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22.05.2024 10:00:50 - dpa-AFX: EQS-News: Swiss Prime Site Solutions Investment Fund Commercial achieves strong cash flow yield in first half of 2023/2024 (english)
Swiss Prime Site Solutions Investment Fund Commercial achieves strong cash
flow yield in first half of 2023/2024
Press Release
The Swiss Prime Site Solutions Investment Fund Commercial («SPSS IFC»)
achieved a cash flow yield of 2.75% in the first half of the 2023/2024
reporting period. The fund has thereby comfortably exceeded the target range
of 1.75%-2.0% after six months. The high cash flow yield corresponds to
earnings per share of CHF 2.74, which means more than 60% of the target
dividend per share has already been reached at the halfway point of the
year.
Relative outperformance of +12.77% versus SWIIT since launch
In a challenging market environment, the SPSS IFC has achieved a total
return of +7.24% in the period from its launch on 17 December 2021 up to 31
March 2024. This represents a relative outperformance of +12.77% versus the
SXI Real Estate Funds Total Return Index (SWIIT), which was down by 5.53% in
the same period.
Low vacancy rate and increase in net revenue
The fund's strong asset management is reflected in the vacancy costs.
Vacancies, which had increased due to acquisitions, were almost halved in
the past 12 months. As a result, the vacancy costs of the fund are currently
very low at 1.7% (H1 2022/2023: 3.2%). Among other achievements, the «Centro
Lugano Sud» property was fully let as of the balance sheet date for the
semi-annual report. The rent default rate was further reduced to 1.6% (H1
2022/2023: 3.7%) and thus remains low.
Net revenue up by 2% and WAULT stabilised at a high level
Net revenue increased by 2% compared with the first half of 2022/2023. Among
other things, this was due to the high indexing rate of -95% and the further
reduction in vacancies. The low vacancy costs made a significant
contribution to a high EBIT margin of 86% at property level. The weighted
average unexpired lease term (WAULT) stabilised in the first six months and
stood at 5.5 years on the balance sheet date.
Implementation of the sustainability strategy
Sustainability is considered an integral component of the SPSS IFC's asset
management. Almost 60% of the energy mix is generated by heat pumps. The
fund has created ten-year investment plans and a CO2 reduction pathway for
all properties and integrated these into the portfolio and asset management.
In addition, the fund has secured 17% of the target rent through «green
leases» and further rolled out the installation of automated energy data
readers. The fund is participating in a complete GRESB assessment in the
current financial year and has signed the UN Principles for Responsible
Investment.
Selective portfolio growth
No acquisitions or sales were made in the first half of the 2023/2024
financial year. The fund will selectively expand its portfolio through
acquisitions, with a focus on generating an attractive and sustainable cash
flow yield. The sourcing is focused on SMEs in order to open up interesting
off-market acquisition opportunities. The fund is aiming to increase the
share of properties in German-speaking Switzerland. There are currently some
very attractive acquisition opportunities in the pipeline with a net return
of over 4.5%.
Fund profile
The Swiss Prime Site Solutions Investment Fund Commercial is aimed at
qualified investors and primarily invests in commercial real estate in
established business locations throughout Switzerland. The investment focus
is on broad diversification, high cash flow stability and attractive
risk-return profiles. With an investment strategy that maintains an
anti-cyclical focus on commercial properties, the SPSS IFC utilises
attractive investment opportunities and offers enhanced protection from the
effects of inflation with a high indexing rate of over 95%. SPSS IFC is the
direct owner of the real estate; as such, taxes on income and capital gains
are pre-paid by the fund itself, making them tax-free to investors (private
and business assets) who are resident in Switzerland.
Detailed information and presentation
A recording of the presentation for the 2023/2024 semi-annual report can be
found at the following link:
* Executive version (-6:00 mins)
* Extended version (-15:00 mins)
For additional information, see our website.
Semi-annual report (PDF)
Press release (PDF)
Zug, 22 May 2024
* Relative outperformance of +12.77% versus SWIIT since launch
* Vacancy rate halved to a low 1.7%
* Net revenue up by 2%
If you have any questions, please contact:
Monika Gadola Hug, Head Client Relations
Tel. +41 58 317 16 31, monika.gadolahug@sps.swiss
Andrea Schaller, Media Relations
Tel. +41 58 317 17 51, andrea.schaller@sps.swiss
Swiss Prime Site Solutions AG
Swiss Prime Site Solutions is a group company of the listed Swiss Prime Site
AG. The real estate asset manager, which has CHF 12.6 billion in assets
under management and a pipeline of CHF 1.1 billion, develops tailor-made
services and real estate solutions for third-party clients. Swiss Prime Site
Solutions AG has been approved as a fund manager by FINMA pursuant to Art. 2
(1)(d) in conjunction with Art. 5 (1) FinIA.
THIS PRESS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF AMERICA AND
SHOULD NOT BE DISTRIBUTED TO UNITED STATES PERSONS OR PUBLICATIONS WITH A
GENERAL CIRCULATION IN THE UNITED STATES. THIS DOCUMENT DOES NOT CONSTITUTE
AN OFFER OR INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES. IN
ADDITION, THE SECURITIES OF SWISS PRIME SITE AG HAVE NOT BEEN REGISTERED
UNDER THE UNITED STATES SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR
DELIVERED WITHIN THE UNITED STATES OR TO U.S. PERSONS ABSENT FROM
REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE UNITED STATES SECURITIES LAWS.
____________________________________________________________
1908741 22.05.2024 CET/CEST
flow yield in first half of 2023/2024
Swiss Prime Site Solutions / Key word(s): Half Year Results/Real
Estate
Swiss Prime Site Solutions Investment Fund Commercial achieves
strong cash flow yield in first half of 2023/2024
22.05.2024 / 10:00 CET/CEST
____________________________________________________________
Press Release
The Swiss Prime Site Solutions Investment Fund Commercial («SPSS IFC»)
achieved a cash flow yield of 2.75% in the first half of the 2023/2024
reporting period. The fund has thereby comfortably exceeded the target range
of 1.75%-2.0% after six months. The high cash flow yield corresponds to
earnings per share of CHF 2.74, which means more than 60% of the target
dividend per share has already been reached at the halfway point of the
year.
Relative outperformance of +12.77% versus SWIIT since launch
In a challenging market environment, the SPSS IFC has achieved a total
return of +7.24% in the period from its launch on 17 December 2021 up to 31
March 2024. This represents a relative outperformance of +12.77% versus the
SXI Real Estate Funds Total Return Index (SWIIT), which was down by 5.53% in
the same period.
Low vacancy rate and increase in net revenue
The fund's strong asset management is reflected in the vacancy costs.
Vacancies, which had increased due to acquisitions, were almost halved in
the past 12 months. As a result, the vacancy costs of the fund are currently
very low at 1.7% (H1 2022/2023: 3.2%). Among other achievements, the «Centro
Lugano Sud» property was fully let as of the balance sheet date for the
semi-annual report. The rent default rate was further reduced to 1.6% (H1
2022/2023: 3.7%) and thus remains low.
Net revenue up by 2% and WAULT stabilised at a high level
Net revenue increased by 2% compared with the first half of 2022/2023. Among
other things, this was due to the high indexing rate of -95% and the further
reduction in vacancies. The low vacancy costs made a significant
contribution to a high EBIT margin of 86% at property level. The weighted
average unexpired lease term (WAULT) stabilised in the first six months and
stood at 5.5 years on the balance sheet date.
Implementation of the sustainability strategy
Sustainability is considered an integral component of the SPSS IFC's asset
management. Almost 60% of the energy mix is generated by heat pumps. The
fund has created ten-year investment plans and a CO2 reduction pathway for
all properties and integrated these into the portfolio and asset management.
In addition, the fund has secured 17% of the target rent through «green
leases» and further rolled out the installation of automated energy data
readers. The fund is participating in a complete GRESB assessment in the
current financial year and has signed the UN Principles for Responsible
Investment.
Selective portfolio growth
No acquisitions or sales were made in the first half of the 2023/2024
financial year. The fund will selectively expand its portfolio through
acquisitions, with a focus on generating an attractive and sustainable cash
flow yield. The sourcing is focused on SMEs in order to open up interesting
off-market acquisition opportunities. The fund is aiming to increase the
share of properties in German-speaking Switzerland. There are currently some
very attractive acquisition opportunities in the pipeline with a net return
of over 4.5%.
Fund profile
The Swiss Prime Site Solutions Investment Fund Commercial is aimed at
qualified investors and primarily invests in commercial real estate in
established business locations throughout Switzerland. The investment focus
is on broad diversification, high cash flow stability and attractive
risk-return profiles. With an investment strategy that maintains an
anti-cyclical focus on commercial properties, the SPSS IFC utilises
attractive investment opportunities and offers enhanced protection from the
effects of inflation with a high indexing rate of over 95%. SPSS IFC is the
direct owner of the real estate; as such, taxes on income and capital gains
are pre-paid by the fund itself, making them tax-free to investors (private
and business assets) who are resident in Switzerland.
Detailed information and presentation
A recording of the presentation for the 2023/2024 semi-annual report can be
found at the following link:
* Executive version (-6:00 mins)
* Extended version (-15:00 mins)
For additional information, see our website.
Semi-annual report (PDF)
Press release (PDF)
Zug, 22 May 2024
* Strong cash flow yield of 2.75% in first six months is well above target
range
* Relative outperformance of +12.77% versus SWIIT since launch
* Vacancy rate halved to a low 1.7%
* Net revenue up by 2%
If you have any questions, please contact:
Monika Gadola Hug, Head Client Relations
Tel. +41 58 317 16 31, monika.gadolahug@sps.swiss
Andrea Schaller, Media Relations
Tel. +41 58 317 17 51, andrea.schaller@sps.swiss
Swiss Prime Site Solutions AG
Swiss Prime Site Solutions is a group company of the listed Swiss Prime Site
AG. The real estate asset manager, which has CHF 12.6 billion in assets
under management and a pipeline of CHF 1.1 billion, develops tailor-made
services and real estate solutions for third-party clients. Swiss Prime Site
Solutions AG has been approved as a fund manager by FINMA pursuant to Art. 2
(1)(d) in conjunction with Art. 5 (1) FinIA.
THIS PRESS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF AMERICA AND
SHOULD NOT BE DISTRIBUTED TO UNITED STATES PERSONS OR PUBLICATIONS WITH A
GENERAL CIRCULATION IN THE UNITED STATES. THIS DOCUMENT DOES NOT CONSTITUTE
AN OFFER OR INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES. IN
ADDITION, THE SECURITIES OF SWISS PRIME SITE AG HAVE NOT BEEN REGISTERED
UNDER THE UNITED STATES SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR
DELIVERED WITHIN THE UNITED STATES OR TO U.S. PERSONS ABSENT FROM
REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE UNITED STATES SECURITIES LAWS.
____________________________________________________________
End of Media Release
____________________________________________________________
Language: English
Company: Swiss Prime Site Solutions
Prime Tower, Hardstrasse 201
8005 Zürich
Switzerland
ISIN: CH1139099068
Valor: 11390990
EQS News ID: 1908741
End of News EQS News Service
____________________________________________________________
1908741 22.05.2024 CET/CEST
