume: Size of the project pipeline has remained stable at around CHF 2.0 billion over reserves CHF the last few years CHF ~600 ~600 million million
Slide 26: Projects under construction (1|4): Overview
PROJECT PIPELINE Projects under construction (1|4): Overview Investments Target rental income* incl. land (CHF) p.a. (CHF) 42 million 2.1 million 85 million 7.2 million 30 million 1.3 million 131 million 6.6 million 97 million 5.3 million 88 million 3.2 million 195 million 6.1 million 90 million 4.8
Slide 27: Projects under construction (2|4): Zurich and Berne
PROJECT PIPELINE Projects under construction (2|4): Zurich and Berne YOND Schönburg West-Log Zurich Berne Zurich Zurich | 25 August 2020 First half-year 2020 results 27
Slide 28: Projects under construction (3|4): Geneva, Zurich and Basel
PROJECT PIPELINE Projects under construction (3|4): Geneva, Zurich and Basel C D B E A Espace Tourbillon JED I Stücki Park I Plan-les-Ouates Schlieren Basel * C & D: sold to Hans Wilsdorf Foundation; A & E: in sales process Zurich | 25 August 2020 First half-year 2020 results 28
Slide 29: Projects under construction (4|4): Valais and Zurich
PROJECT PIPELINE Projects under construction (4|4): Valais and Zurich Tertianum Tertianum Etzelblick Monthey Richterswil Zurich | 25 August 2020 First half-year 2020 results 29
Slide 30: Projects in development (1|2): Overview
PROJECT PIPELINE Projects in development (1|2): Overview Investments Target rental income* incl. land (CHF) p.a. (CHF) 220 million 9.9 million** 128 million 5.3 million 50 million 2.0 million 74 million 5.0 million 287 million 14.7 million 70 million 3.2 million 72 million 4.4 million 34 million 1.3
Slide 31: Projects in development (2|2): Status
PROJECT PIPELINE Projects in development (2|2): Status PROJECTS Tertianum Alto Pont-Rouge JED II Stücki Park II Müllerstrasse maaglive Rheinstrasse Paradiso & Olten Lancy Schlieren Basel Zurich Zurich Augst published architecture zone plan Design plan (Olten) competition granted Planning application
Slide 32: Agenda
AGENDA 1 FIRST HALF-YEAR 2020 SUMMARY 2 SALE OF THE TERTIANUM GROUP 3 COVID-19 PANDEMIC 4 KEY FINANCIAL FIGURES 5 PROJECT PIPELINE 6 OUTLOOK Zurich | 25 August 2020 First half-year 2020 results 32
Slide 33: Guidance 2020
OUTLOOK Guidance 2020 ECONOMY POPULATION | RATES POLITICS SWISS PRIME SITE GDP: SECO is expecting Migration: expected to fall «Limitation initiative»: Expected profit (excl. revaluations the economy to shrink by in 2020 vote on 27 September and deferred taxes) above previous 6.2% in 2020 2020 year d
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: We offer perspectives
WE OFFER PERSPECTIVES