Swiss Prime Site: Profit almost doubled
Swiss Prime Site generated a profit of CHF 608.5 million in the 2019 financial year. This is almost twice as much as in the previous year (310.9 million).
The reason for the profit increase was operational improvements, increases in the value of the property portfolio and a one-off positive tax effect due to tax cuts in some cantons, Swiss Prime Site wrote in a statement.
Excluding revaluations and deferred taxes, profit was reported to be 315.7 million, up 9.7% year-on-year. Earnings per share (EPS) climbed from CHF 4.27 to CHF 8.00. Excluding revaluations and deferred taxes, EPS was CHF 4.14, up from CHF 3.95 in the previous year, with a weighted number of shares 4.6% higher.
The real estate portfolio grew by 5.0% to 11.8 billion; the vacancy rate is reportedly 4.7% (previous year 4.8%). Swiss Prime Site put the net yield at 3.5%, compared with 3.6% in the previous year.
For the 2020 financial year, the real estate company expects another significant increase in profit at operating level (before revaluations and deferred taxes). This will include a substantial gain from the disposal of the Tertianum Group.
Plus in operating income
As Swiss Prime Site further reports, operating income increased by 3.7% to CHF 1.26 billion in the past financial year. Both segments - real estate and services - contributed to this increase. In the core real estate business, operating income had risen to 519.5 million (+10.3 million or 2.0%), mainly thanks to increased income from real estate development.
In the Services segment, operating income increased byTP2T 4.81 to 828.4 million in 2019. Wincasa contributed 148.1 million (+2.5%) and Jelmoli generated income of 127.8 million (previous year 131.3 million). Tertianum's income reached 423.9 million (+6.8%). Income from asset management rose by around 60% to 13.5 million: Swiss Prime Site Solutions carried out two issues for the Swiss Prime Investment Foundation and made several acquisitions. As a result, assets under management had risen from 1.6 to 2.3 billion.
Operating result grows by almost one third
Operating profit (EBIT) increased byTP2T 31.31 to 628.3 million, with the Real Estate segment contributing the lion's share: EBIT in the core business reached 572.9 million (+32.9%). This figure includes revaluations of 204.4 million (previous year 68.3 million). Excluding revaluations, EBIT increased byTP2T 3.41 toTP2T 424.9 million. Swiss Prime Site recorded pre-tax gains totaling 37.6 million from property sales. In the Services segment, the bottom line was EBIT of 55.5 million (previous year 47.6 million).
Peter Lehmann to step down at the end of the year
Swiss Prime Site also announces that Peter Lehmann (1958), CEO of Swiss Prime Site Immobilien, will retire from the company at his own request at the end of 2020 after more than 20 years. However, Lehmann will continue to be available to the company on a mandate basis.
The company intends to announce how the unit will be managed and organized in the future during the course of the fiscal year. (ah)
