• Rental Income: CHF232 million, a 6% increase, with 3.7% like-for-like growth.

• Vacancy Rate: Record low of 3.6%, expected to be 3.8% by year-end.

• Assets Under Management: CHF12.7 billion, driven by the acquisition of Fundamenta.

• EBITDA: CHF204.7 million before revaluations, a 22% increase.

• Profit: CHF151.2 million.

• FFO I: Increased by 5% to CHF2.3 per share.

• Net Asset Value (EPRA NTA): Decreased due to devaluations and share issuance.

• Interest Rate Expenses: Increased by 26% in the first half year.

• Loan-to-Value (LTV): 40.9%, expected to be below 40% by year-end.

• Capital Increases: CHF270 million, with CHF220 million in cash contributions.

• Asset Management Income: Increased by 22%.

• Sales Proceeds: CHF80 million, with higher sales expected in the second half.

• Warning! GuruFocus has detected 9 Warning Signs with XSWX:SPSN.

Release Date: August 22, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Swiss Prime Site AG (XSWX:SPSN) reported a 6% increase in rental income, reaching a record level of CHF232 million.

• The company achieved a record low vacancy rate of 3.6% and aims to reduce it further to 3.0% in the future.

• The acquisition of Fundamenta added more than CHF4 billion in assets under management, enhancing the company's asset management capabilities.

• Swiss Prime Site AG (XSWX:SPSN) successfully completed major development projects, including Paradiso-Lugano and Stucki Park in Basel.

• The company maintained a strong financial position with an LTV expected to be below 40% by the end of the year, ensuring financial stability.

Negative Points

• The retail segment experienced a decrease in income due to reduced footfall and higher discounts at Jelmoli.

• The company's EPRA NTA was negative, reflecting devaluations and the impact of additional shares from the Fundamenta acquisition.

• Swiss Prime Site AG (XSWX:SPSN) faced unexpected interest rate hikes by the national bank, affecting their sales strategy.

• There is a slight expected increase in vacancy rates towards the end of the year due to the Pont-Rouge project.

• The integration of Fundamenta led to increased personnel costs, impacting overall cost efficiency.

Q & A Highlights

Q: What are the expected yields from the planned sales in the second half of the year? A: Marcel Kucher, Vice Chairman of the Supervisory Board, stated that the yields are expected to be slightly higher than average due to capital recycling and improved locations.

Q: What is the rent increase for the newly let PRADA space? A: Karin Voigt, Chief Portfolio Officer, mentioned that the rent has increased by 20%.