Swiss Prime Site achieves record result
According to its own figures, Swiss Prime Site AG achieved its best result to date in the 2015 financial year since the company was founded. The operating profit (EBIT) of the real estate company increased by 19.6 percent year-on-year to CHF 553.4 million (previous year: CHF 462.8 million). Profit was even increased by almost 24 percent to 355.1 million (previous year: 286.7 million).
Revaluations amounted to CHF 124.6 million, compared with CHF 113.2 million in the previous year. Excluding revaluations, EBIT was 428.9 million (previous year: 349.6 million). Profit before revaluation effects (revaluations and deferred taxes) increased by 19 percent to 280.8 million (previous year: 236 million).
The equity ratio rose from 39.6 to 46.4 percent. Swiss Prime Site attributes the increase to the annual profit as well as to conversions of the 300 million convertible bond that matured in January 2015, the capital increase of 413.3 million in May 2015, and the repayment of financial liabilities. As of December 31, 2015, return on equity (ROE) was 7.6 percent (previous year: 7%) and return on invested capital (ROIC) was 4.3 percent (previous year: 3.7%).
Real Estate: High profit thanks to sales
In the Real Estate Business Area, Swiss Prime Site recorded 0.2 percent higher income from the rental of properties of CHF 432 million compared with the 2014 financial year. Property sales to Swiss Prime Investment Foundation in the fourth quarter of 2015 amounting to around 420 million reduced rental income accordingly. The vacancy rate in the Real Estate Business Area was 6.5 percent (previous year: 6.4%).
After a construction period of around three years, the Maaghof North and East residential complex with 137 rental apartments, 83 condominiums and 2,200 square meters of service space was completed in April 2015. By the end of December 2015, all condominiums had been sold. The rental apartments were sold to Swiss Prime Investment Foundation in the fourth quarter of 2015.
A gross profit of CHF 42.2 million was generated from the sale of condominiums in the year under review, and a profit of CHF 30.9 million from the sale of investment properties.
Wincasa's income from real estate services increased by nine percent to CHF 109.5 million.
Retail sector declining, housing and living in old age growing
In the Retail business segment, on the other hand, Swiss Prime Site suffered a decline. Income (up to mid-year including Gastro) decreased by 9.9 percent to CHF 137 million (previous year: CHF 152.1 million). Jelmoli - The House of Brands on Bahnhofstrasse in Zurich recorded around six million customers in 2015, who purchased goods worth 260 million (own and third-party sales/shop-in-shop). The Clouds catering operation in Prime Tower was transferred to Candrian Catering AG in the middle of the year and has since ceased to be part of the business unit.
In the past financial year, the Tertianum Group generated a good 20 percent higher income from living and housing in old age of CHF 185 million (previous year: 153.6 million). In addition, rental income of 51.3 million (previous year: 47.1 million) was generated. With the division, Swiss Prime Site continues to grow The acquisition of SENIOcare was completed at the beginning of October 2015, and the purchase agreement for the acquisition of the senior care activities of Boas-Yakhin Holding AG was signed on December 15, 2015. The acquisition was completed at the end of February 2016.
For the current 2016 financial year, Swiss Prime Site expects rental income and total operating income to exceed the previous year's level. The vacancy rate will be between six and seven percent. From today's perspective, it will not be possible to repeat the record figures of 2015 due to the above-average proceeds achieved from the sale of condominiums and investment properties, the real estate company says. However, Swiss Prime Site assesses the prospects for 2016 as good. (ah)
