SWISS PRIME SITE AG FINANCIAL RESULTS PRESS CONFERENCE

Transcription

1 27 August 2015 Zurich Prime Tower SWISS PRIME SITE AG FINANCIAL RESULTS PRESS CONFERENCE Report for first half of 2015

2 FINANCIAL RESULTS PRESS CONFERENCE Speakers Thomas Wetzel Vice Chairman of the Board of Directors Markus Graf Chief Executive Officer Markus Meier Chief Financial Officer Peter Lehmann Chief Investment Officer S 2

3 OVERVIEW > Welcome > Key highlights > 2015 half-year financial results > Portfolio > Sales >Projects > Real estate market > Outlook

4 OVERVIEW >Welcome > Key highlights > 2015 half-year financial results > Portfolio > Divestments >Projects > Real estate market > Outlook

5 KEY HIGHLIGHTS REAL ESTATE PORTFOLIO in CHF m PROFIT INCLUDING REVALUATION EFFECTS 1 in CHF m Increase of 3.6% year-on-year Increase of 39.2% year-on-year 1 Revaluations and deferred taxes S 5

6 KEY HIGHLIGHTS EARNINGS BEFORE INTEREST AND TAXES (EBIT) 1 in CHF m SHAREHOLDERS EQUITY in CHF m Increase of 35.8% year-on-year Increase of 18.6% year-on-year 1 Including revaluation effects S 6

7 KEY HIGHLIGHTS RENTAL INCOME in CHF m EARNINGS PER SHARE (EPS) in CHF 2.96 Increase of 3.6% year-on-year Increase of 31.6% year-on-year S 7

8 KEY HIGHLIGHTS Segment reporting Operating income REAL ESTATE RETAIL AND GASTRONOMY ASSISTED LIVING Income from real estate and real estate services in CHF m Income from retail and gastronomy in CHF m 75.2 Income from assisted living in CHF m Increase of 33.7% year-on-year Decrease of 6.9% year-on-year Decrease of 0.9% year-on-year S 8

9 KEY HIGHLIGHTS Milestones 2015 Quarter 01 Quarter 02 PrimeTower, Zurich Swiss Prime Site convertible bonds converted at more than 90% / capital base strengthened Candrian Catering AG takes over Clouds restaurant business in Prime Tower with effect from Financial results press conference: Swiss Prime Site achieves strong annual results/new annual report/website Swiss Prime Investment Foundation approved by OSPC Maaghof North and East, Zurich René Zahnd appointed new CEO of Swiss Prime Site AG Annual General Meeting approves all proposals Opening of the first "Vitadomo" senior citizens' residence Maaghof building complex completed Successful capital increase of CHF m Markus Meier named new CFO of Swiss Prime Site AG S 9

10 KEY HIGHLIGHTS Successful capital increase to support growth strategy Capital increase of CHF m ALLOCATION OF RESOURCES > Financing of ongoing development and new building projects as well as conversions of buildings PROJECT PIPELINE CHF 2.5 bn > Pursuit of further growth opportunities in the Swiss real estate market > Increase in financial flexibility and temporary reduction of use of existing credit limits > Strengthening of equity ratio and improvement of capital base > Deployment of funds for general corporate purposes SPS Immobilien AG projects for third parties > Strengthening of capital contribution reserves SPS Immobilien AG Tertianum Gruppe Group Total S 10

11 KEY HIGHLIGHTS Performance of Swiss Prime Site share in YTD % Jan 2015 Feb 2015 Mrz 2015 Apr 2015 Mai 2015 Jun 2015 Jul 2015 Aug 2015 Swiss Prime Site AG (+7.2%) SXI Real Estate Index (+4.5%) Swiss Performance Index (+0.7%) Source: Bloomberg Index = 100; last data point: 25/08/2015 S 11

12 KEY HIGHLIGHTS "Assisted living" market Swiss demographic development > The proportion of over 65-year-olds will rise by 51% between now and 2045 > The proportion of over 80-year-olds will double to 10% between now and 2045 > The number of individuals over 65 requiring care will rise from today's 180 per 1,000 people to 260 per 1,000 people by 2045 CONTINUOUS INCREASE IN POPULATION BY AGE BRACKET (REFERENCE SCENARIO) Age (years) , , , , AGE PYRAMID Men Women , , , , , , , , , , , , , December 2013 Observations 31 December 2045 "High" scenario B Reference scenario A "Low" scenario C Total 8, , , , Source: SFSO; SFSO SCENARIO, numbers in thousands S 12

13 KEY HIGHLIGHTS Acquisition of SENIOcare Company profile OVERVIEW SERVICE PORTFOLIO > SENIOcare is the highest-volume provider in the Swiss nursing home segment > Recognized specialist in the area of dementia care Stationary care > Medical assistance, personal care, assistance and support, events and hotel service > Higher level of care > Available in all care centres 77% > Company has an attractive financial profile 2015 sales CHF m > Historically strong growth record and interesting project pipeline Dementia care > Specially equipped premises with small residential groups > High care level > Core competency of SENIOcare > Available in 14 care centres 19% > Very good track record in the successful opening of care homes and occupancy rates > First company to be certified for quality management by the independent foundation sanacert suisse Assisted living > 1- to 3-room apartments > In immediate vicinity of care centre (access to medical care and emergency services) > Lower level of care > Available in 6 care centres 4% S 13

14 KEY HIGHLIGHTS Acquisition of SENIOcare Geographical presence with 29 operating locations No. Care home Opening / Renovation No. beds No. apts. 1 Im Lenz Waldhof ,4 Residence 2013/ Casa Fiora Humana Etzelblick Im Vieri Sonnenschein Wismetpark Oasis Lindenegg Lyssbachpark Christa Sunnerain Fischermätteli Bergsicht Brunnematt Rosengarten Seerose ,22 Feldegg/Steinegg 2008/ Schibistei Kronenwiese Schloss Berg Rägeboge Villa Sarona Meeresstern Zur Heimat TOTAL 1' S 14

15 KEY HIGHLIGHTS Acquisition of SENIOcare Tertianum Group following merger Tertianum Group SENIOcare Complementary geographical allocation > The acquisition makes Tertianum Group the highest-volume provider in the assisted living segment in German-speaking Switzerland and Ticino. S 15

16 KEY HIGHLIGHTS Acquisition of SENIOcare Swiss market breakdown: apartments and nursing beds THE LARGEST PRIVATE OPERATORS PLANNED DEVELOPMENT Apartments +67% Total SENIOcare Tertianum B 2016BP 2017BP 2018BP 2019BP 2020BP Nursing beds +26% Total SENIOcare Nursing beds Data as per 2014 (or most recently available) Apartments Tertianum B 2016BP 2017BP 2018BP 2019BP 2020BP S 16

17 OVERVIEW >Welcome > Key highlights > 2015 half-year financial results > Portfolio > Divestments >Projects > Real estate market > Outlook

18 2015 HALF-YEAR FINANCIAL RESULTS Development of net rental income in CHF m (Group) +3.6% Net rental income Divestments Changes in existing properties Modifications / renovations previous year Acquisitions current year Additionally leased properties 1 Completed projects Net rental income Including leased properties 1 Assisted Living segment S 18

19 2015 HALF-YEAR FINANCIAL RESULTS Operating income in CHF m Total Total Rental of properties Real estate services Assisted living Sale of development properties Retail and gastronomy Other operating income S 19

20 2015 HALF-YEAR FINANCIAL RESULTS Operating expenses in CHF m Total Total Real estate expenses Cost of goods sold Other operating expenses Cost of sold development properties Personnel expenses Depreciation, amortisations and impairment S 20

21 2015 HALF-YEAR FINANCIAL RESULTS Consolidated income statement Summary Figures in Change in % Operating income CHF m Revaluation CHF m Result from investments in associates CHF m Result from sale of properties and participations CHF m Operating expenses CHF m Operating profit before interest and taxes (EBIT) CHF m Financial expenses CHF m Financial income CHF m Income tax expense CHF m Profit CHF m S 21

22 2015 HALF-YEAR FINANCIAL RESULTS Development of real estate portfolio (fair value) in CHF m +3.6% Fair value Sales Other existing properties Completion of Opfikon Completion of Maaghof North/East (rental) Completion of Maaghof North/East (FAs 1 ) Flurpark remodelling Bellinzona/Bern Weltpostpark projects Fair value Freehold apartments (FAs) for sale are recognised as investment costs or net realisable value if lower S 22

23 2015 HALF-YEAR FINANCIAL RESULTS Financing structure in CHF m Total Total Mortgage-backed loans Other non-current financial liabilities Non-current loans Convertible bonds Bonds S 23

24 2015 HALF-YEAR FINANCIAL RESULTS Maturity of financial liabilities Residual term < 10 years < 9 years < 8 years < 7 years < 6 years < 5 years < 4 years < 3 years < 2 years < 1 year in CHF m S 24

25 2015 HALF-YEAR FINANCIAL RESULTS Key financial liabilities figures Interest commitment Figures in Change in % Weighted average interest rate % Weighted average residual term to maturity Years Financial liabilities Current CHF m Non-current CHF m Total 1 CHF m excl. other non-current financial liabilities S 25

26 2015 HALF-YEAR FINANCIAL RESULTS Development of shareholders' equity in CHF m +18.6% Shareholders equity Distribution Profit incl. noncontrolling interests Revaluation of owner-operated properties after deferred taxes Remeasurement of net defined benefit obligations after deferred taxes Conversions of Capital increase CHF 300 m on convertible bond Share-based compensation Purchase of Treasury shares Shareholders equity S 26

27 2015 HALF-YEAR FINANCIAL RESULTS Key Group figures Figures in Change in % Equity ratio % Debt ratio % LTV % Return on equity (ROE) % Return on invested capital (ROIC) % Return on equity (ROE) excl. revaluation effects 1 % revaluations and deferred taxes S 27

28 2015 HALF-YEAR FINANCIAL RESULTS Key figures per share Figures in Change in % Earnings per share (EPS) CHF Earnings per share excluding revaluation effects CHF NAV per share before deferred taxes CHF NAV per share after deferred taxes CHF Share price CHF Average daily trading volume CHF m Market capitalisation as at balance sheet date CHF m Number of shares issued no S 28

29 OVERVIEW >Welcome > Key information > 2015 half-year financial results > Portfolio > Divestments >Projects > Real estate market > Outlook

30 PORTFOLIO Key real estate portfolio data (Group) Figures in Change in % Fair value of real estate CHF m of which under construction CHF m Number of properties Number of which newbuild projects No. of 8 5 Rental floor space 1 m Rental income CHF m Vacancy rate % Net property yield % excl. car parks / parking spaces S 30

31 PORTFOLIO Development of vacancy rate in % (Group) S 31

32 PORTFOLIO Major lettings City/town Property Floorspace New lettings Basel Stücki Business Park 800 m 2 Basel Stücki Shopping Center m 2 Petit-Lancy Route de Chancy 750 m 2 TOTAL m 2 Contract extensions Bern Schwarztorstrasse m 2 Olten Bahnhofquai m 2 Zurich Josefstrasse 53/ m 2 Zurich Cityport m 2 TOTAL m 2 S 32

33 PORTFOLIO Key portfolio data PORTFOLIO SPLIT BY REGION Fair value as at [ ] PORTFOLIO SPLIT BY TYPE OF USE Net rental income as at [ ] real estate segment 1 Zurich 41% [41%] 2 Geneva 22% [22%] 3 Northwestern Switzerland 15% [16%] Office 39% [37%] 2 Retail 33% [35%] 3 Cinema / restaurant 6% [6%] Berne 9% [8%] 4 Storage 6% [6%] 5 Central Switzerland 6 Eastern Switzerland 7 Southern Switzerland 6% [5%] 5% [6%] 1% [1%] Parking 5% [6%] 6 Assisted living 5% [5%] 7 Other 4% [4%] 8 Residential 2% [1%] Western Switzerland 1% [1%] S 33

34 PORTFOLIO Largest external tenants Annual rental income Real Estate segment Share in % Share in % Coop 7.0 Migros 5.2 Swisscom 3.8 Inditex S.A. 2.4 Dosenbach-Ochsner AG 2.1 TOP Coop 6.6 Migros 5.0 Swiss Post 4.1 Swisscom 3.7 Inditex S.A. 2.8 TOP S 34

35 PORTFOLIO Portfolio quality Market matrix % of real estate portfolio classified as top properties Source: Wüest & Partner AG 1 Basis: Fair value S 35

36 PORTFOLIO Contractual end of rental relationship Real Estate segment in % of net rental income as at years 23.8% 22.8% 9 years 8 years 3.0% 4.1% 2.6% 1.4% 7 years 1.4% 5.9% 6 years 5.2% 9.5% 5 years 11.6% 6.7% 4 years 3 years 2 years 1 year 7.9% 9.0% 10.2% 10.4% 9.7% 10.5% 9.7% 8.6% 0 years 13.4% 0% 5% 10% 15% 20% 25% 12.6% S 36

37 OVERVIEW >Welcome > Key highlights > 2015 half-year financial results > Portfolio > Divestments >Projects > Real estate market > Outlook

38 DIVESTMENTS Divestments in 2015 (1/3) LOREM ZURICH IPSUM HÖNGGERSTRASSE DIAZ VERDE 40 GLATTBRUGG SCHAFFHAUSERSTRASSE 59 AFFOLTERN AM ALBIS OBERE BAHNHOFSTRASSE 14 Fair value CHF Sale price CHF Fair value CHF Sale price CHF Fair value CHF Sale price CHF Fair value as at S 38

39 DIVESTMENTS Divestments in 2015 (2/3) Maaghof / sales of freehold apartments as at (SP=sale price; PP = parking space) Apartments Total 83 SP (CHF) Ø price per apmt. Comm. SP PP SP (CHF) SP (CHF) Total Properties sold (notarised) House A, Naphtastr. 2.5 rm apmt House A Total 3.5 rm apmt rm apmt rm apmt House G, Turbinenstr. 3.5 rm apmt House G Total 4.5 rm apmt Houses A and G Total Transfer of ownership with effect from House A, Naphtastr. 2.5 rm apmt House A Total 3.5 rm apmt rm apmt rm apmt House G, Turbinenstr. 3.5 rm apmt House G Total 4.5 rm apmt Houses A and G Total House A still unsold 2.5 rm apmt House A reserved 3.5 rm apmt S 39

40 DIVESTMENTS Divestments in 2015 (3/3) Figures in Maaghof divestments CHF m 74.3 Property divestments CHF m 44.3 Divestments total CHF m Gross profit from divestments CHF m 30.0 S 40

41 OVERVIEW >Welcome > Key highlights > 2015 half-year financial results > Portfolio > Divestments > Projects > Real estate market > Outlook

42 PROJECTS Completed projects BERN SWISS POST HEADQUARTERS (MAJOWA) LOREM OPFIKON IPSUM BUBENHOLZ DIAZ VERDE VITADOMO LOREM ZURICH IPSUM MAAGHOF DIAZ NORTH VERDE AND EAST New services building > Floor space: approx m 2 > Tenant: Swiss Post > Handover to tenant for tenant fit-out as per > Occupancy: mid-2015 > Opening event: > Construction invoicing: Autumn 2015 New Vitadomo senior centre > Floor space: approx m 2 > Tenant: Vitadomo AG > Start of construction: April 2013 > Opening: April 2015 > Open house day: > Construction invoicing: by end of 2015 Residential complex with 137 rental apartments and 83 condominiums, approx m 2 of social and commercial use > Occupancy status: still three apartments and three service areas (out of ten) to be let > Sales status: 92% (notarised) > Completion: August 2015 Investment volume in CHF approx. 148 m Investment volume in CHF approx. 39 m Investment volume in CHF approx. 140 m S 42

43 PROJECTS Current projects (1/2) BASEL, LOREM MOTEL IPSUMONE FREIE DIAZ STRASSE VERDE 68 BELLINZONA TURRITA VITADOMO ZURICH FLURPARK Conversion of office complex into hotel with 143 rooms > Floor space: approx m 2 > Tenant: Motel One Group > Start of construction: April 2015 > Completion: > Opening: New "Vitadomo" senior centre > Rental area: approx m 2 > Tenant: Vitadomo AG > Start of construction: June 2014 > Topping-out ceremony: > Completion/move-in: spring of 2016 Complete renovation of services building > Approx m 2 of flexibly designed office and services floor space, ample warehousing/archive space > Sole contractor final acceptance (additional investment) > Various prospective tenants Investment volume in CHF approx. 22 m Investment volume in CHF approx. 38 m Investment volume in CHF approx. 69 m S 43

44 PROJECTS Current projects (2/2) ZURICH, MOTEL ONE BRANDSCHENKESTRASSE LOREM BERN IPSUM WELTPOSTPARK DIAZ VERDE Conversion to hotel with 394 rooms > Tenant: Motel One Group > Construction approval issued, construction start (dismantling) effected > Investment supplement (buying out Jade, additional rooms, monument conservation requirements/fire protection) > Opening: Investment volume in CHF approx. 77 m Site development on plot with building permission, m 2 > Residential project, floor space of approx m 2 > Building development plan at the political stage > Planning application > Realisation: Investment volume in CHF approx. 66 m S 44

45 PROJECTS Selected development projects (1/3) ZURICH ALBISRIEDERSTRASSE LOREM IPSUM (SIEMENS DIAZ VERDE SITE) BERN, VIKTORIASTRASSE (SCHÖNBURG) GENEVA MEYRIN CH. DE RIANTBOSSON Development potential (services, retail, industry) on a free plot of land > Targets for 2015: Site development strategy by autumn 2015; text changes to zoning plan, master plan > Location evaluation process > Realisation: Investment volume in CHF approx. 85 m Preliminary decision on preferred option taken: > Conversion to residential building with flexible office wing > Optimal for yield and marketing > Pre-project planning, cost calculation by end of 2015 Investment volume in CHF approx. 130 m New services and retail building (multitenant) > Gross floor space m2 (commercial) m 2 (retail) > Retail 100% pre-let (LOIs, verbal assurances) > Submission of building application on > Realisation: Q at the earliest Investment volume in CHF approx. 41 m S 45

46 PROJECTS Selected development projects (2/3) GENEVA LOREM MEYRIN IPSUM ROUTE DIAZ DE PRÉ VERDE BOIS (2A) GENEVA MEYRIN ROUTE DE PRÉ BOIS (2B) GENEVA PLAN-LES-OUATES CHEMIN DES AULX Newbuild services building, m 2 of rentable area > Construction approval legally in force > Project optimisation (core) and implementation of SC tender process autumn/winter 2015 > Realisation: 2016 at the earliest Investment volume in CHF approx. 13 m Construction land in "Grand Project VMA" with public indoor swimming pool > Landowner: Agreement for advance enquiry adjusted > Processing of acquisition of Radio- Matériel > Assurances from Canton Geneva for acquisition of construction rights > Realisation: from approx Investment volume in CHF approx. 60 m Modular concept for five highly-flexible commercial buildings > Usable area: approx m 2 > Construction submission January 2015, pending > Pre-marketing underway > SC tender process initiated > Realisation of Phase 1: Investment volume in CHF approx. 200 m S 46

47 PROJECTS Selected development projects (3/3) LUGANO LOREM PARADISO IPSUM DIAZ DU VERDE LAC ZURICH ETZELGUT (Replacement) newbuilds: Tertianum Residence on two plots of land > Clarification of building rights, legal validity of design plan Q at the earliest > Realisation planned: Replacement newbuild nursing home Perlavita > Floor space of approx m 2 > Optimisation of draft planning application > Planning application autumn 2015 > Start of construction summer 2015 Investment volume in CHF approx. 60 m Investment volume in CHF approx. 13 m S 47

48 OVERVIEW >Welcome > Key highlights > 2015 half-year financial results > Portfolio > Divestments >Projects > Real estate market > Outlook

49 REAL ESTATE MARKET Net migration of constant resident population 120' '000 80'000 60'000 40'000 Median 50,468 43'269 51'497 47'766 47'884 44'656 49'438 83' '363 79'033 68'967 73'770 77'147 89'541 60'481 54'433 20' '410 1'724 8'185 20'897 24' E Net migration Forecasts Source: UBS, Swiss Federal Statistical Office, Swiss Federal Office of Migration S 49

50 REAL ESTATE MARKET Economic forecasts for Switzerland Meta-analysis of economy Source: FPRE (July 2015) >KOF: Slight month-on-month decline in June The temporary rise in May proved fleeting, and the prospects for the coming months have turned more negative. >UBS Consumption Indicator: Rise in May 2015 on the back of higher new vehicle registrations and improved retailer sentiment (indication of robust growth of consumer spending). >PMI: Month-on-month rise in June 2015; six months after the SNB's EUR/CHF decision, the decline in industrial momentum was halted. >SECO: The unemployment rate declined from 3.2% (May 2015) to 3.1% (June 2015). Real year-on-year change, in % Level F F 2 Gross domestic product (real) Private consumption Public consumption Investment Construction Equipment Exports Imports Annual inflation rate Unemployment Source: UBS WMR (in CHF bn at current prices) 2 F: UBS forecast as at July excluding valuables and non-monetary gold S 50

51 REAL ESTATE MARKET European Office Property Clock LYON, OSLO COLOGNE HAMBURG ST. PETERSBURG SLOWING GROWTH IN RENT PRICES ACCELERATING DECLINE IN RENT PRICES DUBLIN LONDON CITY LUXEMBOURG ACCELERATING GROWTH IN RENT PRICES SLOWING DECLINE IN RENT PRICES MOSCOW AMSTERDAM MILAN GENEVA, ZURICH PARIS CBD, BRUSSELS Source: JLL, July 2015 S 51

52 REAL ESTATE MARKET Factors influencing the segments OFFICE PROPERTIES RETAIL PROPERTIES RESIDENTIAL PROPERTIES > The momentum of office floor space growth has weakened somewhat in recent months. > Vacancy rates are rising once again. > Sluggish economic growth is resulting in weaker demand for office space. > Rental prices remain under pressure. > A key challenge is the rental of vacant premises. > "A" locations will remain sought after. > Retail trade remains under pressure against a backdrop of a weak euro, cross-border shopping and online trading. > The demand for floorspace in modern, wellsituated shopping centres and first-class innercity locations remains robust. > "B" and "C" locations are facing increasing difficulties. > Locations in border regions (Northwest Switzerland and Eastern Switzerland) are under significant pressure. > Residential property remains attractive in the current low-interest environment. > Immigration continues to support demand. > Existing rents are in decline as a result of the reference interest rate. > Residential offerings in economic centres continue to be preferred. > There is evidence of increased vacancy risks for residential property in peripheral locations and in the luxury segment. REAL ESTATE SERVICES > Ongoing trend towards outsourcing of building management. > Growing demand for real estate management, facility management and other advisory services from a single source. > Increasing industry trend towards digitisation. > Shortages in the labour market despite a broad spectrum of training opportunities and further initiatives to professionalise the industry. ASSISTED LIVING > Increased demand due to demographic ageing. > Focus on central, easily accessible locations. > Increased demand for residential options with paid-for additional services (Vitadomo). > Trend towards spacious, senior-oriented 2½-room apartments for single people or 3½-room apartments for couples. > Forest of regulation and restrictive approval practices are key challenges. > Process of consolidation is continuing. RETAIL AND GASTRONOMY > Retail sales volumes (non-food) are stagnating. > Disposable income, population growth, and consumer sentiment are all in decline. > Lack of market growth is resulting in fiercer competition. > Increasing importance of online shopping, crossborder shopping. > Decline in urban footfall. Sources: SPS estimates Price development S 52

53 REAL ESTATE MARKET Price trends in the various market segments Source: Credit Suisse Index Q = 100, inflation-adjusted Rental apartments Office properties Retail properties S 53

54 REAL ESTATE MARKET Yield spread Swiss Prime Site net return versus swap rates 6.0% 5.0% 4.0% 3.0% 2.0% 3.0% 3.5% 3.2% 3.4% 3.8% 3.8% 3.5% 3.2% 3.5% 4.1% 4.2% 4.3% 4.2% 4.2% 4.1% 4.0% 3.5% 3.6% 3.5% 3.7% 3.8% 4.0% 4.0% 4.4% 4.3% 1.0% 0.0% -1.0% Jun 09 Sep 09 Dez 09 Mrz 10 Jun 10 Sep 10 Dez 10 Mrz 11 Jun 11 Sep 11 Dez 11 Mrz 12 Jun 12 Sep 12 Dez 12 Mrz 13 Jun 13 Sep 13 Dez 13 Mrz 14 Jun 14 Sep 14 Dez 14 Mrz 15 Jun 15 Yield spread 5-year swap rate SPS net return S 54

55 OVERVIEW >Welcome > Key highlights > 2015 half-year financial results > Portfolio > Divestments >Projects > Real estate market > Outlook

56 OUTLOOK Swiss Prime Investment Foundation Investment group "SPA Immobilien Schweiz" PRODUCT IDEA/STARTING POSITION > Establishment of a high-quality and a very broadly diversified portfolio with the investment group "SPA Immobilien Schweiz" for Swiss pension funds > Impressive track record of Swiss Prime Site can be transferred to the "Investment Foundation" product and offers the potential to capitalise on investor trust. STRATEGIC ALLOCATION 1 Residential property max. 60% 2 Commercial property max. 20% 3 Real estate projects max. 10% 4 Assisted living max. 10% 3 4 One-time transaction: SPS to SPA approx. CHF 425 m ADDED VALUE FOR SWISS PRIME SITE > Revenue diversification > Investor access/diversification 2 1 Focus on the acquisition of residential real estate in the market > Extension of value creation chain > Portfolio adjustment (reduction in residential component) Portfolio volume mid-2016 approx. CHF 550 m > Synergy effects as well as economies of scale S 56

57 OUTLOOK Focus 2015 STRATEGY > Continuation and implementation of innovative business model > Establishment and consolidation of new business area "Swiss Prime Investment Foundation" > Ensuring an attractive dividend policy REAL ESTATE PORTFOLIO > Continuation of active and value-oriented portfolio and asset management > Earnings optimisation in parallel with portfolio growth > Constant optimisation of vacancy management PROJECT PIPELINE > Securing additional rental income through project executions > Intensifying project developments in the assisted living segment > Intensifying ongoing scouting activities FINANCES > Reducing financing costs amid the low-interest rate environment > Maintaining an equity ratio of +/ 40% > Ensuring a balanced debt ratio and maturity profile SEGMENT MANAGEMENT > Exhausting the potential for earnings, diversification and growth in the segments > Identifying and realising synergy potential and growth opportunities > Mitigating risks S 57

58 OUTLOOK Forecasts for 2015 Figures in 2015 forecast Optimization of real estate portfolio Acquisitions of / investments in new buildings CHF m Divestments CHF m Starting portfolio Swiss Prime Investment Foundation CHF m Net rental income (Group view) CHF m Result from sole trading properties CHF m Result from divestment of properties CHF m The vacancy rate is expected to trend slightly higher than the targeted range of 6.5% to 7.0%. EBIT and net profit noticeably surpass previous year's level. S 58

59 OUTLOOK Financial calendar Date Venue Media release Q1-Q3 November 2015 Annual report for year to with financial results press conference 15 March 2016 Zurich Annual General Meeting for the 2015 financial year 12 April 2016 Olten S 59

60 SWISS PRIME SITE AG Disclaimer This presentation contains statements regarding future financial and operational developments and results as well as other projections that are forward-looking or contain subjective assessments that are not historical facts. In some cases, these forward-looking statements can be identified by the use of words such as «believe», «estimate», «anticipate», «expect», «target», «intend» and similar expressions as well as their negative equivalent. Such forward-looking statements or subjective assessments (hereafter referred to as «forwardlooking statements») are based on expectations, estimates and assumptions that seem to be appropriate to the Company at the time of the preparation of this presentation. However, the actual results may differ from forward-looking statements. A number of factors, such as the ability of the management to implement the business strategies of Swiss Prime Site AG, the future conditions and developments in the market in which Swiss Prime Site AG operates, or the market behavior of other market players, may differ materially from the anticipated results including the business situation, results of operations, financial condition of the Company. In addition, past trends are not indicative of any future trends. Swiss Prime Site AG, its affiliated companies, their employees, their advisors as well as other people that are involved in the preparation of this presentation explicitly disclaim any warranty or guarantee that forward-looking statements contained in this presentation are correct and complete at any time after its publication. Furthermore, they disclaim any obligation to publish any updates or amendments regarding forward-looking statements made in this presentation in order to reflect changes in the events or circumstances on which these forward-looking statements are based except as required by law. Readers of this presentation should therefore not rely on forwardlooking statements contained therein. S 60