Swiss Prime Site

Increase in operating results in the 2023 financial year

Swiss Prime Site AG / Key word(s): Annual Results/Real Estate Swiss Prime Site: Increase in operating results in the 2023 financial year 08-Feb-2024 / 07:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. Ad Hoc announcement pursuant to article 53 LR

PRESS RELEASE

Zug, 8. February 2024

• Increase in rental income, up by 4.3% (EPRA LfL) to CHF 438 million and reduction in vacancies to record low of 4.0% 
• Increase in operating results (FFO I) per share by +1.3% to CHF 4.05
• Increase in real estate assets under management to CHF 21.5 billion – CHF 13.1 billion own assets (comparable to previous year) and CHF 8.4 billion in asset management (+9%)
• Growth financed with capital recycling and refinancings under Green Finance Framework, leading to solid LTV of under 40%
• Stable dividend proposal of CHF 3.40 and optimistic outlook

Amidst challenging market conditions, Swiss Prime Site brought the 2023 financial year to a successful close and can look back on a strong operating performance. René Zahnd, CEO of Swiss Prime Site, says: «In a challenging market environment, we’ve achieved good operational results in our core business, real estate, which once again demonstrates the resilience of our business model. We were able to press ahead with the implementation of our strategic goals – in particular, continuing to focus on our core competency of pureplay real estate.» 

Increase in rental income by 4.3% (EPRA LfL) and reduction in vacancies to record low of 4.0% 
There was significant like-for-like (EPRA LfL) growth in income from property rentals of 4.3% in the reporting year, driven by indexation, successful re-lettings and a further reduction in vacancies. On an absolute basis, too, rental income increased to a record high of CHF 438 million in 2023 despite sales under the capital recycling policy representing rents of almost CHF 10 million. Strong demand for modern, centrally located office buildings ensured a good uptake of new leases at sites such as the Prime Tower, the Medienpark in Zurich and the Messeturm in Basel. And numerous first-class tenants from the private and public sector were acquired in the process. The vacancy rate fell further to a record low of 4.0% [4.3% in the previous year], while the weighted average unexpired lease term (WAULT) remained largely stable at 5.0 years as at the end of 2023.