Swiss Prime Site increases profit in 2022
For fiscal 2022, the real estate group reports rising rental income and falling vacancy rates. The Services segment grew strongly, mainly due to the integration of the Akara Group.
The real estate group SPS Swiss Prime Site performed well operationally in 2022 and increased operating income by 3.3% to CHF 774.4 million. Due to special effects, among others, because of the integration of the Akara Group and the new plans for Jelmoli operating profit decreased to CHF 389.6 million (PY: 404.8 million). Adjusted for these effects, comparable EBIT amounted to CHF 430.7 million, an increase of 6% compared to 2021 (404.8 million).
Valuations below previous year
At CHF 169.7 million, the valuation result remained stable compared to the first half of the year, but was significantly below the CHF 301.9 million of the previous year. This shows the end of the "yield compression", i.e. the reduction of purchase yields and corresponding discount rates in recent years, in the wake of the newly emerged inflation and increase in key interest rates, SPS said. Portfolio value rose to CHF13.1 billion from CHF12.8 billion a year earlier. The net property yield of the real estate portfolio is largely stable at 3.1% (prev. yr. 3.2%).
Profit before revaluations reached CHF 300.6 million (previous year: 293.7 million). Including revaluations, however, net profit fell from CHF 498.9 million to CHF 404.4 million. The dividend is to increase by 5 centimes to CHF 3.40/share.
Rental income rises, vacancy rate falls
Rental income reached CHF 431.3 million (+1.1% or +1.9% on a like-for-like basis) and vacancy decreased from 4.6% to 4.3%. The WAULT is 5.3 years (previous year: 5.6 years). Several small portfolio properties were sold as well as the last building of the large-scale project "Espace Tourbillon" in Geneva with total proceeds of more than CHF 317 million, resulting in a profit of CHF 51 million.
Swiss Prime Site Solutions doubles assets under management
Swiss Prime Site Solutions reports assets under management of CHF 7.7 billion for 2022, which is 113% more than in the previous year (3.6 billion). Asset management income increased by 185.6% to CHF 52.0 million, mainly due to the integration of the Akara Group. Organically, the business grew by CHF 1.8 billion. EBIT reached CHF 30 million, which was also the target (PY: 8.6 million). The EBIT margin increased from 47% to 58%. (ah)
