No. 11, September 2004, with half-yearly figures
SWISS PRIME NEWS
NAV
CHF 281.19 as at 30.06.2004
CHF 273.08 as at 31.12.2003
Before deferred taxes
Securities number 803 838 · SWX symbol SPSN
Interim report as at 30.06.2004
P a g e 6 —7
Interview:
“The decision to sell was right”
Picking brings success
Page 3
P a g e 4 —5
Upgrade
page 8
Swiss Prime Site in the first half of 2004
Continuing income dynamism
Despite the continuing tense situation on the real estate market, Swiss
Prime Site recorded a very dynamic development in the first half of 2004.
The improvement as against the comparable period of the previous year
concerns both rent income, increasing by 17.72% to CHF 63.1 million, and
net profits, increasing by 22.18% to CHF 29.2 million. In the first six
months of 2004, the share price increased by 14.78%, thereby outperforming the comparison index SWX IG Real Estate by 1.8 and the SPI by
as much as 9.6 percentage points. The distribution of profits by means of
a CHF 12.00 reduction of nominal value carried out on 26.07.2004 represents an extremely attractive cash yield of 4.55% (based on the closing
price on 30.06.2004). Net asset value (NAV after deferred taxes) increased
in the period under review by 2.77% to CHF 267.68.
of nominal value, a method that is
exempted from income tax for private persons, on 26.07.2004, the
shareholders achieve a cash yield of
4.55%. Once again, Swiss Prime Site
was able to fully satisfy the expectations of a growing number of investors
for high recurring yields, capital stability and excellent protection against
inflation.
Stefan Mächler,
the income failure rate continues to
Small is beautiful – the
be less than half the Swiss average. In
over 100-year-old building at
Chairman of the
The Swiss Prime Site AG share has
Swiss Prime Site AG
continued to be a security with sub-
Income failure far below average
the Zurich region, which is suffering
Spisergasse 12 in St. Gallen
Board of Directors
stance, charm and character in the
A number of factors are responsible
particularly from the excess supply of
recently became an attractive
first half of the 2004 financial year.
for the good results. Above all, the se-
office premises, the difference was
addition to the portfolio of
With the profit distribution of
lected composition of the real estate
particularly marked. While vacancies
Swiss Prime Site.
CHF 12.00 in the form of a reduction
property portfolio has ensured that
for office premises are substantially
was just over 13% above the market
value of a total of CHF 2.7 million as
at 31.12.2003.
According to the valuation by the independent valuation experts Wüest &
Partner AG, the value of the real
estate portfolio as at 30.06.2004
amounted to CHF 2.3 billion, an increase of CHF 30.8 million or 1.38%
as against the end of 2003. This
increase of market value and the
investments made led to a revaluation
profit of CHF 1.7 million for the first
half of 2004.
The realisation of Sihlcity – by far the
company’s most important project – is
progressing to schedule, and is expected to be completed by 2007.
Swiss Prime Site has a 24.2% holding
in Sihlcity’s total investment volume of
CHF 620.0 million.
Grounds for optimism
All the signs indicate that the successful development of Swiss Prime Site
will continue in the second half of
2004. We are convinced that we will
fully achieve the objectives set for
2004. This will be despite the tense
situation on the office premises market, since despite the signs of ecoThe newly acquired
above the 10% mark, Swiss Prime
First class portfolio
nomic recovery, it will take at least
building on the Spiser-
Site’s income failure rate in this region
Despite the many buying opportuni-
two years for the supply surplus to be
was only 3.87%.
ties offered to Swiss Prime Site in the
eliminated. Swiss Prime Site, thanks
gasse in St. Gallen
first half of 2004, the management
to its modern office premises with
renovation in 1998
Since Swiss Prime Site can in addition
was very cautions with acquisitions.
flexibility of use, excellent locations
and has a sales area
count on a solvent tenancy with most-
The properties offered either suffered
and a competitive price structure, is
of about 900 m2.
ly long-term contracts, no negative
from insuperable deficits – for in-
perfectly placed to meet the increase
surprises were observed in rent in-
stance in terms of location, property
in competition.
come. As compared with the previous
size, building substance, flexibility of
year’s period, net rent income rose by
use – or were too expensive.
underwent a thorough
In summary, it can be assumed that
the strengths of the Swiss Prime Site
17.72% to CHF 63.1 million, with operating profit (EBIT) up by 15.68% to
Only two smaller properties with a to-
share – an attractive recurring yield
CHF 50.9 million. This led to an EBIT
tal market value of CHF 12.0 million
combined with high value stability –
margin (before revaluation effects) as
(Spisergasse 12 in St. Gallen and
will continue to characterise the
at 30.06.2004 of 77.16%, an excel-
Bahnhofstrasse 2 in Baden) were able
security.
lent figure as compared with the rest
to meet the high requirements and
of the trade sector. The net profits (be-
were acquired as at 01.04.2004 (see
fore revaluation effects) rose by
report on page 8). The two additions
30.96% to CHF 31.3 million. The net
are balanced by two sales, namely the
yield (net rent income less mainte-
properties at Bachstrasse 21b in Hä-
nance costs, income failures and
gendorf and Dorfstrasse 34 in Wan-
charges born by the house owner as
gen bei Olten. The total sales price
a percentage of market value at the
end of the period under review)
amounts to 5.37% [previous year
5.24%].
Comfortable equity ratio
of around 47%
The high quality of the property portfolio combined with the high equity
ratio of 46.91% also has a positive
effect on borrowing costs, which
remained at the low level of 3.34%,
having fallen slightly as against the
previous year’s figure of 3.53%. The
average weighted residual term of financial liabilities amounts to 2.8 years
[previous year 3.1 years].
2
Obvious progress has been
made at the Sihlcity location.
Sihlcity is the largest building
site in Switzerland and the
most important project of
Swiss Prime Site AG.
Daniel Frutig, CEO Swisscom Immobilien AG
“The decision to sell was right”
As a member of a consortium under the leadership of Credit Suisse
Asset Management, Swiss Prime Site acquired 13 exclusive business
properties from Swisscom for around CHF 700.0 million in 2001. Following the sale, Swisscom rented premises in a number of the buildings,
primarily in towns and urban conglomerations. We wanted to hear
from Daniel Frutig, CEO of Swisscom Immobilien AG, how he assessed
the transaction at a distance of three years, and how he experiences
Swiss Prime Site as a landlord.
Mr. Frutig, when you look back at
the sale of the office premises
three years ago, what balance do
you draw for Swisscom?
A positive one. From our point of
view the decision was correct. It allowed us to concentrate fully on our
core telecommunications business.
The serious selection procedure
proved its value.
First choice
The 13 properties bought by
Swiss Prime Site from Swisscom
are mostly at good to very good
locations in towns such as Basle,
Berne, Geneva, Lausanne and
Zurich. The pearls include for instance the Fraumünsterpost in
Zurich, Genfergasse in Berne and
Peter Merian-Strasse in Basle.
Even
when
the
properties
changed hands in spring 2001,
they were remarkable for their
good structural condition and
low management costs. Since
then, Swiss Prime Site has increased the flexibility of use and
ity in the ownership and manage-
vesting today in office and indus-
the attraction of a number of
ment relationships is of great value.
trial premises?
these properties by means of tar-
Daniel Frutig, CEO
Swisscom Immobilien AG:
Long-term stability of tenants and
“We appreciate Swiss Prime
geted investments. Moreover,
How have Swisscom’s space re-
rent structures. In addition, account
Site and its partners. Above
many of the properties still have
quirements changed over the last
must be taken of the locations and
all, the continuity
development potential.
few years?
their state of development, as well as
in the ownership and
They have adjusted to the new con-
the market environment.
ditions resulting from the technologWas the time of the sale right?
ical change, the re-dimensioning of
If you look at the developments on
the personnel levels and changes in
the real estate market over the last
the market.
few years, the time of the sale was
management relationships
is of great value.”
Swisscom Immobilien AG
right. In addition, it was a strategic
Do you still see scope for reduc-
decision in favour of our core busi-
ing space costs per workplace? If
Swisscom Immobilien AG concentrates on the provision of all services in
ness.
so, in what field?
the field of property management for the Swisscom AG group companies
Yes, in particular in the field of of-
and third parties. This includes the integrated planning, monitoring and
How has the transaction affected
fice workplaces. There is plenty of
management of buildings, facilities and equipment and regular optimisa-
costs per square metre floor
potential here in the implementa-
tion of use flexibility, work productivity and capital yield. The company em-
space in the buildings rented
tion of new workplace concepts
ploys a staff of 350 and manages over 4,000 properties with a total floor
from Swiss Prime Site?
that take better account of modern
space of over 1.5 million square metres.
Swisscom’s rented space has been re-
work types.
duced, which has meant a reduction
of our costs. Thanks to the indexed
Are there plans to consolidate
contracts, however, the prices per
locations?
square metre have tended to increase.
As part of the ordinary business
process, we continually reassess our
How have you experienced Swiss
locations and, where necessary and
Prime Site and its partners as
appropriate, adjust them accordingly.
landlord?
We appreciate Swiss Prime Site and
What aspects must be given par-
its partners. Above all, the continu-
ticular attention by investors in-
3
Conclusion by the independent members of the Board of Directors:
Picking brings success
The Swiss Prime Site Board of Directors comprises a majority of inde-
will successfully overcome even the
volve risks. Many have not perhaps
pendent members. Their main activity does not involve real estate in-
difficult periods. The Basle Messe-
yet realised that Switzerland is satu-
vestments, but their knowledge and their professional activities en-
turm is a good example of this.
rated with retail premises. Every
able them to give valuable stimuli to the business. Swiss Prime News
Wehrli: I am not particularly scepti-
“new” square metre will displace an
asked the independent members of the Board about their personal as-
cal, since the centres will continue to
“old” square metre of retail space.
sessment of the real estate market and Swiss Prime Site. The success-
grow.
This will only be successful if the new
ful strategy of real estate picking is regarded as the most successful
Hammer: Older and no longer at-
premises benefit from a good loca-
factor in the company's success.
tractive properties have already been
tion, such as the Sihlcity project.
badly affected by vacancies, since in
many places investments have failed
How do you assess the economic
to satisfy the demand. However, as
prospects
long as Swiss Prime Site remains true
2005?
Wetzel: My conclusion is also ex-
to its principles, we will have control
Huber: At present, there are clear
tremely satisfactory. The company
over the risk.
signs of an economic recovery that is
has managed to successfully imple-
Huber: Thanks to long-term tenan-
excepted to continue in 2005. For
ment the business idea that formed
cy contracts and properties at at-
this reason, we are optimistic. How-
the basis for its foundation.
tractive locations, I have no con-
ever, the geopolitical situation re-
Wehrli: I also find the development
cerns about the current generally
mains very instable.
and work on the Board excellent.
high vacancies.
Wetzel: I believe that the economic
for
Switzerland
in
cycles will be less marked in the foreWhat factors have in your opin-
How do you explain the lower-
seeable future than in the past. We
ion made the strongest contribu-
than-average income failure at
will have to get used to eat humble
tion to the company's successful
Swiss Prime Site AG, which at just
pies. However, even such market
development?
under 5% is not even half of the
conditions naturally present oppor-
Huber: The concentration on good
Swiss average?
tunities.
and very good locations, the strict in-
Huber: Primarily it has to do with the
Wehrli: In principle, I am optimistic
vestment decision-making process
concentration on good properties at
and expect growth.
combined with corporate daring.
good sites, prime sites.
Hammer: From other clients I can
Wehrli: The selective criteria for
Wetzel: I agree.
see that the economy is recovering. I
choosing new properties.
Wehrli: The decisive factor is the
am confident for 2005. If demand
Wetzel: Swiss Prime Site only buys
strict selection of the properties and
for business premises is to increase
real estate that a cautious private in-
the management’s commitment.
perceptibly, however, the economic
vestor would also buy. The invest-
Hammer: I agree with these views.
recovery will first have to last for
ment in a Swiss Prime Site AG share
Dr. Bernhard Hammer
personal favourite:
Messeturm Basle
some time and be of substance.
thus amounts to an investment in a
What do you expect from invest-
building.
ments in retail premises that the
What
Hammer: The decisive factors are
company has been pushing?
must be satisfied if the Swiss
summarised in the rigorous compli-
Wehrli: I expect these to be com-
economy is once again to return
ance with the internal guidelines, the
mercially successful and to lead to a
to substantial growth?
focus on really prime properties and
greater profile of the company.
Huber: Switzerland has large struc-
the resulting decision to refrain from
Hammer: Retail premises lead to
tural problems, such as a high bud-
buying at excessive prices.
greater diversification and hence a
get deficit, growing state spending,
background
conditions
better distribution of the risk.
increasing health costs, the mentali-
Gentlemen, you have now been
Do the high and increasing office
Huber: As with all investments, di-
ty of defending the status quo, bu-
members of the Board of Direc-
vacancies in large centres cause
versification in different investment
reaucratic and statutory obstacles to
tors for 2.5 years – and Mr. Wetzel
you concern?
and risk classes makes sense. Extend-
investments and political polarisation.
for over 5 years. How would you
Wetzel: Of course. However, the
ing the retail premises has reduced
The solutions to these problems are
personally take stock of progress
real estate business has always been
the dependence on office premises,
complex and difficult to implement
to date?
and will remain cyclical. Neverthe-
leading to a better tenant mix.
in political terms. Realistically, we can
Hammer: The work in the Board of
less, if we continue to work consis-
Wetzel: Swiss Prime Site has per-
therefore only assume moderate
Directors is characterised by a high
tently according to the old principle
haps focussed too strongly on in-
growth in the medium term.
degree of professionalism and rigor-
of “location, location, location”, se-
vestments in office premises, with
Wetzel: We are ruining ourselves by
ous compliance with the principles of
lecting our tenants carefully and
the result that a correction is neces-
our perfectionism. When decisions
corporate governance. The discus-
treating them fairly as partners, we
sary. However, retail premises also in-
of the Swiss courts hold that the
sion of the problems between the real
estate professionals who deal with
the subject every day and the independent members of the Board is
very profitable.
Huber: Swiss Prime Site has developed very successfully. Rent income
and results are continually increasing, and financing is healthy. With
the Messeturm in Basle and the participation in the Sihlcity project in
Zurich, Swiss Prime Site has also
made a strong investment in the
future.
Dr. Rudolf Huber
personal favourite:
the Opus building in Zug
4
The Swiss Prime Site AG Board of Directors
Urs Bracher
Stefan Mächler
Engineer HTL, Lindau ZH
Lic. iur. HSG, Forch ZH
■ Born 1955
■ Born 1960
■ Head of the Credit Suisse Group
■ Chairman of the Board of Directors
Switzerland pension fund since 1988
■ Managing Director, Credit Suisse
Asset Management, Switzerland
Urs Bracher trained as a qualified Swiss
pension insurance expert from 1984 to
Stefan Mächler has been with Credit
1988, and is a part-time lecturer for ac-
Suisse Group since 1986, 13 years of
tuarial theory at the Administrative Tech-
these in Japan, South Korea and Ger-
nical College for Pension Fund Managers
many. He is responsible for European
in Olten.
Sales & Marketing at Credit Suisse Asset
Management. It was him, who initiated
Reinhard Giger
the founding of Swiss Prime Site AG.
Dipl. Kultur-Ing. ETH, Uster ZH
Prof. Dr. Hans Peter Wehrli
personal favourite:
Bahnhofstrasse 42 in Zurich
■ Born 1949
Hans Peter Wehrli
■ Managing Director and Head of Real
Prof. Dr. oec. publ., Zurich ZH
Noise Protection Regulation applies
sures would do the business environ-
Estate Investment Management,
■ Born 1952
to human everyday noise such as
ment good and support growth.
Credit Suisse
■ Full Professor of Business Manage-
children’s playgrounds, or that the
Wehrli: In my opinion, one should
number of journeys to the planned
speak less about the background
Zurich stadium is not to exceed 2.17
conditions and instead act more en-
million, I am simply amazed. And
trepreneurially.
■ Member of the Board of Directors of
Wincasa AG, Zurich
ment, holder of the Chair in Marketing at the University of Zurich
■ Lecturer at the University of
After completing his studies at the ETH in
St. Gallen (HSG)
Zurich, Reinhard Giger was an assistant at
■ Lecturer in management training at
value-added tax or the new wage
What is your personal favourite
the Institute for Culture at the ETH Zurich,
the University of Zurich and at other
statement.
in the Swiss Prime Site AG port-
and subsequently consulting engineer at
Hammer: Deregulation of our inter-
folio and why?
Basler & Partner. He has been with Credit
nal market, tax reductions, reduction
Wetzel: The Fraumünsterpost in
Suisse Group since 1985.
of state involvement, combined with
Zurich, because it has an excellent lo-
a reduction of state expenditure on
cation and is a famous building in the
Bernhard Hammer
the consumption side – these mea-
city. It has an interesting past and a
Dr. iur., attorney and notary,
very promising future.
Kammersrohr SO
Prof. Wehrli has published a number of
Wehrli: The PKZ building in Bahn-
■ Born 1950
publications on the theme of marketing
hofstrasse in Zurich, because every-
■ Chairman of the Board of Directors
and management, and acts as consult-
thing is simply just right here: an at-
of Comet Holding AG, Flamatt
ant and expert for private and public or-
that still leaves aside the excesses of
■ Chairman of the Board of Directors of
a good image and a tenant with a
Etavis Installationen AG, Volketswil
■ Chairman of the Board of Directors of
Hammer: The Basle Messeturm,
Bator Holding AG, Herzogenbuchsee
since it is an architecturally out-
■ Member of the Board of Directors of
standing, sophisticated and nevertheless very successful property.
Flumroc AG, Flums
■ Member of the Board of Directors of
Huber: The Opus building in Zug,
Banque Degroof (Suisse) SA, Geneva
since I have many memories of Zug
■ Member of the Board of Directors of
from my youth. The town strongly
embodies the change from an industrial to a service location, and shows
of Belimo Holding AG, Wetzikon
■ Chairman of the Board of Directors of
tractive town, a shopping street with
clear position.
educational institutions
■ Chairman of the Board of Directors
Bearbull SA, Geneva
the Greater Zurich Area AG, Zurich
ganisations.
Thomas A. Wetzel
Dr. iur., attorney at law, Küsnacht ZH
■ Born 1956
■ Vice President of the Board of Directors and Chairman of the Audit
Committee
■ Partner in the Wenger Plattner attorney chambers, Basle Zurich Berne
■ Member of the Board of Directors of
Sofisa Holding AG, Fribourg
how growth can be achieved with a
From 1989 to 1997, Dr. Wetzel was employed by Intershop Holding AG in Zurich,
healthy business and financial policy.
After finishing his studies, Dr. Hammer
the last few years as Deputy Chairman of
The architecturally successful Opus
worked for a number of well-known
the Management Board. Since then, he
buildings are a good example.
companies. His posts included Head of
has specialised in commercial and legal
the Legal Service at Société des Pro-
real estate consulting as an independent
duits Nestlé SA and CEO at Stuag,
attorney.
Schweiz. Strassenbau- und TiefbauUnternehmung AG. Today, he acts as
Secretary of the Board of Directors
an independent member of various
boards of directors.
Peter Wullschleger
Qualified Swiss Bookkeeper,
Dr. Thomas Wetzel
personal favourite:
the Fraumünsterpost in Zurich.
Rudolf Huber
Oftringen AG
Dr. oec. publ., Wilen SZ
■ Born 1965
■ Born 1955
■ Secretary of the Board of Directors,
■ Member of the Group Management
and Chief Financial Officer of Geberit
International AG, Jona
CFO and member of the Management Board
■ Director, Head of Financing and
Accounting at Real Estate Asset
After acquiring his doctorate in 1985 and
Management at Credit Suisse Asset
various activities in industry, Dr. Huber
Management
joined the Group Management of the
Geberit Group in 1992. He accompanied
Peter Wullschleger has been with Credit
the group from a family business to a
Suisse Group since 1985, and has many
listed public company. Alongside his
years of experience in financing and
function as CFO, he has assisted a num-
accounting.
ber of group companies in Switzerland
and abroad.
5
Extract from the interim report
Consolidated income statement
in CHF 1,000
Rental income from investment properties
Other operating income
Total operating income
Direct operating expenditure
Change in fair market value of investment properties (upwards), net
Personnel costs
Other operating expenditure
Depreciation of non-real-estate fixed assets
Total operating expenditure
Operating profit (EBIT)
Financial expenditure
Financial income
Profit before tax on earnings
Current tax on earnings
Deferred tax on earnings
Profit for the period under review
Earnings per share for the period under review, CHF
01.01.– 30.06.2004
01.01.– 30.06.2003
63,104
777
63,881
8,816
(1,626)
409
5,363
–
12,962
50,919
18,092
282
33,109
184
3,759
29,166
7.27
53,640
200
53,840
7,175
(2,856)
187
5,375
2
9,883
43,957
16,906
10
27,061
332
2,815
23,914
5.96
Consolidated balance sheet
in CHF 1,000
Assets
Current assets
Cash and other liquid assets
Securities
Receivables from deliveries and services
Other receivables
Accrued income and prepaid expenses
Total current assets
Fixed assets
Long-term financial assets
Non-real-estate fixed assets
Investment properties
Total fixed assets
Total assets
Short-term liabilities
Accounts payable
Other short-term liabilities
Advance payments
Accrued expenses and deferred income
Total short-term liabilities
Long-term liabilities
Long-term financial liabilities
Deferred tax liabilities
Provisions
Total long-term liabilities
Total liabilities
Shareholders' equity
Share capital
Capital reserves
Retained earnings
Total shareholders’ equity
Total liabilities and shareholders’ equity
30.06.2004
31.12.2003
5,941
71
13,558
7,147
4,663
31,380
8,000
6,585
13,692
5,156
7,774
41,207
–
–
2,263,742
2,263,742
2,295,122
–
–
2,232,940
2,232,940
2,274,147
171
1,393
19,647
20,104
41,315
475
1,318
18,721
15,466
35,980
1,122,075
54,343
770
1,177,188
1,218,503
1,143,515
50,584
770
1,194,869
1,230,849
732,023
146,513
198,083
1,076,619
2,295,122
729,032
145,349
168,917
1,043,298
2,274,147
01.01.– 30.06.2004
01.01.– 30.06.2003
29,166
23,914
(1,626)
–
17,971
(14)
184
(2,856)
2
16,906
(10)
332
6,514
134
(1,991)
3,111
(304)
1,001
5,491
3,759
(18,165)
14
(843)
44,402
(33,296)
4,120
–
(29,176)
(21,440)
–
4,155
–
(17,285)
(2,059)
8,000
5,941
–
(2,287)
5,331
7,362
(227)
(5,248)
323
2,815
(16,977)
10
(187)
29,203
(50,018)
–
515
(49,503)
20,000
–
2,814
–
22,814
2,514
1,494
4,008
Portfolio according
to regions
Basis: Market value as at 30.06.2004
Eastern
Switzerland 6%
Central
Switzerland 10 %
Zurich 42%
Northwestern
Switzerland 17 %
Berne 13%
Liabilities
Western
Switzerland 1%
Southern
Switzerland 0%
Geneva 11%
Consolidated cash flow statement
in CHF 1,000
Profit for the period under review
Adjustments for:
Change in fair value of investment properties (upwards), net
Depreciation on non-real-estate fixed assets
Interest expenditure
Interest income
Taxes on earnings
Changes in working capital:
Decrease in securities portfolio
Decrease/increase of receivables from deliveries and services
Increase/decrease of other receivables
Decrease of accrued income and prepaid expenses
Decrease of accounts payable
Increase/decrease of other short-term liabilities and advance payments
Increase of accrued expenses and deferred income
Increase in deferred tax liabilities
Interest payments made
Interest payments received
Payments of tax on earnings
Net cash inflow from operational activity
Investments in investment properties
Desinvestments of investment properties
Desinvestments of long-term financial assets
Net cash outflow from investment activity
Decrease/increase of long-term financial liabilities, net
Reduction of nominal value
Sale of own shares
Payment of profit distributions
Net cash outflow/inflow from financing activity
Net decrease/increase of cash and other liquid assets
Cash and other liquid assets at the beginning of the period under review
Cash and other liquid assets at the end of the period under review
6
Portfolio according
to use types
Basis: Net rent income 30.06.2004
Retail 22 %
Cinema/
Restaurant 6 %
Warehousing 5 %
Residential 2 %
Other 3 %
Parking 5 %
Office 57 %
Market matrix: Market assessment
of the individual properties
Consolidated statement of changes in shareholders' equity
(Source: Wüest & Partner)
In CHF 1,000
As at 01.01.2003
Question mark
28
21
7
17
5
8
Average
14
32
53
9
20
4 51
3 54
57
10
61
23
55
48
37
As at 30.06.2003
772,024
146,072
145,799
1,063,895
Profit distributions
Profit for the period
Reduction of nominal value as at 28.07.2003
Purchase of own shares, net
–
–
(40,267)
(2,725)
–
–
–
(723)
–
23,118
–
–
–
23,118
(40,267)
(3,448)
As at 31.12.2003
729,032
145,349
168,917
1,043,298
–
–
2,991
–
–
1,164
–
29,166
–
–
29,166
4,155
732,023
146,513
198,083
1,076,619
12
46
II
49
42
59
31
58
62
Profit distributions
Profit for the period
Sale of own shares, net
As at 30.06.2004
Problem property
ern
zer17 %
%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
%
sing 5 %
tial 2 %
%
end of contract above number of years
Basis: Target rent income 30.06.2004
10
16.57%
1.29%
11.45%
8
7
–
23,914
–
–
23,914
2,814
Notes to the Consolidated Summary Report
Tribschenstrasse 56, 60, Lucerne
Quartierzentrale Tribschen, Lucerne
Bahnhofquai 20, Olten
Swisscom Gasse 2 / Bahnhofquai 18, Olten
Theaterstrasse 17, Winterthur
Fraumünsterstrasse 16, Zurich
Brandschenkestrasse 25, Zurich
Rte du Petit-Moncor 1, Villars-sur-Glâne
Under Höh, Volketswil
Manessestrasse 85, Zurich
Pizol-Zentrum, Mels
Bahnhofstrasse 2, Baden
Spisergasse 12, St. Gallen
Nidaugasse 8, Biel
Poststrasse 23, St. Gallen
Untertor 24, Winterthur
Bahnhofstrasse 42, Zurich
Dorfstrasse 11,13, Wangen
Dorfstrasse 15,19, Wangen
Bahnhofstrasse 23, Aarau
Weite Gasse 34, 36, Baden
Bahnhofplatz 9, Berne
Hohengasse 35, Burgdorf
Baslerstrasse 37, Olten
Centralstrasse 4, Sursee
Bälliz 67, Thun
Weggisgasse 20, 22, Lucerne
Dorfstrasse 21, Wangen
Dorfstrasse 27 / Schmiedgasse 1, Wangen
Barfüsserplatz 3, Basle
Bahnhofstrasse 11, Chur
Rue Céard 14 / Rue Croix-d’Or 11, Geneva
Portfolio by contractual end
of rental relationship
9
–
–
601
Quality defects
III
LOCATION QUALITY
Hofwisenstrasse 50, Rümlang
Bohl 1 / Goliathgasse 6, St. Gallen
Reitergasse 9, 11, Zurich
Quai du Seujet 30, Geneva
Josefstrasse 53, 59, Zurich
Stauffacherstrasse 94, 96 /
Molkenstrasse 15, 17, Zurich
Kirchstrasse 20, Dietikon
Lagerhausstrasse 1, Solothurn
Röschibachstr. 22 / Hönggerstr. 40, Zurich
Steinenvorstadt 67, Basle
Schulstrasse 34, 36, Zurich
Freie Strasse 26 / Falknerstrasse 3, Basle
Aemmenmattstrasse 43, Belp
Froburgstrasse 15, Olten
Industriestrasse 1, Volkiland, Volketswil
Vadianstrasse 25, St. Gallen
Route de Chancy 59, Petit-Lancy
Route de Malagnou 6 /
Rue Michel-Chauvet 7, Geneva
Opus 1, Gubelstrasse 22, Zug
Weltpoststrasse 5, Berne
Cityport, Zurich-Oerlikon
Rue du Rhône / Place Fusterie, Geneva
Freischützgasse 14, Zurich
Messeplatz 12, Messeturm, Basle
Genfergasse 11, 14, Berne
Alte Tiefenaustrasse 6, Worblaufen
Peter Merian-Strasse 80, Basle
Route de Meyrin 49, Geneva
Weinberglistrasse 4, Lucerne
Geissensteinring, Lucerne
–
–
2,213
6 52
30
IV
25
45
11
2
47
60
36
16
43
44
22
Profit distributions
Profit for the period
Sale of own shares, net
24
35
33 34 27
19
18
50 56
41
38
39
40 29
15 1
13
%
Retained
Total shareearnings holders’ equity
121,885
1,037,167
Top property
I
26
PROPERTY QUALITY
Share Capital reserves
capital
(premium)
769,811
145,471
Profit per share
The profit applied to determine the profit per share or diluted profit per share is the profit for the period reported by Swiss
Prime Site Group. The average number of shares amounts to:
Financial year
01.01.– 30.06.2004
Financial year
01.01.– 30.06.2003
4,026,667
14,734
4,011,933
4,026,667
13,914
4,012,753
Shares issued 01.01.– 30.06. (180 days)
Average stock of own shares (180 days)
Average weighted number of shares (180 days)
The average weighted earnings per share in CHF amount to:
Earnings per share for the period under review
7.27
5.96
No dilution effects occurred in the period under review. No diluted earnings per share have therefore been reported.
Shareholders’ equity
The General Assembly of Shareholders on 27.04.2004 adopted a resolution on a reduction of nominal value in the amount
of CHF 48.320 million to CHF 684.533 million (CHF 12.00 per share). The reduction of nominal value was effected as of
26.07.2004. After repayment, nominal value per share amounts to CHF 170.00.
Selected corporate figures
Details in
As at
30.06.2004
As at
30.06.2003
Change
in %
Figures for the Group
EBITDA
EBIT
Profit (+) / loss (–)
Shareholders’ equity
Equity ratio
Borrowed capital
Borrowed capital ratio
ROE (weighted)
ROIC (weighted)
CHF m
CHF m
CHF m
CHF m
%
CHF m
%
%
%
50.9
50.9
29.2
1,076.6
46.91
1,218.5
53.09
5.50
4.14
44.0
44.0
23.9
1,063.9
51.17
1,015.4
48.83
4.55
3.97
15.68
15.68
22.18
1.19
(8.33)
20.00
8.72
20.88
4.28
Figures without revaluation effects*
Operating profit (EBIT)
EBIT margin
Profit for the period under review
Earnings per share (weighted)
ROE (weighted)
CHF m
%
CHF m
CHF
%
49.3
77.16
31.3
7.80
6.21
41.1
76.34
23.9
5.95
4.76
19.95
1.07
30.96
31.09
30.46
8.85%
6
6.69%
5
7.49%
4
8.68%
3
9.59%
2.46%
2
1
14.09%
* no account has been taken of the revaluations (IAS 40) and the resulting deferred taxes
12.84%
0
0%
2%
4%
6%
8%
10 %
12 %
14 %
16 %
18 %
as a % of net rental income
%
Market value
in CHF m
30.06.04
30.06.03
Details of the real estate
portfolio as at 30.06.2004
Net yield Income failure rate
in %
in %
30.06.04 30.06.03 30.06.04 30.06.03
Floor space
in m2
30.06.04
30.06.03
Zurich
885.1
849.0
25.2
23.0
5.30
5.10
3.87
4.40
165,774
169,253
Central Switzerland
184.4
173.5
5.7
5.3
5.43
5.53
5.68
9.35
42,866
41,331
Eastern Switzerland
143.9
121.8
4.5
3.7
5.46
5.54
2.27
0.52
30,960
24,812
Northwestern Switzerland 393.1
163.1
9.8
4.9
5.59
5.51
9.87
3.43
90,994
34,938
Berne
297.1
264.6
8.9
8.0
5.21
5.25
6.18
5.83
77,196
68,234
Geneva
243.5
229.5
7.5
6.9
5.41
5.19
0.83
1.86
49,464
47,644
28.8
29.0
0.9
0.9
5.37
5.03
9.22
7.42
8,863
8,879
2,175.9
1,830.5
62.5
52.7
5.37
5.24
4.98
4.52
466,117
395,091
87.8
226.1
0.6
0.9
n/a
n/a
–
–
50,178
69,075
2,263.7
2,056.6
63.1
53.6
n/a
n/a
4.93
4.45
516,295
464,166
Western Switzerland
Interim total
Projects
Total
7
Rent income
in CHF m
30.06.04 30.06.03
Share
details
Share price
(01.01.– 30.06.2004)
NEW IN THE PORTFOLIO
264.00
CHF
268.00
Low
CHF
229.00
As at 30.06.2004 CHF1,063.0 million
Bahnhofstrasse 2, 5400 Baden
■ Built
1927
■ Site area
NAV (before deferred taxes)
212 m2
As at 30.06.2004
CHF
281.19
■ Market value CHF 5.021 million
As at 31.12.2003
CHF
273.08
■ Net target rent income
Change
per annum
CHF 0.300 million
■ Total floor space
954 m2
■ Rented area, retail
954 m2
■ Main tenant
Upgrade
CHF
High
Market capitalisation
■ Address
Purchases and sales
As at 30.06.2004
2.97%
NAV (after deferred taxes)
Schild Mode
As at 30.06.2004
CHF
267.68
As at 31.12.2003
CHF
260.46
Change
2.77%
Profit per share (weighted)
The implementation of the quality philosophy led to some changes in
the historic centre of this Eastern Swiss
the portfolio in the first half of 2004. While Swiss Prime Site was able
town and promises a particularly var-
to buy two properties at excellent inner-city locations in Baden and
ied shopping experience.
As at 30.06.2004
CHF
7.27
As at 30.06.2003
CHF
5.96
Share statistics
Total registered shares
St. Gallen, two residential buildings were sold at a profit in the Canton
of Solothurn.
4,026,667
Securities number
Properties sold
The ongoing optimisation of the
ISIN number
803 838
CH 000 803 838 9
SWX symbol
Medium-sized Swiss towns also pres-
New retail premises in Baden and
property portfolio and the consistent
ent attractive potential for income
St. Gallen
implementation of the strategy occa-
and growth to real estate investors –
In Baden, the property at Bahnhof-
sionally leads to the sale of properties.
if the property and above all the mi-
strasse 2 is at the meeting point of
In the first half of 2004, Swiss Prime
crolocation are right. These condi-
the two pedestrian axes of Bahnhof-
Site sold two residential properties ac-
tions are satisfied by the two proper-
strasse and Badstrasse. The property
quired in 2003 in the course of the ac-
ties in Baden and St. Gallen acquired
has a retail area of around 1,000 m2.
quisition of the former Frey Group.
by Swiss Prime Site in the first half of
Thanks to its properties in immediate
These were properties in Wangen bei
Tel. 062 213 06 06
2004. Both properties are at top-
proximity at Weite Gasse 34/36,
Olten and in Hägendorf.
Fax 062 213 06 09
class inner-city locations and have
Swiss Prime Site is now excellently
long-term rent contracts.
represented at this commercially at-
For Swiss Prime Site, the involvement
tractive town in Aargau.
in the residential market outside cor-
First day of trading
SPSN
05.04.2000
Contacts
Company
Swiss Prime Site AG
Froburgstrasse 15, 4601 Olten
www.swiss-prime-site.ch
porate strategy did not involve any
Swiss Prime Site has also consolidated
disadvantages; on the contrary, both
its presence in St. Gallen by buying
properties were sold at prices rough-
the building at Spisergasse 12,
ly 13% above the estimated market
constructed at the turn of the centu-
value.
Chairman Board of Directors
Stefan Mächler
[email protected]
CEO
Markus Graf
[email protected]
CFO
ry. The property was renovated down
Peter Wullschleger
to the outside walls in 1998, and has
[email protected]
a sales area of around 900 m2 that is
subject to a long-term tenancy con-
CIO
tract. As in Baden, the building is open
Peter Lehmann
on three sides and stands out for its
[email protected]
large window facades. Spisergasse,
Media inquiries
like Marktgasse and Multergasse, is in
Peter Wullschleger
[email protected]
Agenda
Development of the (reinvested) SPS
share total return 01.01.—30.06.2004
September 21, 2004
NEW IN THE PORTFOLIO
Source: Bloomberg
120
115
■ Address
■ Built
March 18, 2005
Annual report as at 31.12.2004 with
110
April 27, 2005
1900
General Assembly of Shareholders
105
for the 2004 financial year
■ Market value CHF 6.992 million
100
CHF 0.424 million
Schild Mode
CHF 264.00
High
CHF 268.00
Low
CHF 229.00
Impressum
SPSN
Published by
SPI TR
Swiss Prime Site AG
SWX IG Real Estate TR
90
31.03.2004
■ Rented area, residential 185 m2
95
29.02.2004
875 m
2
31.01.2004
■ Rented area, retail
1,060 m
31.12.2003
■ Total floor space
2
As at 30.06.2004
30.06.2004
■ Net target rent income
Share price 01.01.—30.06.2004
31.05.2004
208 m2
30.04.2004
■ Site area
■ Main tenant
balance sheet media conference
balance sheet media conference
Spisergasse 12, 9000 St. Gallen
per annum
Interim report as at 30.06.2004 with
Concept and implementation
ibl und partner ag, solothurn
Disclaimer: The financial data presented and the other reports in Swiss Prime News are selected information. You can request the annual or interim report from the company in writing or by telephone.
This information constitutes neither an offer nor a recommendation to buy Swiss Prime Site AG shares. It shall not be disseminated in jurisdictions where it infringes applicable law or regulations. Statements about the future involve uncertainties and risks that may mean that the events that happen to the company in fact differ from the forecast situation.
8