Release Date: August 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Swiss Prime Site AG (XSWX:SPSN, Financial) reported a 6% increase in rental income, reaching a record level of CHF232 million.
- The company achieved a record low vacancy rate of 3.6% and aims to reduce it further to 3.0% in the future.
- The acquisition of Fundamenta added more than CHF4 billion in assets under management, enhancing the company's asset management capabilities.
- Swiss Prime Site AG (XSWX:SPSN) successfully completed major development projects, including Paradiso-Lugano and Stücki Park in Basel.
- The company maintained a strong financial position with an LTV expected to be below 40% by the end of the year, ensuring financial stability.
Negative Points
- The retail segment experienced a decrease in income due to reduced footfall and higher discounts at Jelmoli.
- The company's EPRA NTA was negative, reflecting devaluations and the impact of additional shares from the Fundamenta acquisition.
- Swiss Prime Site AG (XSWX:SPSN) faced unexpected interest rate hikes by the national bank, affecting their sales strategy.
- There is a slight expected increase in vacancy rates towards the end of the year due to the Pont-Rouge project.
- The integration of Fundamenta led to increased personnel costs, impacting overall cost efficiency.
Q & A Highlights
Q: What are the expected yields from the planned sales in the second half of the year?
A: Marcel Kucher, Vice Chairman of the Supervisory Board, stated that the yields are expected to be slightly higher than average due to capital recycling and improved locations.
Q: What is the rent increase for the newly let PRADA space?
A: Karin Voigt, Chief Portfolio Officer, mentioned that the rent has increased by 20%.
Q: Can you quantify the expected growth in asset management for the second half of the year?
A: Anastasius Tschopp, CEO of Swiss Prime Site Solutions AG, indicated that they expect to raise CHF300 million in the second half, leveraging to achieve CHF900 million.
Q: How is the integration of Akara into Swiss Prime Site Solutions progressing, and are there expected reductions in personnel costs?
A: Anastasius Tschopp explained that the integration is going well, with no expected reductions in personnel costs as they aim to grow with the current headcount.
Q: Will the share of nonrecurring fees in asset management increase with more transactions in the second half?
A: Marcel Kucher confirmed that the share of nonrecurring fees is expected to increase, but the overall share remains stable compared to the previous year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
