Swiss Prime Site AG (WBO:SPSN)

Half Year 2026 Swiss Prime Site AG Earnings Call Transcript

Aug 20, 2026 / 08:00 AM GMT

Release Date Price: €135 (+1.50%)

Transcript

Key Points

Positve

Swiss Prime Site AG (SWPRF) reported a strong first half of 2026 with record FFO1 per share of CHF 2.15, up 2.4%, and confirmed guidance at the upper end of the CHF 4.25-4.30 range.
The company achieved a record net new money inflow of almost CHF 1 billion in its asset management business, lifting AUM to CHF 14.8 billion and demonstrating strong growth momentum.
Portfolio value exceeded CHF 14 billion for the first time in history, up 0.6% despite disposals, driven by CHF 148 million in revaluation gains from rental growth and cost discipline.
The successful refinancing of the convertible bond at 0% interest for six years and the issuance of two green bonds helped lower the average cost of debt to 83 basis points.
Leasing momentum was strong, with Alto Borouge fully leased, significant lease extensions at Prime Tower (e.g., Homburger for another 15 years), and high demand from AI companies for Fraumünsterpost, driving vacancy down to 3.2%.
The company achieved a major development milestone by signing an LOI with the University of Zurich for the Markhouse site and attracting Hitachi Energy to Otelfingen, securing long-term value creation.
Swiss Prime Site AG (SWPRF) was upgraded to a B- rating by ISS ESG, placing it among the top 10 most sustainable real estate firms worldwide.
Operating leverage drove profitability, with EBITDA up 4.4% to CHF 208 million and net profit up 6% to CHF 165.7 million, despite a challenging low-inflation environment.
The company successfully executed its capital recycling strategy, selling CHF 167 million of smaller retail assets at a 4.2% gain over book value, enhancing portfolio quality and focus on prime locations.
The asset management segment saw a 5.2% increase in revenues to CHF 40 million, with a record low cost ratio of 35%, highlighting significant economies of scale and efficiency gains.

Negative

Like-for-like rental growth remained modest at 1.3% on a real basis, reflecting the low impact of the current low inflation environment on rents.
The LTV ratio of 39.9% is slightly elevated above the company's guidance of below 39%, primarily due to the dividend payment in March, though management expects to be back below by year-end.
The redemption of the deep-in-the-money convertible bond resulted in a total cost of approximately CHF 180 million, which impacted the P&L.
The company faces challenges in finding attractive real estate investments in Switzerland due to further yield compression and a competitive market, requiring continued discipline.
The sale of five properties, mostly retail assets in secondary locations, reduced rental income, which was only partially offset by acquisitions and developments.
The asset management business experienced a slight decrease in fee rates due to larger transactions and cliff pricing models, where efficiencies are shared with clients.
There is a temporary increase in the utilization of unsecured loan facilities, partially funding bond maturities and dividend payments, which increases short-term financing needs.
The company has significant debt maturities in 2029 and 2030 (CHF 1 billion and CHF 1.6 billion respectively), requiring careful refinancing strategy.
The redevelopment of properties like Jelmoli and Fraumünsterpost are temporarily offline, contributing to a slight drag on rental income during the construction period.
The company's net debt to EBITDA ratio is approximately 11 times, which is high in absolute terms, though management argues it must be viewed in the context of Switzerland's low-yield environment.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

SPSN.S - Swiss Prime Site AG
Half Year 2026 Swiss Prime Site AG Earnings Call
Aug 20, 2026 / 08:00AM GMT

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Presentation
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Unidentified_1 [1]
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What we can do, Marcus, is we can leave the backup in the waiting room of Zoom and then just bring it in if we need it so it's not affecting the audio. Would that work?

Exactly.

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Unidentified_2 [2]
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Because we cannot mute the sound for one laptop and the other one.

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Unidentified_1 [3]
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Okay, I'm going to put the primary in the waiting room for now.

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