Interim report as at Sarinaport: on parle Deutsch

Transcription

1 NAV CHF as at CHF as at before deferred taxes Securitynumber SWX symbol: SPSN No. 4, August 2001, with interim results SWISS PRIME NEWS Interim report as at Pages 6 7 Swisscom properties:pearls in the package Pages 4 5 DCF makes expectations transparent Page 3 Sarinaport: on parle Deutsch Page 8 Swiss Prime Site in the 1st half of 2001 EBIT margin at 80 % The first six months of the business year 2001 were characterised by the acquisition of 12 prime business properties from the property stock of Swisscom AG. As at 30 June 2001, the properties, acquired at an investment cost of CHF million, increased the Swiss Prime Site portfolio to a new record value of CHF 1.57 billion. After the merger of Swiss Prime Site and Feldschlösschen-Hürlimann Holding (FHH) had failed in May 2001 due to the opposition of the FHH shareholders, Swiss Prime Stefan Mächler Chairman of the Board of Directors of Swiss Prime Site AG Site resumed its successful property picking alone. For the business year 2001, an attractive dividend return is looking certain, as the budgeted property stock in the business plan for December 2001 had already been reached by April of this year. than last year s stock. This increase is mostly due to the acquisition of 12 prime business properties from Swisscom AG. The package, with a value of CHF m, is said to be the most attractive ever on the Swiss market. The properties include a few absolute gems of the Swiss property market such as the Post Office building on Fraumünsterstrasse, and the Swisscom properties on Brandschenkestrasse in Zurich and on Genfergasse in Bern. Swiss Prime Site has already had an After the floating on the stock exchange last year, this transaction permit- eventful and successful six months. The property portfolio as at 30June 2001, ted Swiss Prime Site to surpass the with a value of CHF 1.57 billion, is currently no less than 113.6% higher end of 2001 as early as Spring announced expansion plans for the Excellent EBIT margin The constantly employed strategy of property picking as well as the lean structures and tailor-made finance structure have meant that by the end of June 2001 the expansion phase of the company Swiss Prime Site has already achieved an EBIT margin of 79.4 % (before re-evaluation). In the first half of the business year, the margin has thus risen from 72.7% to 79.4% and represents a highpoint among Swiss property companies. The investor can understand how this increase in earning capacity came about, for since its founding, Swiss Prime Site has maintained an exemplary transparency which corresponds to the highest international standards. From the Swisscom package: office building at Brandschenkestrasse 25, Zurich Key projects nearing completion Swiss Prime Site was also in the right place at the right time to secure attractive project locations and in the foreseeable future will be able to reap the rewards of these commitments. For example, the Cityport project in Zurich Oerlikon is close to completion. As of October 2001, the tenants will be able to move into the new location, mainly reserved for business, near the Zürich Oerlikon railway station. The completion of the building has a doubly positive effect on Swiss Prime Site: on the one hand, with the additional rental incomes, the earning capacity of the company will increase Continued on page 2

2 Ready for occupation in Spring 2002; the first stage of the Opus complex in the centre of Zug From the Swisscom package: office building at Bahnhofquai 20 in Olten Continuation page 1 markedly and on the other hand, it will mean considerable profit of purchase and balancing (IAS 40) effective at the end of In Spring 2002, the tenants of the first four of a total of eight business properties in the Opus complex in Zug will be able to move into their new premises. About 60% of the 16,700 m 2 of the first stage are already let and various rental contracts are close to being concluded. The eight buildings are on a plot of about 16,400 m 2 in the centre of Zug and are built around a spacious courtyard. From March 2003, the rental incomes from the Messeturm in Basel will begin to flow in. Construction of the highest building in Switzerland, commissioned by Swiss Prime Site and built by the Batigroup, began in July. The 105-metre-high Messeturm with its 31 storeys, designed by the architectural group Morger & Degelo, New dividend policy As announced at the general meeting, the Board of Directors has decided to propose the shareholders a dividend payment as of the business year It is planned to distribute approx. 50% of the profits to the shareholders in the form of a dividend or repayment of the nominal value. Marques, will be the highest building in Switzerland. Among other tenants, the Messeturm will be used by the Basel trade fair and the Sorat hotel group. At present, over 40% of the floor space has already been rented. Irresistible consolidation on the Swiss property market The Swiss property market is in the middle of a process of change which will become even more apparent during the coming months and years. Momentary tensions are also noticeable. An increasing number of companies that wish to dispose of their sometimes considerable property portfolios find only a very limited number of interested buyers with the necessary financial resources and the focused know-how. With the large number of small property brokers listed on the stock exchange and real estate funds, the Swiss investor basis is too frag- General meeting of Feldschlösschen-Hürlimann Holding AG Shareholder majority turns down merger As reported and commented on in detail by the media, the general meeting of Feldschlösschen-Hürlimann Holding AG (FHH), on 21May 2001 in Basel, turned down a merger with Swiss Prime Site AG. Subsequently, with a majority of about 52% of the votes, the shareholders chose five new Board members, whereupon the members of the previous Board resigned. The opposition to the merger, orchestrated by the Marc Rich Group, prevented the creation of what would have been the leading property investment company listed on the Swiss stock exchange with a property portfolio of CHF 2.6 billion and a market capitalisation of about CHF 1.5 billion (after capital redemption of CHF 300 million to the FHH shareholders). Even the prospect of a quick and strong increase in the EBIT margin (until now, FHH approx. 40%) to the level of Swiss Prime Site AG of well over 70% was not enough to encourage the shareholders to accept the merger. Financial figures as at ROE 7.15% ROIC 5.88% Net earnings: CHF 28.3 m Profit per share: CHF 9.39 (weightet) Equity ratio: 50.40% EBIT margin 79.39% mented to undertake several large property portfolios and manage them professionally. In particular, the smaller companies and funds are not in a position, either financially or with respect to personnel, to meet the judicial, economic and financial demands (due diligence), which are usually linked with large investments (or divestments). For these reasons, people are expecting a consolidation on the Swiss property market. Thus, this autumn, Credit Suisse Asset Management is planning to combine the three property funds SIAT, SIAT 63 and Swissimmobil Serie D to make one of the most attractive property funds for Swiss residential properties. General meeting of Swiss Prime Site AG All motions accepted unanimously At the first general meeting of Swiss Prime Site AG, listed on the stock exchange, during the afternoon of 21 May 2001 in Olten, the shareholders, who represented about 74% of the votes, unanimously approved all motions proposed by the Board. As the shareholders of FHH had already refused the merger that very morning during their own general meeting, the joining of the two companies had failed even before the shareholders of Swiss Prime Site AG could vote on the matter. President of the Board, Stefan Mächler, regretted the negative outcome of the FHH general meeting, especially since the merger had been prepared with the greatest care and would have been highly advantageous to the Swiss Prime Site played an active role in the looming consolidation process by working towards a merger with Feldschlösschen-Hürlimann Holding AG (FHH). As is now common knowledge, a shareholder group pronounced itself in opposition to the merger at the FHH general meeting, and the merger was then refused by a large majority of shareholders. Although the refusal means a missed opportunity for the shareholders of both companies, Swiss Prime Site on its own remains one of the most attractive property investment companies in Switzerland. The most important factor of success is the simple, efficient and elastic business model which automatically adapts itself to the complexity of the respective property portfolio being dealt with. Dividends planned as of the business year 2001 The fact that the projected portfolio size of CHF 1.57 billion was achieved about eight months earlier than planned, resulting in an above-average EBIT margin, should enable Swiss Prime Site to distribute attractive dividends in the business year 2001 one year before the planned date. As a result, Swiss Prime Site can address a broader, dividend-income-oriented circle of investors and widen its shareholder basis. shareholders of both companies. But thanks to our constant strategy of property picking, our extremely efficient organisational structure and our above-average earning capacity, we still remain, also without the merger, one of the most attractive property investment companies in Switzerland, explained Mächler. In the place of Hermann Suter, who stepped down, the shareholders voted Reinhard Giger to the Board of Directors of SPS. Giger (52), qualified as dipl. Kultur Ing. ETH, is head of the Real Estate Management Division of Credit Suisse Financial Services and is a member of the board of Wincasa AG as well as of Mibag. 2

3 Interview with Daniel Tochtermann, CFO, Wüest & Partner AG (W& P) DCF makes expectations transparent Daniel Tochtermann, CFO, member of the management board at Wüest & Partner AG Despite the computer, people make the final judgement in evaluating a property. Mr. Tochtermann, who calculates the value of property at W&P: people or the computer? Our experts visit properties and analyse them thoroughly. They check condition, usability, standard and location, judicial and fiscal aspects, etc. These assessments, carried out by the evaluator, of strengths and weaknesses, prospects and risks, form the basis of the valuation. The evaluator can also call upon extensive databases at Wüest & Partner with thousands of comparable properties and current market data which provide him with the additional information necessary for an accurate valuation. In this respect, the computer has become particularly important to the assessment. At Wüest & Partner, however, despite all these valuable aids, which we can no longer imagine doing without, the skilled expert makes the final judgement in the valuation of properties. This means that the experts at W&P can often be found on-site. Visiting a property is imperative for a well-founded evaluation. Not only the qualities, but also possible handicaps for renting or structural risks can only be seen upon close inspection. Moreover, it is only generally on-site that it can be established whether or not the key data for the property reflect the details provided by the owner or his administrator. How do you explain the international success of the DCF method? It must first be stressed that most Basic conditions Cashflows Market value Market situation Microlocation (quality) Object (quality) Income Income from rental Shortfalls Expenses Operating expenditure/fixed costs Maintenance costs/ Variable costs methods are more or less equivalent with respect to precision. The DCF method, however, demonstrates a number of advantages. For example it is very transparent. The DCF method identifies explicitly, not just generally, the (expected) development of rental incomes as well as property expenses. Moreover, the long-term consequential costs of maintenance work, which are only visible decades later, can fully be taken into account. In so far as the assumptions of the valuation are made public, the DCF method is, in general, more transparent. Why is DCF better than other methods? If the option character of the property is adequately considered, this method also allows the main selling points of the property to be identified and modelled. The management thus obtains important bases for information and decisions. Furthermore, the cashflows allow scenario and simulation calculations to be made in order to better evaluate the prospects and risks of the properties. Another decisive factor is that the DCF assessment is compatible with the general standards of investment calculation as well as with methods which are used for the evaluation of companies, shares and bonds. Thus, when property is considered as an investment and not as a consumer good or hobby, the evaluation of properties using the DCF method is, at present, the best practice. The DCF method stands or falls with the ability to estimate the expected costs and incomes. Are you clairvoyant? Apart from the real value method, which takes past costs into consideration, all evaluations are based on assumptions about the future. With the DCF approach, future expectations are not hidden, rather they are explicitly and therefore transparently identified. Incorrect estimates can be made for any evaluation. They can, however, be reduced to a certain extent. On the income side, sound market data and available time series Netto Cashflow Netto-Cash-flow Risk-adjusted discounting This is how DCF valuation works The basic idea of DCF evaluation is based on the fact that the present market value for a property is determined by the future expected fund inflows and outflows. Fund inflows include mainly rental incomes (excl. additional costs). The risk of income loss must also be considered here. Fund outflows include the running and maintenance costs to be paid by the owner. The difference between the fund inflows and fund outflows results in the socalled net revenue, which is discounted with a risk-adjusted interest rate. Not taken into account here are outside capital payments, profits and capital taxes, depreciation and amortisation. The sum of all discounted net revenues represents the market value of the property. The DCF method is usually divided into two phases. Phase I runs for the first ten years, which are identified as series of figures and are modelled as required (e.g. for restoration costs, renovations, etc.). Phase II reflects the period from year 11 to the economic horizon. The cash flow during this period is the basis for ascertaining the end value (the so-called residual value). See also the DCF valuation of Sarinaport on page 8 can minimise estimation risks. On the cost side, risk minimisation can also be achieved by means of a track record of the property, as well as of a sound analysis of the property and the resulting consequential costs. It must nevertheless be stressed that it is not the responsibility of the evaluator to anticipate the future exactly with respect to possible developments. He is not a clairvoyant. His task is to estimate and explain the market value that the property could achieve during a transaction at any given point in time. As the market prices comprise the future expectations of investors and their consultants, these expectations must consequently be understood to as great a degree as possible. This is best achieved through the comparison of a large number of reference archives. Experience in the Zurich agglomeration has shown that the attractiveness of a location can change relatively quickly. How is this risk taken into consider-ation during an evaluation? It is the duty of the evaluator to be constantly advised of all value-relevant aspects and all related changes. Let s take the example of aviation noise, to which you are obviously alluding. When information exists that aviation noise increases in certain locations due to new take-off and landing concepts Property value at Kloten airport, this must naturally be considered in the evaluation of a property as far as it is relevant, as for example with respect to residential properties. What opportunities does the customer have to influence the DCF evaluation of a property by specifying basic conditions (e.g. planned adjustments to a plot of land)? In general, influence from the customer is limited. The duty of the customer is to indicate all value-relevant points and withhold no information. The task of the evaluator is to take all available information and possible options (for example a planned adjustment) into account during the evaluation and to weigh them up as objectively as possible. It is in the interest of both parties to obtain as objective a market value as possible, especially in view of the new IAS account-tendering standards, according to which the provision of a fair market value is of the utmost importance. Is the DCF method suitable for evaluating residential property? If not, why not? Residential property is the kind of property for which there usually exists no real market-based cash flow. For this reason, the DCF method is only of limited use for the evaluation of this kind of property. The DCF method is not the best method for all cases. At Wüest & Partner, the principle is that the bestadapted evaluation method should be used for each respective situation. 3

4 FRAUMÜNSTERSTRASSE 16, ZURICH The Swisscom properties Pearls in the package In March 2001, Swiss Prime Site succeeded in securing 12 attractive properties with a promising future at one go at a cost of CHF million. The properties were part of an office package, for which Swisscom was looking for a buyer. The transfer of the property gems to the Swiss Prime Site portfolio demonstrated a high level of know-how, a perfect mastery of the business processes and a great deal of psychological skill. The transfer of the 12 properties from Swisscom AG property stock into the Swiss Prime Site AG portfolio was demanding and required a great deal of all involved. At first, a buyer consortium consisting of Swiss Prime Site, Winterthur Leben, the CS 1a Immo PK und CS REF Interswiss property funds as well as the Credit Suisse Group (Switzerland) pension fund was set up. All properties in the office package were then evaluated in several stages. First, the CSAM specialists made an initial evaluation. Then the independent company Wüest & Partner was commissioned to make 4 a very thorough inspection and assessment of all 28 properties based on all findings. In total about 50 specialists worked together on the inspection process. A continuous stream of new findings as well as progress in the rental contract negotiations led to further evaluation adjustments. Finally, risk deductions for individual properties were made, irrespective of the evaluation. The interests of the different investment groups were combined and the accumulated purchasing power was used to acquire one of the most attractive property packages that have ever PETER-MERIAN-STRASSE 80, BASEL been on the Swiss property market. The properties acquired are mostly situated in good or very good town locations, primarily in Basel, Bern, Geneva, Lucerne and Zurich. In addition, the properties are characterised by being in good structural condition and having low administration costs. Many properties also still have development potential. This means that by targeted, demand-adapted investments, the

5 BRANDSCHENKESTRASSE 25, ZURICH BAHNHOFQUAI 18, OLTEN GENFERGASSE 14, BERN long-term revenue situation can be optimised. The prime quality of the properties increases their resistance to a slowdown in economic activity, as top properties are also in demand during economic hard times. That is when a property proves whether it is a pearl or not. WEINBERGLISTRASSE 4, LUCERNE Swisscom properties of Swiss Prime Site AG DCF Location Address Use structure Site area Build Date of Purchase Market value Net return Renovated purchase price Basel Peter-Merian-Strasse 80 Commercial property 19,214 m ,350,000 48,790, % Bern Genfergasse 14 Commercial property 4,602 m ,870,000 83,590, % Geneva Route de Meyrin 49 Commercial property 9,890 m ,470,000 54,230, % Lucerne Geissensteinring 45 / Tribschenstr. 60 Commercial property 4,158 m / ,010,000 35,030, % Lucerne Tribschenstrasse 54 Commercial property 1,519 m ,414,000 3,588, % Lucerne Tribschenstrasse 56/60 Commercial property 4,210 m ,320,000 3,233, % Lucerne Weinberglistr. 4 / Tribschenstr. 62 Commercial property 11,466 m ,520,000 50,340, % Olten Bahnhofquai 18 Commercial property 2,524 m ,470,000 25,200, % Olten Bahnhofquai 20 Commercial property 1,916 m ,280,000 36,580, % Worblaufen Tiefenaustrasse 6 Commercial property 21,596 m ,186,400 71,020, % Zurich Brandschenkestrasse 25 Commercial property 3,902 m ,229, ,320, % Zurich Fraumünsterstrasse 16 Commercial property 2,475 m ,490, ,190, % Total 87,472 m 2 642,609, ,111,000 The accreditation of the 13 th Swisscom property on Theaterstrasse in Winterthur is due on the 14 August

6 Financial year Financial year in CHF 1,000 Notes Rental income from investment properties 31,282 19,157 Other operating income Total income 31,282 19,157 Direct operational expenditure 3,918 3,180 Revaluation of investement properties (upward) net (18,744) (6,275) Staff costs Other operating expenditure 2,415 1,873 Depreciation on non-real-estate-fixed assets 5 5 Start-up costs 8 Total operating expenditure (12,297) (1,168) Operating profit (EBIT) 43,579 20,325 Fincial expenditure 7,631 2,044 Financial income Profit before tax on earnings 36,256 19,097 Current tax on earnings Deferred tax on earnings 7,753 1,768 Income for interim reporting period 28,312 17,308 Earnings per share for the period under review 1 9,39 7,61 The notes in the appendix are an integral component of the consolidated interim report. Consolidated balance sheet in CHF 1,000 Notes Assets Working capital Cash and other liquid assets 3,054 53,428 Due from deliveries and services 4,118 2,825 Other claims 15, Accrued income and prepaid expenses 3, Total working capital 25,500 57,921 Fixed assets Non-real-estate fixed assets Investment properties 1,572, ,215 Total fixed assets 1,572, ,232 Total Assets 1,598, ,153 Interim resultsconsolidated income statement Portfolio by regions Based on market value as of Zurich 41% Eastern Switzerland 2% Central Switzerland 10% Northeastern Switzerland 13% Liabilities Short-term liabilities Liabilities from deliveries and services Other short-term liabilities Advance payments 5,390 3,219 Accrued expenses and deferred income 5,595 6,869 Total short-term liabilities 11,817 11,112 Long-term liabilities Long-term financial liabilities 760,000 47,000 Deferred tax liabilities 20,844 13,091 Total long-term liabilities 780,844 60,091 Total dept capital 792,661 71,203 Shareholders equity Equity capital 602, ,514 Capital reserves 162, ,923 Retained earnings (accumulated losses) 39,826 28,513 Total shareholders equity 805, ,950 Total liabilities 1,598, ,153 Consolidated cash flow statement West Switzerland 2% South Switzerland 0% Portofolio by usage type Geneva 15% Based on target rental income as of Commercial 15% Cinemas Restaurants 5% Retail 5% Berne 17% in CHF 1,000 Notes Income for interim reporting period 28,312 17,308 Adjustments for: Revaluation of investment properties (upward), net (18,744) (6,275) Depreciation on non-real-estate fixed assets 5 5 Financial expenditure 7,631 2,044 Financial income (308) (816) Changes in working capital: Increase in claims from deliveries and services (1,293) (1,917) Increase in other claims (14,328) (3,147) Increase in accrued income and prepaid expenses (2,367) (336) Deacrease/increase in liabilities from deliveries and services 184 (277) Deacrease/increase in other short-term liabilities and advance payments 1,795 1,611 Decrease in accrued expenses and deferred income (3,159) (2,307) Increase in deferred tax liabilities 7,753 1,768 Interest payments made (5,746) (2,075) Interest payments received Payments of tax on earnings Net inflow of funds from operational activity 78 6,401 Investments in investment properties (762,556) (265,825) Investments in non-real-estate fixed assets Income from the sale of financial investments Dividend payments received Net outflow of funds from investment activity (762,556) (265,825) Acceptance of short-term financial liabilities Repayment/acceptance of long-term financial liability 713,000 (89,000) Capital increase including premium (minus IPO costs) 330,087 Purchase of own shares (896) (106) Payment of profit distribution Net inflow of funds from financing activity 712, ,981 Net reduction of cash and other liquid assets (50,374) (18,443) Cash and other liquid assets at the start of the business 53,428 97,323 Cash and other liquid assets at the end of the interim reporting period 3,054 78,880 6 Major shareholders (subjects to reporting requirements) Offices 65% Winterthur Life* 23,26% PF Credit Suisse Group* 23,26% PF Siemens CH* 2,45% PF of the Federal CH Government 6,36% *founding shareholders Apartments 3% Rest 2% Parking 5 %

7 Consolidated equity note Equity capital Capital reserves Retainead Total in CHF 1,000 Notes (premium) earnings equity capital As at 1 January ,000 84,000 (7,596) 412,404 Income for the period under review 17,308 17,308 Profit distributions Capital increase per (incl. premium, minus IPO-costs) 268,000 62, ,087 Purchase of own shares (80) (25) (105) Fee structure as of 1st september 2001 Die Swiss Prime Site AG has adjusted the remuneration paid to the port-folio manager (Credit Suisse Asset Management, Zurich) as of 1 september 2001, as follows: Management fee 0.25% 0.35% of the total capital share of capital up to 0.5 bill. à 0.35% share of capital up to 1.0 bill. à 0.33% share of capital above 1.0 bill. à 0.31% share of capital above 2.0 bill. à 0.29% share of capital above 4.0 bill. à 0.25% Real estate management max. 4.80% of the annual real rental income Baumanagement 1.50% of the respective total building costs Purchasing/sales commission 1.50% 5.00% of the purchasing or sales price under 1 m 5,00% under 3 m 3,00% above 3 m 1,50% The corresponding information can now be found on the website ( As at 30 June , ,062 9, ,694 Income for the period under review 18,801 18,801 Profit distributions IPO costs (5) (5) Purchase of own shares (406) (134) (540) As at 31 December , ,923 28, ,950 Income for the period under review 28,312 28,312 Profit distributions / Use of profit 17,000 (17,000) Purchase of own shares (697) (199) (896) As at 30 June , ,724 39, ,367 Notes to the consolidated interim results 1 Earnings per share The profit used to calculate the earnings per share or the diluted earnings per share are the earnings for the reporting period reported by the Swiss Prime Site Group. The average number of shares is: in CHF 1, Issued shares (100 days) 1,680,000 Issued shares (260 days) 3,020,000 Average stock of personal shares (360 days) 358 Average weighted number of shares, ,647,420 Issued shares (180 days) 3,020,000 Average stock of personal shares (180 days) 2,778 Average weighted number of shares, ,014,443 The average weighted profit/loss per share in CHF is: Annual profit/loss per share Earnings per share for the period unter review In the financial year 2001, no dilution effect was experienced. A diluted profit per share is therefore not shown. up to approx. CHF 10 m up to approx. CHF 35 m up to approx. CHF 80 m up to approx. CHF 100 m Basel Solothurn Olten Lucerne Belp Bern Worblaufen Volketswil Rümlang Dietikon Zurich Zug St. Gallen Chur Select company data As at As at Change Figures in in percentage Total real estate at market value m CHF 1,572, Income from rental (net rental income) m CHF EBITDA m CHF EBIT m CHF EBIT margin (befor re-evaluation IAS 4O) % Profit (+) / loss ( ) m CHF Equity capital m CHF Equity ratio % Outside capital m CHF Outside capital ratio % Petit-Lancy Geneva Locarno ROE (weighted) % ROIC (weighted) % End of contract over number of years Portfolio by contractual end of rental relationships Based on net rental income as of ,06% 0,18% 4,45% 3,82% 5,87% 7,66% 8,90% 8,69% 11,26% 11,57% 0,00% 5,00% 10,00% 15,00% 20,00% 25,00% as a % of net rental income 7 30,00% 35,00% 36,54% Details of real estate portfolio, as at Number of properties of which under construction 4 3 Market value of total portfolio market value CHF 1572,5 m CHF 791,2 m of which unter construction purchase costs CHF 210,4 m CHF 127,8 m Average size market value of property (excl. projects) CHF 38,9 m CHF 30,2 m Average net income as per DCF from property (excl. projects) 4,99% 5,35% Average vacant rate 1,92% 2,02%

8 Sarinaport On parle Deutsch On parle Deutsch. Or français. Most speak English too. Situated in Villarssur-Glâne (Canton of Fribourg), on the border between the German and the French parts of Switzerland, is the Sarinaport, constructed in Since April 2001, the innovative complex on the outskirts of Fribourg has enriched the Swiss Prime Site portfolio of high-quality business properties. shell of the building offers above-average heat control and sound-proofing. Moreover, the innovative concept of integrated heating and ventilation provides for good energy use. The concept is based on: gentle ventilation with heat recycling thermo-active heating and cooling ceilings a unit for cooling during summer The high attractiveness of the Sarinaport can also be seen in that a large part of the site is rented long-term. Share data Share price ( ) as at CHF high CHF 268. low CHF 245. Market capitalisation as at CHF m NAV (before deferred taxes) as at CHF as at CHF Change 4.45% NAV (after deferred taxes) as at CHF as at CHF Change 3.52% The top-quality development provides ideal possibilities for attractive use of space Profit per share (weighted) as at CHF 7.61 as at CHF 9.39 Share statistics Total registered shares 3,020,000 Security number ISIN no CH SWX symbol SPSN First day of trading The Sarinaport offers 8000 m 2 of useable space in a perfect business setting. The complex is located on the industrial, trading and services estate on the edge of the Moncor forest. Whilst the Celtic Prince of Moncor lies at rest under Europe s biggest tumulus, above ground, commercial hustle and bustle reign. The Sarinaport is located at the major traffic axes (motorway, railway), and the country s international airports are also within easy reach. In recent years, numerous international companies have moved to Fribourg. As well as excellent traffic connections and the sense of belon- rooms. Adjoining rooms, parking spaces and underground garages are available. The building is rented KEY DATES Sarinaport Business complex Route du Petit-Moncor 1, 1a, 1b, Contacts Company Swiss Prime Site AG Froburgstrasse 15, 4601 Olten Tel Fax Chairman of the Board of Directors Stefan Mächler stefan.machler@swiss-prime-site.ch ging to different cultural groups, the companies have also been enticed by the business-friendly atmosphere together with considerable tax advantages, political stability, open-minded authorities, a dynamic banking system, excellent choice on the housing out to first-class companies, such as Berner Insurances, Publicitas and Armada Shipping. The users whether employees of or visitors to the tenant companies should feel at ease in the Sarinaport. Villars-sur-Glâne Purchase date: 1st April 2001 Site area: 9,400 m 2 Year of construction: 1993 Purchase price: 27,000,000 CHF Market vallue CEO Markus Graf markus.graf@swiss-prime-site.ch CFO Peter Wullschleger peter.wullschleger@swiss-prime-site.ch market and attractive leisure-time possibilities. Designed for a pleasant working atmosphere The first thing you notice about the Sarinaport is its unusual architecture. The complex consists of two linked sections with a total of 8,000 m 2 usable space. The basic modular concept provides maximum flexibility in the use and layout of the space. The highquality construction with high-quality materials and state-of-the-art technology applies to both individual and open-plan offices, and conference This goal, already targeted at the (W&P): 29,060,000 CHF planning stage, is today fulfilled in Net revenue (DCF): 5.35% every respect by the Sarinaport. The DCF method using the Sarinaport example Property parameters Purpose Business (office) Area 8,685 m 2 Parking spaces 226 Year of construction 1993 Targeted revenue (excl. add.costs) 2 million Potential 2.08 million Ø Empty-stand risk 3% Running costs 13% Restoration costs 4 5% Long-term restoration costs 5 6% Outcome Period Net cash flow Cash value Share Phase I: years 1 10 CHF 16.3 m CHF 12.6 m 43% Phase II: from year 11 (residual value) CHF 1.5 m CHF 16.4 m 57% Market value = sum of all cash values CHF 29 m 100% Media enquiries Susanne Richner susanne.richner@swiss-prime-site.ch Agenda Mid-November 2001 Quarterly report as at Mid-March 2002 Annual report as at March 2002 Media conference on the annual finacial statements April 2002 General meeting of shareholders