Swiss Prime Site: Earnings rise, profit falls
Swiss Prime Site increased its operating income by five percent to CHF 771.5 million in the first nine months of 2016. Profit excluding revaluations and deferred taxes was 186.8 million, compared with 203.7 million in the previous year.
Consolidated net income fell from CHF 249.8 million in the previous year to CHF 199.3 million. The difference was mainly due to extraordinary effects such as gains on the sale of the "Maaghof" condominium units and higher revaluations in 2015, SPS says.
The equity ratio was 45.8 percent as of September 30, 2016 (previous year: 44.9%). Return on equity (ROE) came to 5.4 percent (previous year: 7.3%). The return on invested capital (ROIC) was 3.3 percent (previous year: 4.1%).
Four acquisitions, three sales
In the real estate sector, Swiss Prime Site (SPS) increased income from rental properties by CHF 3.8 million (+1.2%) to CHF 339.5 million. Real estate revaluations resulted in a profit of 34.8 million (previous year: 100 million).
In the course of this year, SPS made four acquisitions that complement the existing portfolio and compensate for the properties sold in the previous year. In Baar, for example, an office property built in 2009/2010 was acquired. In Lucerne, the regional shopping center Schönbühl was purchased. After the balance sheet date, another office building (built in 2012) was purchased in Baar and a mixed-use property on Rue des Alpes in Geneva. The four properties with a total investment volume of around CHF 175 million generate annual rental income totaling 7.1 million and are 100 percent leased.
In August, SPS sold the Rue de Rive 3 property in Geneva and in October two properties in Locarno. According to the company, the transactions generated a total cash inflow of CHF 75 million, on average 25 percent above the estimated market value. After the balance sheet date, the company signed major leases with Bauhaus as anchor tenant (around 16,000 sqm) for the redevelopment of the A1 shopping center in Oftringen and with Prizeotel and Coop for the Conversion of the "Schönburg" in Bern completed. The building application for a multifunctional commercial and service building on the Siemens site in Zurich-Albisrieden has been submitted.
The vacancy rate (Group) fell from 6.9 to 6.2 percent compared with the prior-year period.
Second issue for investment group SPA Real Estate Switzerland
The assets of the investment foundation managed by Swiss Prime Site have grown to around CHF 1.1 billion thanks to the "Leuenhof" property in Zurich, which was acquired in July 2016. Due to the portfolio expansion, the Board of Trustees has decided to open the SPA Real Estate Switzerland investment group for a second issue. The subscription period for eligible pension funds runs until November 22, 2016.
Income from real estate services increased from CHF 83.1 million to CHF 86.6 million. Assets under management amount to 62.7 billion.
The Tertianum Group almost doubled its earnings to CHF 238.9 million (previous year: CHF 118.4 million) thanks to acquisitions and new projects.
Income from the Retail segment amounted to CHF 92.8 million as of September 30, 2016, compared to CHF 96.5 million in the previous year. In this context, Jelmoli - The House of Brands was able to maintain turnover in its own-operated areas at the previous year's level in the difficult retail trade environment and despite significant renovations. The current year saw the launch of an online store, the opening of what Jelmoli claims to be Switzerland's largest shoe department, and new sales areas for watch specialist Bucherer. (ah)
