SPS: Significant profit increase
In the first nine months of 2015, SPS Swiss Prime Site AG increased its operating profit (EBIT) by 25.7 percent year-on-year to CHF 397.6 million. Profit even increased by 32 percent to CHF 249.8 million.
Revaluations amounted to CHF 100 million compared to CHF 59.5 million in the previous year. Excluding revaluation effects (revaluations and deferred taxes), EBIT increased from CHF 257 to 297.6 million and profit from CHF 169.8 to 203.7 million.
The equity ratio increased from 39.1 to 44.9 percent. Swiss Prime Site attributes the increase to conversions of the CHF 300 million convertible bond that matured in January and the CHF 413.3 million capital increase from spring. As of September 30, 2015, return on equity (ROE) was 7.3 percent (previous year: 6.2%) and return on invested capital (ROIC) was 4.1 percent (previous year: 3.4%).
For 2015/2016, Swiss Prime Site expects stable demand for first-class commercial space in urban, excellently developed locations. Based on business performance to date and ongoing projects, the company expects rental income, operating profit (EBIT) and net profit to be significantly above the previous year's level.
Rising earnings in the real estate and life and housing for the elderly segments
In the Real Estate segment, income from the rental of properties increased slightly year-on-year to CHF 327.1 million (previous year: CHF 321.2 million). Meanwhile, the vacancy rate also rose slightly from 6.4 to 6.7 percent. For 2015/2016, SPS expects a further increase to around seven percent.
Wincasa's income from real estate services increased by 8.9 percent to CHF 83.1 million.
The Tertianum Group (Leben und Wohnen im Alter) generated 2.2 percent higher revenues (incl. rental income) of CHF 155 million. With the acquisition of SENIOcare, which was completed at the beginning of October, Tertianum has become Switzerland's top-selling private provider, SPS said.
Income from the Retail segment (Jelmoli - House of Brands) decreased by 7.7 percent to CHF 96.5 million.
Swiss Prime Investment Foundation's new SPA Real Estate Switzerland investment group raised CHF 550 million in its initial offering; the issue volume was three times oversubscribed at CHF 1.5 billion. By year-end, more than CHF 425 million of the funds raised will be invested, SPS said. (ah)
