Swiss Prime Site

profit up by over 6%

Swiss Prime Site AG / Key word(s): Half Year Results Swiss Prime Site: profit up by over 6% 25-Aug-2022 / 06:56 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, 25 August 2022

• Profit increases by +6.3% to CHF 267.4 million
• FFO up by 7.2% and EPRA NTA increases to CHF 100.78 per share
• Real estate assets under management up to CHF 20 billion
• Rental income up by 1.9% (L4L) and vacancy rate down to 4.4%
• Reduction in LTV of the property portfolio to 40.5%
• Guidance increased for the financial year 2022

Swiss Prime Site increased profits by 6.3% in the first half of 2022. With FFO growth per share of 7.2%, real estate assets under management totalling CHF 20 billion and a vacancy rate of 4.4%, we already met our targets for 2022 in the first half of the financial year, and even exceeded some of them. In light of the positive market environment and the visibility currently available to us, we are therefore increasing our guidance for 2022.

The key figures for 2022 have been influenced by two factors: firstly, after the closing on 10 January 2022, the Zug-based Akara Group is included in our scope of consolidation for the first time; secondly, the 2022 consolidated financial statements have been prepared in accordance with IFRS accounting standards for the first time and the previous year’s figures have been adapted accordingly.

Interest rate pivot, but resilient Swiss real estate market
In the year to date, the Swiss economy has continued to grow despite geopolitical challenges, supply chain problems and rising prices. With an increase of 105 000 jobs in the services sector in the past 12 months and a record 114 000 vacancies, the economic outlook remains positive. As Switzerland is also being affected by rising prices, the Swiss National Bank (SNB) increased the benchmark interest rate by 50 basis points in June 2022 with the aim of preventing inflation from spreading more broadly to goods and services. Inflation in Switzerland remains below the levels seen in European markets. Despite the prospect of further rate hikes by the SNB in 2022, we still find ourselves in a negative interest rate environment in real terms. This favours investments in real assets such as property. Accordingly, we have only witnessed isolated knock-on effects on the real estate market so far. Prime locations continue to be sought after by tenants and investors.