Swiss Prime Site: Profit increase thanks to Tertianum sale

According to Swiss Prime Site, the half-year result is characterized by four effects: The sale of the Tertianum Group has a positive impact of CHF 204.2 million. The Covid 19 pandemic, on the other hand, has a negative impact on both the real estate portfolio and operating expenses. In addition, in contrast to the previous year, the profit in the first half of 2020 only includes a marginal positive tax effect.

Operating profit (EBIT) excluding revaluations increased by almost 80% to 361.0 million. Including revaluations, EBIT still increased by almost 10% to 313.6 million. Excluding revaluations and deferred taxes, profit rose from 151.3 million to 320.0 million, with the 204.2 million gain from the Tertianum sale recognized proportionately in EBIT making a significant contribution, Swiss Prime Site said. Including the effects from revaluations and deferred taxes, the company achieved a profit of 269.7 million in the first half of 2020, compared with 356.5 million a year earlier.

Rental income of 219.9 million was around 8% lower than the previous year (239.3 million). Like-for-like growth was -0.9%, taking into account lower-than-planned sales and parking rental income of 2.5 million and confirmed rent waivers of 1.1 million due to the Corona pandemic. The vacancy rate was 5.4% compared to 4.7 at year-end.

For the full year, Swiss Prime Site expects economic and political conditions to return to normal. The target vacancy rate of below 5% will be confirmed, but the vacancy rate will temporarily remain above 5% this year due to the Corona pandemic, the company said.

Swiss Prime Site further announces that Anastasius Tschopp (1979) will be appointed to the Group Management of Swiss Prime Site as of January 1, 2021. He has been CEO of the Group company Swiss Prime Site Solutions since 2018. With his appointment, all Group companies will be represented on the Group Management in the future. (ah)