Swiss Prime Site remains on course for growth
Swiss Prime Site believes it is well positioned despite the coronavirus pandemic. The real estate and services segments performed well in the third quarter, the real estate company said at its Capital Markets Day.
The real estate portfolio has grown by around CHF 100 million to CHF 12.0 billion, according to Swiss Prime Site. This value is to be maintained in the medium term. To this end, the real estate company intends to further develop its pipeline, which reportedly comprises a dozen projects and construction plans and has a value of CHF 1.4 billion. New projects that can be realized on land and densification reserves are also to be developed. The strategy also includes opportunistic disposals of existing properties and projects.
Less retail in the portfolio in future
According to Swiss Prime Site, this will lead to a significant change in the type of use in the portfolio and a reduction in the proportion of retail space in particular. The vacancy rate is expected to fall back to between 4% and 5% over the next twelve months.
The impact of the coronavirus pandemic on rental income will amount to a maximum of 15 million - the real estate company had previously expected 20 million. The "rent collection" figure rose from 92% in the second quarter to 97% in the third quarter. By mid-October, 85% of the 520 tenant requests had also been resolved by mutual agreement.
Assets under management to increase
Swiss Prime Site expects significant growth in the Services segment. By 2025, the aim is to achieve strong growth, particularly in asset management for third-party clients, which is not very capital-intensive: Assets under management should reach 7 billion and the EBIT contribution around 30 million. Together with an EBIT of over 20 million at Wincasa and the targeted balanced operating result at Jelmoli, the Services segment is expected to contribute an operating result of around 50 million in 2025.
Swiss Prime Site has announced that the dividend for the 2020 financial year will be lower due to the uncertainties of the Covid-19 pandemic, particularly in the hospitality sector, and due to a lower earnings base following the sale of Tertianum. The company intends to communicate more details at the annual media conference on February 25, 2021. (ah)
