Swiss Prime Site: Growth in the first half-year
Swiss Prime Site is satisfied with its results in the first half of 2021 - despite the effects of the Corona pandemic. The core real estate business in particular has benefited noticeably from the recent opening steps.
Operating income in the first six months of the 2021 financial year was CHF 362.8 million, down on the previous year's figure of CHF 425.2 million. However, Swiss Prime Site (SPS) points out that the key figures for 2021 are only comparable to a limited extent with the previous year due to the sale of the Tertianum Group on February 28, 2020. Thus, the half-year figures 2020 include the results of Tertianum with two months and, in addition, the gain on sale in the amount of CHF 204.2 million. Adjusted for the Tertianum effects, operating income increased by 6.3%.
The impact of the Covid 19 pandemic led to a CHF 5.5 million reduction in income in the core Real Estate segment in the first half of the year, SPS added. Sales and parking rental income were lower than planned, and rent waivers of CHF 3.1 million were also granted. Adjusted for Tertianum, rental income reportedly increased by 2.2% to CHF 213.4 million: on the one hand, some large projects were completed, and on the other hand, some space not in line with the strategy was sold. Vacancy decreased from 5.1% to 4.7%. On a like-for-like basis, there is growth of around 0.5% and the remaining term of the fixed-term leases (WAULT) is six years.
Portfolio value increases by €135 million
The value of the real estate portfolio increased by CHF 135 million to CHF 12.5 billion compared to the end of 2020. Due to completed projects and progress in real estate developments, among other things, revaluation gains of CHF 144.5 million resulted. The net property return generated remained unchanged at 3.2%.
At operating profit (EBIT) level, the SPS Group generated CHF 355.6 million compared with CHF 313.6 million in the previous year. On a comparable basis (i.e. excluding revaluation gains and excluding the Tertianum effects), EBIT increased by 36.6% to CHF 211.0 million and the EBIT margin increased from 45.3% to 58.2%.
After deduction of taxes, the real estate company achieved a profit of CHF 257.1 million in the first half of the year (previous year: CHF 269.7 million). On a comparable basis, an increase of 64.4 million was recorded, SPS reports. Excluding revaluation gains and deferred taxes, 1H2021 profit on a comparable basis increased by more than 42% to CHF163.5 million (prev. yr.: 114.9 million and 320.0 million, respectively, including Tertianum). (ah)
